Blockchain and artificial intelligence | BTC wires

Of& nbspKapil Gauhar

Earlier I wrote about the potential of ongoing efforts to integrate Blockchain with the Internet of Things.

Now, I'm going to discuss how the distributed register could unlock new frontiers for another technology at the forefront: Artificial Intelligence (AI).

It can not be denied that Blockchain and Artificial Intelligence are two of the main technologies that catalyze the pace of innovation and introduce radical changes in every sector.

Each of them has its own degree of technical complexity and business implications, but the convergence of the two may be able to redesign the entire technological paradigm.

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Laying the foundations

Although there is nothing left of what we had not discussed in our Blockchain Technology guide, however, here's a quick question if you're new to this.

A blockchain is a secure and unchangeable database shared by all parties in a distributed network where transaction data is recorded and easily controlled.

In simpler terms, blockchain is "a technology that allows people who do not know each other to trust a shared event record".

A profound view of its operation

Data is stored in rigid structures called blocks, all of which are connected to one another in a chain through a hash.

Blocks have a & # 39; header that includes metadata and content, including real transaction data.

Since every single block is connected to the previous one, it becomes difficult to change the information without the consent of the network.

The network validates the transaction through various mechanisms, preferably through a Job Test or Pole Test.

Proof-of-Work

A Proof of Work asks participants to solve those complex mathematical enigmas to add a block, which requires a ton of energy and hardware to decode.

Proof-of-Stake

A Proof of Stake (PoS) tries to solve this problem of energy efficiency by attributing more mining power to the participants who have more coins.

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How can the blockchain transform?

Although extremely powerful, blockchain still has its limits. Some of these are related to technology, while others come from the long-standing culture inherited from the financial sector. But the fact is that everyone can be influenced by Artificial Intelligence in one way or another –

Energy consumption

Needless to say, mining is an extremely difficult task that requires a huge amount of energy to complete.

In this regard, artificial intelligence has proven to be highly efficient in optimizing energy consumption. Therefore, similar results can also be obtained for the blockchain.

scalability

The blockchain grows at a constant rate of 1 MB every 10 minutes and already reaches 85 GB.

Bitcoin Satoshi Vision mentioned for the first time "the pruning of the blockchain" as a possible solution. But IA can introduce new decentralized learning systems such as federated learning or new data sharing techniques to make the system more efficient.

Safety

Although the blockchain is almost impossible to hack, its additional applications and levels are not so secure.

The incredible progress made by ML (Machine Learning) in the last 2 years make AI a wonderful ally for blockchain to ensure a secure distribution of applications.

private life

The privacy issues of owning personal data are something that raises regulatory and strategic issues for competitive advantages.

This problem is closely related to the two previous ones, namely Scalability and Security, and can be solved with the implementation of Artificial Intelligence.

Efficiency

Deloitte measured the overall management costs associated with the validation and sharing of blockchain transactions up to $ 600 million a year.

In the end, an intelligent system may be able to calculate on the fly for specific nodes to be the first to perform a given task giving the opportunity for other miners to close their efforts for that particular transaction and reduce overall costs.

Moreover, regardless of whether or not structural constraints are present, improved efficiency and lower energy consumption can reduce network latency by allowing faster confirmation of transactions.

Hardware

Miners poured an incredible amount of money into specialized hardware components. Since energy consumption has been a key issue, not only have many solutions been proposed in this sense, but many more will be introduced in the future.

As the system becomes more efficient, some hardware components can be converted to use neural networks.

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How can Blockchain transform artificial intelligence?

In the previous section, we quickly touched on the effects that artificial intelligence could have on the blockchain.

Instead, we will do the opposite exercise by understanding what impact the blockchain can have on the development of Machine Learning systems.

Helps the AI ​​to explain itself

It is undeniable that the Artificial Intelligence black box suffers from a problem of explicability. With an explicit audit trail, not only can it improve the reliability of data and models, but also offer a clear path to go back to the decision-making process of the machine.

Improves the effectiveness of AI

Secure data sharing is what more data means, so better models, better results and better actions, with better results in terms of new data.

Lower the barriers of the market to entry

Blockchain can protect your data and promote the creation of cleaner but more organized personal data. In this way, it will allow the emergence of new markets, including a data market, a model market and, finally, even an artificial intelligence market.

Therefore, an easy sharing of data and new markets, in connection with blockchain data verification, will offer a more fluid integrated system that lowers the barrier to open the voice to small market players and reduces the competitive advantage of the main operators in the sector.

Increase artificial trust

As soon as part of the task is handled by autonomous virtual agents, having an explicit control trail is something that will help the robots trust one another.

Reduce the catastrophic risks scenario

An artificial intelligence encoded in a DAO with special smart contracts will be able to perform only those actions and nothing else.

You can also read: Case of use Blockchain: data security

Conclusion

Blockchain and Artificial Intelligence are the two extreme sides of the technological spectrum.

One is promoting decentralized applications in an open-data environment and the other is favoring centralized intelligence on close data platforms.

However, if we find a clever way to synchronize them both to work together, the total positive externalities could be amplified in a blink of an eye.

It is clear that both technologies offer enormous benefits to society and will continue to do so as they develop and grow.

What will bring the future is still based on experiments. We hope for the best!

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Kapil Gauhar

Kapil Gauhar is the founder of Blogger's Gyan. He is a passionate blogger, a great thinker and a creative writer. His passion for making friends with words and making people aware of the wonders of the digital world is what drives him to write as a career.