The recent increase in data breaches and digital surveillance has highlighted the need for improved privacy and security, with the emergence of measures to protect users’ personally identifiable information (PII). The blockchain-based artificial intelligence (AI) model Decentralized Ledger Technology (DLT) protocol is supposed to protect data through decentralized identity and other privacy mechanisms. In a study conducted by Emergen Research, a research and consulting firm, the global blockchain-based AI market was worth $226.9 billion in 2020 and is expected to reach $1,414.1 billion by 2020. by 2028, at a compound annual growth rate (CAGR) of 25.6%. “AI and blockchain can solve problems for different industries. While blockchain can manage trust, privacy, and accountability, AI can manage scalability, security, and safety of a process. to blockchain-oriented AI protocols, companies can get support in decision-making to create better products and services and deal with internal business issues faster.AI models in smart contracts have the potential improve inventory management, restocking, defective product recalls, and even resolve the possibility of financial disputes due to inconsistent data sets,” Shantanu Sharma, Growth and Marketing, EasyFi Network, Decentralized Finance (DeFi) platform, said.
According to various reports, blockchain-based AI would help manage data in industries such as manufacturing, retail, automotive agriculture, financial industry, among others. Information from Fortune Business Insights, a market research company, mentioned that the adoption of blockchain-based AI platforms and services by small and medium-sized enterprises (SMEs) to develop blockchain applications such as payment systems, smart contracts, among others, is likely to fuel growth for this market, with countries like China, Japan, the United States and the United Kingdom expected to invest heavily in this sector. “The integration between AI and blockchain ensures data security through encryption. Using cryptography, enterprise databases can exchange information in real time without compromising user security. AI based on the blockchain can ensure that the recorded data is not hacked,” said Pardeep Narwal, founder of New Edge Soft Sol Private Limited, a software company.
Additionally, experts believe that blockchain-based AI can help create a transparent data economy, to make data immutable and free from third-party access. It is expected that blockchain-based AI models can help users read, correlate, and understand large volumes of information at a faster rate. Research by MarketsandMarkets, a market research firm, has pointed out that blockchain-based AI models can help monetize data to make it accessible to small businesses. “Thanks to the correlation of AI and blockchain, each type of platform can easily find the creation of decentralized AI applications. It has the potential to empower devices to overcome difficulties through real-world challenges, reasoning, and trial and error. The presence of autonomous agents will play an important role in data governance,” said Amanjot Malhotra, Country Head for India, Bitay, a cryptocurrency exchange.
Also read: Avalanche proposes a way to reduce impermanent losses in decentralized finance
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