Blockchain and artificial technology are the future of a decentralized and transparent world with no bureaucracy and fraud risks. These concepts are starting to put the base of improved networks and ecosystems through features of immutability and natural language processing. Although they’re still in the beginning stages, blockchain and AI prove the world is developing.
However, they are based on different notions. Blockchain was initially designed for cryptocurrency transactions. Therefore, it contributes to the crypto market considerably, affecting Bitcoin and the ETH price due to scalability levels and security.
On the other hand, artificial intelligence is the product of continuous research and methods of making computers fit for completing complex tasks by learning different algorithms. AI is based on computing systems that use data to identify patterns, make predictions and analyze information.
Together, blockchain and AI can revolutionize the business sector through proper integration by improving data security, boosting surveillance levels, and reducing data breach risks. These are current use cases of blockchain and AI.
No more scams and cyber attacks
Due to weak security systems and lack of adequate training, companies, small businesses and even startups are affected by millions of cyber-attacks through their activity cycles. Employees are prone to scams like phishing and malware as hackers are getting more resourceful regarding their approaches.
With actual security measures, companies lose millions of dollars yearly and waste their brand potential. However, if they would integrate blockchain and AI, they could prevent fraud and cyber-attacks. Blockchain is the perfect solution to protect data, while AI can identify fraudulent patterns through behavioral analysis.
AI would also add an additional security layer to blockchain’s smart contracts by checking for vulnerabilities, enabling threat prediction features. Moreover, AI can improve smart contract optimization through enhanced monitoring and NLP (natural language processing).
Better supply chain management
The global supply chain management condition is a constant struggle due to conflicts and the worsening economic situation. Labor shortages, increasing freight prices and challenging demand forecasting contribute to increased competition and low productivity rates.
The supply chain industry needs an immediate reset to accommodate the increasing demand and changing trends. AI can ensure it by analyzing massive amounts of data from gadgets used in the delivery process, for example, IoT products and sensors. Hence, AI can provide valuable information about each step in the supply chain.
On the other hand, blockchain can be used for real-time tracking and traceability for every product registered on the network. For example, every product would receive its own digital identity on the blockchain that cannot be modified, including origin and manufacturing date data. Along with data from sensors and GPR devices from AI, counterfeit goods and fraudulent activities would diminish considerably.
Tokenized assets
Blockchain can truly put the base to future technologies as it provides the ability to tokenize any type of asset. Compared to traditional investments, like real estate, tokenized ones can be transformed into digital units that provide accessible ownership records, returns in interest, and open auditing.
Blockchain-based tokenization can be analyzed based on NFTs, unique assets that transformed entertainment and arts into a profitable and dynamic business, as there’s an emerging market for NFTs. However, almost everything can be tokenized through blockchain, from real estate, equity, currencies and gold.
With the help of AI, tokenization can be taken to the next level as machine learning models can analyze market trends and historical data to determine the value of the tokenized asset in real-time. Blending blockchain with AI enhances liquidity and accessibility through fractional ownership and can improve the decision-making process.
Superior predictive analysis
Forecasting in business is vital for growth and income improvement, but it’s not that easy to settle with current methods. Companies have to go through numerous steps of choosing theoretical variables for poiting out the problem, making assumptions, choosing a forecasting model, and analyzing and verifying the final result.
On the other hand, leveraging blockchain and AI technology uses superior models for predicting the market price by recognizing patterns, analyzing customer behavior, and detecting fraud. Moreover, AI improves the decision-making process by optimizing the blockchain’s smart contracts, handling scalability, and designing valuable tokenomics designs.
Finally, the supply chain relies on predictive analysis because it powers up tailored strategies. AI is used to examine shopping times and product demand through which predictions on disruptions and logistics are made.
Cross-chain interoperability
Cross-chain protocols allow for multiple blockchains to communicate but can also pave the way for different infrastructures to engage, such as Web2 and Web3. For this to happen, a cross-chain bridge is built between the two or more parties through smart contracts that provide functionality on dApps, NFTs, DEXs and much more.
Cross-chain integration could improve with artificial intelligence as it has the capacity to analyze and interpret data from multiple blockchains to find a way to integrate. As each blockchain has different languages, from programming to validating ones, AI helps examine them with machine learning and NLP to find a way to communicate efficiently.
Cross-chain integration is essential to develop in this fast-paced dynamic of business because it has the potential to increase liquidity, improve scalability, and reduce transaction costs. Moreover, the use of AI with these blockchains might provide compliance solutions, considering the lack of a current legal framework on blockchains or AI.
In this case, machine learning algorithms can also meet actual security regulations, for example, by detecting and flagging suspicious activities on the blockchain. Some vital regulatory requirements that can be achieved include AML (anti-money laundering) and KYC (know your customer). Finally, AI can adapt to changing regulations on the spot.
What do you think about blockchain and AI conjointly?
In a world where business rules the world, constant improvement and innovation are essential for enhanced customer service and profit. Therefore, for this world to develop, the use of blockchain along with artificial intelligence is critical for mitigating current challenges of inefficiency and cyber-attacks.
So, these technologies can work together to improve the supply chain management sector, including tokenization, and make predictive analysis accessible to companies.
