Does an Ideal Model Integrate Blockchain and Artificial Intelligence?
Blockchain and Artificial Intelligence (AI) are the two well-known fads in new technology, with blockchain having a wide range of positive uses and AI having progressed beyond lab experimentation.
Researchers are attempting to determine whether there is a correlation between AI and blockchain, even though both have deeply implanted modern technologies with dissimilar historical backgrounds. Blockchain is a shared, permanent ledger used to store encrypted data, and AI is the engine that enables a person to evaluate the data and conclude from it. While each technology has a complexity, combining blockchain with AI can have several advantages.
What is Blockchain?
A blockchain is a decentralised, open-source database that everyone in a distributed network can access and use. It allows for the easy posting and review of different types of transactional data.
Blockchain is a block-based system that is often consistent and uses hard structures to store records of data connected via hashes. In other words, the blockchain is the central record of all cryptocurrency transactions, including those using bitcoin. Every new transactional piece of data is added to a new block nearly every ten seconds, and blocks are added to the blockchain in a linear, sequential fashion. The blockchain holds all addresses and balances information from the first transaction to the most recent one saved in a block. The blockchain functions as a list of blocks, each containing several transactions. It includes a decentralised, permanent data store to support a growing user base. Asking questions about every transaction will increase transparency and build trust among all parties.
How Does it Work?
We already know that a blockchain is a chain of blocks. To add a block to a blockchain, the four steps listed below must be completed in the correct order:
- The transaction must take place
- The transaction must be verified
- The transaction must be stored in the block
- The block must be given a hash
Applications of Blockchain
We already know that a blockchain block stores information about financial transactions, but a blockchain is also a secure way to store information about other types of transactions, such as real estate transactions, positions in the supply chain, election results, etc.
The nature of blockchain is continuous; it never sleeps. The user can witness his transactions being processed within 10 minutes or earlier thanks to blockchain integration in the banking sector; the only time spent is adding a block to the blockchain. Banks now have a great potential to move money across institutions more rapidly and securely thanks to blockchain.
Blockchain has shown to be a reliable foundation for cryptocurrencies and other forms of digital cash. User money would be at risk if they were living under an unapproved government because, theoretically, under the central authority system, user data and money are at risk (concerning the relevant bank and government). In this situation, cryptocurrencies like bitcoin or litecoin can be helpful because they operate without centralised authorities thanks to the distributed computer network known as the blockchain. Risks, processing costs, and transaction fees are decreased.
Medical records and patient data can be safely stored on a blockchain. When a medical record is created and signed, it can be fed into the blockchain, providing patients with proof and assurance that their records won’t be changed. Private keys in the blockchain are used to keep medical records safe so that only the person with access to the data may use it.
Benefits of Blockchain
Despite all of its technical challenges, the blockchain can function as a decentralised system for recording an infinite amount of data. Blockchain technology shatters the glass of its complexity with user privacy, great security, and lower processing costs with fewer errors.
Here are a few advantages of blockchain:-
- Improve performance efficiency and accuracy without relying on human verification
- Significant cost savings by skipping third-party verification
- It is the technology that is most transparent and evident
- Every transaction is discreet, safe, and effective
Issues and Limitations of Blockchain
Undoubtedly, blockchain is emerging as a technology that will change the world, and in some ways, it already has. However, this does not mean that it will solve all of the world’s problems; instead, the following limitations and challenges with blockchain are highlighted:
- Significant technological expenses are incurred when mining bitcoin and blockchain has environmental consequences
- Records of equipment and time used for unlawful purposes
- The vulnerability of data to hacking
- Lack of routines leads to the creation of dangerous environments
- Inefficient speed (low transactions per second, for example)
An Ideal Model of Blockchain & AI
Researchers have been examining the possibility of connecting artificial intelligence with blockchain, two rapidly evolving technologies that had previously existed independently.
We discover that most AI applications are being developed in the big data space, partly due to the enormous amount of data that AI devices generate over time. You must be aware that protecting data is our legal and moral obligation, whether it is being protected for business purposes or any other cause. Therefore, blockchain technology and artificial intelligence can significantly impact data processing and other concerns.
Each computer maintains a complete copy of the ledger, so if someone or two machines negotiate, no data will be lost. The data is divided into smaller pieces in a blockchain and disseminated across the computer network. Blockchains are the ideal ecosystems for processing or directing private or sensitive data with the aid of AI, which can improve the user experience. For instance, data analysis can be used in healthcare to find, identify, and prevent diseases.
According to a news report, the US and UAE governments have taken the lead in many developments and research in this arena, demonstrating the significant potential of combining AI with blockchain. Malta, often known as “The Blockchain Island,” is a world leader in blockchain-related education, research, government assistance, and other issues.