How Blockchain Benefits From Artificial Intelligence

Despite the clear challenges brought about by the global health crisis, we still cannot deny its impact on the further digitization of our world. The numbers reveal what is already apparent: we are entering a golden age of technology.

Even recent market trends reflect this growth. Let’s just say that today is the perfect time to refine your crypto investment strategy.

For instance, in blockchain technology alone, current statistics show that the 2021 worldwide market has more than doubled in size than it was in 2019.

This same growth is being seen in AI tech as well. According to recent statistical reports, revenue in AI tech went from 2.8 to 7.7 billion U.S. dollars.

Thus, experts predict that both of these technologies are going to be further implemented into business systems and services.

The biggest companies are quickly starting to adapt. Some of the main players in the Forbes Global 2000 list that are already implementing blockchain technologies include Apple, JPMorgan, and Berkshire Hathaway.

Hence, this leads to the question: are there benefits in combining the two?

Yes, there are.

How Blockchain Benefits from AI

Here are some of the benefits that blockchains and AI gain in collaboration with each other.

Enhanced Cybersecurity

Artificial intelligence is a technology that heavily relies on the continuous flow of high volumes of data. The problem is, that it also attracts a lot of cyberattacks.

After all, according to a report by The Economist, data is now the most valuable resource in the world, replacing the century-old giant, oil. Fortunately, blockchain is perfect for enhancing data security due to its inherent encryption and tracking features.

Blockchain can also benefit from this arrangement as well, since it gives the technology more applications and thus, a wider market.

Increased Acceptance

One of the challenges that any new technology brings is fear and distrust. It’s human nature to be wary of the things that we don’t fully understand yet.

However, through the use of blockchains and AI together, it will be possible to record the processes being done by these systems that of course will provide more transparency, not just for blockchains alone but in AI as well.

Since transparency will be addressed, its integrity will increase. Traditional client-server applications store data in a centralized server. However, with blockchain technology embedded into AI, the duplication of information can be avoided.

Stronger Consensus and Better Decision-Making

One of AI’s contributions is providing logical decisions, while blockchain technology offers consensus-based transactions.

People’s concern regarding AI is its decision-making process. There are times that it doesn’t apply to humans, especially when it comes to emotions. With blockchain technology, every decision needs an agreement between the respective parties. It’ll be highly impossible to access without authorization, let alone tamper with the data without consensus.

Increased Access

Since AI is a priceless commodity already, it is, therefore (and quite unfortunately) becoming increasingly unavailable to smaller companies and startups.

Fortunately, thanks to the added security and management abilities that blockchains provide, this allows data banks to provide more people access to them than ever before. It makes the market more competitive, not just for data giants, but for everyone in the multi-industry of blockchains, AI, and beyond.

You don’t even have to be in tech to access such volumes of data anymore. For instance, you can only imagine the wealth of information this presents for marketers, retailers, and other businesses.

Optimized Energy Consumption

One of the significant issues in today’s modern world is data mining, as it consumes a lot of energy. Machine learning can deal with the issue. According to Google, this technology had allowed them to reduce the energy consumption to cool their data centers by 40%.

In the energy sector, blockchain offers a promising feature regarding facilitating and recording transactions between generators and energy consumers. On the other hand, AI can ensure and collect data regarding energy consumption in the form of numbers, texts, images, and videos.

Other benefits include data tracking and analysis.

It’s also worth noting that the efficiency brought about by these technologies also helps in optimizing energy consumption.

Added Features

Indeed, blockchains have a lot of applications, but most of them aren’t always viewed as a necessity for businesses outside the tech arena. But when combined with AI, this gives blockchain companies the ability to provide added features to their clients, thereby further increasing the demand.

Artificial Intelligence and Blockchains

These technologies do seem as if they’re made for each other. AI provides more applications for blockchains. Meanwhile, blockchains provide them with added security, tracking, and management.

The most exciting part is that both of them are still developing exponentially every year. The future only knows what innovators have further in store. We’re sure that we’ll be seeing more AI and blockchain combinations, though.

Regardless, these are definitely technologies that you would want to incorporate into your business soon, especially if you want to stay ahead of your competitors. Good luck!