Blockchain is still in its infancy. But it’s being rapidly adopted by various industries to streamline processes, reduce costs and increase security. NFTs and artificial intelligence (AI) are two of the most exciting blockchain applications of late.
NFTs are Non-Fungible tokens, which means every token is unique to an individual asset or character. This unchangeable attribute is the defining characteristic of an NFT. On the other standard blockchain, every token is treated as the same. This is known as a standard token.
AI on the other hand is an umbrella term for the applications of artificial intelligence in business, research, and industry. Computers can observe, process, understand, and respond to data. All blockchain projects incorporate AI in one way or another. Here’s how NFTs and AI are transforming the blockchain landscape.
Fungibility is the most important quality of an NFT. A fungible token has no intrinsic value. Anyone can put a fungible token up for sale and trade it among themselves. However, if they want to sell it to someone else, they will have to first offer it at a price they feel is fair.
The whole purpose of having a blockchain is to make it easy to transfer ownership of an asset without involving third parties. But this gets derailed if the third parties get involved in the transaction. Fungibility is the feature that allows NFTs to track ownership and create a trail of ownership that’s unchangeable. There are various NFTs in use today. Among them are Cryptokitties, CryptoCelebrities, CryptoCollectibles, and CryptoNations. The first two are game-based NFTs.
AI in the Blockchain
Artificial intelligence is being used to create a more efficient system for tracking the ownership of assets on a blockchain. Various industries are making use of blockchain-based AI to improve processes. As an example, blockchain-based AI can help to ensure the authenticity of a product that’s being tracked on a blockchain. This way, it’s more difficult for counterfeiters to get away with selling fake products.
AI is being incorporated in various industries to help optimize processes. An example is a way medical companies are using blockchain-based AI to reduce the time it takes to process medical records. These companies can track and trace their assets much more efficiently using AI.
The Future of The Blockchain Landscape
The blockchain has the potential to offer many benefits to the world. However, much of this potential is untapped because blockchain technology is still relatively new. Many industries are still struggling to understand how to make the most of blockchain technology. As more and more companies begin to adopt blockchain, the potential for its impact on society will be realized. Here are some of the industries that have the most potential for blockchain adoption.
Supply Chain Management – Supply chain management is a critical part of the business world. But much of it is not efficient because of the time and effort it takes to manage it. Blockchain-based AI can help to solve this problem.
Asset Documentation – Asset documentation is a tedious process that has many opportunities for improvement using AI.
Cybersecurity – Cybersecurity is one of the top concerns of many companies. AI can help to prevent hackers from infiltrating the systems of companies.
Compliance – Companies are increasingly being asked to follow regulations regarding everything from data security to how they handle the customer information they collect. AI can help to ensure regulatory compliance.
The blockchain is one of the most exciting technological advancements to come along in a long time. It’s a ledger system that allows people to track transactions without the need for a third party. It has the potential to revolutionize many industries. As more people begin to understand the potential of the blockchain, the rate of adoption will be exponential. And this will have a profound impact on society as a whole.