First, let us get a brief idea about what is AI and Blockchain.
AI refers to Artificial Intelligence, which is also called Machine Intelligence (MI). AI is intelligence demonstrated by machine in contrast to Natural Intelligence (NI) which is seen in humans and animals.
The term artificial intelligence is applied when a machine copies “cognitive” functions that human relate with other humans mind, such as “learning” and “solving problems”.
From the functions of speech-pattern recognition to self-driving cars, AIs’ goal is to learn and apply knowledge that is extracted from a large amount of data to make them more intelligent.
According to Don & Alex Tapscott, authors Blockchain Revolution,“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”
Blockchains’ main features consist of transparency, security, and authentication. Wherein the records are transparent and visible publicly, it is secure as the data is immutable or incorruptible and authenticity refers to the verification process of the user’s identity.
HOW CAN AI COVER BLOCKCHAINS FLAWS?
The blockchain is concerned with keeping correct data, authentication, and execution. Even though Blockchain is powerful it has its own limitations. Some of which are technical and others are inherited from the old minded culture of the financial services sector. The few things in which AI can cover up blockchains flaws are:
1. Energy consumption
One of the terms in blockchain is mining. Mining is a tough job and consumes a huge amount of energy to complete the task. In optimizing energy consumption, AI has proven to be very efficient. If we see that efficiency, it can even help the blockchain in optimizing the energy. This would help in lower investment in mining hardware.
The blockchain is next to impossible to hack, however, as we go deeper, the layers and applications are not that secure. AI has been progressing at a good pace from last two years. AI can be of help to blockchain to guarantee a secure application deployment, mainly given the fixed structure of the system.
In 2016, Deloitte estimated a total cost of $600 million for validating and sharing transactions on the blockchain. An intelligent system might be of assistance here. It can compute on the fly the likelihood for particular nodes to be the first performing a certain task and informing the other miners to shut down efforts for the certain transaction and eventually cut down on total cost.
HOW CAN BLOCKCHAIN COVER UP AI’s FLAWS
1. Can Help AI to Explain Itself
AI black-box suffers from explainability problem. it cannot explain itself. Having a clear trail will increase the trustworthiness of the data and the models. It will also help to trace the machines decision-making process. So, if you are not convinced about any decision is taken by the machine you can have a look at the process yourself and evaluate it.
2. Increase AI effectiveness:
AI works better when it has more data to analyze. So, a secure data sharing means more data, which means more models, more models result in better actions – better results and better new data. The network effect is all that matter at the end of the day.
3. Reduce catastrophic risks scenario
An AI coded in a DAO with specific smart contracts will be able to only perform those actions, and nothing more. There won’t be additional actions taken, whatever is specified will be brought into action.