3/27/19

Blockchain and Machine Learning

Machine Learning (ML) can be described as software that changes when it learns from new information. As the software is self-adaptive, it’s not necessary to add new rules manually.

A great example of how this works is spam detection where the software continuously improves its own ability to identify junk emails over time. It does this by studying the construction of algorithms to learn and make predictions on the data.

When Artificial Intelligence (AI) and blockchain converge, the latter can benefit from AI’s ability to accelerate the analysis of an enormous amount of data. In fact, putting the two together can potentially create a totally new paradigm.

By using ML and AI to govern the chain, there’s also an opportunity to significantly enhance security. Further, as ML loves to work with a lot of data, it creates an opportunity to build better models by taking advantage of the decentralized nature of blockchains (that encourage data sharing).

Sometimes when all the data from silos converge, you might end up with a qualitatively new data set that’s also a better data set. As a result, it will lead to the creation of a qualitatively new model where you can derive new insights which, in turn, can provide new opportunities for building cutting-edge next-generation business applications.

This can be a game changer for the finance and insurance industries as it could be used as a tool to identify fraud. It can also benefit other industries far beyond finance and insurance because of a shared ledger system with two patterns of ML use cases:
  • Model chains that address the whole chain or a segment;
  • Silo ML and predictive models to address a specific segment of the chain.
The predictive model or silo ML isn’t any different from what we currently do with available data. However, model chains are far more complex and should be able to quickly learn and adapt given the chain dependence.



Slikovni rezultat za blockchain and machine learning


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