How AI and Blockchain are Changing Businesses
The combination of Blockchain and Artificial Intelligence (AI) adds new value to businesses. Learn how AI and Blockchain are Changing Businesses.
Two disruptive technologies, blockchain and artificial intelligence, are gaining traction and will impact the trajectory of people's lives and society over the next ten years.
Both see increased use and innovation, but there are concerns about using these technologies.
According to a new Facts and Factors market research analysis, the global AI Market size and share revenue are predicted to expand from $29.86 billion in 2020 to $299.64 billion in 2026, representing a 35.6 percent compound annual growth rate (CAGR).
Similarly, the worldwide blockchain market is predicted to increase at a CAGR of 67.3 percent, from $3 billion in 2020 to $39.7 billion in 2025.
Organizations are predicted to spend upwards of $4.4 billion on blockchain in 2020, with worldwide investments expected to reach $19 billion by 2024.
Most corporate respondents stated that they intend to invest at least $1 million in distributed ledgers.
AI and Blockchain
Artificial intelligence (AI) is a discipline of computer science concerned with developing intelligent technology that can carry out tasks that would typically require human reasoning.
AI has been hailed as one of the best technological advances to date, with applications ranging from commercial organizations to financial institutions.
Blockchain is a decentralized, immutable record-keeping database that records transactions and traces digital assets across a network. On a blockchain architecture, practically anything of substantial value may be traced and exchanged, lowering overall costs and risk concerns.
AI in Cryptocurrency
Understanding and implementing bitcoin investing takes a lot of time and talent. As more tech-driven tools become accessible, investors and traders are increasingly looking to artificial intelligence and machine learning to help them make sense of investment.
As cryptocurrencies are based on blockchain technology, AI may be used in conjunction with blockchain to tackle various issues.
Due to the rise of AI and the spread of AI use cases across the financial industry, here are four ways artificial intelligence (AI) can be used for cryptocurrency trading.
Analysis of Cryptocurrency Market Sentiments
Artificial intelligence (AI) and natural language processing are used in sentiment analysis to assess people's feelings or ideas on a specific topic.
When it comes to Cryptocurrency investing, an overall positive mood toward a digital currency can predict price gains, while an overall negative sentiment can predict price declines.
To identify the sentiment of the bitcoin market, a large amount of diverse data must be collected, processed, and analyzed.
AI can process large volumes of data from the internet and blockchain data at scale, and the sentiment—whether negative, neutral, or positive—can be analyzed quickly.
By monitoring various signals and looking for unexpected trends in sentiment indicators, AI and machine learning can uncover market manipulations.
Insight into cryptocurrency monetization
Cryptocurrency traders rely heavily on a variety of indicators. However, manually producing reliable signals may be impossible given the ubiquity of unstructured data in the digital world.
Before being evaluated for investing insights, large amounts of data must be clean, relevant, and correct.
Data scientists and engineers can use AI to create strategies for traders to obtain relevant and clean data on a platform. Natural language processing techniques can classify and extract data based on criteria like currency name, document kind, currency founder, and more.
Data scientists can utilize AI to give accurate trading information in a dashboard or interface that non-technical traders or investors can understand. Investors and traders can then use the knowledge to increase their earnings.
Fully Automated Trading Strategies for Cryptocurrency
Investors and analysts frequently employ AI in high-frequency trading strategies because AI can mimic human intelligence. Traders who can execute trades quickly are more profitable than those who can execute trades slowly.
High-frequency trading, a sort of algorithmic trading in which a computer executes many orders in fractions of a second, is used by investment and hedge funds.
Accurate Cryptocurrency Market Predictions
When the number of investment options expands, manual inquiry, extraction, and analysis approaches are no longer effective in discovering investments and buy/sell signals. In the financial industry, AI has become a popular tool, and when combined with blockchain, it becomes even more effective.
Larger financial firms, such as Goldman Sachs, Citigroup, and Barclays, have already begun incorporating AI into their workflows, while small and medium-sized businesses follow suit.
How AI and Blockchain Revolutionize How People do Business?
Data, data, data
Naturally, many businesses are already spending heavily on vast amounts of data and the technologies required to extract real value from it., the goal is to boost income and efficiency in present products while also developing new data-driven enterprises for the future.
The problem is that we are generating far more data than we can digest, much less used for decision-making.
AI programs can handle this issue while learning about and associating relevant items to the task.
It may be made more logical and intelligible by connecting a distributed, decentralized, and immutable ledger that can record the data passing through a machine learning decision, effectively a centralized process.
Then comes blockchain, which can aid in the attribution, comprehension, and justification of those actions and results.
The system may be meaningfully verified, audited, and altered if necessary by preserving the main data pieces as transactions on a blockchain.
Lantmäteriet, a Swedish mapping, cadastral, and land registration authority, has been experimenting with blockchain to achieve this goal.
Businesses can create safer, smarter, more transparent, and cost-effective business automation solutions by integrating the predictive capabilities of AI with the robustness of blockchain.
Public vs. Private
Most people now identify blockchains with Cryptocurrency, where anyone can download the P2P client software, view the ledger, and interact with the blockchain. They're made to keep users' identities private while treating everyone equally.
Public blockchains now demand a lot of processing power to complete activities, and the processing capacity of typical PCs varies a lot.
AI is being used in future blockchains to identify each machine's capability and assign different duties and node kinds depending on historical performance and specification levels.
This allows for quick resource allocation to optimize the network, which would otherwise be a massive, time-consuming, and ongoing burden for non-AI and human operators in public blockchains with thousands of nodes.
Humans or traditional computing cannot match AI's ability to increase blockchain efficiency.
Public blockchains face many privacy and control difficulties for enterprise applications in many industries. It is not appropriate for an enterprise to give every member full access to the database's contents.
As a result, a new breed of private blockchain is gaining traction. A single authority or organization ultimately retains control, and no one can access the network without proper authentication.
Private blockchains resemble centralized networks, but they provide all the distributed benefits while maintaining overall control to improve privacy and prevent many criminal activities connected with public blockchains and cryptocurrencies.
The smart contract, a computer programme or business logic that automatically performs, controls, and documents legally significant events and activities according to the terms of a contract or agreement, is one of the most important private blockchain applications.
They can also create new forms of digital assets or tokens, expanding the range of possible applications. When integrated with AI systems, smart contract technology can expedite this process by offering automated real-time vulnerability screening and debugging of the contract file.
This allows the owners to be notified of any security flaws in the contract before it is made available to the client.
The insurance business can make external calls to predictive AI systems using blockchain Smart Contract APIs to calculate acceptable risk and premium expenses.
Smart Contracts will facilitate and execute any form of business logic required by the application on the next-generation blockchains currently being developed.
As we've seen, this combination has the potential to impact existing business processes. Let's take a closer look at how they'll help businesses:
Companies utilizing AI and Blockchain as a Powerful Pair
AI and blockchain are proven to be a formidable duo, enhancing nearly every industry in which they are used. Artificial intelligence and blockchain collaborate to enhance everything from food supply chain logistics to healthcare record sharing to media royalties and financial security.
Here are some businesses that are successfully merging blockchain and artificial intelligence.
Location: Bellevue wash
How it's using blockchain and AI: Core Scientific merges tailored blockchain and artificial intelligence technology with existing business networks, improving a company's infrastructure, servers, and software to handle everything from supply chain monitoring to real-time data reporting.
Industry Impact: The Core Scientific campus spans more than 273 acres and is home to two on-site substations and a hydroelectric power dam. Core Scientific ensures that company-controlled data centers and blockchain and AI infrastructures perform at peak efficiency because blockchain and AI require vast amounts of computer processing and power.
How it's using blockchain and AI: In the coffee, lumber, seafood, and mineral industries, Bext360 employs AI and blockchain to improve supply chain transparency and efficiency.
Artificial intelligence evaluates crops and anticipates growth patterns, while blockchain ensures that a product's supply chain is tracked from seed to completed product.
Industry impact: Bext360 has used mobile applications, bots, and blockchain to improve the transparency and ethics of the coffee supply chain from bean to cup. The blockchain immutably records the farm where the beans originated and the exact specs of a coffee shipment.
At the same time, the company's AI assesses the quality of coffee beans and anticipates weather and growing patterns. It also serves as a payment ledger, ensuring that all parties are paid fairly on time.
How it's using blockchain and AI: BurstIQ developed a "Health Wallet" that integrates AI, blockchain, and big data to holistically handle a patient's data.
The Burst IQ wallet grants access to a patient's health records and wellness programs to their healthcare team.
Patients' data can then be bought, sold, or traded by healthcare professionals for various scientific research or to learn more about a certain ailment.
On the other hand, the blockchain allows patients to keep their information secret while sharing aggregate health data.
Industry impact: BurstIQ's technology is being used to address the opioid crisis. BurstIQ can propose alternate treatments, specialists, or services to lessen opioid dependence based on a patient's drug use history.
Location: Rancho Santa Margarita, California
How it's using blockchain and AI: CoinGenius is an AI-powered cryptocurrency trading platform that provides crypto traders with AI-based grading algorithms, high-quality data feeds, and advanced forecasts so they can tailor news and trading features to their needs.
Industry Impact: CoinGenius' comprehensive suite of tools will include news, activity, and trade data from trusted crypto sites such as Hackernoon, Medium, and Coindesk, and is expected to be fully built in the first half of 2019.
Better together: AI and blockchain
This decade's most fascinating and impactful technologies are artificial intelligence (AI) and blockchain.
According to Gartner:
"The business value provided by blockchain will reach $176 billion by 2025 and $3.1 trillion by 2030. AI will contribute $391 billion in business value by 2025".
Private blockchains integrated with AI open up new possibilities for B2B use cases and applications, resulting in improved performance, privacy, dependability, and transparency.
SMEs will benefit from cost-effective pre-packaged solutions and Blockchain-as-a-Service choices, while large enterprises will have unique blockchain solutions designed to meet their specific business demands.
Although the convergence of AI with blockchain is still in its early stages, it is expected to gain traction and become mainstream across various industries. Some of which are:
- Financial services
- Supply chain
Combining artificial intelligence with blockchain technology successfully balances out each other's flaws, allowing for mutual benefits, technological advancements, and strong enterprise support.
The next step in the realm of growth from these two technologies to help businesses expand would be to create global criteria for evaluating the use of integrated Blockchain and AI technology.