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how the EU is making technology magical
What happens when the secure world of blockchain meets the intelligence of artificial intelligence? Find out how the EU is fusing these technologies to create something magical.
Blockchain AND TO THE are two buzzwords you’ve probably heard a lot about. But what happens when these technologies join forces?
The European Union (EU) is exploring this very question. In fact, the European Blockchain Observatory and Forum (EUBOF), part of the European Commission, recently published a report citing the potential of integrating blockchain technology with artificial intelligence (AI).
According to the EUBOF relationshipdrawn up by the Directorate General of Communications Networks, Content and Technologies, the possibilities are immense.
Think about it: AI data, which needs to be extremely secure, can be stored on the blockchain. This is a big problem for industries like healthcare and finance, where data security is paramount.
EUBOF also highlights that the combination of blockchain and artificial intelligence can create decentralized artificial intelligence networks. This means that instead of a few large companies controlling all the data, there can be a more collaborative approach to AI development. In other words, it levels the playing field.
Another interesting thing about this technological duo is the way artificial intelligence can create smart contracts smarter. These contracts, which are executed automatically when conditions are met, can take advantage of the capabilities of artificial intelligence, making them more efficient and reliable.
To lead the charge, EUBOF recommends that Europe becomes a global hub for blockchain knowledge. They also suggest engaging more with various stakeholders and addressing the challenges that arise from new innovations.
Additionally, the EU plans to change regulations for the European Joint Undertaking for High-Performance Computing (EuroHPC), which operates supercomputers across Europe. These supercomputers will support the development of artificial intelligence, with new AI factories set to improve their capabilities.
So what does this mean for us? Let’s find out.
Because AI and blockchain are a perfect combination
Artificial intelligence and blockchain are two hottest topics that may make investors sit up and take notice. While it’s easy to be skeptical, there are solid reasons for excitement.
So, how can AI enhance blockchain? One of the key areas is scalability.
Blockchain like Bitcoin (Bitcoin) and Ethereum (ET) are notoriously slow. Bitcoin handles around 7 transactions per second (TPS) and Ethereum handles around 30 TPS. Compare that to Visa, which processes 6,800 TPS.
This speed gap is a looming obstacle to blockchain adoption. Enter AI. It can help by predicting periods of congestion and optimizing transaction flows, making blockchains faster and more efficient.
Hire AI as your traffic controller, analyzing data for potential slowdowns and rerouting transactions to keep everything moving smoothly. This not only speeds things up, but also makes the blockchain more reliable and ready for larger and more complex applications.
Artificial intelligence can also improve blockchain security. Take Ethereum side-chain solutions, known as rollups. These rollups process transactions off-chain and then add them to the blockchain.
Zero-knowledge rollup validate transactions using cryptographic proofs, ensuring sensitive information remains private. Optimistic rollups, on the other hand, assume that transactions are valid unless challenged by evidence of fraud.
Typically, validations can take a long time, depending on network traffic, creating a bottleneck. However, AI can analyze transaction patterns, predict potential problems, and optimize the validation process, speeding up the entire system and making it much more efficient.
Additionally, AI’s ability to quickly analyze large amounts of data makes it a powerful tool for auditing blockchain applications. Instead of waiting for vulnerabilities to be exploited, AI can proactively identify and fix them.
Fraud detection is another area where AI shines. AI can monitor blockchain networks for unusual activity, flagging potential fraud in real time. This capability is crucial as blockchain becomes increasingly integrated into financial systems. Early detection can prevent colossal losses and maintain the integrity of blockchain networks.
However, integrating AI with blockchain is not without its challenges. Regulation is a big obstacle. The EU’s new AI law, the first of its kind, adds layers of compliance for companies using AI.
This act requires risk assessments, disclosure and cooperation with authorities and has global implications. Businesses outside the EU must also comply if they want to operate within its borders.
Despite these regulatory challenges, the synergy between AI and blockchain is undeniable. AI can make blockchains faster, safer and more reliable, while blockchain can provide AI with a secure and transparent data storage solution.
The EU recognizes this potential and is taking steps to lead the charge, laying the foundations for technological advances.
The future of artificial intelligence and blockchain integration
The integration of artificial intelligence and blockchain offers a future where these technologies not only coexist but enhance each other’s capabilities. Let’s explore the potential impact of this powerful combination.
One of the most promising areas is supply chain management. Currently, supply chains are complex, often non-transparent networks where tracing the origin and journey of goods can be daunting.
Blockchain can provide a clear, tamper-proof ledger to record every step of the supply chain. When combined with artificial intelligence, which excels at analyzing large amounts of data, companies can optimize logistics, predict demand and identify potential disruptions before they occur.
For example, IBM’s Food Trust blockchain, which tracks food products from farm to table, can be improved with artificial intelligence to detect patterns and prevent foodborne illnesses more effectively.
In the healthcare sector, the fusion between AI and blockchain I could lead to new progress. AI algorithms can analyze patient data to provide personalized treatment plans, while blockchain ensures this sensitive information is securely stored and accessible only to authorized parties.
This combination can also streamline clinical trials, where AI can help identify suitable candidates and predict outcomes, while blockchain can maintain the integrity of study data, preventing fraud and ensuring transparency.
Financial services is another field ripe for transformation. Decentralized finance (DeFi) platforms, which are built on the blockchain, it can leverage artificial intelligence to improve trading algorithms, improve credit scoring models and detect fraudulent activity.
AI’s predictive capabilities can provide more accurate risk assessments, while blockchain’s security features can protect user data and transactions.
According to a PwC report, artificial intelligence is expected contribute $15.7 trillion to the global economy by 2030, with blockchain adding another $1.76 trillion. Together, they can create a safer, more efficient and innovative financial ecosystem.
The road ahead
As we move forward into this era, we can imagine a world where smart cities are powered by artificial intelligence and blockchain.
Traffic management systems could use artificial intelligence to analyze data from various sources, such as cameras and sensors, to optimize traffic flow and reduce congestion. Blockchain can ensure the integrity and security of this data, preventing tampering and unauthorized access.
Likewise, energy networks can benefit from this integration, with artificial intelligence predicting energy demand and blockchain facilitating peer-to-peer energy trading between consumers.
In short, the future of AI and blockchain together looks incredibly promising. Together, they can solve some of the most pressing challenges across industries and pave the way for a more efficient, safe and innovative future.