Block chain and AI in digital transformation

Blockchain And AI: A Powerful Combination in Digital Transformation

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Blockchain And AI: A Powerful Combination in Digital Transformation

There’s an undoubted charm of AI when it comes to digital transformation trends. But have you ever heard of the combination of AI and blockchain?

These two are the hottest technology trends right now. So in this article, let’s find out why are these two concepts are such a perfect duo in technology with TECHVIFY Vietnam. And see how your business can make use of this trend.

What is blockchain technology?

Blockchain is a system that acts as a public ledger of transactions, recording information to make it difficult or impossible to change, hack, or cheat the system. This allows users to achieve security that protects them from data modification.

Each of the blocks in the blockchain is connected to the previous block, creating a chain of peer-to-peer connected networks. The information will be duplicated and distributed across the entire network of computer systems on the blockchain.

There are two major classifications in blockchain technologies: PoS and PoW. PoS is largely seen as a largely scalable version of Proof of Work (PoW) consensus commonly used in Bitcoin, which utilizes significant energy expenditures.

What is AI?

AI, or artificial intelligence, is known as the ability to simulate the human intelligence of machines. These machines are developed to compute to work like humans and complete their actions. AI refers to any machine that exhibits human traits related that involve learning and problem-solving.

AI is developed to minimize human errors. AI technology integrated the precise working behavior of machines with flexibility in analyzing and solving problems of human minds, Aiming at an intelligent, error-free, and flexible system.

How do they support each other in digital transformation?

PwC has predicted that by 2030, AI will add up to $15.7 trillion to the world economy, and as a result, global GDP will rise by 14%.

On the other hand, according to Gartner’s prediction, business value-added by blockchain technology will increase to $3.1 trillion by the same year. So how do these two hot trends, blockchain and AI support each other?

Blockchain has many issues related to security, scalability, and efficiency, while AI’s mAIn issues are explainability, trustworthiness, and privacy. So when they are combined into one system, blockchain and AI work as each other’s perfect match:

  • Blockchain for AI (confidentiality and privacy)
  • AI for Blockchain (Security and transparency)
blockchain and AI work as each other’s perfect match
blockchain and AI work as each other’s perfect match

In other words, where AI faces issues around trust & authenticity, blockchain comes to the rescue, while AI solves the security issues for blockchain. They support each other coordinately as a dynamic duo.

Together, they create the machine learning concept and a store of transactions that is secure, private, and capable of changing how the world manages governance and security, and trust in finance.

What benefits do AI and blockchain have to offer?

  • AI and encryption work very well together

Blockchain databases hold their information in an encrypted state. This means that only the private keys must be kept safe in order for all the data on the chain to be secure.

On the other hand, an emerging field of AI is concerned with building algorithms that are capable of working with data while it is still in an encrypted state.

As any part of a data process that involves exposing unencrypted data represents a security risk, reducing these incidents could help to make things much safer.

  • Blockchain can help us track, understand and explain decisions made by AI

Decisions made by AIs can sometimes be hard for humans to understand. If decisions are recorded on a blockchain, it makes it far simpler for them to be audited, with the confidence that the record has not been tampered with between the information being recorded and the start of the audit process.

  • AI can manage blockchains more efficiently than humans

Without explicit instructions on how to perform a task, traditional computers cannot get them done.

Therefore, when operating with blockchain data on traditional computers, it requires large amounts of computer processing power to really exploit all the benefits of blockchain. In that case, AI, as a more intelligent and thoughtful manner approach, is here to give a hand.

A machine learning-powered mining algorithm would tackle its job by cracking more and more codes. That scope usually requires an expert who has spent his whole life practicing, but with AI, it could almost instantaneously sharpen its skills with the right training data.

blockchain and AI are two ground-breaking technological trends
blockchain and AI are two ground-breaking technological trends

In short, it is no doubt that blockchain and AI are two ground-breaking technological trends that have been proven to have more revolutionary potential when put together.

Just like Yin and Yang, blockchain and AI support each other seamlessly to conduct a flawless job. So, make sure your businesses have been armed with proper technology to gain the top rank in the digital transformation race.

Discover more in our new articles about another trend: Digital Workspace – A New Leading Trend Of 2021?

 

References:

https://www.upgrad.com/blog/blockchain-vs-AI/#:~:text=Here%2C%20the%20AIm%20is%20that,precisely%20for%20personalization%20and%20governance

https://www.bbvaopenmind.com/en/technology/artificial-intelligence/blockchain-and-AI-a-perfect-match/

https://bernardmarr.com/default.asp?contentID=1383#:~:text=Clearly%2C%20blockchain%20and%20AI%20are,for%20better%20oversight%20and%20accountability