Blockchain and AI are two of the trendiest emerging technologies today. While AI is already omnipresent in our lives, blockchain is comparatively less mainstream yet. But that’s changing rapidly. With the global health crisis speeding up tech adoptions across industries, blockchain technology solutions are gaining increased attention.  

 Both blockchain and AI have promising capabilities on their own. But tech geeks are now exploring the possibilities of their combined power. And that’s what this blog post is all about. We will dive deeper into the worlds of artificial intelligence and blockchain. Then we’ll try to understand how these technologies can join forces to make each other even more powerful. Let’s get started! 

How the Blockchain Technology Works

Blockchains are decentralized, immutable ledgers that enable data storage and processing of transactions. Most of us relate blockchains with bitcoin. Its origin is indeed closely linked to cryptocurrency. The first blockchain was the database on which all bitcoin transactions were stored. Since bitcoin’s inception in 2009, the blockchain has stored over 160 gigabytes worth of data for every single bitcoin transaction.  

The blockchain is significantly different from other databases. Blockchains, unlike software databases, comprised information stored across a network of computers. And all the computers in the network update the ledger. For instance, we can compare the Bitcoin blockchain with Wikipedia. Like Wikipedia, it relies on a vast network of contributors. Organizations are increasingly adopting blockchain technology solutions to build such networks. Because the information stored in the blockchain is distributed across the ledger, even if one computer is hacked or goes offline, other systems can use the data. 

Integrating AI into the blockchain

The concept of integrating AI into blockchain is based on the idea of denoting computers that can enhance human capabilities associated with managing blockchain networks. For instance, artificial neural networks, deep machine learning, and algorithms, among others. 

Blockchain’s evolution as an information-storage system is comparatively new. It encrypts data and distributes information across a network of computers. Hire blockchain developers from OrangeMantra to create highly secured databases where you can store information in a structured manner. 

How AI makes the blockchain better

Technologists working on the blockchain can create artificial neural networks to teach algorithms and significantly expand their abilities. That means AI algorithms can help blockchains technology solutions to predict actions. Using advanced AI systems, blockchain-based solutions can understand data and patterns more deeply than human intelligence can do. Since AI can collect and process much more info than a human brain, it will make blockchain systems more efficient. Plus, such systems will have even more stringent security measures.  

AI-based systems can analyze the amounts of data that we humans cannot even begin to imagine. By partnering with the right artificial intelligence development company, you could build a next-gen tech ecosystem built on top of the blockchain. Decisions of the AI system can be recorded in the extensive network of blockchains. Admins can have seamless access to decisions and their logic.  

Enhancing efficiency with algorithms

Blockchain transactions rely on validation by miners. Using the computing power of different combinations of characters, miners guess the correct code. Only the miner who first predicts the right combination gets the reward. Meanwhile, the computing power used by all other miners is wasted.  

That could change with AI. Using AI algorithms, blockchain users could predict the code more promptly. That means there won’t be any wastage of computing power. And that would be a noteworthy improvement in the world of blockchain and cryptocurrency. Massive energy consumption associated with the blockchain has been a top concern among environmentalists and entrepreneurs alike. If AI could solve this problem, it would be a breakthrough in blockchain technology. 

Key benefits of integrating AI into blockchain

When two of the most powerful technologies of the 21st century join forces, transformations are inevitable. Such integration will benefit both AI systems and blockchain networks alike. While AI solutions are decentralized, the blockchain will get smarter and more efficient.  

With a distributed digital solution, users could count on all the computation power to analyze massive streams of data much more quickly. Such systems will divide the data into smaller units and analyze them in different computing units. A distributed system means numerous computers will simultaneously analyze the dataset—splitting it into smaller units.  

Meanwhile, the decisions and logic of the AI system will be recorded in the vast swath of blockchains. It will make the information and decision-making process transparent for all stakeholders. Benefits like these are likely to drive the popularity of blockchain technology solutions across industries. 

 Wrapping up  

We’re at the dawn of a new era of next-gen digital technology. Over the past couple of decades, we’ve seen the rise of software and the internet across industries. Experts believe the coming years will mark the dominance of technologies like AI, blockchain, and machine learning. At OrangeMantra, a pioneer in custom digital transformation solutions, we’re enthusiastic about all things digital. Whether you need an intelligent enterprise application or a blockchain-based fintech solution, we’re here to help. 

 FAQs 

 1. How does blockchain benefit businesses?

Blockchain offers valuable capabilities to enterprises transacting with one another. Its distributed ledger-based structure facilitates a host of business benefits. Blockchain solutions help businesses improve efficiency, build trust, and scale per requirements, among other advantages. 

 2. What is a Hyperledger?

Hyperledger is an open-source community focused on developing solutions, tools, and libraries for enterprise-grade blockchain technology deployment. Blockchain solutions rely on a distributed ledger. 

3. How much does it cost to build a blockchain solution?

The costs of developing a blockchain system vary widely based on your requirements. There’s no average cost of blockchain development. OrangeMantra offers reliable blockchain development services at a market-best price.