By Alankar Saxena
Artificial Intelligence (AI) and blockchain are two vital and fast-evolving technologies of the modern era. AI is a computer science field that enables machines to perform tasks that traditionally require human intelligence. In contrast, blockchain is a decentralized ledger that provides a secure and transparent way to store and protect data. Although both technologies serve different purposes, when integrated, they have the potential to revolutionize our lifestyles and work practices. Let’s start with learning about each of them to understand better how they can transform our lives.
What is Blockchain Technology?
Blockchain technology is a decentralized digital ledger or a digital book that collects and stores information securely and transparently. It works like a chain of blocks where each block contains a set of data linked to the previous block in the chain, creating a permanent record that cannot be either deleted or altered.
For example, consider a blockchain-based system for tracking the ownership of a piece of land. Each time the land is sold or transferred, a new block containing the transaction details is added to the chain. This creates a permanent and transparent record of all ownership changes, which anyone on the network can verify. As a result, it becomes much more difficult to commit fraud or falsify ownership records.
What is AI Technology?
Artificial Intelligence, or AI, is a technology that enables machines to perform tasks that would typically require human intelligence, such as learning, problem-solving, and decision-making.
Consider Siri or Alexa, the virtual assistant that we use on a daily basis. It is nothing but AI technology. These assistants can understand and respond to human voice commands and learn and adapt to user preferences over time. They use machine learning algorithms to analyze data and make predictions or recommendations without human intervention.
How can Blockchain and AI Transform the World?
AI has been instrumental in augmenting industries and propelling growth, while blockchain has been extremely versatile and is transforming the encryption and utilization of data. Even though they are distinct, they can work together differently to change the world.
Enhancing Transparency in the Supply Chain
Businesses can use technology to improve their supply chains by using blockchain and AI together. Blockchain is like a digital ledger that can track every step in the supply chain, from the raw materials used to make a product to the finished product itself. This can help businesses keep track of their inventory and ensure that they use sustainable and ethical practices throughout the production process.
AI can then analyze this data and identify areas where the supply chain could be improved. For example, AI might identify a supplier who consistently delivers raw materials late, causing delays in production. By addressing this issue, businesses can improve their efficiency and reduce waste, benefiting everyone involved.
Helps Managing Healthcare Data
Blockchain is a technology that allows data to be stored in a secure and decentralized way, so it cannot be easily tampered with or accessed by unauthorized people. In healthcare, this means that patient data can be stored on a blockchain, where it is encrypted and protected. This data can include things like medical records, test results, and treatment plans.
AI, or artificial intelligence, is a technology that can analyze large amounts of data and identify patterns or trends. By combining Blockchain and AI in healthcare, doctors and researchers can access this data and use AI algorithms to analyze it.
For example, they could look for patterns in patient symptoms or test results to identify a disease or condition earlier than they would have been able to otherwise. This could lead to more accurate diagnoses, personalized treatment plans, and ultimately better patient health outcomes.
Helps Financial Services in Identifying Fraud
A decentralized system means that there is no central authority controlling it. Instead, it is run by a network of computers. Blockchain technology can be used to create a decentralized system for managing financial transactions, which means that all the transactions are recorded on a secure and transparent ledger that everyone can see.
AI can analyze these transactions and identify potential fraud or risk. For example, suppose there is a sudden large transaction on an account that has never had such a transaction before. In that case, the AI can flag it as potentially suspicious and notify the appropriate parties to investigate further. This helps to prevent fraud and ensure that financial services are secure.
The combination of Blockchain and AI can make financial services more efficient, secure, and accessible to people lacking traditional banking services. For example, in some parts of the world, people don’t have access to banks, but they do have access to mobile phones. Blockchain technology can be used to create a decentralized financial system that operates through mobile phones, while AI can be used to ensure that the system is secure and to prevent fraud.
Conclusion
Overall, integrating two modern-era technologies, AI and Blockchain, can help industries provide better services and products for their users more securely and transparently.
The author is CTO, Co-founder, Mudrex, a crypto investing platform
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