Blockchain gets a brain: how the EU is making tech magic

What
happens
when
the
secure
world
of
blockchain
meets
the
intelligence
of
AI?
Discover
how
the
EU
is
blending
these
technologies
to
create
something
magical.

Blockchain
and

AI
are
two
buzzwords
you’ve
probably
heard
a
lot
about.
But
what
happens
when
these
technologies
join
forces? 

The
European
Union
(EU)
is
exploring
this
very
question.
In
fact,
the
European
Blockchain
Observatory
and
Forum
(EUBOF),
part
of
the
European
Commission,
recently
published
a
report
citing
the
potential
of
integrating
blockchain
technology
with
artificial
intelligence
(AI).

According
to
the
EUBOF

report,
authored
by
the
Directorate-General
for
Communications
Networks,
Content
and
Technology,
the
possibilities
are
immense. 

Think
about
it:
AI
data,
which
needs
to
be
super
secure,
can
be
stored
on
the
blockchain.
This
is
a
big
deal
for
industries
like
healthcare
and
finance,
where
data
security
is
crucial.

The
EUBOF
also
points
out
that
combining
blockchain
and
AI
can
create
decentralized
AI
networks.
This
means
that
instead
of
a
few
big
companies
controlling
all
the
data,
there
can
be
a
more
collaborative
approach
to
AI
development.
In
other
words,
it
levels
the
playing
field.

Another
cool
thing
about
this
tech
duo
is
how
AI
can
make

smart
contracts
smarter.
These
contracts,
which
automatically
execute
when
conditions
are
met,
can
benefit
from
AI’s
capabilities,
making
them
more
efficient
and
reliable.

To
lead
the
charge,
the
EUBOF
recommends
that
Europe
become
a
global
hub
for
blockchain
knowledge.
They
also
suggest
engaging
more
with
various
stakeholders
and
addressing
the
challenges
that
come
with
new
innovations. 

On
top
of
that,
the
EU
plans
to
amend
regulations
for
the
European
High
Performing
Computer
Joint
Undertaking
(EuroHPC),
which
manages
supercomputers
across
Europe.
These
supercomputers
will
support
AI
development,
with
new
AI
factories
set
to
enhance
their
capabilities.

So,
what
does
this
mean
for
us?
Let’s
find
out.

Why
AI
and
blockchain
are
a
perfect
match

AI
and
blockchain
are
two
hottest
topics
that
can
make
investors
sit
up
and
take
notice.
While
it’s
easy
to
be
skeptical,
there
are
solid
reasons
for
the
excitement. 

So,
how
can
AI
supercharge
blockchain?
One
of
the
key
areas
is
scalability. 

Blockchains
like
Bitcoin
(BTC)
and
Ethereum
(ETH)
are
notoriously
slow.
Bitcoin
handles
about
7
transactions
per
second
(TPS),
and
Ethereum
manages
around
30
TPS.
Compare
that
to
Visa,
which
processes
6,800
TPS. 

This
speed
gap
is
a
looming
hurdle
for
blockchain
adoption.
Enter
AI.
It
can
help
by
predicting
congestion
periods
and
optimizing
transaction
flows,
making
blockchains
faster
and
more
efficient. 

Assume
AI
as
a
traffic
controller,
analyzing
data
to
spot
potential
slowdowns
and
rerouting
transactions
to
keep
everything
moving
smoothly.
This
not
only
speeds
things
up
but
also
makes
blockchain
more
reliable
and
ready
for
bigger,
more
complex
applications.

AI
can
also
enhance
blockchain’s
security.
Take
Ethereum’s
side-chain
solutions,
known
as
rollups.
These
rollups
process
transactions
off-chain
and
then
add
them
to
the
blockchain. 

Zero-knowledge
rollups
validate
transactions
using
cryptographic
proofs,
ensuring
that
sensitive
information
remains
private.
Optimistic
rollups,
on
the
other
hand,
assume
transactions
are
valid
unless
challenged
by
proof
of
fraud. 

Normally,
validations
can
take
a
long
time,
depending
on
the
network
traffic,
creating
a
bottleneck.
However,
AI
can
analyze
transaction
patterns,
predict
potential
issues,
and
optimize
the
validation
process,
speeding
up
the
entire
system
and
making
it
much
more
efficient.

Moreover,
AI’s
ability
to
analyze
vast
amounts
of
data
quickly
makes
it
a
powerful
tool
for
auditing
blockchain
applications.
Instead
of
waiting
for
vulnerabilities
to
be
exploited,
AI
can
proactively
identify
and
fix
them. 

Fraud
detection
is
another
area
where
AI
shines.
AI
can
monitor
blockchain
networks
for
unusual
activities,
flagging
potential
fraud
in
real-time.
This
capability
is
crucial
as
blockchain
becomes
more
integrated
into
financial
systems.
Early
detection
can
prevent
colossal
losses
and
maintain
the
integrity
of
blockchain
networks.

However,
integrating
AI
with
blockchain
isn’t
without
challenges.
Regulation
is
a
major
hurdle.
The
EU’s
new
Artificial
Intelligence
Act,
the
first
of
its
kind,
adds
layers
of
compliance
for
companies
using
AI. 

This
act
requires
risk
assessments,
disclosures,
and
cooperation
with
authorities
and
has
global
implications.
Even
companies
outside
the
EU
must
comply
if
they
want
to
operate
within
its
borders.

Despite
these
regulatory
challenges,
the
synergy
between
AI
and
blockchain
is
undeniable.
AI
can
make
blockchains
faster,
more
secure,
and
more
reliable,
while
blockchain
can
provide
AI
with
a
secure
and
transparent
data
storage
solution. 

The
EU
recognizes
this
potential
and
is
taking
steps
to
lead
the
charge,
setting
the
stage
for
advancements
in
technology.

The
Future
of
AI
and
blockchain
integration

The
integration
of
AI
and
blockchain
offers
a
future
where
these
technologies
not
only
coexist
but
enhance
each
other’s
capabilities.
Let’s
explore
the
potential
impact
of
this
powerful
combination.

One
of
the
most
promising
areas
is
supply
chain
management.
Currently,
supply
chains
are
complex,
often
non-transparent
networks
in
which
tracking
the
origin
and
journey
of
goods
can
be
daunting. 

Blockchain
can
provide
a
clear,
tamper-proof
ledger
for
recording
every
step
in
the
supply
chain.
When
combined
with
AI,
which
excels
at
analyzing
vast
amounts
of
data,
businesses
can
optimize
logistics,
predict
demand,
and
identify
potential
disruptions
before
they
occur. 

For
example,
IBM’s
Food
Trust
blockchain,
which
tracks
food
products
from
farm
to
table,
can
be

enhanced
with
AI
to
detect
patterns
and
prevent
foodborne
illnesses
more
effectively.

In
the
healthcare
sector,
the
amalgamation
of
AI
and
blockchain

could
lead
to
new
advancements.
AI
algorithms
can
analyze
patient
data
to
provide
personalized
treatment
plans,
while
blockchain
ensures
that
this
sensitive
information
is
stored
securely
and
accessed
only
by
authorized
parties. 

This
combination
can
also
streamline
clinical
trials,
where
AI
can
help
in
identifying
suitable
candidates
and
predicting
outcomes,
and
blockchain
can
maintain
the
integrity
of
trial
data,
preventing
fraud
and
ensuring
transparency.

Financial
services
are
another
field
ripe
for
transformation.
Decentralized
finance
(DeFi)
platforms,
which
are

built
on
blockchain,
can
leverage
AI
to
enhance
trading
algorithms,
improve
credit
scoring
models,
and
detect
fraudulent
activities. 

AI’s
predictive
capabilities
can
provide
more
accurate
risk
assessments,
while
blockchain’s
security
features
can
protect
user
data
and
transactions. 

According
to
a
report
by
PwC,
AI
is

expected
to
contribute
$15.7
trillion
to
the
global
economy
by
2030,
with
blockchain

adding
another
$1.76
trillion.
Together,
they
can
create
a
more
secure,
efficient,
and
innovative
financial
ecosystem.

The
road
ahead

As
we
move
ahead
in
this
era,
we
can
envision
a
world
where
smart
cities
are
powered
by
AI
and
blockchain. 

Traffic
management
systems
could
use
AI
to
analyze
data
from
various
sources,
such
as
cameras
and
sensors,
to
optimize
traffic
flow
and
reduce
congestion.
Blockchain
can
ensure
the
integrity
and
security
of
this
data,
preventing
tampering
and
unauthorized
access. 

Similarly,
energy
grids
can
benefit
from
this
integration,
with
AI
predicting
energy
demand
and
blockchain
facilitating
peer-to-peer
energy
trading
among
consumers.

In
short,
the
future
with
AI
and
blockchain
together
looks
incredibly
promising.
Together,
they
can
solve
some
of
the
most
pressing
challenges
across
various
industries
and
pave
the
way
for
a
more
efficient,
secure,
and
innovative
future.