The Dawn of Artificial Intelligence and Blockchain

Chronicle of Blockchain technology

In 2008, Satoshi Nakamoto released a white paper which offered a solution to digital transaction privacy, laying the foundation for the development of cryptocurrencies. The next stage saw growth of Bitcoins and the underlying technology of Blockchain. In Simple terms, a blockchain is an expanding sequence of records, also called blocks, which are safely linked together with cryptography. Every block stores a cryptographic hash of the earlier block, a timestamp and transaction data. The blockchain data is inherently resistant to alteration. It is estimated, nearly 15% of financial enterprises are using blockchain technology.

The method of chaining different data blocks together is a technique called “distributed consensus.” Further, multiple networks participate in approving the records of data to be true or false by being processed by checking cryptographic algorithms (called hashing). In this way, when a Bitcoin transaction is initiated, it is formed into a block. The miners check and verify if the transactions are authentic by solving a mathematical problem. The problem takes extraordinary computational power to answer, and if the miner explains the algorithm he gets a reward, and that particular record gets stored in a ledger. The security features of this technology make hacking and alteration of data almost impossible. Technology evangelists predict that by 2020 the many enterprises in global trade will use this technology.

The merger of AI and Blockchain

AI distinguishes between patterns and datasets, making and assessing decisions. While Blockchain keeps a record of information in blocks having security features. Hence, these two appear to be different technologies at present, but can seamlessly integrate in the future.

Data Sharing: Artificial Intelligence depends significantly on Big Data. So if the data is open to analyze, the predictions done by the algorithm would be more authentic.

Privacy protection: Artificial Intelligence as well as Blockchain needs a high level of security. While Blockchain is almost impossible to hack but its further layers are not secure enough. Therefore, AI which has progressed more in the last two years can guarantee security in Blockchain while deploying the application.

Enhances the level of Trust: If the technology viewed as a threat to consumer economics, there is no chance it can advance or widely accepted. Hence, for AI and Blockchain technology to survive in today’s time, it needs to improve security and usability aspects. In the future all the information will shift to Blockchain and companies will have to take help of AI to automate granting access to our data, tracking data usage.

Total cost: The running cost including validating and sharing transactions in Blockchain is estimated to be like $600 million a year. The price can be lowered if Machine learning is used to compute the miner’s job and to increase the efficiency.

In conclusion, Blockchain and AI technologies are poles apart. While Blockchain is a distributed ledger of data which promotes decentralization in the open data environment, Artificial Intelligence supports centralized intelligence on close data platform. A project to utilize the best aspects of both technologies will enable new functionalities. These two technologies are a future solution to many enterprises which include Hiteshi Infotech.