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- 1 Artificial intelligence is impacting almost every industry with its efficacy in providing solutions.
- 2 When this technology merges with blockchain, many other possibilities take place.
Artificial intelligence is the most discussed matter among professionals these days. Technology deserves all the attention as it revolutionizes the work ethics and culture in many industries. There are some specific domains where its impact has been resounding. Blockchain is one such industry that can greatly benefit from the power of AI.
Understanding AI and Blockchain
Artificial intelligence is known for mimicking human behavior while performing tasks better than them. It is noteworthy that AI technology has been around for quite some time now. However, it’s the rise of generative AI, platforms like ChatGPT and Midjourney that revolutionized it. These platforms interacted directly with the users and gave them personalized solutions based on their queries.
To make it possible, it processes reams of data with intelligence processing algorithms. The AI systems learn through analysis and data patterns. Blockchain, on the other hand, revolutionizes the way one deals with money. It replaces the centralized system with a decentralized governance with better transparency. It digitizes the usage of money by replacing the fiat currency with crypto assets.
Moreover, it eliminates the intermediaries and makes transactions faster, cheaper, and safer. Since the rise of AI, various industries have started using it. The blockchain-based projects have also made use of this technology and derived positive outcomes.
Here’s How AI is Benefitting Blockchain
Some interesting use cases have cropped up showing the usage of AI in blockchain-based operations. Notably, AI can reduce the energy consumption in the crypto mining operations. Using the historical data, the AI technology produced various suggestions that miners can implement. The estimated numbers show that mining hubs can curtail electricity consumption by 40%.
Furthermore, experts are mulling over the possibilities of AI implementation on data encryption in blockchain. While the distributed ledger ensures the protection of data, it hasn’t been invulnerable to cyber threats. Thus, experts feel that the blending of these two solutions can bolster security levels. Some even suggest that AI can make the handling of huge data on distributed networks more efficient.
Artificial intelligence can analyze the encrypted data flawlessly. It can authenticate the transactions with a better vetting process and minimize the chances of fraud. The learned professionals of both technologies have suggested some hypothetical use cases too. If these possibilities are substantiated, the outcomes can be incredible.
Finance: The incorporation of blockchain in the insurance industry could revolutionize how financial services manage data. It offers a secure, decentralized ledger that ensures the integrity and privacy of sensitive information, enhancing the speed and security of transactions.
Healthcare: Healthcare also deals with huge database, their examination, and the implementation of correct procedures. AI and blockchain can be a massive help in maintaining the efficacy and safety of operations.
Supply Chain: Supply chain operations require meticulous recording of events and goods. The blended solution will make this work better and faster.
The combination of AI and blockchain puts forth limitless possibilities. Not only do they limit the man-made flaws but they also improve the processes too. Blockchain brings decentralization and AI makes it more effective. They both complement each other in ways beyond imagination. Since both are adoptable, their merging can be very fruitful for many other domains too.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
