Blockchain and AI technologies have evolved into more than just two internet buzzwords. They have proven their utility and use cases in a variety of fields, and they are steadily becoming the foundation of the future we are constructing.
The incorporation of AI technology in various industries, such as finance and healthcare, has altered their business models and provided solutions to seemingly intractable problems. The development of blockchain technology and its incorporation into various fields and industries completely transformed how businesses, users, and participants in blockchain networks operate, ushering the world into an era of decentralization, authenticity, and trustless transactions.
AI refers to machines that have been taught to perform tasks traditionally performed by humans through a process known as Machine Learning. AI are machines that have been trained by human intelligence to recognize patterns in input data and produce accurate output information. AI inventors replicated and created artificial intelligence by borrowing brilliance from human intelligence and using similar methods of inputting information to identify patterns of input data and accurately match them with corresponding output labels.
AI has learned and taken over various tasks previously performed by humans through machine learning, giving humans more time to handle numerous tasks and create more solutions to the human race’s insatiable problems. However, with Deep Learning (advanced Machine Learning with more input data and computing power), AI has gone beyond, giving birth to fascinating technologies such as self-driving cars that can communicate with each other in traffic.
Intermediaries are eliminated with Blockchain technology and the concept of smart contracts, so participants and users of blockchain networks pay less and earn more while performing trustless transactions.
The creation of DAOs (Decentralized Autonomous Organizations) inspired by blockchain technology strengthens the concept of decentralization. This enables members of a DAO to own equity in the form of native tokens of the DAO, allowing for community governance and inclusive decision-making. Have you ever wondered what the combination of these two powerful innovations could result in? The positive use cases of both technologies are not hidden from the public eye, as both technologies have proven their relevance in different industries.
For this reason, it is unquestionable that the combination of both technologies will provide solutions to problems, creating a future where decision-making is decentralized yet automated.
The generation of data by IoT devices, social media, web applications, and so on led to the widespread adoption of AI, and such data were used to perform analytics and make deductions that improved user interactions with such platforms using machine learning.
However, these AI were centralized and ended up selling user data to advertising companies in order to create personalized ads. Tampering with user data in this way resulted in a violation of privacy and trust in centralized companies. Because the centralized nature of AI makes collected data vulnerable to hacking and manipulation, people began to investigate the concept of Decentralized AI. Decentralized AI, or the combination of AI and Blockchain, is a new concept.
AI can process data stored on a blockchain, perform analysis, make informed decisions, and generate output information in a secure and decentralized manner, without the need for third-party interference. The blockchain consensus mechanism validates the authenticity of the data fed to AI. With this information, the AI can make informed decisions from decentralized and verified nodes.