Cross-Industry Use of Blockchain Technology and Opportunities for the Future: Blockchain Technology and Aritificial Intelligence

Cross-Industry Use of Blockchain Technology and Opportunities for the Future: Blockchain Technology and Aritificial Intelligence

Dhanalakshmi Senthilkumar
DOI: 10.4018/978-1-7998-3632-2.ch004
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Blockchain and artificial intelligence are two disruptive technologies in the today's world; Blockchain can connect data storage and data users from multiple domains, and different kinds of analytics applications run on top of the data in artificial intelligence techniques. So that Blockchain technology provide the excellent backbone for the development of artificial intelligence algorithms, it is useful to secure the data input from multiple data storage locations and to have whatever applications running on top of the data in a Blockchain visible to everyone. The concept of Blockchain technology and artificial intelligence techniques together develop interesting uses cases and nice applications. When paired with Blockchains, AI is better understood by humans, operates more efficiently, and the blockchains in general more efficiently. AI and Blockchain together support B2B environment and getting better outcomes.
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In this section, an overview of Blockchain technology and artificial intelligence, with its concepts, applications and its use cases will be discussed. Blockchain technology, as mentioned earlier, is a digitized, decentralized, distributed ledger that can be used for different kinds of transactions. These transactions occur in a decentralized on peer-to-peer (P2P) network. The structure of Blockchain technology is represented by data structure concepts of pointers (information of the variable pointing to one another) and linked lists (with help of pointer each block points to specific data and link, that contains the sequence of blocks) (Lastovetska, 2019).

Key Terms in this Chapter

Private Blockchain: A private blockchain is a permissioned blockchain. Permissioned networks place restrictions on who is allowed to participate in the network and in what transactions.

Permissionless Blockchain: Here anyone can join the network, participate in the process of block verification to create consensus and also create smart contracts. Permissioned Blockchains do not have to use the computing power-based mining to reach a consensus since all of the actors are known.

Hash Function: A cryptographic hash function allows one to easily verify that some input data maps to a given value. This is used for assuring integrity of transmitted data and is the building block for providing message authentication. Hash functions are related to (and often confused with) check digits, fingerprints, and other verification tools.

Public Blockchain: A public blockchain is a permissionless blockchain. Anyone can join the Blockchain network, meaning that they can read, write, or participate with a public Blockchain.

Bitcoin: Bitcoin is a complete decentralized peer to peer and permission less cryptocurrency, it’s a form of electronic cash system with completely decentralized; cannot be any central party for ordering or recording or controlling your currency like bank or government.

Peer-to-Peer (P2P): Peer-to-peer is a system where participants on a network interact with each other directly without needing to go through a centralized system or intermediary.

Blocks: A block is a collection of data. And each piece of data is added to the Blockchain by connecting one block after another in a chronological way, much in the same way a row of a spreadsheet follows another row.

Genesis Block: A genesis block is the very block on a Blockchain with no previous block before it.

Double Spend: An attack where a Blockchain network user attempts to explicitly double spend a digital asset.

Ethereum: Ethereum is a platform that allows distributed, decentralized applications such as smart contracts to run on a virtual machine on top of a Blockchain network.

Permissioned Blockchain: It works in open environment and large network of participants, so the participants do not need to reveal their own identity, the users do not need to reveal their own identity to other peers. It’s something called private model. In a permissioned Blockchain, only a restricted set of users have the rights to validate the block transactions.

Artificial Intelligence: Artificial intelligence is the simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using rules to reach approximate or definite conclusions) and self-correction.

Hash Pointer: A cryptographic hash pointing to a data block. Hash Pointer lets you verify that the previous block of data has not been tampered.

Blockchain: Blockchain is a decentralized computation and information sharing platform which enables multiple authoritative domains that do not trust each other to cooperate coordinate and collaborate in a rational decision-making process.

Ledger: A record of transactions

Assets: Anything that can be transferred.

Distributed ledger: A distributed ledger is a database that is spread across different computer systems, countries or organizations. Records are stored one after the other in a continuous ledger. Distributed ledger data can be either “permissioned” or “un-permissioned.”

Cryptocurrency: Cryptocurrencies are a subset of digital currencies that rely on cryptographic techniques to achieve consensus, for example Bitcoin and ether. Nodes are network participants in a distributed ledger

Consensus Model: A process to achieve agreement within a distributed system on the valid state. It’s otherwise called consensus algorithm, consensus mechanisms and also consensus method.

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