A Brief Intro of Blockchain and how AI can benefits from it Sabastian Follow Apr 8, 2018 · 3 min read

The blockchain is a technology that allows people who don’t know each other to trust a shared record of events. The data are stored in rigid structures called blocks that are connected in a chain through hashes. Each block includes a timestamp, a connection to the previous block via hash, a header with metadata, and a payload where real transaction data takes place. As the number of blocks grows, it is hard to modify any information without having consensus.

There are different ways to validate the transaction, but mainly through “Proof of Work” (PoW) or “Proof of Stake” (PoS). Proof of Work is a requirement to define an expensive and complex computer calculation, known as mining. A reward is given to the miner who solves each blocks problem. Proof of Stake instead determines the creator of a new block by participants wealth aka who own more coins. There is no block reward in the PoS systems, so the miners take the transaction fees.

A blockchain can be free for anyone to view it (permissionless vs permissioned), anyone can access and read or write data from the ledger if it’s permissionless. A blockchain can also be public or private where a public chain is open to anyone. A blockchain with reward structure designed for miners is often a permissionless and public chain.

As a result, the blockchain can foster cleaner and more organized data. Open data jointly with blockchain data verification will provide a fluid integration that lowers the barrier to entry for smaller players to conduct their own AI models and subsequently shrink the competitive advantage of tech giants like Facebook or Alibaba. In essence, two problems will be solved: having a better data access and a more efficient data monetization mechanism. It will help us to trust the AI. It will also eventually increase every machine-to-machine interaction and transaction providing a secure way to share data and coordinate decisions.