3 Major Benefits Of Combining Artificial Intelligence And Blockchain

Updated: Nov 20, 2018

Here are three reasons why AI and blockchain are made for each other.

1. AI and encryption go very well together

It is widely acknowledged that the data on a Blockchain is highly secure by its nature, given the inherent system of cryptography in blockchain. This highlights the ability of blockchain for storing highly sensitive personal data which can unlock so much convenience and value in our life, if processed smartly.

For instance, consider smart healthcare systems that can analyze and evaluate our medical records and scans to make accurate diagnoses. The data fed into these systems are highly personal and would incur quite some cost from the businesses to meet the expected standards of data security. Yet data breaches leading to large scale data loss are common these days.

With Blockchain, the data are held in an encrypted state with only the private key to be kept safe for the protection of the whole data. Artificial Intelligence has also lots to offer when it comes to security. Studies are still on a particular field of AI that can evaluate and use data that is still in its encrypted state. This would reduce the instances of security risk to a great extent.

2. Blockchain can assist us understand, explain and track decisions by AI

In some cases, decisions made by Artificial Intelligence applications are difficult for humans to understand. AI applications are able to assess large numbers of variables independently to evaluate what is important to the task.

For instance, algorithms from AI are increasingly used to test the authenticity of financial transactions, whether they are fraudulent or needs to be investigated or blocked and so on. However for some time, it would require decisions that are audited for accuracy by humans.

In this case, recording the decisions on a blockchain, data point by data point will make it simpler to be audited with the understanding that the information added has not been tampered with.

Artificial Intelligence offers huge advantages in fields. However, its usefulness will stay severely limited, if it is not trusted and accepted by the public. Recording the process of decision making on Blockchain could prove to be a step towards achieving transparency and trust of the public.

3. AI can manage blockchain more effectively than humans

Traditionally computers are considered very fast and smart given their efficiency in processing complex computations. However, they are not able perform a task without the explicit instructions as to how to get the task done. This means that working on encrypted data on blockchain would take a great deal of processing power.

For instance, the hashing algorithm that is used to mine Bitcoin Blockchain blocks makes use of the Brute Force approach (trying every combination of characters till they arrive at the one that fits and can verify a transaction) for its computation. Using AI in Blockchain is an attempt to manage tasks in a more thoughtful, intelligent manner and to move away from the brute force approach.

Similar to a human expert who will get better and more efficient at cracking codes with experience, a machine powered mining algorithm could tackle the job same way, just that it can instantaneously sharpen its skills and not as long a human does, provided it is fed the right training data.

Artificial Intelligence and Blockchain Technology are technological trends that, while being ground breaking on their own rights, also has the potential to become even more radical when merged together. Both the technologies enhance the capabilities of the other, offering opportunities of better accountability and oversight.

Written By:

Dr Husam Awadalla


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