How AI and Blockchain Can Work Together

This blog post will walk you through a brief definition of blockchain and artificial intelligence, understanding the link and integration between the two and their benefits and uses.

How AI and Blockchain Can Work Together

The world is ever-evolving, with so many technological discoveries and advancements over the years. It just keeps coming and it just keeps getting better and better. It started with the use of artificial intelligence (AI) to the creation of blockchain technology and now comes the combination of AI and blockchain.

One might question, are these two even compatible? How do blockchain and AI work? What are some use cases using AI and blockchain? All these questions and more may pop into your mind, and we're here to give that some clarity.

This blog post will walk you through a brief definition of blockchain and artificial intelligence, understanding the link and integration between the two and their benefits and uses.

A Brief Definition of AI and Blockchain

Artificial intelligence (AI)

AI mimics the problem-solving and decision-making capabilities of the human mind using computers, data, and sometimes machines.

Machine learning and deep learning are two types of AI that use data-driven algorithms to make predictions or categorize things and improve over time.


The blockchain is a platform that allows the instant exchange of cryptographic data, shared transparently among multiple parties. The blockchain is essentially a network of computer systems that duplicate each other's transactions and distribute them across the network.

You can track various items on a blockchain network, including orders, payments, accounts, production, etc. Permissioned members gain trust and confidence in their commercial dealings with other companies and new efficiency and opportunities by sharing a single version of the truth.

A Closer Look Into Blockchain and Artificial Intelligence

Due to blockchain technology, the speed of internet transactions has been significantly increased, allowing them to be more transparent, and changing our perception of its capabilities.

On the other hand, artificial intelligence has already opened new horizons for different business spheres, optimizing routine tasks and moving human workers' attention to more important and complex ones.

The marriage of AI and blockchain benefits virtually every business using these two technologies. AI and blockchain will impact many aspects, including security - they will offer a double layer of protection against cyber-attacks.

With AI, you can create new scenarios based on a large dataset and discover patterns based on the behavior of the data. Blockchain technology makes the effective removal of errors and false data sets possible.

Additionally, with artificial intelligence-generated classifiers and patterns, authentication can happen using blockchain technology. Any business that deals with consumers, such as retail, can use this technology.

With blockchain infrastructure, you can use the customers' data to automate marketing through artificial intelligence.

When blockchain and artificial intelligence are combined, a world-class decision-making system that is nearly tamper-proof and capable of providing accurate insights is created.

Benefits of Combining AI with Blockchain

When working independently, two different technologies have unique characteristics. However, the combination of blockchain and AI benefits the larger good. The following are some notable benefits of combining AI and blockchain.

Enhanced Security

Blockchain's digital record gives insight into AI's framework and the provenance of its data, addressing the challenge of explainable AI.

As a result, trust in data integrity and, by extension, in AI recommendations is improved. Combining blockchain and AI can enhance data security by providing an audit trail for AI models.

It is also beneficial for the financial industry, where applying machine learning can improve the deployment of blockchain apps and predict possible system breaches.

Simplicity in Blockchain Management

One clear benefit of considering AI and blockchain combinations is the improvement in management.

For mining blocks, hashing algorithms use a brute force approach by trying different combinations of characters to find the most efficient alternative.

Artificial intelligence can assist in making a shift away from brute force approaches, allowing the management of tasks intelligently and rationally. Unlike human experts, AI algorithms learn through every interaction within seconds.

Energy Consumption Optimization

Dealing with blockchain takes a lot of processing power to carry out each process. In the modern world, this is one of the significant challenges, and companies like Google have proven that machine learning can solve it.

Blockchain and AI could be reliable solutions for addressing this issue. By training DeepMind AI on historical data from thousands of sensors within a data center, Google reduced energy consumption for cooling their data centers by 40%.

It is possible to apply the same principle to mining, reducing mining hardware prices.

Better Smart Contracts

There are a few technical flaws in the blockchain that persistent hackers can exploit. Ironically, the problem with smart contracts is that they aren't smart enough.

When a smart contract meets certain conditions, it automatically releases and transfers funds. But it is necessary to achieve consensus on the blockchain to accomplish this.

Every line of code in smart contracts is accessible to the public and can be reviewed, allowing anyone to carefully and methodically review it for security flaws. Smart contracts' veracity and vulnerabilities can be foreseen using artificial intelligence.

AI automation and blockchain can improve efficiency, remove friction, and add speed to business processes spanning multiple parties.

An AI model embedded in a blockchain smart contract can, for example, recommend expired products to be recalled and execute transactions based on set thresholds and events.

Furthermore, it can also resolve disputes and choose the most sustainable shipping method for reorders, payments, and stock purchases.

Some Use Cases for Combining AI with Blockchain

Financial services

Blockchain technology and artificial intelligence (AI) are revolutionizing the financial services sector by facilitating trust, reducing friction from multiparty transactions, and accelerating transactions.

Take the loan application procedure as an example; loan applicants authorize access to their blockchain-based records. Faster closings and greater client satisfaction are facilitated by trusting the data and automating the application evaluation process.

Supply chain

Artificial intelligence and blockchain are altering supply chains across industries and opening up new opportunities by digitizing activities that were previously primarily carried out on paper, sharing data, and automating procedures.

Tracking carbon emissions at the product or part level is one effective way to add precision and intelligence to decarbonization efforts.

Life sciences

Blockchain and artificial intelligence can help the pharmaceutical business by increasing the visibility and transparency of the medication supply chain and the success rate of clinical trials.

Data integrity, transparency, consent management, and automated data collecting are made possible by advanced data analysis when used in conjunction with a decentralized clinical trial framework.


Almost every area of healthcare can benefit from the application of artificial intelligence, from uncovering therapeutic suggestions and supporting user demands to finding patterns and insights in patient data.

By securely storing patient information, such as electronic health records, the blockchain can assist organizations in enhancing care while preserving patient privacy.


Both AI and blockchain are innovative technologies with a lot to offer for improving each other. Clearly, artificial intelligence will continue to grow and will be here for the long haul, and the blockchain seems like a natural companion for its expansion.

Currently, some countries are combining IoT, artificial intelligence, and distributed ledgers to create smart cities. Data management and data protection require the blockchain for AI to explain its working to humans.

There is no doubt that there will be more use cases for AI and blockchain combinations within the next years to come.