Blockchain and AI
On the one hand, blockchain is a shared, immutable ledger that provides an immediate, shared, and transparent exchange of encrypted data simultaneously to a number of parties as they initiate and complete transactions. On the other hand, artificial intelligence (AI) leverages computers, data, and sometimes machines as a means to mimic the problem-solving and decision-making capabilities of the human mind. The two technologies can be combined as blockchain’s digital record can offer some insights into the framework behind AI and the provenance of the data it is using. This addresses the challenge of explainable AI. Explainable AI entails a set of processes and methods that enable human users to comprehend and trust the results and output created by machine learning algorithms. As such, it helps improve trust in data integrity and in the recommendations that AI provides. Using blockchain to store and distribute AI models provides an audit trail, and pairing blockchain and AI can enhance data security. The usage of blockchain and AI brings about automation, which brings new value to business processes spanning multiple parties. As such, there is an increase in speed and increased efficiency. For instance, there can be AI models embedded in smart contracts executed on a blockchain. This further enables AI to execute transactions.
Blockchain and Big Data
Big Data technology encompasses software utility that is designed to analyze, process, and extract information from complex and large data sets. It also entails the large, diverse sets of information that grow at ever-increasing rates. It brings together techniques, skills, and technology to deduct valuable insights out of massive quantities of data. Blockchain technology comes into the mix to offer a reliable, cost-effective, and decentralized ledger that keeps the anonymous data generated every day. As such, the addition of blockchain to Big Data analytics can be of great help and has some impacts. For one, blockchain-generated Big Data is secure, as the network architecture prevents forgery. Blockchain is immutable, which means that information remains in the same state for the duration of the network. Additionally, a blockchain-based Big Data solution can allow providers to share records with other sectors without the risk associated with separate data silos. Blockchain technology has a higher data security and can be beneficial to Big Data analytics. The system is mainly decentralized, meaning that no person has the power to change it without the consent of all parties involved. With large sets of data by Big Data, this feature comes as a plus since many organizations entrust the technology with massive data. Another way the blockchain can help Big Data and analytics is by making data access more efficient. Users from different departments within a business can be added to the blockchain, which gives them access to the data needed. This speeds up the work process and reduces the time it takes to obtain and analyze data.
Blockchain and Internet of Things (IoT)
The Internet of Things (IoT) is a network of physical devices that transfer data to one another without human intervention. IoT devices are not limited to computers or machinery but entail anything with a sensor assigned to a unique identifier (UID). Blockchain and IoT have been two of the most influential technologies, revolutionizing various industries. IoT ensures the improvement of the collection of appropriate data, while blockchain focuses on ensuring that the data collected maintains its data integrity. IoT enables devices across the Internet to send data to private blockchain networks, creating tamper-resistant records of shared transactions. As such, blockchain can enable your business partners, for instance, to share and access IoT data with you without the need for central control and management. Every transaction can be verified to prevent disputes and build trust among all permissioned network members. As such, blockchain ensures that there is trust in the IoT data, as every transaction is recorded, put in a data block, and added to a secure, immutable data chain that cannot be changed, only added to. Any blockchain-enabled IoT can then be used in different areas. One example is freight transportation, where the technology can be used to store the temperature, position, arrival time, and status of shipping containers as they move.
Reasons to Adopt Blockchain for Businesses
Leveraging advanced technology is a necessary move for businesses that aim to remain competitive, no matter the industry they are in. Blockchain, being one of the most promising technologies right now, could be the push businesses need. Some of the potential benefits for your business could include:
Improved Security: Blockchain transactions are immutable and tamper-proof, which means that data remains safe. Any business applying blockchain technology is assured of enhanced security. Additionally, blockchain utilizes cryptography as a means to protect the data from third-party interference, which makes it harder for cybercriminals to steal information.
Enhanced Transparency: Another significant advantage of adopting blockchain technology is the transparency it offers. Transactions in a blockchain network are recorded in a decentralized system, which means that all information is easily verifiable. There is the assurance that every transaction is legitimate, and no one can carry out any changes to a digital ledger without the consent of others in the network.
Reduced Costs: Many businesses are always on the idea of reducing business expenses without compromising productivity, with blockchain being of help here. Blockchain eliminates the need for intermediaries, which helps one save on transaction fees.
Smart Contracts: Smart contracts constitute one of the most promising applications of blockchain technology. With blockchain technology, you do not have to fret about a contract being breached or the other party not holding up their end of the bargain, as the smart contract enforces the terms of the agreement. The second advantage of using smart contracts is the ability to execute legal actions without the need for a third party.
Final Thoughts
As we have previously seen, blockchain ensures transparency and security, which ensures the tackling of issues in other technologies. Integrating blockchain with other technologies such as AI, Big Data, and IoT has brought forth unprecedented benefits. For many businesses, adopting blockchain means enhanced security, reduced costs through the elimination of intermediaries, and the efficient automation of processes with smart contracts. As a transformative force, blockchain is not just a trend but a strategic necessity for businesses seeking to thrive.