What happens when the secure world of blockchain meets the intelligence of AI? Find out how EU combines these techniques to create something magical.
Blockchain and AI are two buzzwords that you may have heard a lot about. But what happens when these technologies combine?
The European Union is studying this very issue. In fact, the European Blockchain Observatory and Forum (EUBOF), part of the European Commission, recently published a report suggesting the possibility of integrating blockchain technology with artificial intelligence (AI).
According to EUBOF a reportWritten by the General Directorate of Communications Networks, Content and Technology, the possibilities are enormous.
Think about it: AI data, which should be highly secure, can be stored on a blockchain. This is important for industries like healthcare and finance, where data security is crucial.
EUBOF also points out that the combination of blockchain and artificial intelligence could lead to the creation of decentralized artificial intelligence networks. This means that instead of a few big companies controlling all the data, there can be a more collaborative approach to developing AI. In other words, it levels the playing field.
Another cool thing about this technology duo is how AI can make smart contracts even smarter. These contracts, which are automatically executed when conditions are met, can leverage AI capabilities, making them more efficient and reliable.
To lead this mission, EUBOF recommends that Europe become a global hub for blockchain knowledge. They also suggest engaging more with various stakeholders and addressing the challenges that come with new innovations.
Furthermore, the European Union plans to amend regulations for the European High-Performance Computer (EuroHPC) joint venture, which runs supercomputers across Europe. These supercomputers will support the development of artificial intelligence, with new AI factories being created to enhance their capabilities.
So what does that mean for us? Let's find out.
Why AI and blockchain are a perfect match
Artificial intelligence and blockchain are hot topics that can make investors sit up and take notice. While it's easy to be skeptical, there are strong reasons to be excited.
So, how can AI enhance blockchain technology? One of the key areas is scalability.
Blockchains like Bitcoin (BTC) and Ethereum (ETH) are very slow. Bitcoin handles about 7 transactions per second (TPS), and Ethereum handles about 30 TPS. Compare that to Visa, which processes 6,800 TPS.
This speed gap represents a looming hurdle to the adoption of blockchain technology. Enter artificial intelligence. It can help by predicting periods of congestion and improving transaction flows, making the blockchain faster and more efficient.
Assume that AI is the traffic controller, analyzing data to detect potential slowdowns and redirecting transactions to keep everything running smoothly. This not only speeds things up, but also makes the blockchain more reliable and ready for larger, more complex applications.
AI can also enhance blockchain security. Take for example Ethereum's sidechain solutions, known as pooled lists. These groups process transactions off-chain and then add them to the blockchain.
Zero-knowledge pools validate transactions using cryptographic proofs, ensuring sensitive information remains private. Optimistic aggregations, on the other hand, assume that transactions are valid unless challenged by proof of fraud.
Typically, validations can take a long time, depending on network traffic, resulting in throttling. However, AI can analyze transaction patterns, predict potential issues, improve the validation process, speed up the entire system and make it more efficient.
Furthermore, AI's ability to quickly analyze massive amounts of data makes it a powerful tool for auditing blockchain applications. Instead of waiting for vulnerabilities to be exploited, AI can proactively identify and fix them.
Fraud detection is another area where AI shines. AI can monitor blockchain networks for unusual activity, and flag potential fraud in real time. This ability is crucial as blockchain technology becomes more integrated into financial systems. Early detection can prevent massive losses and maintain the integrity of blockchain networks.
However, integrating AI with blockchain is not without challenges. Regulation is a major hurdle. The EU's new AI law, the first of its kind, adds layers of compliance for companies using AI.
This law requires risk assessments, disclosures and cooperation with authorities and has global implications. Even companies outside the EU must comply if they want to operate within its borders.
Despite these regulatory challenges, the synergy between AI and blockchain is undeniable. AI can make blockchains faster, more secure and more reliable, while blockchain can provide AI with a secure and transparent solution for storing data.
The European Union recognizes this potential and is taking the necessary steps to lead the charge, paving the way for progress in technology.
The future of artificial intelligence and blockchain integration
The integration of AI and blockchain technology provides a future in which these technologies not only coexist, but also enhance each other's capabilities. Let's explore the potential impact of this powerful combination.
One of the promising areas is supply chain management. Today, supply chains are complex, often opaque networks, where tracking the origin and journey of goods can be daunting.
Blockchain technology can provide a clear, tamper-proof ledger to record every step in the supply chain. When combined with artificial intelligence, which excels at analyzing massive amounts of data, companies can improve logistics, forecast demand, and identify potential disruptions before they occur.
For example, IBM's Food Trust blockchain could be used, which tracks food products from farm to fork The philanthropist Using artificial intelligence to detect patterns and prevent foodborne illnesses more effectively.
In the healthcare sector, artificial intelligence and blockchain technology are merging could Leading to new developments. AI algorithms can analyze patient data to provide personalized treatment plans, while blockchain technology ensures that this sensitive information is stored securely and can only be accessed by authorized parties.
This combination can also streamline clinical trials, as AI can help identify suitable candidates and predict outcomes, and blockchain can maintain the integrity of trial data, prevent fraud and ensure transparency.
Financial services is another area ripe for transformation. Decentralized finance (DeFi) platforms, namely building On blockchain, AI can be leveraged to enhance trading algorithms, improve credit scoring models, and detect fraudulent activities.
AI's predictive capabilities can provide more accurate risk assessments, while blockchain security features can protect user data and transactions.
According to a report by PricewaterhouseCoopers, artificial intelligence is… is expected To contribute $15.7 trillion to the global economy by 2030, using blockchain technology addition Another $1.76 trillion. Together, they can create a safer, more efficient and innovative financial ecosystem.
The road ahead
As we move forward into this era, we can envision a world where smart cities are powered by artificial intelligence and blockchain technology.
Traffic management systems can use artificial intelligence to analyze data from various sources, such as cameras and sensors, to improve traffic flow and reduce congestion. Blockchain technology can ensure the integrity and security of this data, preventing tampering and unauthorized access.
Likewise, energy grids can benefit from this integration, as artificial intelligence predicts energy demand and blockchain technology facilitates peer-to-peer energy trading between consumers.
In short, the future with AI and blockchain technology together looks incredibly promising. Together, they can solve some of the most pressing challenges across industries and pave the way to a more efficient, safe and innovative future.