Authored by: Janya Sinha, Editorial Writer, Fidutam
Edited by: Leher Gulati, Editorial Director, Fidutam
Amazon. Pfizer. Big Blue. What is the one thing that these companies, despite their vast differences and unique functions, have in common? Blockchain. Each and every year, these major companies and many others adopt a new, groundbreaking tool: blockchain technology. Spreading throughout the business world, blockchain has hooked retailers on its efficiency, transparency, and security. Simply look at BitCoin. But as with every new technology, there are ways to stretch the limits even further. The benefits of blockchain also extend to artificial intelligence (AI).
What is BlockChain?
BlockChain is a system that records transactions and tracks assets in a business, peer-to-peer, network, usually comprising computers from distributed contacts. BlockChain can track tangible and intangible assets, facilitating production and trade on a safer, widespread, and cheaper playing field. For example, a blockchain network between a retailer and client can track account sign-in, order placement, member payment, and shipment.
There are 3 key elements of BlockChain technology.
First, BlockChain provides participants with access to a list of recorded transactions.
Second, BlockChain includes a security system that ensures that no transactions can be manipulated or tampered with after being recorded. However, if an erroneous transaction were to occur, then BlockChain would show both the original erroneous transaction and the succeeding transaction that would reverse the error made.
Lastly, analogous to a rulebook, look to smart contacts. Essentially, smart contacts define circumstantial agreement information between the retailer and the buyer, like a terms and agreements page. These contacts are stored on the BlockChain itself and are fully automated.
BitCoin
With that being said, let’s move to the first, and perhaps most prevalent, use of BlockChain — BitCoin. BitCoin is a cryptocurrency principally analogous to paper money, and acts as a method of payment that uniquely stretches beyond the control of any one group or entity. Thus, the need for a bank, money minting, or reserve is eliminated.
BitCoin, or any form of cryptocurrency for that matter, uses BlockChain to secure, process, and record any transactions made. The BitCoin BlockChain is distributed across nodes, or computers within the business network. Every node has a copy to the BlockChain, and every time a transaction occurs, the nodes are updated. The BitCoin BlockChain is also made up of blocks, or 256-bit chunks that encode information about transactions, addresses, executive code, etc. Specifically, every time a block is encrypted with data, the following information is added:
- The current client version of software
- The preceding hash (to secure the block)
- Current Block Height, or how far the current block is from the very first encrypted block
- MerkleRoot, which stores data about previous blocks in 256-bit
- A timestamp of the block (specifically the time and date)
- The block’s network target (client)
- A nonce (32-bit data) to complement the hash and ensure live data transmission
Each transaction is queued to a block, which (using the nonce and hash), secures the transaction to ensure it cannot be manipulated or tampered with after being entered into the block itself. Blocks are then added upon each other, in the sense that each succeeding transaction takes information for previous blocks. This “chains” the blocks to each other.
BlockChain in AI
As we examine the various uses of BlockChain in cryptocurrency, it is obvious that BlockChain is quite helpful. However, given its versatility, we must ask ourselves if BlockChain has the potential for use beyond the cryptocurrency sector. The answer, of course, is yes! BlockChain can certainly be used beyond crypto, most notably into the AI sector!
First, BlockChain can help generative AI models, such as ChaptGPT or Gemini, in handling data with security and transparency. The use of smart contacts and detailed bit information can help LLM (large-language models) to take accountability and ensure consumer safety.
Second, BlockChain’s decentralized protocols can help to augment AI security measures. In the case of Narrow AI (expected to perform a single task and severely limited in its scope of functions), BlockChain could provide a needed respite from training bias or manipulation.
Third, BlockChain could help to optimize AI analytics. BlockChain, which functions on the evaluation of assets, could use generative AI and trained Reactive Machine AI to better understand historical trends and decipher challenges in a predictive emphasis. BlockChain scalability with AI could better be managed, with network weight and resource allocation engaging in a larger, more comprehensive manner. Essentially, the integration of BlockChain and AI could better maintain and support BlockChain infrastructure.
Conclusion
At the end of the day, the adaptability of BlockChain is endless. Today, we see its primary use in BitCoin, but in the coming future, the focus may be AI. To infinity & beyond!
Sources
What Is Bitcoin? How To Mine, Buy, and Use It
7 Types of Artificial Intelligence | Built In
5 Use Cases of AI in Blockchain — Unchained
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