How Blockchain and AI are Being Combined for Groundbreaking Innovations

by | Aug 3, 2022 | Blockchain, Blog

Blockchain technologies are often mentioned in conjunction with artificial intelligence. However, the relationship between these two technologies isn’t always clear. As it turns out, when blockchain and AI are put together, unbelievable things can be achieved.

Both blockchain and AI are types of software in which the end goal is automation. In the case of blockchain, it serves as a way to automate verification processes in transactions, reducing or completely eliminating the need for central administrators or intermediaries. AI automates decision-making processes for different types of programs, devices, and machines.

Applying these principles in a cohesive manner leads to amazing innovations in all fields, from self-learning NFTs with unique personalities that can be taught and traded, to automated self-learning financial systems and wealth managers or even software that allow us to replace entire bureaucratic systems in organizations, improving efficiency in all fronts.

How do Blockchain and AI Combine?

Perhaps the most important element that blockchain and AI technologies have in common is their ability to organize data. Both technologies fulfill different roles when it comes to data, but the role that each of them plays can be extremely important.

A Blockchain is a distributed ledger that organizes data into a structure that is described as a chain of blocks, where each of the blocks contains information about transactions and, once sealed, cannot be altered in any way by a single party as it is distributed among multiple nodes. 

This, in turn, allows transactions to be carried out without central administrators or intermediaries, as the information on each node is corroborated by all the others.

AI can do a wide range of things, among them organizing and assessing statistical data in ledgers in order to find tendencies and react to them in certain ways.

Much like social media algorithms react to the engagement of users by recommending certain content to them, AI in financial ledgers can react to user transactions, not just on an individual basis but on a large scale.

In practice, blockchain AI systems can be used to improve the efficiency of business networks, create a safer and more transparent data economy, automate financial and organizational processes, enhance data security, and an infinity of other purposes.

Use Cases for Blockchain and AI

To name every single thing that could be done with AI blockchain technology would be impossible. 

The innovations that can be brought by combining these two technologies can revolutionize almost every single industry, change the internet as we know it, and improve everyone’s lives to an unimaginable extent.

To illustrate some of the ways in which this is occurring, here are a few concrete examples of AI and blockchain being used in conjunction to this very day.

Healthcare

Various companies are using AI and blockchain to provide software systems that manage patient data in a way in which physicians receive the necessary information to provide the best possible healthcare service without compromising the patients’ privacy.

Likewise, when AI and blockchain are combined, healthcare organizations can skip a lot of the bureaucratic processes required to approve services and procedures, allowing private and public healthcare service providers to save not just incredible amounts of money but also many lives.

Energy

By allowing for more effective use of data, along with decentralized systems to process it, various energy companies around the world are using blockchain and AI in conjunction to innovate the industry in multiple ways.

One of them is by employing smart contracts to gather and distribute information about the practices of energy companies in terms of energy-saving and environmental friendliness to allow potential investors to access this information without compromising the security and privacy of the companies.

This helps promote a more transparent market where good practices are rewarded while data is kept and gathered securely without third parties, allowing the prevention of potential conflicts of interest in the data gathering and the exercise of regulations.

AI and blockchain are also being used to decentralize the energy market by providing platforms for direct P2P energy trading, which not only reduces the costs of trading and delivering energy by reducing intermediation but also promotes an independent and secure market for clean energy.

Entertainment

AI is already being used by entertainment platforms such as Netflix and Spotify to enhance audience analytics and improve the user experience through customized content recommendations. However, blockchain can help take these processes to the next level.

The way blockchain can come into play in these types of services is by employing Proof-of-Engagement (PoE) tools, which can make for interesting customized and automated payment methods based on variables such as view times as well as other unique forms of engagement that can be tracked and assessed through AI.

Finances

We’ve all seen the types of innovations that can be achieved through blockchain in the world of finances. Decentralized finance platforms are treading more ground with each passing day, allowing for the creation of innovative financial instruments, efficient and safe decentralized remittance, trading, investing, and so on.

When coupled with AI, these types of innovations can be taken to a whole new level. Because ledgers in blockchain are decentralized, AI technologies can use their information to develop highly efficient forms of automated accessible wealth management and messaging through AI crypto.

Blockchain and AI can also be used to automate suitability checking processes to allow companies in the financial industry to ensure the trustworthiness and quality of their partners without going through arduous verification processes, which can lead to a drastic reduction in the costs of doing business.

The flourishing AI crypto industry can also create many opportunities to provide highly efficient and uncostly financial services to solve the financial inclusion challenges the world currently faces.

In Conclusion

Artificial Intelligence and blockchain are two types of technologies that can generate many different innovations by themselves and are sure to become game-changers in multiple markets, ranging from finances to communications.

When put together, these technologies showcase their true potential, as their abilities to record, process, and assess data automatically and without intervention allow them to complement each other in incredible ways.

This complementary nature has given birth to a new and promising blockchain AI market with technological solutions that can be used to amazing effects within multiple industries and fields.

Here, we’ve touched but the tip of the iceberg when it comes to the different fields in which blockchain and AI can be put together to great effect. Healthcare, energy, entertainment, and finances are four of the countless industries that can be made more efficient and accessible through these technologies.

At the moment, many new and already established companies are revolutionizing their respective fields using blockchain and AI to optimize their financial processes, increase their organizations’ efficiency through smart contracts, and provide incentives for their employees and customers, among many other things.

 Only time will tell what breakthroughs will be made in the future when these technologies are massively adopted and developed to their full potential.

If you wish to learn more about  how blockchain and AI can come together, and other interesting innovations in the fields of blockchain and NFTs, you can meet some of the m8inds behind the most disruptive blockchain projects at NFT Expoverse

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