Blockchain technology and artificial intelligence have emerged as the latest buzzwords among tech experts. While some are busy weighing the pros and cons of each innovation, others believe these two futuristic technologies can complement each other instead of being pitted against each other.
Although blockchain technology and AI seem to share a common goal of revolutionising the lives of the masses, they can seem poles apart in terms of what they offer to the tech industry and society as a whole. Here’s a quick rundown of the difference between blockchain and artificial intelligence.
Blockchain technology is founded on the principles of digital ledger technology that uses a decentralized network of computers to record, track, and verify transactions. The biggest appeal of this technology is its distributed ledger, which offers security and privacy without the need for a central authority or intermediary.
Meanwhile, artificial intelligence (AI) is a simulation of human intelligence in machines that can mimic how a human brain thinks, acts, and performs. It is based on algorithms and computer programs that can perform complex tasks without requiring human input.
AI is versatile and can be used for a variety of purposes such as automation, data analytics, market research, inventory management, and much more.
The question that arises now is, which technology outperforms the other? It is a rather difficult question to answer.
Who has the larger piece of the pie?
When it comes to market share, the cryptocurrency industry wins the battle with a total market cap of $1.22 trillion. In comparison, the size of the global artificial intelligence industry in 2022 was estimated to be around $120 billion, much smaller than that of the crypto sector.
However, a report published in February by global financial services giant JP Morgan, found that over half of the institutional traders surveyed believed that AI will surpass blockchain technology in the next three years. The rise of AI-based applications like ChatGPT is a shining example of its potential, having reached over 100 million unique users in just two months of its launch and registering 1 billion visitors every month on its website.
Ironically, artificial intelligence has been around longer than the blockchain has. The 1956 Dartmouth Workshop, organized by renowned computer scientist John McCarthy, is widely regarded as the birthplace of artificial intelligence as a field. Meanwhile, the first blockchain-related technology only appeared in 2008 following the creation of Bitcoin.
Foundational Differences
Many argue that AI has a broader range of applications and is more accessible to the masses, since it does not require technical knowledge to understand, unlike concepts related to blockchain technology.
On the other hand, blockchain has already developed a full-fledged decentralized market. Cryptocurrencies, NFTs, DeFi protocols, smart contracts, metaverse, and all such related innovations wouldn’t have been possible without blockchain.
Alas, the biggest difference between the two concepts comes down to what they aim to achieve. AI is focused on creating machines and platforms that can perform tasks that typically require human intelligence. On the other hand, blockchain aims to accurately track and store data related to orders, production, healthcare records, education documents, and payment, among others.
Security
Security is another crucial aspect to consider. Blockchain’s distributed ledger technology offers strong security and privacy, making it a critical component for industries that demand advanced data protection.
In contrast, AI struggles with issues such as trustworthiness, privacy, and authenticity on a foundational basis. While it is worth noting that blockchain technology also has its downside, such as scalability issues and complex mechanisms, the core ledger technology has already brought about a transformative change in the technology sector.
Conclusion
While both technologies have their dedicated user base and market, if combined, they can counter each other’s drawbacks. For instance, AI can offer its ability to create machine learning systems that can help blockchain achieve scalability.
Moreover, blockchain can leverage AI to enable high-performing decentralized marketplaces and platforms. The prime example of blockchain and AI is crypto trading bots that are widely popular for the unique features they offer, and more such tools can be developed in the coming years.
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