The digital world is seeing a boom in Machine Learning and Blockchain and, not to mention the increase in the application of blockchain technology with the rise of Non Fungible Tokens (NFTs). Like any advanced technology, Blockchain and Machine Learning come with a big bag of pros including automation, advanced data mining and more.
Blockchain technology has its own set of pros and Machine Language offers its own. But how good is a combination of both these technologies? Do we get the best? How can Machine Learning be used with Blockchain Technology?
Let’s find out!
But, before we dive into the abyss of data and learn more about the pinnacle of integration, let’s understand the basics of Blockchain Technology.
The main idea behind blockchain technology is the decentralization of data storage so it cannot be utilized or modified by an unverified party. It can only be updated using a transaction sheet where once a transaction is noted, it cannot be modified. The next transaction needs to be verified by a trusted party before entering the sheet. The new set of records is checked and supervised by the decentralized architecture of nodes.
These are a few popular applications of the Blockchain Technology
While Blockchain is making its presence felt with cryptocurrencies and trading, Machine Learning is transforming how the existing data is retrieved and used to identify the patterns to gain valuable insights.
Let’s check out how Machine Learning can be used with Blockchain technology.
Reinforced Learning is a subdomain of Machine Learning that is common within simulation programs. It operates by training programs called ‘Agents’. These agents build optimized strategies to gain rewards in an interactive environment. Trading Bitcoin and Ethereum have become a common activity amongst large financial institutions and retail investors. This approach is directly derived from Direct Reinforcement Learning. DRL helps the researchers in creating a price forecasting model that adapts to a specific time interval.
The modern product development environment follows blockchain-based procedures to enhance the security, production, transparency, production, and compliance checks. Integrating the Machine Learning algorithms helps in developing flexible plans at specific periods for maintenance of the machinery. Machine Learning can automate quality check operations.
The integrated systems of Machine Learning and Blockchain technology play a vital role in improving the standard of living. For example, let’s take the case of IoT. Smart homes can be monitored by machine learning algorithms and this is a smooth way of controlling the security and retrieving the live feed of surveillance. Smart monitoring builds smarter homes and this improves the standard of living of the people. This is how machine learning with blockchain is improving the quality of livelihood.
Security is everyone’s concern because of the increasing rates of cybercrime. An integrated system of Machine Learning and Blockchain technology can be deployed for surveillance where Machine Learning can be used to analyze the data while Blockchain technology can be used to manage the continuous feed of live data.
To achieve decentralized, efficient, intelligent, and secure network operations, integration of Machine Learning and Blockchain technology can bring expected results. Blockchain can facilitate training data, Machine Learning model sharing, security, privacy, decentralized intelligence and can offer a high level of trusted decision-making of ML. On the other hand, ML can assist the development of blockchain in communications and networking systems including scalability, intelligent smart contracts and security.
The traditional blockchain system rewards the miners for the operation of the system through tokens by ensuring fairness. Smart blockchain technology ensures that the system participants can retrieve rewards through a sheet that is automatically executed according to the contract codes. The condition-triggered automatic transfer mechanism is used to distribute the rewards to the participants. This transfer nurtures fair mining participation.
In a blockchain, the records are stored and distributed across the nodes in the network which is secure and efficient. It results in getting a fairer, transparent, and secure manufacturing process. Predictive algorithms of Machine Learning can help in creating flexible plans that also monitor quality control and product testing to detect faulty products in the early stage of manufacturing.
Maintaining a supply chain is an endless task for all enterprises and as the business grows, the synchronization between the supply chain components becomes weaker. Blockchain technology can be used in complicated record-keeping, tracking of products for a better-automated alternative to centralized databases. An integrated system of blockchain and machine learning would improve the transparency and efficiency of the supply chain.
Blockchain allows only the members of the group to access the chain of information. Only the verified participants including the fleet managers, operators, vendors, partners, and anyone in the supply chain can access the blockchain content. Blockchain bolsters everything right from compliance to payment and vehicle maintenance to route scheduling. The integrated system of blockchain, AI and ML handles the road and freight brokerages with added security to shipping and delivery. Such an intelligent system can create a digitized road map of routes and trigger an instant transfer of funds upon a successful delivery.
The combo of machine learning data capabilities with blockchain-powered smart contracts becomes feasible in the fintech market. While ML can look for anomalies, the smart contracts of Blockchain technology can automate the operations. Such an infrastructure makes the financial transactions completely secure, transparent and efficient. According to a report, most organizations benefit from the cost savings by participating in the consortia blockchain networks. By combining ML and blockchain to streamline business operations, financial services can offer greater value to the customers while increasing their returns to a maximum.
The combination of AI and ML along with Blockchain offers a tactical advantage. While Blockchain technology offers a trustworthy foundation for AI, Machine Learning supports the landing conditions of Blockchain.
Machine Learning has a huge takeaway in the world of blockchain, NFTs and cryptocurrencies. Apart from forecasting the price of cryptocurrencies and high-frequency trading, Machine Learning takes the functionality to a whole new level. As more of these techniques make their way to implementation and production environments to get commercialized, the world of Blockchain would open up more for machine Learning and businesses that deal with the advanced ML tactics in the coming years.
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