According to a report by Allied Market Research, the global blockchain technology market was valued at $3 billion in 2020 and is expected to grow to $39.7 billion by 2025. Similarly, the AI market is projected to grow to $190 billion by 2025, according to a report by MarketsandMarkets.
With the increasing demand for both blockchain and AI, combining these technologies can revolutionise many industries and transform the way we do business.
What Is Blockchain?
Blockchain technology is a decentralised, distributed ledger that allows for secure and transparent transactions without intermediaries. It was first introduced in 2008 by an unknown individual or group of individuals under the pseudonym Satoshi Nakamoto to facilitate Bitcoin transactions.
The technology works by recording transactions in blocks linked together to form a chain, hence the name ‘blockchain’. Each block contains a cryptographic hash of the previous block, ensuring the chain’s integrity.
The benefits of blockchain technology include increased security, transparency, and efficiency. By eliminating the need for intermediaries, such as banks, transactions can be completed faster and at a lower cost. The technology’s decentralised nature also makes it more resistant to fraud and hacking. Blockchain is used in various industries, including finance, healthcare, and supply chain management.
What Is AI?
AI, or artificial intelligence, refers to the ability of machines to perform tasks that would typically require human intelligence, such as learning, reasoning, and problem-solving. The history of AI traces back to the 1950s when researchers first began developing algorithms for machine learning. Since then, AI has evolved to include many technologies, including neural networks, natural language processing, and computer vision.
AI has rapidly transformed the finance industry by providing faster, more accurate decision-making capabilities and improving operational efficiency. Some examples of how AI is being used in finance include:
Fraud detection: AI-powered fraud detection systems use machine learning algorithms to identify unusual behaviour patterns and detect fraudulent activities.
Trading and investment: AI-powered trading algorithms use natural language processing (NLP) to analyse news articles, social media, and other data sources to identify patterns and predict market movements.
Customer service: Financial institutions use chatbots and virtual assistants to provide customer service and support.
Financial firms worldwide are increasingly turning to artificial intelligence (AI) technologies to improve their efficiency, automate their processes, and provide better customer service. Three examples of financial firms that have successfully adopted AI are Capital One, Citigroup, and Ping An.
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