Considered as a vital part of the fourth industrial revolution by some, Blockchain and AI (Artificial Intelligence) are changing the world we live in today. AI has been worked on and improved for decades now and in some areas it has reached a point where the processing and logical reasoning power is starting to give outputs that are leaving humans behind. You may recall when Google’s AI program AlphaGo won over Go master Lee Se-dol back in 2016.
Blockchain’s impact is so well documented that there is no doubt about its abilities. From powering cryptocurrencies like Bitcoin to creating a whole ecosystem of automated and decentralized finance (DeFi), it has practically penetrated every conceivable industry and sector.
But what if we are to combine these two? What powers come into being and how can these be exploited?
Blockchain & AI – A Symbiotic Relationship
AI and blockchain are very different technologies. One is a logic-based decision-making system that learns just like humans do while the latter is a digital ledger technology that can be used to store and retrieve a variety of data.
A blockchain system can contain a massive amount of data, the potential is limited only to our ability to understand and make sense out of it. This is where AI and machine learning can come in handy. AI is able to merge the processing power of computing and think along the lines of what a human would interpret from it and therefore it can help blockchain systems to increase their potential many fold.
At the same time, AI can bank on the open, decentralized and readily available data to learn more and improve its functions far quicker than in an isolated existence. Both technologies can be combined to create a whole new set of information extraction and implementation that is light years ahead of what we can do.
Digital Darwinian Evolution
Like life forms, AI and blockchain have gone through an evolution over the years. Some projects are now focusing on combining the two different entities into one single system meaning that decentralized AI may very well be the combined next stage of the evolution. While there are many ways this transition can be defined, it is more or less in three main stages:
At first, AI was used independently, collecting different data sets related to blockchain assets (read cryptocurrency). Firms like NewsCrypto feed massive amounts of trading data (fundamental and technical) to make market predictions. In this instance, AI is only fed the data related to cryptocurrencies but does not interact with the technology.
The second phase in the evolution came about when blockchain data started to be fed directly to AI to help keep track and make sense. Platforms such as Finalze is a perfect example of how construction-related data is written on blockchain and AI helps to automate and increase process flows in the supply chain, management and overall construction.
The penultimate of evolution, blockchain and AI have started to merge together as one massive single entity: decentralized AI. The whole neuro learning computer is spread across the globe, built on top of a blockchain. This has helped AI systems to gain massive efficiency and speed, increasing working potential many fold. Matrix AI, a platform that has successfully merged these technologies, is able to offer automated smart contracts that are encoded by the AI by only taking inputs from involved parties. Furthermore, Matrix AI has adaptive blockchain parameters, automated and secure node delegation and even includes a secure virtual machine that adapts to real-time threats and loopholes to enable it to work under any condition.
Even though the evolving blockchain and AI potential is touching the fringes of science and technology, the melding has immense real-life applications – from finances to simulated pharmaceutical tests. As both technologies mature over time, the relationship will only deepen and potentially change how we live completely.
Note: this blog post expresses the author’s personal opinions and does not necessarily represent the views of Bitcoin PR Buzz.