The 21st century has seen incredible advancements in technology. Artificial intelligence (AI) has increased productivity in various sectors while also enabling a new level of machine automation. Another field that is rapidly growing in interest is decentralized systems and blockchain-based technology.
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Blockchain Applications in Business Processes
Uses of blockchain technology have provided a breath of fresh air for the digital community, mainly through distributed ledgers and smart contracts. When merged, AI and blockchain technology offers a powerful way to automate.
One of the most known industrial innovations of blockchain technology is its use in the world of cryptocurrency and digital currencies. This, however, is only a small subsection of how blockchain technology is used today; industries such as financial services, smart cities, healthcare, supply chain monitoring, and digital asset trading are just a few others.
The main industrial innovation brought about by the use of blockchain technology is the decentralization of data in an immutable way that cannot be changed. This means that data of any form can be transferred from one individual to another without any central authority having the ability to alter, intercept or remove the data from its blockchain.
Due to its decentralized nature, this also provides some transparency within the blockchain network as each transfer can be searched and authenticated. When combined with the innovations of smart contracts and oracles, we see blockchain technology also used to incorporate real-world data in the digital world.
Blockchain technology provides a whole new array of options for businesses to run their organizations with machine learning techniques. An example of this is in the finance industry. Decentralised finance (DeFi) has exploded in the past year, offering similar products to those in the traditional finance sector with the added bonus of anonymity and automation.
Another widespread use is that of supply chain monitoring. In this, blockchain technology can house the data that shows the journey of a product from production to sale. Artificial intelligence can be used in situations such as these to predict the quality of a product or predict how much of a product will be required within a specific time period.
How does a blockchain work - Simply Explained
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The combination of blockchain and AI here has the effect of ensuring that products are moved from one place to another in an efficient and transparent way, reducing waste. VeChain is one such project, boasting partnerships with companies such as LVMH, Walmart China, BMW Group and H&M.
AI and Blockchain Technology in the Medical Sector
The combination of blockchain and AI technology here has the effect of ensuring that products are moved from one place to another in an efficient and transparent way, reducing waste. VeChain is one such project, boasting partnerships with companies such as LVMH, Walmart China, BMW Group and H&M.
With the ability to store data between anonymized users, blockchain has provided a solution for the medical industry regarding data storage. Many public medical services lack a centralized database of patient data, meaning that it is not uncommon for patient records to be lost when transferring information between health centers.
Due to this lack of connectivity, it becomes difficult for doctors within the same healthcare system to access patient data if they are not part of the same Trust. This problem only worsens when considering the case of needing to access patient data from abroad.
Blockchain technology addresses this problem by providing a way for data to be accessed by a specific user, with AI allowing heightened data security through biometric data. Due to the data on the blockchain being stored on a distributed network, the security of a patient's personal data is increased. In addition, with the predictive capabilities of artificial intelligence added to this data on the blockchain, it is possible to create a connected system where pharmacies and hospitals can determine what treatments will be needed by whom before they are required.
However, artificial intelligence and blockchain technology are not only tools for use by large organizations. Using AI algorithms (commonly termed bots) have been used by many for arbitrage and trading between crypto-assets.
When listed on exchanges, crypto assets are usually compared with fiat currency or another crypto asset, referred to as a pair. However, the value of the assets in these pairs can fluctuate in line with market conditions and public sentiment.
To capitalize on this volatility, investors can use artificial intelligence algorithms designed to predict the change in the price of an asset and automatically make or end a trade. This has allowed many individuals to make passive income by offloading their trades to an algorithm. This idea has seen a lot of interest, and the company Numerai has set out its goal to develop an algorithm that can do just this for the traditional markets.
Together, blockchain and artificial intelligence technologies provide a pairing that improves the efficiency, transparency and security of many organizations today. As such, blockchain and AI will become integral to the functioning of many future companies and cities, already showing major use cases today. These industrial innovations will also become integral to the day-to-day lives of the average person for things such as monitoring personal finances and health monitoring.
References and Further Reading
Salah, K., Rehman, M.H.U., Nizamuddin, N. and Al-Fuqaha, A., (2019) Blockchain for AI: Review and open research challenges. IEEE Access, 7, pp.10127-10149. Available at: https://ieeexplore.ieee.org/document/8598784
Dinh, T.N. and Thai, M.T., (2018) Ai and blockchain: A disruptive integration. Computer, 51(9), pp.48-53. Available at: https://ieeexplore.ieee.org/document/8481263
Wang, K., Dong, J., Wang, Y. and Yin, H., (2019) Securing data with blockchain and AI. Ieee Access, 7, pp.77981-77989. Available at: https://ieeexplore.ieee.org/abstract/document/8733072