Blockchain is considered a shared and permanent ledger that will be used for the encryption of data in the future. AI engine, on the other hand, enables an individual to analyze and make decisions from the collected data. It is worth mentioning that each technology has its multiple complexions, but artificial intelligence and blockchain together will provide many benefits. 

 This combination of the inherent strength of blockchain to provide immutable data that could be trusted implicitly and the AI's ability to draw valuable insights from that data is very complimentary. 

 Advantages to Highlight for 2023: 

Because of the distributed ledger's immutability and cryptography, the data in a blockchain is well-protected. A blockchain is ideal for storing highly sensitive personal data like medical notes or investment portfolios.  

On the other hand, AI craves data continuously and in high volumes. What is underway now are algorithms that will allow AI to work with encrypted information without exposing it. 

 It must be noted, however, that the blockchain is secure at its base, and additional layers and applications are vulnerable. So, machine learning in the financial industry will help to improve the deployment of blockchain apps and predict possible system breaches, improving security. 

User Trust 

 There is an actual trust deficit between AI's decision-making abilities and the public's trust in the accuracy of such decisions. Regardless of its performance, people won't use AI if they don't trust it. Putting the brakes on the broader adoption of AI is the impossibility of explaining decisions made by the computer. With blockchain's possible to record the decision-making process, AI can gain public trust much sooner. 

 Blockchain and AI can make the way computers think more transparent. A distributed ledger can store every decision made by AI, data point by data point, and make them available for analysis.  

 Blockchain and the distributed ledger can store large amounts of encrypted data, and AI can manage and analyze it effectively with each emerging use case. This synergy will give rise to new markets for the combination of the two, giving rise to data, model, and AI marketplaces. 

 Giant Web2 monopolies like Google, Facebook, and Amazon have access to large volumes of data useful for AI processes for analysis and decision-making. Still, these monopolies ensure that this information is unavailable to others. Financial and voluntarily shared Web3 data can provide an antidote to such hoarding. 

 AI can provide a perk for the security of online blockchain operations like exchanges by improving how we work with data. Computers process encrypted data by going through multiple combinations of characters in search of the correct one to verify a transaction. Like a human hacker, AI learns and sharpens its skills with every successful code crack. But unlike a hacker, AI won't need a lifetime to learn the combinations. With the correct training data, AI can do it almost instantly. 

 Optimizing energy consumption and reducing IT's Carbon Footprint 

When it comes to data mining is a very energy-consuming process. AI has proven tools via machine learning to deal with the issue. Google data centers have reduced their energy consumption by 40% by training the DeepMind AI on historical data from thousands of sensors within a data center. The same principle can be used for mining, leading to lower prices for mining hardware. 

 Smart Contract Auditing and Verification 

Blockchain systems have thousands of smart contracts programmed to release and transfer funds automatically when certain conditions are met. Network consensus must be reached to operate smart contracts on the blockchain. Most smart contract code is public and can be reviewed by anyone. Hackers can patiently and thoroughly go through every line of code in search of loopholes. AI can help verify smart contracts and predict vulnerabilities that can be exploited. 

 Closing Thoughts 

Whenever a new technology has emerged, critics have picked out flaws in it or have been scared to engage their business and utilize its advantages completely.  

 When cloud storage was introduced, its critics bemoaned its privacy and security risks. AI was met with more dire warnings, with reports of "the growing use of AI systems to lead to the expansion of existing threats, the introduction of new threats and a change to the typical character of threats." 

 Blockchain is seen in a similar light using terms like "black money" or the "underground economy." Yet, each of the above technologies adapted to defray those concerns by creating hybrid models or fixing security concerns.  

 The year 2023 will be a year for a juxtaposition of AI and blockchain to build expert systems that can optimize and make reliable predictions in dozens of business verticals, from supply chain to food security and from HR to determining consumer preferences.

Photo by Shubham Dhage on Unsplash