Recent surge in data breaches and digital surveillance has emphasised the need for better privacy and security, with emergence of protection measures over users’ personal identifiable information (PII). Blockchain-based artificial intelligence (AI) model’s decentralised ledger technology (DLT) protocol is believed to protect data through decentralised identity and other privacy mechanisms. In a study conducted by Emergen Research, a research and consulting firm, the global blockchain-based AI market stood at $226.9 billion in 2020 and is expected to reach $1,414.1 billion by 2028, at a compound annual growth rate (CAGR) of 25.6%. “AI and blockchain can address issues for different industries. While blockchain can handle trust, privacy and accountability, AI can deal with scalability, security and security of a process. Through blockchain-oriented AI protocols, businesses can get support in decision-making to build better products and services, and process internal business matters faster. AI models in smart contracts has the potential to improve inventory management, reorders, faulty product recalls, and even resolve possibilities of financial disputes arising due to incoherent data sets,” Shantanu Sharma, growth and marketing, EasyFi Network, a decentralised finance (DeFi) platform, said.
According to various reports, blockchain-based AI is believed to help in managing data in sectors such as manufacturing, retail, automobile agriculture, financial industry, among others. Insights from Fortune Business Insights, a market research company, mentioned that the adoption of blockchain-based AI platforms and services among small and medium enterprises (SMEs) to develop blockchain applications such as payment systems, smart contracts, among others, is likely to fuel growth for this market, with countries such as China, Japan, USA, and UK, expected to heavily invest in this sector. “Integration between AI and blockchain provides data security through encryption. Through cryptography, databases of businesses can exchange information in real-time without compromisation of users’ security. Blockchain-based AI can ensure that recorded data doesn’t get breached,” Pardeep Narwal, founder, New Edge Soft Sol Private Limited, a software company, stated.
Moreover, 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 anticipated that blockchain-based AI models can help users read, correlate and understand large volumes of information at a faster rate. Research conducted by MarketsandMarkets, a market research company, emphasised that blockchain-based AI models can help with data monetisation to make it accessible to smaller companies. “By correlation of AI and blockchain, every kind of platform can find ease in creation of decentralised AI applications. It has the potential to allow devices to overcome difficulties through real-world challenges, reasoning and trials-and-error. Presence of autonomous agents will play an important role in governance of data,” Amanjot Malhotra, country head- India, Bitay, a cryptocurrency exchange, said.
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