These days two things are ruling the world – Blockchain and artificial intelligence. They are the transformational technologies of today’s world. These technologies have unique features that help different businesses across various industries. But when combined, they can even produce a much more significant result. So, artificial intelligence has allowed playing a substantial role in the Blockchain world.
In this article, let’s figure out how these two technologies perform when combined. So, if you are willing to start your journey in this field, you will get a better picture before going for AI certification or Blockchain education.
What is Blockchain?
Blockchain technology, in simple words, is a shared ledger through which multiple parties can share, transfer, and exchange data at the same time. You can do a lot through this network. Blockchain can help businesses track orders, accounts, payments, supply and chain, production, etc.
It is one of the most secure platforms where encrypted data can not be altered or deleted. This technology allows businesses to gain their partner’s trust and hence see increased opportunities.
What is Artificial Intelligence?
AI, on the other hand, is the opposite of what Blockchain is. The AI chatbot is designed to leverage data, computers, and machines to behave like a human mind to solve real-world problems. AI also consists of deep learning and machine learning techniques. These two also use AI algorithms to make predictions. Automating tedious and repetitive tasks is a perfect example of how AI is helping and supporting businesses.
What is the Role of AI in Blockchain Analytics?
Blockchain technology is about data and security, and artificial intelligence can provide effective solutions for its monitoring techniques. Using machine learning technology, accuracy can be maintained. There are more than one ways in which an AI chatbot can help improve Blockchain analytics:
1. Data Security
Using the recommendations provided by AI, Blockchain can improve data security parameters. Data security can be enhanced and taken to the next level by pairing these technologies. AI can also be used to assess any risks associated with any accounts. Using the previous history, it can allot risk scores to each account by analyzing their information.
It will enable the businesses to know which accounts are high risk and need further investigation. It will help in reducing fraudulent activities.
2. Augmentation
One of the features of artificial intelligence is to read, comprehend, and correlate data at an unimaginable speed. AI can bring new intelligence to all businesses running on Blockchain technology through this feature. These technologies often support each other. Blockchain helps provide access to many data files inside or outside the organization. While on the other hand, using this data, artificial intelligence can provide valuable insights to the organization.
3. Automating the Processes
Blockchain technology provides security and data safety by storing these in ledgers which cannot be changed or altered. If AI is introduced, it will help automate tasks and add meaningful value to businesses.
For example, when artificial intelligence models are included in smart contracts of Blockchain, they can help make numerous recommendations. These can be like recalling expired products, executing orders and transactions, resolving disputes, or selecting a preferred payment mode.
4. Controlling Fraudulent Activities
It is among the most significant challenges and worries of any business. By using AI in Blockchain analytics, companies can help save themselves from suspicious transactions and limit fraudulent activities on their system.
It can be managed using AI algorithms to help analyze the transaction data. Identifying the patterns, it can trigger any abnormalities and hence give you an option of eliminating the fraud.
For example, if artificial intelligence is included in the system, it can trigger any transaction involving a large sum of money. It will significantly trigger if it happens between two unknown accounts for the first time or during odd hours.
Similarly, AI can raise a trigger if any transaction happens from an already fraudulent market account. Highlighting similar pattern transactions can also result in reducing fraud.
5. Improve Verification Process
Artificial intelligence is convenient when companies need to enhance their verification process. It can help to efficiently analyze a user’s biometric information, such as fingerprint scans, facial or voice recognition. It can ensure only legitimate users can log in to the Blockchain network. Thus, it can further enhance the security of Blockchain analytics.
How is AI Implemented in Real-World Blockchain Analytics?
Many companies have started investing in integrating artificial intelligence into their Blockchain analytics process. These companies use artificial intelligence to analyze transaction data and identify fraudulent or suspicious activities. Law enforcement companies use these Blockchain analytics to track crypto-related crimes. Some companies also use artificial intelligence to score each transaction and monitor their behavior.
What is the Benefit of Using AI in Blockchain Analytics?
Below listed are a few of the ways through which incorporating artificial intelligence in Blockchain analytics can benefit:
- Using artificial intelligence algorithms, large amounts of data can be analyzed quickly, efficiently, and accurately.
- Accurate data can help detect and prevent any fraudulent activities.
- AI can also help automate manual tasks such as manual monitoring, saving companies much money and time.
- AI and Blockchain analytics integration also help companies comply with regulatory requirements.
Are there any Limitations of Artificial Intelligence in Blockchain Analytics?
Although artificial intelligence is a great tool and enhances Blockchain analytics in many ways, certain limitations are attached:
- Artificial intelligence algorithms are good at the data they are trained for. For any other data, they may not perform and hence will not be efficient in catching any fraud.
- These algorithms are also very vulnerable to cyber attacks making them easily compromised.
But it does not mean that it can not be controlled. Companies should update their AI systems regularly to ensure they are accurate. Once the systems are updated, their chances of catching any suspicious activity will increase. Moreover, these two technologies are expected to interact more often in the coming years, creating a better and safer place for businesses.
Wrapping up
Integrating artificial intelligence into Blockchain analytics provides a very reliable and safe platform. It further helps in detecting and reducing any fraudulent activities. All this is possible with the help of AI algorithms that can easily read and analyze enormous tons of data. Moreover, artificial intelligence has also helped companies save money by increasing speed and accuracy.
To learn more about Blockchain and artificial intelligence before starting your career journey, check out the Blockchain council’s website. You will get ample information about these technologies with AI certification course guiding materials and resources. You can read them, know more about their benefits and then make an intelligent decision.
