In today’s digital era, two equally ground-breaking technologies have emerged as heralds of change: Artificial Intelligence (AI) and blockchain tech.
Separately, these technologies have already left lasting imprints on how we process data, interact with the digital world, and carry out transactions.
However, the fusion of AI with blockchain technology has the potential to revolutionise whole industries: Healthcare, the financial sector, the pharmaceutical industry, and even the democratic processes that underpin our nations.
In order to understand the beneficial impact of this synergy, we must confront their individual flaws.
The Downfalls
· Biases: AI can inherit society’s biases from data inputs. A prime example is Amazon’s 2015 experience when it discarded CVs containing the term ‘women’ due to an algorithm built upon predominantly male-centric historical data.
· Lack of Transparency: Most AI systems are closed, they operate as “black boxes”. We can’t always understand how they get from A to B which can hinder accountability. We need to be able to identify its decision-making processes to trust its recommendations.
· Data Privacy Concerns: AI algorithms thrive on vast data troves. The issue is, we can’t always know where this data is gathered from.
As for the blockchain:
· Scalability: As more transactions are added to the blockchain, it can be increasingly challenging for the network to process them in a cost-effective and timely manner.
· Security Risks: Although the cryptographic features of the blockchain make it highly secure, it’s still not immune to security breaches.
· Complexity: The intricate complexity of Blockchain code creates a barrier for organisations seeking to integrate the technology into their operations.
It’s essential to grasp the limitations of these impressive technologies when they operate separately, in order to appreciate the immense potential they unlock when combined.
The Perfect Synergy
AI and the blockchain both have the ability to compliment each other’s issues and have subsequently become a formidable pairing in our era.
Full Transparency
As a digital ledger that holds permanent records of all transactions of and movements, Blockchain’s hallmark is its transparency..
By integrating blockchain into AI frameworks, we can establish a complete audit trail, demonstrating the decision-making processes behind algorithmic outcomes. This also empowers us to assess the fairness of algorithms and identify potential biases.
Digital Verification
The rise of AI generated content has provoked understandable unease. But Blockchain can ensure authenticity and traceability: providing a timestamp and permanent record of the origin of any AI-generated content.
Bias Mitigation
Smart contracts, self-executing digital contracts built on blockchain technology, can enforce ethical guidelines for AI algorithms to reduce biases.
Scalability
AI can boost blockchain scalability by analysing usage patterns, adjusting network parameters, and optimising data compression, boosting the blockchain’s ability to handle a higher volume of transactions efficiently.
Cyber Security and Fraud Prevention
AI’s real-time analysis of blockchain transactions can swiftly detect suspicious patterns or outliers, a task beyond human monitoring in the rapidly changing world of cryptocurrencies.
Additionally, AI-driven natural language processing can dissect social media and online forums for discussions related to fraudulent crypto schemes, such as influencer-driven ‘Pump and Dumps’.
Data Privacy
Blockchain’s highly secure, decentralised data storage aligns with AI’s vast data requirements.
Blockchain’s transparency facilitates an audit trail of all data employed by AI models, enhancing accountability.
The Future
AI and the blockchain fit together like a two-piece puzzle.
Using the blockchain’s power, we can make AI far more transparent, ethical and trustworthy – and it’s not a one-way street. AI can solve blockchain’s scalability issues and improve its overall efficiency.
Challenges such as regulation and ethical dilemmas loom on the horizon with any emerging technology. But by harnessing the potential of blockchain technology and AI, we can embrace these challenges with unwavering resolve.
There’s no doubt that this dynamic duo will draft a blueprint for a world that is safer, more transparent, and decentralised, paving the way to a brighter digital future.
