Blockchain is an immutable and shared ledger that provides real-time settlement of transactions involving money or data. The applications of blockchain have revolutionized multiple industries, including the financial services sector. Artificial intelligence utilizes a combination of computers, data, and machines to imitate the decision-making and problem-solving capabilities of humans. The top AI use cases, such as generative chatbots, have proved how artificial intelligence can have a transformative impact on the world.

Artificial intelligence also focuses on the domains of deep learning and machine learning, which utilize AI algorithms for making predictions and becoming smarter with time. AI could help in automation of repetitive tasks, ensuring better customer experiences and improving the decision-making abilities of users.

The value advantages of blockchain and artificial intelligence suggest that businesses could utilize them together to ensure promising improvements. What are the areas in which blockchain and AI could make some plausible advancements? How can you implement AI and blockchain together? Let us find the answer to these questions in the following post with a detailed overview of the ways to use artificial intelligence in blockchain applications.

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Why Should You Combine Blockchain and AI?

Before you think about the potential of AI in blockchain systems, it is important to think of the reasons why you should combine the two technologies. The combination of artificial intelligence and blockchain technology can lead to promising value advantages through better authenticity, automation, and augmentation. Here is a detailed overview of the different improvements you can achieve with the combination of AI and blockchain technology. 

  • Authenticity 

The digital ledger in blockchain provides insights into the framework underlying AI alongside identifying the ownership of the data in use. You should address the challenge with explainable AI, which can provide viable scope for improving trust in data integrity.

Subsequently, users can trust the recommendations provided by the AI. Blockchain can serve as a useful resource for storing and distributing AI models, as it offers an audit trail. Therefore, the pairing of blockchain and AI could improve data security.

  • Automation 

The next big highlight among responses to “How can blockchain developers use AI?” focuses on automation and AI. Blockchain and the power of automation could offer new value advantages in business processes spanning multiple parties. The value of automation ensures removal of friction, improvements in efficiency, and enhanced speed.

For example, AI models in smart contracts could provide recommendations for recalling expired products or executing transactions according to a specific set of events or thresholds. Automation through AI could help in resolution of disputes alongside ensuring selection of sustainable business operations.

  • Augmentation

Another vital aspect of the advantages of AI in blockchain points to augmentation. Artificial intelligence has the capability to read data at a faster speed in detail. As a result, it can understand and find the relevant patterns within a matter of seconds. Therefore, AI could introduce a new type of intelligence in blockchain-based networks for business organizations. 

Blockchain could provide access to massive repositories of data from outside and within an organization for obtaining actionable insights. On top of it, the blockchain and AI combination could help in improving scalability of AI for management of model sharing and data usage. The benefits of augmentation with the combination of blockchain and AI could also support the creation of a transparent and credible data economy.

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Use Cases of AI and Blockchain 

The biggest highlight required for understanding the potential of combining AI and blockchain is the outline of use cases. You must learn about the best AI use cases in blockchain systems and how you can get the best of both technologies. Here are the most notable use cases of blockchain and AI together.

top blockchain and ai use cases

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  • Security 

Decentralized infrastructure with blockchain could serve as encrypted safeguards for ensuring AI security. The combination of artificial intelligence and blockchain ensures that in-build safeguards could reduce the risks of unwanted utilization in the case of malicious behavior. 

AI developers could encode specific parameters that allow the AI system to access different key systems. The discussions about blockchain and AI use cases would also show how private keys could enforce specific parameters and conditions with the help of smart contracts, oracles, and blockchain networks. 

The element of decentralization in blockchain systems provides inherent safety against unauthorized manipulation due to immutability. Blockchain does not feature a central point of failure, thereby implying that a single agent would find it difficult to compromise the whole system. 

You can notice that the top AI use cases focus on improving utility, and blockchain use cases serve improved security. As a result, blockchain could also improve AI security while helping organizations utilize the full capabilities of AI with the highest standards of cryptographic security.

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  • Authenticity Verification

The features of deep learning models, such as Stable Diffusion and DALL-E, provide a clear impression of the potential of AI. The models could create images and different types of media completely based on the natural language text prompts. 

You can use the convergence of blockchain and artificial intelligence by referring to the use of deep learning models for improving transformative potential of AI. How? AI could help in empowering productivity alongside offering new approaches for improving creativity. However, AI can also serve as a tool for creating and spreading fake news or propaganda by using synthetic media. 

In such cases, the applications of blockchain technology can help in verifying authenticity of video files, text documents, images, and different types of media. Blockchain allows users to verify the origins of a piece of content and identify the possibilities of tampering or modification in the content. 

Such types of cryptographic audit trail technology ensure tamper-proof time-stamping for verifying document authenticity. Cryptographic validation and time-stamping would become an imperative requirement for differentiating between AI and human-generated content. 

The answers to “How can blockchain developers use AI?” would also point to development of decentralized platforms to create content, verify, and distribute them. Such types of platforms could help in empowering content creators and users to establish trust in the information being propagated. In addition, blockchain tokens, such as NFTS, could help in verifying the authenticity and ownership of digital content.

  • Financial Services

One of the most promising areas of application of blockchain technology is the financial services sector. Decentralized Finance, or DeFi, is the most promising example of using blockchain to enable decentralized access to financial services. 

Most important of all, the growth of DeFi has been one of the prominent highlights in the blockchain and web3 landscape. Interestingly, the best AI use cases for DeFi would imply that AI models can use the variety and complexity of financial services to create an economic layer for executing actions according to predefined instructions. 

The example of a large language model connected securely to the internet for performing routine tasks is an example of AI in DeFi. Blockchain applications are modular or composable, which enables the use of AI models for complex interconnected loops of financial transactions. You do not have to depend on the intermediaries in paper-based financial systems. 

Furthermore, AI-based automated investment strategies with DeFi applications prove how blockchain and AI use cases can lead to revolutionary outcomes. The AI-powered investment advisors in DeFi could create a new category of financial services with secure, decentralized, and completely transparent infrastructure for improving trust. 

Artificial intelligence offers decision-making capabilities, while blockchain helps in real-time recording of economic activity. When you combine these two technologies in DeFi, you can also find opportunities for enabling automated compliance alongside fraud detection processes with machine learning algorithms. 

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  • Decentralized Data Storage

The applications of AI in blockchain also extend to the use cases of decentralized data storage. Most AI models have to depend on massive data sets. Many people believe that data is only one of the aspects of AI models. However, the training data could make or break the functionality of an AI system. In such cases, decentralized storage solutions with blockchain technology, such as IPFS and Filecoin, could help in preserving integrity of training data. 

On top of it, you could also use innovative encryption techniques for powering deep learning models. The models can be trained on encrypted datasets while offering safeguards for confidentiality and privacy. Integration of blockchain-based storage solutions in the deep learning tech stack can also provide better security and reliability for AI systems. At the same time, it also encourages transparency and trust in decision-making of AI models.

  • Transparency 

The list of use cases of AI and blockchain also focuses on the challenges of transparency in the decision-making process of deep learning models. Complexity of deep learning models, with billions of parameters, can be quite difficult to understand, even for the experts. 

The top AI use cases show that some deep learning models have their architectures built in a way to ensure opacity. AI researchers have to determine whether the AI models could explain their decision-making process. On the other hand, transparency with blockchain could help in solving such issues in applications of blockchain networks. 

The easy access to a transparent record of data ensures that blockchain technology can help AI models in providing a clear report of their operations. As a result, users and developers could evaluate the audit traits for decision-making patterns for deep learning algorithms. On top of it, the immutable data ledger also provides a clear impression of the data used by the deep learning models. As a result, the combination of blockchain and AI could ensure better integrity in the recommendations by AI models.

  • Smart Contract Development

AI-based development tools have become one of the popular highlights in the modern technology landscape. Examples of tools such as GitHub Copilot ensure that developers can use AI to improve their productivity. You can find answers to “How can blockchain developers use AI?” by reflecting on the use of APIs. 

Smart contract applications could include APIs for introducing new functionalities such as analytics from real-world sensors, generative models, or sentiment analysis. The combination of AI and blockchain could help in creating a completely new assortment of web3 applications

AI could also serve as a valuable tool for developers with opportunities to unlock new web3 gaming experiences. It can offer a flexible tool for game developers to generate completely new game worlds, non-player characters, and in-game assets alongside the game mechanics with AI. 

Developers can imprint all these elements of gaming experience on the blockchain network of a chain. On top of it, a blockchain and AI combination could also ensure that the community is actively involved in creating games through generative capabilities with AI models.

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  • Healthcare

The different types of implementations of blockchain technology have unique use cases, with storage being the most promising choice. Blockchain could serve as the ideal choice for storage of sensitive data. Subsequently, advanced AI models can use blockchain data for analysis of health data. 

Subsequently, it can help in identifying the recurring patterns alongside making the diagnosis with accuracy. The combination of blockchain and artificial intelligence can ensure a comprehensive and effective evaluation of medical records and diagnostic reports. 

Furthermore, new encryption techniques also provide the flexibility for running computations on patient data without affecting privacy. The coordinated use of AI and blockchain could improve security in healthcare, data management, and privacy. AI and blockchain can enable secure storage of patient records and medical research data. Most important of all, blockchain and AI could help researchers and healthcare professionals work in collaboration with each other. As a result, they can work on improving standards of healthcare services.

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The overview of the best AI use cases in blockchain systems shows the importance of leveraging AI and blockchain together. You can avail the value improvements of augmentation, authenticity, and automation with the combination of AI and blockchain. However, you should also reflect on the different use cases of AI in blockchain to learn the importance of AI.  

You can find out how artificial intelligence can work to improve blockchain-based solutions. The journey of AI adoption in the blockchain landscape would gain momentum at a slow pace. However, aspiring professionals seek new avenues for embracing the powers of AI and blockchain combined together. Find the best resources to learn about blockchain technology and how to use AI with it.  

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*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!