How Blockchain and AI Technology Will Change the World
When blockchain and AI technology work in unison, they unlock opportunities they could never achieve on their own
The rise of artificial intelligence (AI) and blockchain networks is transforming everything about how businesses and individuals use the internet — from data management to cybersecurity. Today, however, the greatest opportunities lie in bringing these fields together. With enhanced scalability, optimized smart contracts, and truly decentralized autonomous organizations, blockchain and AI technology are expanding our capabilities in ways that were difficult to achieve apart. Let’s take a closer look at the challenges and opportunities for tech businesses waiting at this juncture point.
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How Blockchain and AI Technology Complement Each Other
Blockchain and AI Technology Applications
Decentralized Autonomous Organizations (DAOs)
How Blockchain and AI Technology Complement Each Other
It wasn’t that long ago that blockchain and AI technology faced rocky roads to mainstream adoption. Outside of NFT markets, blockchain had a poor security reputation — not because the tech was risky, but because poor implementation allowed for endpoint vulnerabilities, 51% attacks, and other threats. Meanwhile, AI faced a black box challenge where it could solve problems and reveal hidden patterns but not explain how it made these solutions. Left unaddressed, black-box AI can generate side effects or reproduce biases that make it difficult for businesses to trust their decisions.
Until recently, blockchain and AI developers have focused on addressing these challenges separately. Today, we’re starting to realize that each technology acutely addresses the perceived problems of the other:
- While intricate AI models are difficult for observers to comprehend, blockchain transactions are secure and transparent. These features allow for trustworthy applications and independent data validation.
- AI tools can analyze data and find correlations faster than human developers. Within a blockchain network, AI can identify security risks and react to emerging threats before they cause harm.
These benefits go beyond risk reduction — the future of blockchain and AI technology may represent a complementary yin and yang relationship, where each field fills the gaps of its opposite. As businesses combine these tools, they will uncover opportunities to create efficient, secure, and transparent systems that redefine how the digital world operates.
Capitalizing on the unique blockchain possibilities available to your brand will take insight, experience, and the right technology. Simply getting involved with the space is no guarantee of success. Fortunately, Dibbs is well equipped to help brands futurize new revenue streams while never losing their sense of security. If you’d like to learn more about how building toward the union of blockchain and AI can help your business, book a demo with us today.
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Blockchain and AI Technology Applications
Trading Analysis
Whether you’re exchanging NFTs or traditional stocks, financial trading moves quickly, and agents must be able to respond to sudden changes. Artificial intelligence excels at rapid response and identifying financial risk but requires enough data to generate insights.
That’s where blockchain can help. Public and private chains are essentially ledgers that track tokens from minting to redemption, along with details associated with each transaction. If an AI is trained on blockchain data, it is well-positioned to forecast market trends and create projections for potential deviations. These models could also include associated records — such as financial data or even environmental changes — for a more comprehensive picture of the factors that influence trading prices.
Cybersecurity
Some of the most promising applications of blockchain and AI technology relate to cybersecurity. For example, businesses that need to secure a database or validate token transactions will soon do so using in-chain infrastructure that is scalable and responsive — making it far more reliable for customers and partners alike.
Analyzing network activity is crucial for determining the exact event that triggers a security breach. This process is complicated when the system conducting the analysis is compromised, but less so for blockchain networks, thanks to their tamper-proof-by-design logs of system activity.
AI, on the other hand, can defend networks by monitoring systems and network traffic in real time. Unlike traditional security software, designers may train AI models on historical data that accounts for any number of breaches and infections. With this expertise, it can flag activity that correlates with suspicious activity — such as an employee login from an unusual location — and apply an appropriate response based on overall risk.
Decentralized Autonomous Organizations (DAOs)
Decentralized autonomous organizations (DAOs) already use blockchain-based smart contracts in their governance structure. While these smart contracts are automated, they are not rooted in actual AI models or datasets — developers simply include specific events and triggers that activate when associated conditions are met. Yet there are still many ways AI tools can assist in correcting potential weaknesses of DAOs as they exist now and enhancing their capabilities:
- Smart contract creation: The smart contracts that power a DAO must be precisely defined, or the entire consensus model falls apart. With AI tools, writers can analyze contracts before they go live to ensure they accurately address all conditions. Large language models that are capable of coding show it may even be possible for AI to draft a smart contract around certain conditions that developers review for accuracy.
- Smart contract optimization: Once a smart contract is completed, it locks into the chain and cannot be changed — which can be a problem if errors emerge or circumstances change. AI can help by acting as a proxy between the blockchain and the user interface, making improvements and optimizations to contract execution so designers don’t need to create manual workarounds.
- Translating complex and technical language: One of the biggest challenges when deploying a DAO — or any blockchain — is understanding it. White papers and proposals rely on specialized language the average token holder may not readily understand. AI tools can assist by analyzing and translating lengthy text into human-readable language that experts can verify manually.
- Blocking malicious proposals: Since any token holder can make a proposal regarding DAO management, some include malicious intent or hidden objectives. When AI is integrated into the DAO, it can analyze proposals to identify risks and halt the process before it goes to a vote.
- AI voting: DAO governance can slow to a crawl when not all token holders can vote in a timely manner. If AI proxies are programmed to vote in response to certain conditions on behalf of their holders, decision-making can occur much faster to the benefit of the majority.
- DAO collaboration: While DAOs can operate autonomously, they generally cannot interact with other DAOs that rely on separate contracts. We may one day see AI act as connective tissue between DAOs, translating information between consensus models so they can communicate with each other in the event of partnerships or business acquisitions.
Supply Chain Management
Blockchain and AI technology can have real-world benefits outside of digital transactions, including supply chain management. For example, blockchain can be an excellent tool for monitoring the creation and distribution of physical goods, especially those transported between countries. When industries use AI to analyze these chains, they can generate any number of insights that drive productivity and efficiency.
Best of all, these applications are taking place right now. For example, IBM partnered with Heifer International to make AI-powered blockchain solutions available to small farms, helping them obtain nurse plants and increase crop yields. Meanwhile, doctors and pharmaceutical companies are reviewing AI-powered blockchain solutions to limit counterfeit drug distribution.
We are only just scratching the service of what these tools can accomplish when they become available to organizations in any field. That’s why it’s vital that businesses have a trusted partner who can help them navigate the space. At Dibbs, we leverage years of expertise in blockchain to help brands monetize property, generate revenue, and engage with their most valuable audiences. Schedule a demo with Dibbs today to learn how utilizing our technology and Web3 compliance systems can benefit you.
Ben Plomion
Ben Plomion is Dibbs' Chief Marketing Officer. As a child, Ben collected comic books and Panini Football stickers. Now, Ben's PC consists of physical-backed NFTs.
