Blockchain and AI are two of the most popular buzzwords in the tech industry today. But what can they really do for each other? And how can they work together to create value and innovation?
Blockchain is a distributed ledger technology that enables secure and transparent transactions among multiple parties, without the need for intermediaries or central authorities. It can also support smart contracts, which are self-executing agreements that encode the rules and logic of a transaction.
AI is a broad term that encompasses various technologies that enable machines to perform tasks that normally require human intelligence, such as learning, reasoning, decision making, and natural language processing.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Some of the common claims about the synergy between blockchain and AI are:
Blockchain can provide trust, security, and privacy for AI data and models, which are often sensitive and proprietary. Blockchain can enable decentralized and collaborative AI, where multiple agents can share data and resources, and collectively learn from each other.
Blockchain can incentivize and reward AI participants, such as data providers, model developers, and validators, using tokens or cryptocurrencies. Blockchain can enhance the explainability and accountability of AI, by recording the provenance and audit trail of data and models and enabling verifiable claims and outcomes.
While these claims are not entirely false, they are also not as straightforward or easy as they sound. There are many technical and practical challenges that need to be addressed before blockchain and AI can truly integrate and complement each other.
Some of these challenges are:
Blockchain is not a silver bullet for AI data quality and security. While blockchain can ensure the integrity and immutability of data transactions, it cannot guarantee the accuracy or validity of the data itself.
Moreover, storing large amounts of data on a blockchain is costly and inefficient, due to its limited scalability and throughput. Therefore, blockchain may not be suitable for high-volume or high-frequency AI applications that require fast and frequent data access and processing.
Blockchain is not a magic wand for AI decentralization and collaboration. While blockchain can enable peer-to-peer communication and coordination among multiple AI agents, it cannot solve the fundamental issues of trust, alignment, and coordination that arise in multi-agent systems.
For example, how can we ensure that the agents have compatible goals and incentives? How can we prevent malicious or faulty agents from compromising the system? How can we handle conflicts or disputes among agents? These are complex problems that require sophisticated mechanisms and protocols beyond blockchain.
Blockchain is not a panacea for AI incentivization and reward. While blockchain can facilitate value exchange and distribution among AI participants, it cannot determine the optimal or fair allocation of rewards or costs.
For example, how can we measure the value or contribution of each participant? How can we balance the trade-offs between efficiency and equity? How can we prevent free-riding or cheating behaviors? These are challenging questions that require careful design and evaluation of economic models and incentive schemes.
Blockchain is not a guarantee for AI explainability and accountability. While blockchain can provide transparency and traceability for AI data and models, it cannot ensure the interpretability or understandability of the underlying logic or reasoning. Moreover, blockchain cannot enforce or verify the compliance or correctness of AI outcomes or actions.
For example, how can we ensure that the AI models are fair, ethical, or legal? How can we hold the AI agents responsible or liable for their decisions or actions? These are difficult issues that require rigorous standards and regulations.
Therefore, while blockchain and AI have great potential to work together to create value and innovation, they also have significant limitations and challenges that need to be overcome. Blockchain is not a one-size-fits-all solution for AI problems, nor is AI a plug-and-play component for blockchain applications. They are both complex and evolving technologies that require careful analysis and design to suit different contexts and objectives.