Blockchain and Artificial Intelligence- Two Technologies Converge to Revolutionize Business
Blockchain has made the online transactions secure and transparent than ever, whereas AI has made machines and devices ‘intelligent’. Both these technologies have started bringing huge changes in the shape of business. How about combining them in the mobile app development services to leverage the benefits of both?
It’s interesting to see how the combination of these two technologies can pave the way for the next-gen business processes. But before seeing their combined impact on the corporate world, let’s go through the impressive features of Artificial Intelligence and Blockchain technology.
Key Features of AI for Modern business
Chatbots is one of the most popular examples of AI in business. It is predicted that AI will be responsible for 40% of digital transformation by 2019.
Improved data management
AI, together with machine learning, offers enhanced data collection and analysis. Your business can also get the benefit of data mining
AI offers personalized experience by proper analysis of the user’s behavior
The predictive analysis makes it possible to offer accurate future prediction
Reduction in Errors
AI reduces the possibility of human errors
AI can offer real-time assistance to the users and management alike
Major Features of Blockchain Technology
Blockchain technology has full of potential. IDC has predicted that companies will spend $11.7B on this technology by the year 2022. The blockchain app development can offer the following benefits to the companies.
- Database Decentralization
It decentralizes the database for effective execution of processes
- Distributed Ledger
It makes the online transaction swift and secure for enterprises
It brings transparency as the users can access the transaction anytime
- Enhanced Security
It provides a double layer of security through a decentralized database
Let’s go through the AI’s impact on blockchain app development and blockchain’s influence on the AI domain.
How AI can change Blockchain app development services
1. Makes data management seamless
Blockchain broadly relies on algorithms for data mining, now these algorithms strive to find every possible combination of characters until they find the right one for the verification process. Simply put, such an approach of the algorithms can complicate the process and requires more efforts.
Here, AI can help the blockchain technology get rid of this approach. AI can replace this approach by making the algorithms more intelligence, and in a way, it makes the data management process free from glitches.
2. Improves energy consumption
Data mining is AI’s one of the major features. It can improve the data mining system of the blockchain-based system and assist it in streamlining the entire process. It ultimately reduces the number of efforts and time invested for data mining in the blockchain ecosystem.
In a broad way, AI can improve energy consumption while combining with the blockchain-based app.
3. Offers more scalability
As the name suggests, the blockchain is a chain of blocks and its size grows substantially with time. For example, a blockchain containing around 85MB data can increase in size at the rate of 1MB for every 10 minutes. Currently, we do not have any effective method for optimizing and eliminating data from the blockchain to keep its growth in check.
There, AI can work wonders by introducing a decentralized learning system. It makes the blockchain-based system more efficient and scalable. It can open up new ways to leverage the benefits of blockchain on a large scale.
4. Increases efficiency
Do you know that in a blockchain system, a P2P (Person to Person Payments) transaction can cost you around $600 million a year? The reason is simple: Every node in the chain executes the same task to come up with a solution.
AI can improve the situation by providing intelligent logic to rapidly finding out the node that is going to deliver the solution. As a result, the other nodes are informed to stop their efforts. It eventually increases the efficiency of the system and cut down the cost.
5. Improves security
The blockchain is a name synonymous with robust data and transaction security. But then, the blockchain-based apps need more security to prevent the data from going into the wrong hands. Here, AI can lend a helping hand and improves the blockchain app’s security.
AI can make the app more secure by offering features like NLP (Natural Language Processing), Blockchain-based peer-to-peer linking, and image recognition. Also, AI enables the data miners to transform a large-scale system into microsystems to keep the data transaction more secure. Apart from improving security, AI can make business processes more flexible.
It is true that the blockchain app development cost can significantly go up if the developers add the AI-based functionality in the feature-rich business app. However, such apps can take your business to the next level by offering a dual advantage of technologies.
Role of Blockchain in AI ecosystem
1. Makes transaction process seamless
The major role of blockchain is in making the transaction seamless and secure. It can make the app data, customer and transaction details immutable and accessible to the public. All the transactions are recorded real-time in the blockchain-based system. It promotes authenticity and accuracy.
In the AI mechanism, the blockchain can bring a secure and fair transaction in a rapid manner.
2. Provides high-quality data
Though the AI system deals with data analysis and mining, the AI-powered apps and software have often limited access to data. These apps usually cannot access data, which is controlled by another entity. Also, there are authentication issues. As a result, the AI-based system has to deal with low-quality data that may bring incomplete or faulty prediction.
Blockchain, on the other hand, has a plethora of data which is immutable and readily accessible. It also enables the system to implement certain rules and data analytics in a secure way through Smart contracts. In a way, the AI system can get compliant and high-quality data.
3. Removes data centralization
Data decentralization is one of the biggest features of blockchain technology. Now, the combination of Blockchain with AI can enable the AI system to get rid of issues related to data centralization.
The blockchain technology can offer frictionless access to authentic information. The AI system can readily opt for a comprehensive study of the data while focusing on the study pattern and other aspects to unveil the hidden information. Even deep learning algorithms can also utilize this data for making accurate predictions and informed decisions.
4. Reduces market barriers
AI-based software and apps have to face various obstacles in the market due to lack of authentication, risk of inaccuracy, and data ownership. Now, the blockchain deals with the sharing and accessing the data among all the stakeholders. In a way, it can reduce the ownership of data and risk of inaccuracy. Also, the users have authenticated the data shared by the Blockchain, so, the AI-enabled software can get authenticated data.
5. Enhances transparency
The blockchain technology can add transparency in AI-related processes. The entire process ranging from analyzing data to taking decisions by AI machine is recorded in a blockchain. Such details are readily accessible in real-time. If an AI-based decision goes wrong, the management can look into the blockchain to find out the cause of the failure or other issues.
In a way, blockchain induces transparency and help the companies take a better decision while using the data provided by the AI system.
Also, blockchain can improve the trust factor for AI. It is because the blockchain-based data has the user’s authentication and verification. Now, the AI-blockchain combination enables the AI ecosystem to access such data without having any intermediaries, and it results in the rise of credibility of AI systems.
Big Beneficiaries of AI-Blockchain Combination
When AI and blockchain converge at the workplace, they can work wonders. The duo of blockchain and AI can effectively resolve the challenges and offer a new set of opportunities. With higher accessibility and improved smart contracts, the data can help businesses make better decisions. It is easy for companies to come up with new business models while providing a secure and personalized experience to the customers.
Here are the key sectors that get the maximum benefits of AI-blockchain combination in mobile app development services.
This thriving sector can be the biggest beneficiary of AI and blockchain as these technologies offer many opportunities for patients and healthcare professionals alike. Blockchain can protect the patient’s health and personal records against cyber attacks and AI can assist the healthcare service providers to make real-time decisions on the basis of data analysis. The combination also provides a personalized experience and seamless access to the patients.
The retail sector is a second largest beneficiary. Retailers can readily save the customer’s information in immutable blocks of blockchain and automate the process through AI. They can also send personalized notifications through an AI-powered system. What’s more, all the transactions can be swiftly and securely done through blockchain, and the risk of frauds is largely eliminated.
3. Banking and Finance
We know about bitcoins. Now, the cryptocurrency is just one aspect of a wide scope offered by the blockchain. The BFSI sector deals with a lot of online transactions on a daily basis, and the blockchain technology can make it secure. It can build the trust of people into the industry through Smart Contracts. AI, on the other hand, reduces the dependency of the sector on humans to reduce the possibility of human errors.
Both AI and blockchain can help the government enhance trust among people. These revolutionary technologies can bring transparency in the system with enhanced security of people’s data. The combination can make the essential data available for the whole public. In a way, citizens can feel empowered with real-time information.
Companies like Engima and Numerai have combined AI and blockchain to make the most of these futuristic technologies. However, it is fair to mention that both these technologies are still in the nascent stage and require dedicated efforts to remove the hurdles in implementation. A reputed and reliable mobile application development company can help you overcome the challenges and combine blockchain and AI-based features in a custom business app.
We are an emerging blockchain app development services provider. Our focus on every project detail and client-centric approach have made us capable of addressing the diverse business requirements of various industry sectors worldwide.