Initially, organizations used Artificial Intelligence to monitor and analyze activity on the Blockchain in real-time. This has resulted in creating patterns and identifying specific threats, allowing for a much more efficient response to security breaches that endanger operators and communities within the network.
As a result, some companies have taken a step forward and decided to enable better management of decentralized networks and artificial intelligence.
Another function in which artificial intelligence can also be employed is detecting theft or fraud attempts and analyzing and identifying anomalies and patterns in the behavior of transactions on the blockchain network.
This use case would help provide a faster and more accurate response to any attempted crime and, in turn, protect users’ interests. All this after one of the most famous platforms in the market, FTX, has gone bankrupt and left little positive news regarding the security of its users.
Finally, the Blockchain can assist artificial intelligence in being more coherent and making it much easier to understand how algorithms make decisions, providing complete traceability of processes. Additionally, the Blockchain enables the recording of data and its possible variables, which can influence the decisions made by the algorithms.
Advantages of the Blockchain
We have already mentioned some of the advantages offered by blockchain technology. However, it is essential to note what other benefits this technology provides.
Lower costs and greater security: Blockchain technology enables secure person-to-person (P2P) transactions. Thanks to this, a third party’s participation is no longer necessary to validate data. As a consequence, there is a significant reduction in costs.
Authenticity of the information: Due to its properties, once miners thoroughly verify the transaction data, this information cannot be falsified or erased, providing total security.
Anonymity: Only this validation is visible once transactions are authenticated within the Blockchain. Data from any other network used for another operation can never be viewed, thus maintaining the anonymity of all users.
Speed: Since Blockchain technology is fully decentralized, there is no need for a third party to verify and verify the transaction. The information contains open code that allows verification to be instantaneous and unbreakable.
Impact of Artificial Intelligence on Society
Implementing tools such as artificial intelligence in the blockchain world can represent a significant technological step in task automation. This would give the possibility to think about what needs to be done rather than the process itself, enabling the definition of solid architectures and reinforcing security while an assisted system performs repetitive tasks.
However, we must remember the problems that could develop thanks to artificial intelligence. On the one hand, it could lead to market polarization in which some jobs created and developed by humans are replaced by technology. In addition, this could cause people to lose their jobs since artificial intelligence could perform these activities in less time and at a lower cost.
Moreover, there may be concerns about the security and privacy of information since this system would have access to sensitive data of great value to people.
However, artificial intelligence will become a valuable tool for blockchain technology and cybersecurity. It can offer an excellent opportunity to improve development efficiency.
Head-to-Head. Blockchain vs. Artificial Intelligence
Artificial intelligence and blockchain technology have a promising future in the coming years, and both are here to stay and revolutionize technology. However, these technologies have their differences and issues when compared. For example, one of the most striking problems of Blockchain is security. Artificial intelligence, on the other hand, has reliability issues.
AI-Blockchain and Its Future Applications
The integration of artificial intelligence and blockchain technology has been successful in several sectors, enabling the creation and organization of many databases and strengthening security protocols. This isn’t just about looking into the future; it’s also about companies that are already using Artificial Intelligence with Blockchain technology. Accordingly, a few of the cases we’ve identified will be discussed.
Nokia is an example of a company that has launched a service called Nokia Data Marketplace. This service helps streamline and facilitate the exchange of data and AI models, which can lead to digital transformation and monetization.
Another company, CryptoGPT, recently raised $10 million to promote its infrastructure with artificial intelligence and Blockchain. Their goal is to create a blockchain environment that manages, owns, monetizes, and uses data through artificial intelligence. Many other companies also employ blockchain technology with artificial intelligence to optimize processes. The impact of these two technologies working together will be most significant in three sectors: data networks, financial transactions, and the healthcare sector.
Distributed data networks can make data transactions much faster and cheaper than traditional projects that need to be analyzed and monitored by a central system. Blockchain tokens can be used in financial transfers, and many financial companies are considering implementing blockchain technologies to become more efficient.
The healthcare sector transfers many data and requires privacy, making it vulnerable to cyber-attacks. Blockchain technology can ensure that data is private, while artificial intelligence can improve security weaknesses and strengthen the system against cyber-attacks.
We need to ensure decisions and operations of AI are in tune with our ethics. We have seen that AI can be biased and discriminatory based on data it has been trained on. This bias could be deliberate or due to incomplete data. Failure to demonstrate that the issues raised due to violating ethics and preferences could undermine trust. And impact the usefulness of the positive outcomes that can be achieved.