AI and Blockchain: The Combo of the Future

What comes to mind when you think of Artificial Intelligence (AI)? Some go back to the eponymous movie from 2001, depicting a world where humanoid robots co-exist with actual humans. Basically, AI means exactly that: intelligence generated by machines, and it’s something that has already spread across different industries, from technology to healthcare. Most of the time, it goes unnoticed, really.

We’ve been interacting with it for some time now, and some examples are AI applications for web search such as YouTube, Amazon, or Netflix, that recommend certain things based on the users’ preferences. Other examples include human speech tech — Alexa or Siri — that helps you discover a Thai restaurant nearby, or tells you what the temperature is today.

AI is used for countless purposes, with the latest trend becoming so popular that reached a bottleneck: we’re talking about ChatGPT, a chatbot prototype with artificial intelligence that can write entire papers, interact with humans through dialogue, and tell stories from information users put in.

On ChatGPT’s website, you can read that it’s “at capacity right now”. Maybe teens are using it for their next college paper, or poets are trying to get some inspiration. The truth is that AI is becoming a thing now, and there’s no way of stopping it.

Harmful or Useful?

Probably the most asked question regarding AI is: will it actually replace people? Those who fail to truly understand it, seem to think so. However, that’s hardly true. The most logical explanation is that although AI can mimic, and understand human thought, it lacks the sensorial and emotional intelligence, critical thinking, and creativity that are reserved for humans. Workers from companies using AI might fear being replaced by such technology, but that’s not likely to happen, especially when it comes to jobs that required the latter skills. For instance, ChatGPT wouldn’t be able to generate content without someone putting in data previously.

There is, of course, the question of AI’s limits. People from different areas have been discussing the issue, and it seemed arts and culture were things artificial intelligence couldn’t replicate. However, AI-based apps like starryai show us even this might become a reality — it creates artwork based on the words you put in. Recently, Portuguese filmmaker Bruno Carnide has also made the first-ever short film 100% generated by AI — you can watch it here. Although this might sound frightening, it’s proof we’re entering a new world filled with endless possibilities. After all, Bruno still had to provide the AI with data so the film could be generated.

AI adoption is, in fact, a positive thing for virtually any company, especially when dealing with data and finance — although there’s an infinite number of use cases for Artificial Intelligence. It can help in data retrieval, making summaries of complex matters for content creation — by actual workers — and calculations, releasing market and trade predictions and so much more.

When AI Meets Blockchain

Both AI and blockchain are revolutionizing the financial industry realm, making it easier to navigate, understand, and interpret. Although both technologies are intrinsically different, they can very well be combined to offer unprecedented solutions. While AI allows for fast data processing — which is crucial in the financial industry — blockchain offers transparency and access to non-conventional markets and trading platforms of decentralized finance (DeFi).

Traditional blockchains have two main issues: scalability and efficiency, things that AI can easily deliver. On the other hand, the latter fails to provide transparency and privacy, which are two features offered by TEE-based blockchain projects such as Integritee. In a way, these two technologies can address each other’s weaknesses and bring a unique solution.

There’s a multitude of use cases where this combination can come in handy, and in a Factset article, Sharon Yang highlights some of them:

  • Establishing trust — AI isn’t accountable by nature, and that makes people suspicious. Feeding data to these generators through blockchain oracles can change the way AI is perceived, as data is stored in these digital records. This ensures transparency and the integrity of data.
  • Automation & Efficiency — Decentralized exchanges are blockchain-based, and transactions are made without the need for a central authority. This can be a costly process and AI can be useful to help accelerate data processing and consumption.
  • Fraud Detection — Blockchain transactions are tamper-proof, and AI has the power to sift through massive amounts of data. This can be detrimental to detecting fraud. Financial institutions have to go through countless records to establish a pattern and decide what to do.
  • Building a DAO — A Decentralized Autonomous Organization is a blockchain-based company or institution that has no main authority, which means that it’s democratically controlled by everyone that’s part of it — token owners. DAOs work with smart contracts, which are great data management solutions and can be even better with the use of AI. “Adding AI on top of this can help overcome data management challenges including automation. For example, AI models could be built into smart contracts executed on a blockchain, and the AI model could make recommendations based on the data in the contract, whether it’s a due date, payments, or even finding the most efficient shipping routes”.

Join the Hype with Integritee

As you can see, AI — like any other kind of technology — is only as good as the people behind it. Developing truly useful artificial intelligence models that can help people and enhance their quality of life depends on those building it.

AI isn’t about robots taking over the world. It’s about leveraging the power of intelligence to build a better one. At Integritee, we offer a series of solutions aimed at developers who wish to build web3 applications in a secure and fast way.

Our Software Development Kit (SDK) helps you build sidechains — layer 2 solutions — to deploy your business logic. Be it a DeFi platform or a new game, leverage our SDK and start building today. Our layer 2 solution is open to virtually any use case, including artificial intelligence-based models. Perfect to sync with other applications and prone to collaborations, our sidechains deliver the confidentiality and security developers need. Build an online game where the characters have the players’ features generated via AI, or launch the fastest financial exchange with accurate AI-based results.

Translating and interpreting data plays a major role in the success of an AI system. Integritee’s own oracle — TEEracle — makes this even more accurate and secure. How? Because it retrieves information from the real world to be used online in a secure and transparent way, without the chance of the results being tampered with. The options are endless! Curious about our solutions? Explore more here.


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