How are AI and Blockchain Linking Up?

How are AI and Blockchain Linking Up?
6 min read

Artificial intelligence (AI) and Blockchain are two of the most exciting technological developments in recent times. Experts are predicting that they are set to change how we use and interact with digital tech and will completely transform a number of industries.

We’re already seeing integration between AI and Blockchain. The blockchain platform is a perfect example, it uses machine-learning systems to automate simple tasks and streamline processes. Checking the Fetch AI Price will give you a clear indication of how rapidly AI and Blockchain integration is growing. Let’s take a closer look at how AI and Blockchain technology are linking up and what it could mean for the future.

What are AI and Blockchain?

Before we can discuss how the two work together, first we need to define exactly what AI and Blockchain are.

AI is an umbrella term given to refer to a range of computer systems and processes that together work to mimic human intelligence. Things like machine learning, natural language processing, and neural networks work in tandem to create a highly responsive and dynamic software system that can answer questions, solve problems, and converse with users.

Blockchain, in its simplest form, is a public ledger used to record crypto transactions. It is publicly accessible but still highly secure. Transactions, which are stored as blocks and added to a chain, are secured by cryptography, making them incredibly difficult to hack or alter. More advanced blockchain platforms can be used to build tools, websites, and applications.

So, now we understand what AI and Blockchain are. How are the two technologies linking up? Find out below.

Secure Payment Systems

Blockchain, and the associated cryptocurrency technology, is a new and improved way of making online payments.

Blockchain platforms are decentralized, which means they are not subject to traditional transaction fees usually charged by banks and financial institutions. The decentralized nature of Blockchain also means that transactions process far quicker than traditional payment methods, even for cross-border transactions.

What’s more, Blockchain platforms are highly secure, with cryptography-protected transactions and logs reducing the risk of fraud and cybercrime.

By linking AI with Blockchain, payment systems can be made even more secure. AI can be programmed and trained to detect, identify, and flag incidents of fraud and cybercrime, spotting particular patterns and behaviors related to fraudulent activity.


The integration of blockchain and AI won’t just be used for making online payments safer, it will also improve broader cybersecurity practices across a range of different sectors.

Data privacy is an increasingly pressing issue. Legislation such as the EU’s GDPR and the UK’s Data Protection Act set out strict rules regarding the collection and use of customer data. Businesses found to be in breach of these rules can face severe financial penalties.

When customers register with online platforms, they will divulge personal information including things like contact details and financial data. This information is an attractive target for criminals, who will attempt to steal it for fraud and identity theft purposes.

A data breach, when databases are compromised by criminals, is incredibly serious. Customers can be left vulnerable and brands can be irreparably damaged.

Blockchain has already improved data protection standards through its cryptographically secured networks, but by integrating with AI these protections will be fortified significantly.

Blockchain acts as a passive form of protection, creating a near-impenetrable wall to safeguard sensitive data. By linking with AI, these platforms can take a far more proactive cybersecurity approach, with intelligent systems able to identify incoming threats and take steps to disable them before they have a chance to reach the Blockchain.

Supply Chain Management

Finally, AI and Blockchain technology can be used in tandem to enhance supply chain management processes.

Supply chains recorded and managed through the Blockchain are both transparent and secure. Each log is immutable and cannot be altered but is also publicly accessible allowing for a fully visible and observable history of all actions.

With AI, supply chain processes can be analyzed in detail. By delivering reports and monitoring supply chains in real-time, AI systems can make suggestions and upgrades designed to optimize and streamline processes, making supply chain management far more efficient and cost-effective.


Blockchain and crypto have been making news for a number of years. From the Bitcoin bull run to the Ethereum Merge, the technology has long been tipped as the future of the digital world.

However, in recent times it has been AI that has grabbed the biggest headlines. OpenAI’s Dall-E and ChatGPT, Microsoft’s Bing ChatBot, Google Bard, and Adobe Firefly have all amazed us with their uncanny ability to replicate human speech and thinking, with sectors from marketing to photography bracing themselves for monumental change at the hands of AI.

At first glance, AI and Blockchain may seem like disparate technologies that have little to do with one another. While, yes, the way their function and operation are different, the two seem tailor-made for each other and complement each other perfectly. As both AI and Blockchain continue to improve and develop, we can expect to see further integration and their influence grow across a vast number of different industries.

Alex 10K
Joined: 4 years ago
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