Generating Digital Magic with Blockchain, what will happen when artificial intelligence (AI) meets the trustworthy blockchain? Find out how the European Union combines these technologies to make something remarkable. You may be familiar with the terms “blockchain” and “AI” from your daily conversations. When these technologies work together, though, what will happen? This very subject is being investigated by the European Union (EU). In a recent paper, the European Commission’s European Blockchain Observatory and Forum (EUBOF) highlighted the possibilities of combining blockchain and AI.
The Directorate-General for Communications Networks, Content, and Technology asserts in the EUBOF study that the potential is enormous. Consider: the blockchain offers an ideal solution for storing susceptible AI data. Industries that rely heavily on secure data storage, such as healthcare and banking, consider this a significant issue. According to the EUBOF, decentralized AI networks can be created by integrating blockchain technology with AI. This paves the way for a more cooperative strategy in AI development, rather than a small number of large businesses monopolizing all the data. But it ensures that everyone is on an equal footing.
The use of AI to improve the intelligence of smart contracts is another fascinating aspect of this tech combo. These contracts can use AI’s capabilities to make them more efficient and dependable. They execute automatically when conditions are met. To take the lead, the EUBOF suggests that Europe establish itself as a global blockchain expertise centre. Additionally, they recommend tackling the difficulties that accompany innovations and increasing engagement with different stakeholders.
Additionally, the European Union intends to revise rules governing the European High Performing Computer Joint Undertaking (EuroHPC), the body responsible for overseeing supercomputers around the continent. With the advent of new AI factories, these supercomputers will be able to facilitate the growth of AI.
Why AI and Blockchain are a Perfect Match
Cryptocurrency and AI are popular among investors. Despite natural scepticism, there are numerous reasons to be excited. Ethereum (ETH) and Bitcoin (BTC) are notoriously slow blockchains.Generating Digital Magic with Blockchain, Bitcoin handles seven transactions per second (TPS), while Ethereum handles thirty. Visa has 6,800 TPS.
This speed gap threatens blockchain implementation. Introducing AI. Predicting congestion and managing transaction flows can improve blockchain speed and efficiency. As a traffic controller, AI would analyze traffic patterns for bottlenecks and reroute transactions to keep things moving. This boosts speed and stability, preparing blockchain for more complex applications.
AI improves blockchain security. Try Ethereum rollups and sidechains. These rollups execute transactions off-chain before adding them to the blockchain. For privacy, zero-knowledge rollups validate transactions with cryptographic proofs. Unless fraud is demonstrated, positive rollups presume all transactions are legitimate.
Long validations slow network traffic. AI can identify errors, analyze transaction trends, and optimize validation to streamline the system. Fast AI massive dataset processing helps blockchain application audits. AI finds and fixes security holes before they’re exploited. Another AI strength is fraud detection. EU is generating digital magic; AI can detect blockchain network fraud by detecting suspicious activity. This feature is vital as blockchain technology spreads in banking. Early identification prevents significant losses and secures blockchain networks.
Integrating blockchain and AI is challenging. Regulation is a problem. The EU established the first AI law, the Artificial Intelligence Act, to complicate matters for AI-using enterprises. Due to its broad scope, it requires risk evaluations, disclosures, and government cooperation. Even non-EU enterprises must follow these rules to do business in the EU.
Despite these legislative challenges, AI and blockchain technology are complementary. AI can make blockchains more efficient, trustworthy, and safe while providing a transparent and secure data storage method. Because of this potential, the EU is leading in enabling technological advancements.
The Future of AI and Blockchain Integration
Combining AI with blockchain technology opens the door to a future where the two can live side by side and complement one another. We should investigate the possible effects of this potent mix. Management of the supply chain is one of the most exciting fields. It can be quite challenging to trace the origin and travel of items in today’s supply chains due to their complexity and lack of transparency.
EU is generating digital magic; one potential use of blockchain technology is creating an immutable and transparent record of the whole supply chain. By leveraging AI’s exceptional data analysis capabilities, firms may enhance logistics, anticipate customer demand, and anticipate and prevent interruptions. Potentially game-changing innovations may result from healthcare organizations using AI and blockchain technology. Algorithms powered by artificial intelligence may sift through patient records in search of unique treatment regimens. At the same time, blockchain technology guarantees that no one other than authorized users can access these private records.
These technologies can increase clinical trial efficiency by using AI to select the best candidates and predict their results. Blockchain securely stores trial data, preventing fraud and ensuring transparency. Another industry that is ready for change is financial services. With the help of artificial intelligence (AI), blockchain-based decentralized finance (DeFi) platforms can improve their trading algorithms, credit scoring models, and fraud detection capabilities.
AI’s predictive powers improve risk assessments, and blockchain protects user data and transactions. According to PwC, AI will boost the global economy by $15.7 trillion and blockchain by $1.76 trillion by 2030. They have the power to build a financial system that is safer, more efficient, and full of new ideas.
The Road Ahead
Artificial intelligence (AI) could help traffic management systems optimize traffic flow and decrease congestion by analyzing data from multiple sources, including cameras and sensors. Blockchain technology can guarantee the data’s authenticity and safety by eliminating the possibility of manipulation or illegal access. Integrating AI for energy demand prediction and blockchain for peer-to-peer energy trade among users can also improve energy systems.
Together, AI and blockchain hold tremendous promise for the future. Working together can address critical issues in many sectors and set the stage for future innovation, efficiency, and security.