The world is changing at an unprecedented rate, driven by exponential development in technology and fresh ideas in science that are remaking societies and economies, and transforming the range of sectors from agriculture and manufacturing to life sciences and banking.
A 2017 report ‘Sizing the Prize’ by PwC shows that Artificial intelligence (AI) is expected to add approximately USD 15.7 trillion to the global economy by the year 2030, which means an expansion in the North American GDP by 14.5%. The report also shows that Blockchain can have a USD 3.1 trillion share of the international economy by the year 2030.
According to Jean Chalopin, Chairman of Deltec International Group, “AI and blockchain are two extreme ends of the tech spectrum with remarkable power and significance for the banking sector. Humanity is adapting to a world that is more interconnected and transparent than ever before, and these technologies can have a synergistic effect when utilized together.”
Blockchain technology promotes decentralized apps in an open-data setting, while AI acts upon centralized data on a closed data stage. In a way, according to experts, Blockchain technology is about confidence and transparency, and a stable and publicly verifiable approach to record dealings and transactions. On the other hand, AI involves making a probabilistic statement and, in a sense, could be said to be based on uncertainty.
Even if the fundamental difference among Machine Learning, Artificial Intelligence, and Blockchain seems to come from their combined expansion, the reality is that the odds of fruitful synergy between Blockchain and AI are limitless.
An ideal engagement between Blockchain, Machine Learning, and AI would make for safer banking transactions. These latest technologies, when working as one, can assure a safe and secure app deployment.
Blockchain brings accessibility and transparency on a peer to peer network, which increases the safety of the platform. Developers can make use of blockchain transparency to unlock more information for artificial intelligence. What is required is an AI solution within a centralized platform to ensure the security and integrity of the data, as well as the speed of machine learning algorithms.
Machine Learning, Blockchain, and AI could be very useful and valuable for selective information sharing without compromising individual confidentiality. The discerning sharing of information is possible in the use of protocols like zero-knowledge proofs. This will be extremely convenient for the banking industry where blockchain could help in the storage of data in a way that enables bank managers to see all information regarding the client, but limits researchers to viewing statistical data rather than any personal information.
In general, machine learning, AI and blockchain will play a vital role in the banking industry, with a key focus on security and efficiency.
The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.