Artificial intelligence, Blockchain

Blockchain and AI: Creating a Complementary Combo!

yokesh sankar

Yokesh Sankar Jun 20, 2023 8 mins

Blockchain and AI: Creating a Complementary Combo!

Here we are going to discuss two giant technologies that are changing the modern world. These critical and rapidly evolving technologies are artificial intelligence and blockchain. At their full power, they operate at two different poles, but the benefits of combining them are beyond our imagination.

AI is a part of computer science that makes machines operate that normally require human intervention. Blockchain is a decentralized, digital, and immutable ledger(database) that provides a secure and transparent way to store and share data.

But when combined, the two have the potential to create synergies that can transform our lives and work practices.

We will start by understanding what AI and blockchain are and explore how blockchain and AI complement each other and what the future hold for these technologies.

Blockchain Technology

Simply put, blockchain technology is a book of records. A decentralized digital ledger, consisting of blocks linked with one another, stores a set of information. This technology collects information transparently and keeps it secure.

Each block contains a set of data linked to the previous block in the chain, resulting in a permanent record that cannot be deleted or changed. It creates a permanent and indestructible record of every transaction that has ever taken place on the blockchain.

The highlighting thing is that blockchain is not controlled by a central authority, rather it is maintained by a network of users. They all have access to verify the copy of each transaction. So there is no single point of failure that fraudulent can exploit. We may revolutionize the way information is stored and transmitted.

Artificial Intelligence

Artificial intelligence or AI refers to machines that can perform tasks that usually require human intelligence. Machines are now capable of learning, solving problems, and making decisions that require human intelligence.

These machines can understand and respond to human voice commands, as well as learn and adapt to user preferences over time. With the help of machine learning algorithms, AI can make predictions or recommendations without any human intervention.

We can categorize AI into weak (narrow) and strong (general) AI. Narrow AI is developed for specific tasks and is already used in a variety of applications like virtual assistants, and chatbots. These systems use machine learning, a branch of AI, to analyze data and learn from it over time.

General AI can do any intellectual task that a human can do. And what is the need for this? It's still a concept, and researchers and engineers are striving to develop machines that match or exceed human intelligence.

How can blockchain and AI complement each other to transform the tech world?

You can understand that AI and blockchain are in different directions, but when combined they can do wonders in a significant way.

AI meets Blockchain

Blockchain has excelled in all areas, especially data encryption, and utilization. When it comes to AI, it is crucial in driving businesses forward and driving growth. Apart from their differences, if they work together they can change the world in different ways.

1. Improved security and privacy

Blockchain provides a secure way to store sensitive data and provides a tamper-proof ledger that can protect data. This makes it an ideal platform for those requiring fast and private data storage, such as medical records.

Integrating AI and blockchain brings more security to these types of applications. AI can help protect the application from fraud or other malicious activities.

2. Streamlined data sharing and management

Blockchain technology creates a decentralized network for data sharing and peer-to-peer connections. AI can analyze and process data very fast and efficiently. This will streamline workflows and reduce the time and costs associated with data processing and management.

Taking supply chain management itself as an example, AI and blockchain together provide more real-time visibility into most data points, such as shipment status, inventory levels, and other vital metrics.

3. Improved automation and efficiency

Another explanation of AI is automation. AI algorithms can be trained on blockchain data to automate tasks and processes such as smart contract management or regulatory compliance. This will reduce the need for human intervention and increase efficiency.

AI-integrated blockchain platforms can automatically execute smart contracts when certain conditions are met, such as betting on a game or receiving a payment.

4. Increased trust and transparency

The blockchain serves as a transparent and immutable record of transactions on the network. It helps build trust between participants and stakeholders.

Integrating AI with blockchain can provide real-time insights into network speed and efficiency.

Sectors that have benefited from these integrated technologies

Greater transparency in the supply chain

Blockchain has excelled solely in all business sectors. Now AI and Blockchain are teaming up to create a blockbuster wave. As we know, blockchain is a digital ledger that can securely store all information. Blockchain can track every step in the supply chain. This will help businesses track their inventory and use sustainable and ethical practices throughout production.

AI helps analyze and identify which parts of the supply chain need improvement. AI may identify a supplier that regularly supplies raw materials that cause production delays. By mentioning this issue, businesses can improve their efficiency and reduce waste, benefiting everyone involved.

Enhancing Healthcare data management

Blockchain is a tamper-proof technology, they store the data in a very secure and decentralized way so that unauthorized persons don't have any right or access to such personal data.

When it comes to the medical field, patient data are so confidential and need to protect from other malicious activities. The blockchain store the data in an encrypted manner and protect it from others. The medical data can include medical records, treatment plans, and test results.

The use of AI here is overwhelming. Artificial intelligence can help analyze large amounts of data and identify patterns or medical trends. By combining blockchain and AI in healthcare, doctors can access this data and use AI algorithms to analyze it.

Assists financial services in fraud detection

Blockchain emphasizes a decentralized system that no central authority has control over, or that is maintained by a network of computers.

Blockchain technology can create a system for managing financial transactions in a decentralized way, meaning all transactions are recorded on a secure and transparent ledger that everyone can see.

AI can analyze these transactions, identify potential fraud or risk, and report them. The integration of Blockchain and AI can make financial services more efficient, secure, and accessible to people lacking traditional banking services

Key Challenges to Integrating Blockchain and AI

  • Data quality and quantity: Effective AI analysis requires high-quality and large amounts of data. But blockchain data is often incomplete or inconsistent.
  • Scalability: As the number of users and transactions on a network increases, it can become slow and expensive to systematically process them all.
  • Security and Privacy: Blockchain is known for its security and transparency, on the other hand, AI poses a risk to privacy if it is not used ethically.
  • Interoperability: Communicating with these two different systems is difficult. But innovations to integrate AI and blockchain are ongoing.
  • Complexity: Integrating blockchain and AI requires a high level of technical expertise. So it can be difficult for non-experts to understand or use these technologies effectively.

The Future of These Integrated Technologies

The future of blockchain and AI integration is optimistic as these technologies evolve and advance rapidly. In the future, a "blockchain-artificial intelligence" pair can, of course, provide society with many new and exciting opportunities.


Combining two modern-era transformative technologies, AI and Blockchain, will help industries provide better services and products to their users more securely and transparently. When AI meets blockchain, cutting down the hassle to retrieve data and analyzing it to come up with a better approach.

The synergies between AI and blockchain make our life more better and efficient than ever before. Let's take advantage of this combination as it offers a lot of benefits. It enhances security and privacy, improves automation and efficiency, and increases trust and transparency.

Author Bio

yokesh sankar

Yokesh Sankar


Yokesh Sankar is the co-founder and chief operating officer of Sparkout Tech. He believes in changing people's lives for the better and developing the skills they need for success, and that the software industry has endless possibilities to streamline virtually any industry you can imagine. In addition, he is also an advocate for the adoption of blockchain technology, helping businesses of all sizes to realize their visions through this revolutionary technology. He will be sharing everything he has learned over the years working in the industry, and he hopes to open out as much knowledge about the software industry as he can.


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