Top 7 Use Cases of AI in Blockchain

As we all know, artificial intelligence (AI) and blockchain technology are changing the world in the last few years. Both technologies have the power to change multiple industries with their use cases. As per Statista, the AI technology market has grown $200 billion in 2023 and is expected to grow $1.8 trillion by the end of the decade. When we combine the two technologies, it opens the door for new generation applications that can revolutionize the world. 

As we all know, AI is machine learning from the data and making intelligent decisions based on the data we feed. while blockchain technology is a decentralized and secure way of recording transactions. When we combine these technologies, it can open unlimited opportunities that can enhance security, transparency, and efficiency across various industries.

In this article, we will discuss use cases of AI in blockchain technology and how it can make a difference in various industries, along with what artificial intelligence and blockchain technology are.

Introduction of AI and Blockchain

● What is Artificial Intelligence?

To put it in simple terms, artificial intelligence is like teaching computers to think and learn like humans with the data we feed. For example, imagine having a smart assistant that can understand your question and give an answer, help you find the information, and even recommend the product you like based on past discussion. Far now, AI is behind the virtual assistance you use on your mobile phone, the recommendations on streaming services you watch, and detecting fraud in the banking system. The goal of AI is to make machines smarter so that they can make our daily lives easier.

● What is blockchain technology?

In simple terms, blockchain technology is like a digital ledger or a record book that is shared across many computers. This ledger keeps track of all the transactions that were made in a secure and transparent way. Think-like chain of information blocks that everyone in the network can see but no one can change without permission. Blockchain technology means that once the information is recorded, it can't be changed or altered without noticing, hence providing high security and trust.

Top 7 Use cases of AI in Blockchain

Below are the use cases of AI in blockchain and how it can benefit various industries across the globe.

1. Increase the security

We all know blockchain technology improves security by using cryptography to verify every transaction. AI adds extra layers of protection by analyzing vast amounts of data on blockchain to detect unusual patterns or activities that may indicate fraudulent activity. By using AI in blockchain, blockchain networks become more secure, reduce fraud, and protect user's assets.

In the finance sector, AI can help to detect and monitor every transaction for unusual behavior that can signal money laundering or other illegal activity.

2. Smart Contract Optimization

Smart contracts are contracts written in code and are self-executing when the desired conditions meet. With the AI, it can help with the smart contract auditing process by identifying vulnerabilities and making sure they function as per the condition. By analyzing the written code, AI can help to identify potential bugs or loopholes in the contract and offer assurance that the smart contract performs as expected.

Also, AI in smart contracts can reduce the time and cost by eliminating manual code review with automated AI audits. hence improve the transparency, security, and reliability of smart contracts.

3. Data Analytics

As we know, blockchain uses an immutable ledger to record every transaction that is made on blockchain. AI can leverage the data for analysis and give insight into future trends and analysis. In the finance industry, where future market trends and research are critical to better investment strategies, AI could help traders and investors in making these decisions.

AI in supply chain management helps to optimize inventory management and reduce the cost. AI can analyze supply chain data and predict demand, manage inventory, and prevent stockouts.

4. Healthcare Industry

One of the most important use cases of AI in blockchain is for the healthcare industry to improve transparency and traceability of the healthcare industry supply chain. AI can analyze and predict shortages or disruptions in the drug supply chain system by analyzing patterns and trends in data. 

Also, AI can offer personalized treatment recommendations based on analyzing the patient data that is stored on the blockchain in healthcare supply chain.

5. Asset Tokenization

Blockchain offers asset tokenization that involves converting physical assets like real estate, art, or any other commodities into digital tokens on blockchain. AI can help to value these assets accurately by analyzing various data, market trends, previous prices, and asset conditions. Also, AI in asset tokenization enhances the management of tokenized assets by predicting market demand and liquidity.

By analyzing the current market, AI can help investors identify the best time to buy or sell tokenized assets for maximum return on their investment.

6. Supply Chain Management

AI in the supply chain can optimize inventory management by analyzing the blockchain record of product movement. It helps to predict demand for products, reduce waste, and remind timely restocking, hence reducing cost, improving productivity, and helping to optimize the supply chain for better performance.

In the food industry, AI can analyze the blockchain data to trace the food product from farm to table to make sure that the product meets safety and quality standards and reduces foodborne illness, showing the impact of blockchain on supply chain management.

7. User Identification Verification

AI can make the user ID verification process more secure, transparent, and resistant to hacking. Blockchain safely and transparently records user data, and with AI, it can quickly and accurately examine vast quantities of data. Improvements in identification verification can benefit various kinds of industries, including finance, education, healthcare, and government.

For example, AI can be used as a tool for facial recognition verification in biometric data and behavioral analysis to verify users in real-time. These data can be stored on the blockchain securely and transparently.

Future of AI in Blockchain

Integration of AI and blockchain has the power to change various industries to improve security, transparency, and efficacy. From increasing security to smart contract optimization, data analytics, asset tokenization, and optimizing supply chain to user identification verification, AI and blockchain continue to improve various industries. 

In future, Integration of AI and Blockchain look promising. These technology not only optimize your current technology but also unlock new possibility and innovation in our current technology. As more business see the value of these technologies it will be used wildly and immediately. This will change the way technology works and speed up the process in many industries.