The two technologies are at the heart of ChainOn: but they can intervene in so many areas, including applications aimed at improving everyday life.
Artificial Intelligence and BlockChain are technologies that underpin ChainOn, and there is a correlation between them that can bring enormous benefits: thanks to the synergy between Blockchain and AI (Artificial Intelligence), we are entering a real revolution, full of benefits in totally cross-cutting areas. In this article, after the theoretical introduction in which we explain what the “Blockchain” is and how it works, two application examples are given, which make us think about the benefits that could result from the application of these technologies.
WHAT BLOCKCHAIN IS: A DECENTRALIZED STRUCTURE BASED ON TRUST
By definition: The blockchain is a distributed ledger that can intelligently and orderly manage the data it contains through a decentralized structure. The recorded information is distributed by means of an algorithm, without the need for a central actor, who is in charge of managing the nodes in the platform. This technology is entirely based on the mechanism of trust that is created through the vigilant control of all participants in the network. Trust/non-trust since it does not require a guarantor figure, but is based on the democratic distribution of control.
Integrating blockchain with artificial intelligence means leveraging algorithms and machine learning to make data interpretation more secure. AI (Artificial Intelligence) works by exploiting a model similar to neural networks, and the blockchain, precisely because of its peer-to-peer structure, can represent, not only a practical reproduction of the network of connections of intelligent systems, but also the ideal environment for their development and growth. All transactions that take place on the blockchain follow a direct exchange pattern between nodes that, with equal power, give rise to a process of mutual validation.
INCORRUPTIBLE, IMMUTABLE: BLOCKCHAIN
The blockchain is thus the practical representation of the theoretical operation of artificial intelligence and can, in this sense, give a decisive impetus to its development.
Maxim Orlovsky (on medium.com, in the article “How does blockchain relate to artificial intelligence?”), an expert on artificial intelligence, explained, extremely effectively, that blockchain may be to AI what writing has been to human history.
Writing has changed concepts in terms of persistence and consensus. By persistence, we mean their static nature over time, that is, the invariability of what is written despite generational succession; by consensus, on the other hand, we mean the traceability to a single meaning for all those who find themselves interpreting what is written.
These two characteristics of writing refer back to the concepts of immutability and trust that are characteristic of blockchain. The incorruptibility of the data entered is a guarantee to prevent modification of the information after the fact, while the trust mechanism subjects the blocks to active observation by all members of the network.
PREDICTIONS AND APPLICATIONS: SPONSORSHIP AND ENERGY ARE FIELDS OF APPLICATION OF ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN
In addition to the above, namely the advantages that are structural of the operation of distributed ledgers, another extremely convenient aspect of the process of integrating the two technologies is the possibility of leveraging the data recorded on the blockchain to make predictions.
Distributed Ledgers are distributed platforms that are intended to store data entered by all participating nodes. This structure becomes a mine of information that can be mined and interpreted by AI systems in the various fields of commerce, sponsorship, entertainment and information technology.
The ability to correctly interpret the repertoire of information present enables the provision of personalized offers to consumers, perfectly adhering to their preferences.
Application 1: The sports sponsorship market and ChainOn
The “Blockchain” + “Artificial Intelligence” synergy, linked to the ability to make predictions as mentioned in the previous lines, can be replicated in the field of sports, with a focus on sponsorships. And this is exactly what ChainOn is based on: on the marketplace, in fact, collaboration contracts between sponsors and clubs (whether large or small) can be facilitated by the use of a database that provides both clubs and companies with information about the partner that best suits their needs.
This process needs the integrated use of both blockchain and AI.
Application 2: The energy sector
Today there are devices inside every home that record energy consumption: if this data were placed on the blockchain and processed by artificial intelligence systems, reliable predictions could be made about future household consumption, bringing incredible benefits to both individuals and businesses.
For consumers, a dedicated commercial formula could be envisioned, based on the amount of energy consumed.
For businesses, on the other hand, it would finally be possible to produce energy in flexible quantities proportionate to market demand.
The end result would be to pander to peaks and troughs in demand, based on what is found in the data analyzed during the reference periods: individuals and businesses would benefit, but there would also be the possibility of reducing overproduction and thus waste, one of the great goals in the ecological sphere.