AI and Blockchain are the pinncale of technologies of our century. Where blockchain offers a decentralised platform for the users and their data, AI provides the intelligence and insights to that data. Together they pave the way for a futuristic approach to solving our day to day life problems with enhanced optimisation and precision.
Lets start with understanding what Blockchain and AI are.
Blockchain
Blockchain is a decentralised platform withn shared and immutable ledger with transparent exhange of encrypted data. Blockchain helps with tracking orders, payments and accounts, healthcare, productions etc. Blockchain helps to bring trust and confidence with data.
AI
AI uses computers, data, even machines to mimic the problem solving, decision making and other capabilities of human beings. AI is also composed with Deep Learning and Machine learning, which uses the AI algorithms to make predictions, and better decision making as well. Some advantages of AI includes completing repetitive tasks and preparing customised experience.
Integration of Blockchain and AI introduces us with a very interesting feature trio- Authenticity, Augmentation and Automation.
Authenticity
We know that AI models feed into the data provided to them to make predictions or to make decisions, but whats the surity that the data is right and reliable. Blockchain ledger can be used to store the tried and tested data in a transparent and secure way, then this authentic data can be then fed to AI which will then be used for AI functions.
for example: In healthcare system, patient's data can be authenticated by storing it on a blockchain and then this data can be used by AI systems for diagnosis.
Augmentation
Augmentation is AI's ability to enhance human decision-making by providing insights, recommendations, and solutions based on data, and we know that blockchain helps with securing and authenticating data. Pairing AI with Blockchain will allow the formation of augmented data which enables better decisions in areas like finance, logistics and supply chain managements etc.
for example:In supply chains, blockchain ensures the traceability of goods, while AI analyzes the data to optimize routes, reduce costs, or predict delays.
Automation
Automation means AI capability to perform tasks without human intervention. We can use blockchain smart contracts to enable automatic proccesses like payments and approvals, which gets triggered by specific condtions, AI can be then used to make these processes more efficient as it can analyse complex situations and help to trigger the proccesses at the right time.
for example:In insurance, smart contracts on blockchain can automate claims processing, while AI assesses damage using data from uploaded images, ensuring faster and fairer settlements.
Combining AI and blockchain can allow us to unlock new possibilties which can generate vast productivity in our applications.
Let's explore few of those use cases.
1. Security
AI can be used to track unusual patterns in real-time, meanwhile Blockchain can ensure the integrity of data that needs to be audited. Blockchain based programs can be conbined with AI to handle identity management which helps to enhance security(such as biometrics).
2. Pharma
From ensuring transparent and immutable records of clinical trial data while AI analyzes the outcomes and identify the trends. Blockchain can be used to track down the drug's lifecycle, from production to delivery and AI can analyse this lifecycle for better tracking.
3. Data Storage
Blockchain helps to store data in a decentralised and transparent platform with privacy meanwhile AI can work on this data to organize and retrieve important details with effciency and accuracy with attention given to protect all the sensitive informations.
4. Finance
AI identifies suspicious activities like money laundering and blockchain helps to audit the trail. We use smart contracts in blockchain which can enforce the execution and records o transactions and then AI can optimize these contracts.
Challenges in the integration
1. Computational Power
Integrating AI with Blockchain or vice versa will require a lot of computational power, scalabilty and this will also be very expensive. We can use smaller AI models with better optimization techniques to reduce resource internsive programs and high consumption of energy.
2. Security Issues
AI feeds on a large amount of data, but proving an AI tool with sensitive data can impose risks of data security and may violate different acts like HIPAA.
3. Data Quality
AI models require quality data to work on and give the results, but the blockchain platforms can store data which are outdated or inaccurate. Including oracle to validate real-time data before feeding it into blockchain smart contracts or introducing data verification before giving the data to AI models can help to solve this issue.
4. Regulatory Uncertainity
Regulations for implementing AI and blockchain may be different for different regions which might stand as an issue for developers and buisnesses to implement them together. Staying updated about the changing rules and regulations can be helpful along with audting the data kept in blockchain regularly can help us to curb this issue.
Real Life Application
Fetch AI is a semi decentralised, semi AI powered open source platform which provides users with tools to create Autonomous Economic Agents(AEAs). Agents are software programs, widely known as Smart Contracts, on the Fetch platform. These agents can communicate with each other and make external API requests. They are used for performing tasks like data sharing, process automation, and value exchange in a decentralized manner. These decentralised AI agents independently perform all these tasks in a secure, transparent and trustless communication platform.The token used in Fetch AI is FET.
Applications of Fetch
1. Smart Cities
Fetch AI agents can be used to monitor the traffic in metro cities to provide better experience for commuters. They can also perform parking system and energy distribution tasks.
2. DeFi
Fetch AI executes tasks like yield farming and enables efficient trade executions and liquidity management.
3. Travel Guide
These agents can also automate booking of hotel rooms, finding the transport and cost efficient travel plans.
Wrapping Up
When one industry faces a problem, the other shows up.... Where Blockchain stores data efficiently, AI makes it better. There are numerous ways this technology combination can help and heal our cybersecurity issues while giving the best results as well. Feeding AI models data which is reliable and trustworthy helps to get finer results with better future aspects for the results to grow and help people.
Integrating Blockchain and AI is a very difficult process and this might take many years to get implemented, yet I believe that the combination of these giants can create a space for developers, buisnesses, people and organizations to work and live in a protected data driven world.
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