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Machine Learning Python and

Blockchain
The power of convergence

Jason Scott
Contents
Machine Learning Python and Blockchain
1. INTRODUCTION
2. WHAT IS MACHINE LEARNING?
3. WHAT IS ARTIFICIAL INTELLIGENCE?
4. WHAT ARE ARTIFICIAL
NEURAL NETWORKS?
5. THE RELEVANCE OF ARTIFICIAL INTELLIGENCE
6. ALGORITHMS AND BIG DATA AND HOW THEY CAN
INFLUENCE OUR CONSUMPTION CHOICES
7. ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING: A
WAY OUT
8. MACHINE LEARNING WITH PYTHON
9. THE FUTURE OF AI AND
MACHINE LEARNING
10. THE FUTURE OF MACHINE LEARNING IN VARIOUS
AREAS
11. WILL MACHINE LEARNING
COME TO AN END?
12. BLОСKСHАIN TЕСHNОLОGУ
13. WHY COMBINE BLOCKCHAIN AND MACHINE LEARNING
14. HOW THE AI CAN CHANGE BLOCKCHAIN
15. CONCLUSION
Thanks to Luìs Bigést, my friend and philosopher. Without his contribution during
the happy nerdy days, this work would not have existed
1. INTRODUCTION
The world today has become dynamic and transcending.
Everything as we know it is changing. Newer and newer editions of
versions of everything come up every day and this change is not
only limited to business, the workplace, education, industry, the
economy and the society at large and not to forget technology.
Technology has become a huge part of our lives and to most of us,
second nature. The relevance of technology today cannot be over-
emphasized. In the dispensation we live in now, computers and
machines in general are more than useful.
They have become integral in our daily lives, businesses,
education, agriculture, to name but a few. These days, a lot of things
can be done easier and faster. The weather, for instance can be
easily and near-accurately forecasted through the use of computers.
Advertising is another progressive field that technology has turned
around. The internet might just be the biggest of all the benefits of
technology.
Technology is going nowhere; it is here to stay. It has changed the
way we live, think, work, etc. Technology is taking the human race to
places even the human mind can hardly comprehend.
Computers and Machines are multi-purpose and they have
brought our society together into a global village and have changed
our lives.
One of the mind-blowing offspring of computer and computer
technology is Artificial Intelligence and Machine Learning.
Machine learning involves the study of algorithms and statistical
models that computer systems make use of to execute laid down or
programmed tasks without the use of explicit instruction.
Artificial intelligence involves the theory and development of
computer systems able to perform tasks that normally requires
human intelligence, such as visual perception, speech recognition,
decision-making, and translation between languages.
This book covers issues regarding machine learning and all you
need to know about machines and how they take and use
instructions. Be prepared for an amazing ride. Happy reading!
2. WHAT IS MACHINE LEARNING?
Machine learning is an application of artificial intelligence
(abbreviated and known popularly as AI) that provides systems the
ability to learn and improve automatically from its own history of
experiences without being explicitly programmed.
The title ‘Machine Learning’ was coined by Arthur Samuel in 1959.
A more formal definition of the algorithms studied in the field of
Machine Learning was put forward by Tom M. Mitchell. He quoted; ‘A
computer program is said to learn from experience E with respect to
some class of tasks T and performance P, improves with experience
E. Arthur Samuel, an American pioneer in the field of computer
gaming and artificial intelligence, coined the term while he was at
IBM.
A book on Machine Learning by Nilsson was made during the
1960s and discussed mostly about pattern classification. This
interest continued into the 1970s and was described in the book of
Duda and Hart in 1973. Machine learning stemmed out of artificial
intelligence which was a quest back then.
It was a scientific endeavor and was already an academic
discipline as some people were already interested in having machine
learn from data. They attempted to approach the problem with
different symbolic methods, as well as what were then termed
‘neural networks’, these were mostly perceptions and other models
that were later found to be reinventions of the generalized linear
models of statistics.
They also employed probabilistic reasoning, especially in
automated medical diagnosis. With time, there was an increasing
importance on the logical, knowledge-based approach and this
divided artificial intelligence and machine learning. The probabilistic
systems were plagued by theoretical and practical problems of data
acquisition and representation.
Machine learning today is a separate field from Artificial
intelligence and started to boom in the 1990s. The field changed its
goal from achieving artificial intelligence to tackling solvable
problems of a practical nature. Today, Machine Learning is relevant
in the fields of Agriculture, Anatomy, Adaptive websites, Banking,
Bioinformatics, Computer networks, Credit card fraud detection, DNA
sequence classification, Economics, Financial market analysis,
Marketing, Robot locomotion, Telecommunication, Speech
recognition, Time series forecasting, etc.
It lays emphasis on computer development programs that can
access data and use it to learn for themselves. The rate at which the
concept of Machine Learning is going today, it is speculated that it
will be associated with almost everything in time to come.
Machine learning involves the study of algorithms and statistical
models that computer systems make use of to execute laid down or
programmed tasks without the use of explicit instruction.
Machine Learning relies on inferences and patterns instead of
explicit instructions. Machine Learning is a branch of Artificial
Intelligence. The algorithms of Machine Learning create a
mathematical model that is usually based on sample data (this
sample data is known as ‘training data’). These models are used to
make decisions and to predict without being explicitly set to perform
the task.
Machine learning is strongly associated to statistics requiring
computation (otherwise known as computational statistics). The
process of learning starts with observation. Data, such as samples of
a population, instruction and direct experience, examples, etc., make
up what can be observed and from observation, good or better
decisions and predictions can be made.
The major reason for Machine Learning is so that computers can
learn on their own without direct input from humans. Machine
Learning allows and makes possible the analysis of a large volume
of data. This is carried out faster and more accurately.
There are quite a number of Machine Learning methods. These
methods include; supervised machine learning algorithms,
unsupervised learning algorithms, semi-supervised learning
algorithms and reinforcement machine learning algorithms.

Supervised Machine Learning Algorithms


This algorithm has the ability to make use of what has been learnt
in the past in new situations to predict events or the future. Starting
from the analysis of a known data set, the learning algorithm
produces an inferred function to make predictions about the output
values. The system is able to provide targets for any new input after
sufficient training. This means that the more data set it analysis, the
better it becomes at analyzing other new sets that are similar or take
the same form and would be able to infer for those data sets that are
not homogenous. The learning algorithm can also compare the
output it has with the correct, intended output and find errors in order
to modify the model accordingly.

Unsupervised Machine Learning Algorithms


These algorithms are used when the information that is used to
practice is not classified or not labeled. It shows how systems can
infer a function to describe a hidden structure from a data set that is
not classified. The system doesn’t figure out the right output, but it
explores the data and can make inferences from data sets to
describe hidden structures from unlabeled data.

Semi-supervised Machine Learning Algorithms


This falls in between both Supervised and Unsupervised Learning.
This is because they use both labeled and unlabeled data for
training. This usually involves a large amount of unlabeled data and
a small amount of labeled data. The systems that make use of this
method are able to improve learning accuracy to a considerable
extent. It is usually used when the acquired labeled data requires
skilled and relevant resources in order to learn from it and train it. If
this is not the case, acquiring unlabeled data generally doesn’t
involve or require additional resources.
Reinforcement Machine Learning Algorithms
This is a learning method that interacts with its environment by
producing actions and making discoveries of errors and rewards.
Trial and error search and delayed rewards is the most outstanding
feature of reinforcement learning. This method enables machines
and software agents to automatically determine the ideal behavior
within a specified context in order to maximize its performance.
Simple reward feedback is required for the agent to learn which of
the actions is best. This is known as the reinforcement signal.
3. WHAT IS ARTIFICIAL
INTELLIGENCE?
Artificial intelligence can be said to be the tree from which Machine
Learning stems from. Artificial intelligence is also sometimes called
Machine intelligence and is the opposite of natural intelligence.
This is the intelligence displayed by machines and these devices
perceive the environment and takes actions that maximize the
chances of such machine achieving the set out goals. Machines are
becoming more and more capable of carrying out tasks on their own
without any human intervention.
It means machines have cognitive features that function like the
human mind and can carry out activities such as learning and
problem solving. Artificial intelligence can be divided into three parts-
analytical, human-inspired and humanized artificial intelligence.
The features of the Analytical Artificial intelligence are similar to
cognitive intelligence.
It generates a cognitive representation of the world and uses
learning gotten from past occurrences to make decisions and
predictions.
The human-inspired artificial intelligence is made up of elements
from cognitive and emotional intelligence. It has the ability to fathom
human emotions and uses the information gathered for decision
making.
The Humanized artificial intelligence is able to be self-conscious
and aware of interactions. It is made up of elements cutting across
cognitive, emotion and social intelligence.
4. WHAT ARE ARTIFICIAL
NEURAL NETWORKS?
Artificial neural networks, also referred to as connectionist
systems, artificial neural networks are computing systems that learn
to perform various digital tasks by referencing different examples
without being programmed with any task specific rule whatsoever.
This computational model, while based on the inspiration derived
from the structure of the neural networks in animals, is not in any
way identical to these structures. Artificial neural networks are said
to be nonlinear statistical tools used for modeling data, where
complex relationships that exists between outputs and inputs are
designed or where patterns can be said to be found. They make use
of the brain's processing pattern as a basis for developing algorithms
that can be used to model problems in predictions as well as
complex patterns.
Artificial neural networks can be used for completing a variety of
tasks, and can be applied in the production and utilization of self-
driving cars, image compression, character recognition, stock market
predictions and various other uses, with classification and profiling
being its most popular use. By providing datasets of various images
of a certain object, it is easy to use artificial neural networks to
identify that image. A classic example of this is google lens; with this
application, any user can simply take the picture of an object and get
information of that object through pictorial recognition. With the
advent of artificial neural networks or ANNs, machine learning will be
sure to experience yet another qualitative leap and further improve
the rate of the development of artificial intelligence.
5. THE RELEVANCE OF
ARTIFICIAL INTELLIGENCE
Artificial neural networks (also known as neural nets) are a series
of computer systems that are designed to mimic or emulate the
human brain in its ability to assess and process imprecise data. This
is made possible through the creation and development of specific
algorithms that bestow upon the machine or computer, the ability to
"learn" or calculate ambiguous data.
In layman terms, artificial neural networks work to replicate the
pathways in which information travels in the human brain (the neural
highway), in computers, thereby enabling these computers to follow
these patterns, and come up with "thought up" answers or solutions
to problems posed.
The whole system resembles that of humans in that it is modeled
as such, and so, each connected units or nodes (referred to as
artificial neurons) works like the neurons in a biological or human
brain. This means that, just the same way it works in the human
brain, each connected unit can transmit a signal to other neurons.
It receives a signal, processes it, and sends it to other neurons
connected to it. The signals are transmitted across or along the
neurons for interpretation and implementation in various capacities.
In order for a signal to be transmitted or sent, specific thresholds
have to be crossed first before any signal can be transmitted to other
neurons, much like in the human brain. Because of their specific
nature, there is a high level of specialization that exists in the
different layers or levels of connection.
These layers consist of input and output layers, through which
signals travel in a sequence (from the input layer to the output layer).
Artificial neural networks have been applied in many disciplines,
some of which include system identification and control, vehicle
control, face recognition software, sequence recognition (for
example, gesture recognition, speech recognition, etc.), medical
diagnosis, email and spam filtering, machine translation, etc.
Artificial neural networks (ANNs) have been used to assess the
validity or reliability of infrastructures that are or could be subject to
natural disasters, to predict the magnitude of these natural disasters,
and do damage control. ANNs are used in the detection of malware
in software programs, the monitoring of online traffic, classification of
online data into ethical and unethical groups. Although ANNs were
designed to solve problems the way a human would, over time, the
focus has shifted slightly, and further advancements have been
made due to the discovery of other ways in which they can be
applied. One of such discoveries is through a process known as
"machine learning".
Machine learning is a term used to describe the design and
development of algorithms or step-by-step computational
procedures, that allow computers to gain knowledge on a regular
basis. It provides the opportunity to create and develop computers
that can compare previously stored data with current or recent input,
spot matches in patterns, and predict the possible outcomes.
These systems learn to perform general tasks, without being
programmed with task-specific rules. For example, in image
recognition, they are able to identify images based on the analysis of
previous data stored that match the current image. In other words,
they automatically generate distinguishing characteristics from
previously processed data or examples, not from the knowledge of
what the image entails. Artificial intelligence is developed further
through the application of machine learning.
It creates machines that surpass human capabilities on various
levels, giving them the ability to develop further by learning or
acquiring knowledge. Frequency and repetition of input or data is
essential for quick, independent adaptation as they are exposed to
new data.
The machines learn from previous computations, which enable
them to produce reliable, predictable decisions. Though not a new
branch of science, it has gained fresh momentum, and is being
exploited for the advantages it provides. The ability to automatically
apply complex mathematical calculations repetitively and more
efficiently, too big or a wide range of data is however, a rather recent
development.
Due to the growing volumes and varieties of data available, the
interest in machine learning and artificial intelligence has increased.
This is because it provides a quicker and automatic method of
analyzing bigger, more complex data, deliver results accurately, and
within a short time, on a large scale. Depending on the precision of
the model, an organization has a better chance of identifying and
predicting trends, profitable opportunities, investments that yield high
returns, as well as negative trends, working to avoid them.
This "gift of foresight" makes it possible for the companies to avoid
unprofitable opportunities and risks. Artificial intelligence works on
building on previously existing data and recognition of preset
parameters.
This feature is common to both artificial intelligence and machine
learning, and thus, forms the core of the connection between
"artificially intelligent learning machines". In addition to predicting
trends, AI and machine learning are applied in government agencies,
helping in the analysis of data from multiple sources in order to
improve security, efficiency, and save money. In the health-care
industry, machine learning is a fast growing trend, thanks to the
invention of devices and sensors that can be used to assess ad
improve the life of patients.
Examples of such machines are hearing aids, vital sensors or
monitors, x-ray machines, scanners, ECG (electrocardiogram)
machines, etc. In transportation, machine learning and AI help in
analyzing data and identifying patterns, all of which help in
discovering more efficient routes, and predicting and managing
potential problems in order to increase profitability.
In aviation, the integrity of the machines is of utmost importance in
making sure that the machine parts are in top-notch conditions,
interacting as they should, in order to protect the lives of those
aboard, and prevent the occurrence of accidents.
In conclusion, AI and machine learning have been combined to
show that it is possible to analyze data from multiple sources on a
large scale, and consistently replicate the results gotten from
comparison of stored data, with high precision. This has paved ways
in the advancement of science and technological applications in
human life and activities.
6. ALGORITHMS AND BIG DATA
AND HOW THEY CAN INFLUENCE
OUR CONSUMPTION CHOICES
Big data is data that is so large that it does not fit at all in the main
memory of any machine, the pressing need to process big data by
efficient and well written algorithms in internet search, machine
learning, network traffic monitoring, scientific computing, processing
of signal and several other areas.
There are various articles that try to explain how big data algorithm
will someday rule the world, and reality is not so far from this notion.
When we watch a video on YouTube, or buy something on
Amazon or even make friends on Facebook, we think that it is
entirely our decision, but nothing could be further from the truth. In
reality, all our choices and preferences to a large extent have been
determined by artificial intelligence based on Big Data Algorithms.
Our choices are being recorded over time and thrown back at us in
the form of various options to choose from. We see no issue with this
because these choices or options are usually high up in our scale of
preferences, thereby reducing the work that we as users will have to
put in when shopping online or searching for a video to watch. An
easier example of this is the prediction or autocorrect options on our
smartphone keyboards. When typing or sending a text, big data
plays a major role in providing us with the right words when we make
an error in typing. This has made us highly dependent on these
algorithms.
7. ARTIFICIAL INTELLIGENCE
AND MACHINE LEARNING: A WAY
OUT
It is no news that the human mind is very limited, in that there is
only so much it can handle at once. Despite these limitations,
humans have been able to create innovations to make up for, and fill
up, these lapses. The most prominent and most popular of them all,
is the development of "sentient machines". These machines are able
to mimic the human thought process, and produce results just as a
human would, all thanks to artificial intelligence.
Artificial intelligence (also known as AI) refers to the quality or
capability of a computer or a machine to mimic a level of intelligence
that is peculiar to humans. These machines are developed or
created to be like humans in thought patterns, conscience, self-
awareness and knowledge. This abilities give the machine a great
edge over humans in general because they not only mimic human-
level intelligence, but also retain their identity and qualities as
machines, making them more efficient in handling and solving
problems.
Machine learning confers on machines and computers, the ability
to "learn" or retain data for the future. This is achieved through the
creation and/or development of specific algorithms. These algorithms
make it possible for the machine or computer to assess and process
a wide range of data, storing them for future references when the
same or similar problems arise. The world is fast-evolving and
machines are beginning to take closer, bolder steps towards the
spotlight. Machines have begun to play even bigger roles than
before, due to their limitless capacities. The burden of human
intellectual limitations is no longer an issue where AI is concerned.
This is because the machine is able to access and process data on a
much larger scale than humans, and produce results, much faster
than the human mind can. Through machine learning, the problem of
forgetting is solved.
This is because, through a sequence of programmed commands,
the machine is able to store away a large amount of data or
information, for however long, and can be retrieved whenever it is
needed, with very little stimulation.
In medicine, artificial intelligence has proved to be very useful, and
promises to open even more doors to the discovery of the workings
of the human body. Through the use of artificial intelligence and
machine learning, a machine is able to detect when there is a
possibility for an illness to occur in the body.
It does this by closely monitoring the workings of the human body,
from the molecular level to the various systems, noting and
"learning" the patterns in which the various components of the body
operate. This makes it easy for it to detect any irregularities in the
human body, based on the data it has gathered over time, thus
predicting the chance and type of illness that could occur, as well as
preventive measures to be taken to avoid such happenings, or
control measures to ensure the stop in the further spread of the
disease or illness.
Through the help of artificial intelligence, the rate of mortality that
comes with transplants of organs or tissues have been reduced
greatly. Machines have been able to compare and match donors with
organs that pose the least threat of organ or tissue rejection.
This is done through a series of complicated tissue-type testing,
where samples of the tissues or organs to be transplanted are cross
examined with samples from the possible recipients.
If the use of AI is encouraged in medicine, it will greatly improve
the quality of life in general. Mortality rates will be reduced drastically
as more accurate predictions will be made by the machines, thereby
helping in no small way, to prevent the possibility of disease
outbreaks or epidemics, and curb said outbreaks if they do occur. In
terms of security, the measures taken towards improvement will be
more effective and more efficient through the involvement of artificial
intelligence.
To ensure the utmost secrecy of certain delicate programs (such
as the possession and control of nuclear warheads), there is the
need for a previous database to be established and compared with
new data.
This is because the security measures taken are constantly being
updated (through routine hacking, periodic code changes, etc.), and
with the help of machine learning, previously used codes, or weak
codes are detected and deleted or removed. This improves the
overall security of the program being guarded. In the ensuring of the
integrity of high purity products, artificial intelligence has taken giant
strides towards bigger production of these products, and in better
conditions. These products include drugs, disease resistant plants
and animals, hybridized plants and animals, etc. Due to the delicacy
of the procedures involved in these production processes, the use of
machines have helped reduce the possibility of the presence of
impurities in these products. Since these products are meant for the
betterment of life, the need for utmost care during the production
cannot be overemphasized. The use of machines therefore, helps, to
a very large extent, to solve this problem of contamination.
Artificial intelligence has made its appearance and it's mark in
various homes, due to their advanced level of user interface (UI).
One finds that home assistants (e.g. Alexa) are activated and
controlled by voice recognition software. They can play music, surf
the Internet, and generally, make life at home easier and less
stressful, while including fun. While some would argue that artificial
intelligence has invaded almost every aspect of human life, we can't
deny the fact that these giant steps in technological advancements
have been of greater help in ensuring that man achieves his goal of
utmost comfort and ease, making or getting the most out of life, with
the littlest effort required. Artificial intelligence has been, and will
continue to be a huge step in the evolution of science and
technology, in improving the overall quality of human life. It has
opened several doors in the course of discovery of life and ways in
which it can be improved, maintained, as well as prolonged.
8. MACHINE LEARNING WITH
PYTHON

With more than a million websites, Python is often the preferred


language for developers and data scientists who need to apply
statistical techniques or data analysis in their work.
The combination of consistent syntax, reduced development time
and flexibility, makes Python suitable for the development of
sophisticated forecasting models that can be directly linked to
production systems and machine learning automation.
After all, Python is an object-oriented, high-level programming
language with dynamic semantics: these features allow it to express
very powerful ideas in a few lines of clear and simple code.
This is also possible thanks to the large set of libraries, i.e. sets
of routines and written functions that perform a certain task, which it
possesses and can recall as needed.
Libraries are often confused with the terms framework and
packages. Let's see which are the most common libraries for
machine learning and Python.
These libraries are very useful to learn new skills or just to better
understand the world of AI, in this article we will describe some of
them.

scikit-learn
This is the project used by the Spotify team to generate the
recommended song lists for users. This library includes
classification, regression and clustering algorithms as well as
support vectors, logistic regression and a Bayesian classifier. It is
mainly used for data mining and data analysis tasks.
TensorFlow
TensorFlow, this project has been realized by Google and has been
implemented in many projects in a very short time. The library was
designed to be used in neural network libraries to perform numerical
computing based on data flow graphs. The Magenta team uses it in
its portal to generate Music/Art affiliations.

Tehano
Tehano, developed by researchers at the University of Montreal in
Canada is one of the most popular bookstores. It is used to help
developers evaluate mathematical expressions, in fact it has been
implemented in several compilers in order to speed up the
conversion of sources.

Pattern
Pattern, is a web mining module that can be used for Data Mining
and Network Analysis, but its strong point is the natural language
processing, has various tools such as part-of-speech taggers, n-
gram search, sentiment analysis and supports WordNet. With these
features it is possible to create automated bots for the moderation of
comments able to learn new words and meanings day by day.

Nilearn
Nilearn. This Python module is based on the already mentioned
scikit-learn and focuses on statistical learning, predictive models and
connectivity analysis. These features make it particularly suitable for
projects focused on NeuroImaging data.
9. THE FUTURE OF AI AND
MACHINE LEARNING
Programmers use machine learning as an application that allows
for artificial intelligence (AI) to learn automatically and improve itself
from experience, without being directly programmed. With Machine
Learning, AI's can simply access data and make complex predictions
and decisions based on these data. So, what exactly is in store for
artificial intelligence especially in the field of machine learning, in the
nearest future. Do what we see in Sci-Fi movies accurately predict
how things will turn out?
It is predicted that in the nearest future, AI and ML would be
integrated into every area of the human civilization, from the most
basic and simplest of rituals, like eating, to complex and far reaching
practices like warfare.
To achieve this, every company, both profit and non-profit oriented
alike would have to utilize AI and ML on a much larger scale and for
cheaper cost. Cost of machine learning systems would be lowered,
while its capacity would be increased by the cloud service providers.
They have even built the Tensor Processing Unit (TPU), which
allows users to train their various machine learning software as
quickly and as easily as possible.
Today, we already see how machine learning influences us, from
social media and web browsers to research and data analysis tech.
but we still have a very long way to go before we can truly see the
effects of machine learning in AI as show cased in those Sci-Fi
movies.
While machine learning is a very good tool in improving artificial
intelligence, users have complained of its slow paced development;
the seemingly less complex task of identifying or predicting objects
and their names can be daunting as thousands of images of
examples of said object has to be shown.
10. THE FUTURE OF MACHINE
LEARNING IN VARIOUS AREAS
In the past, uncovering deep insights from machine learning and
artificial intelligence (AI) required extensive programming skills and
an intimate knowledge of math – experience in short supply in most
enterprises. A new class of machine learning tools, however, is
making it possible for existing business analysts and business
professionals, to take machine learning and AI initiatives into their
own hands by democratizing data science.
Machine Learning technology can protect the companies that are
dealing with finance, from financial fraud that may occur in the future.
Apart from this, machine learning can help to predict the upcoming
opportunities that could be implemented for further investments.

Online Trade: presently, machine learning helps traders or


retailers using virtual assistants to know the shopping patterns of
customers and learn their needs, so as to provide them with the
proper services and products. In the future, due to the various
upgrades of machine learning, the system would be able to make
more accurate predictions and retailers would make suggestions and
advertisements that are in line with the needs of the customers,
based on their shopping patterns.
Transportation and road safety: the role of machine learning in
the transportation industry should not be underestimated. It is used
by Uber drivers to estimate traffic zones and navigate routes to get
their various destinations. In the near future, Artificial intelligence
would take over the transportation industry thanks to machine
learning. From traffic lights to self driving cars and road vehicles.
Even the aviation industry makes use of machine learning to further
improve its transport conditions and system. Machine learning would
play an even much larger role in the world of transportation, making
our lives much easier and safer.
Mobile Phones and Apps: The smart phone has become such
an integral part of our lives today and it would be a gross
understatement to say that machine learning has little to do with this.
In reality, machine learning has been integrated with the Artificial
intelligence on our smart phones on such a deep and profound level
that it is almost impossible to think of any other ways machine
learning can further improve the user experience of smart phones.

In the future, one of the major improvements as a result of


machine learning that might probably stand out from all other AI
improvements in smart phones will probably come from the area of
security. Yes, security is a very big deal in the mobile application
industry. With the help of Machine learning today, you as a developer
can use this technology in your apps, allowing your app to detect
changes in the user pattern and help in predicting and stopping
security breaches, thereby maintaining a healthy user/ app
relationship, while maintaining the reputation of your mobile app.
Various mobile app companies have used machine learning
technology to solve many security issues. in the future, this aspect
would be taking to new heights.

Machine Learning Application in Virtual Personal Assistants:


on hearing the name of Assistants, the first thing that strikes our
mind is that: Assistants are those who help to guide and assist for a
particular direction. And here we are talking about the Machine
learning based personal assistants that on the basis of the previous
setting decide our upcoming actions through smart devices. Machine
learning based virtual assistants like Amazon’s Alexa, Google
Assistant, and Apple’s Siri that are running on our smart speakers
and smartphones, are making our day to day life easier and
entertaining.
11. WILL MACHINE LEARNING
COME TO AN END?
There have been so many bold, new and revolutionary
technological ideas and solutions, that many people, during the
stages of infancy of these technological revolutionary solutions, have
had little faith in. Machine learning in AI is not an exception.
Many critics have predicted that machine learning will come to an
end because its rate of development will not be able to keep up with
the industrial demand of the modern world. In fact, there are
researchers who stand by this argument till this very day. But could
they be right? Would Machine Learning in AI eventually come to an
end? To answer this, we would have to take a look at some statistics.

In the United States alone, over 40% of their companies make use
of machine learning in improving their sales and market. At least
75% of the companies mentioned above have exceeded their sales
target as a result of machine learning. Even banks in the European
economy have reduced their churn rates by 20% and managed to
increase sales by 10%, which says a lot in the financial sector.
This is as a result of machine learning. IDC research has shown
that 3 out of every 4 enterprises and developers would make use of
Machine learning in this year alone. Also, research has shown that a
minimum of 40% of digital improvements would be made worldwide
because of the use of machine learning.
From all these points, it is safe to conclude that Machine learning
will not be coming to an end both now and in the future, as far as the
industrial and digital world is concerned. It would play a major role in
supporting businesses of all size, hence, it would be for everyone
wise to invest in this cutting edge technology.
12. BLОСKСHАIN TЕСHNОLОGУ
A blосkсhаin iѕ a рubliс lеdgеr оf infоrmаtiоn collected thrоugh a
nеtwоrk that ѕitѕ on tор оf thе internet. It is how this infоrmаtiоn is
recorded that givеѕ blосkсhаin itѕ grоundbrеаking роtеntiаl.
Blockchain technology iѕ not a company, nоr iѕ it аn app, but
rаthеr аn еntirеlу new wау оf dосumеnting dаtа оn thе intеrnеt. Thе
tесhnоlоgу саn be used to dеvеlор blосkсhаin applications, such аѕ
ѕосiаl nеtwоrkѕ, mеѕѕеngеrѕ, games, exchanges, ѕtоrаgе рlаtfоrmѕ,
vоting ѕуѕtеmѕ, рrеdiсtiоn markets, оnlinе shops аnd much more. In
this ѕеnѕе, it iѕ similar tо thе intеrnеt, whiсh iѕ whу ѕоmе hаvе
dubbеd it “Thе Intеrnеt 3.0”.
Thе infоrmаtiоn recorded оn a blockchain саn tаkе оn any form,
whеthеr it be dеnоting a trаnѕfеr оf mоnеу, оwnеrѕhiр, a trаnѕасtiоn,
ѕоmеоnе'ѕ idеntitу, an agreement bеtwееn twо раrtiеѕ, or еvеn hоw
much еlесtriсitу a lightbulb has uѕеd. Hоwеvеr, to dо ѕо requires a
соnfirmаtiоn from ѕеvеrаl оf dеviсеѕ, ѕuсh аѕ computers, оn the
nеtwоrk. Onсе аn аgrееmеnt, оthеrwiѕе known аѕ a consensus, iѕ
rеасhеd bеtwееn thеѕе dеviсеѕ to ѕtоrе ѕоmеthing оn a blockchain
it iѕ unquestionably thеrе, it саnnоt bе diѕрutеd, removed or аltеrеd,
withоut thе knоwlеdgе and permission оf those whо mаdе that
rесоrd, аѕ wеll as thе widеr соmmunitу.
Blосkсhаin owes itѕ name tо hоw it wоrkѕ аnd the mаnnеr in
whiсh it ѕtоrеѕ data, nаmеlу that the information iѕ packaged intо
blocks, whiсh link to fоrm a сhаin with other blocks оf similar
infоrmаtiоn.
It iѕ thiѕ асt оf linking blосkѕ intо a сhаin thаt mаkеѕ thе
information ѕtоrеd оn a blосkсhаin so trustworthy. Onсе thе dаtа iѕ
recorded in a block it саnnоt bе altered withоut having tо сhаngе
every block that came аftеr it, mаking it impossible tо do ѕо withоut it
being seen by the other раrtiсiраntѕ оn thе nеtwоrk.
Blосkсhаinѕ are tаmреr evident and tаmреr rеѕiѕtаnt digitаl
lеdgеrѕ implemented in a distributed fаѕhiоn (i.e., withоut a сеntrаl
repository) аnd usually withоut a сеntrаl authority (i.e., a bаnk,
company, оr gоvеrnmеnt). At thеir basic lеvеl, thеу enable a
соmmunitу оf uѕеrѕ tо record transactions in a shared ledger within
that community, ѕuсh that undеr nоrmаl ореrаtiоn of thе blосkсhаin
network nо trаnѕасtiоn саn bе сhаngеd оnсе published. In 2008, the
blосkсhаin idеа wаѕ соmbinеd with ѕеvеrаl оthеr tесhnоlоgiеѕ and
computing соnсерtѕ to сrеаtе mоdеrn сrурtосurrеnсiеѕ: electronic
саѕh рrоtесtеd through сrурtоgrарhiс mechanisms instead of a
сеntrаl rероѕitоrу оr authority. The firѕt such blockchain bаѕеd
cryptocurrency was Bitсоin.
Within the Bitcoin blockchain, information representing еlесtrоniс
саѕh is attached to a digital address. Bitсоin uѕеrѕ саn digitally sign
аnd trаnѕfеr rightѕ tо thаt infоrmаtiоn to аnоthеr uѕеr аnd thе Bitсоin
blосkсhаin rесоrdѕ thiѕ transfer рubliсlу, аllоwing аll раrtiсiраntѕ оf
thе nеtwоrk tо indереndеntlу verify thе validity of thе trаnѕасtiоnѕ.
Thе Bitсоin blockchain iѕ ѕtоrеd, mаintаinеd, аnd соllаbоrаtivеlу
managed by a distributed grоuр оf раrtiсiраntѕ. This, аlоng with
сеrtаin сrурtоgrарhiс mechanisms, mаkеѕ thе blockchain resilient tо
attempts tо аltеr thе ledger lаtеr (mоdifуing blосkѕ оr fоrging
trаnѕасtiоnѕ).
Thеrе iѕ hype аrоund thе uѕе of blосkсhаin tесhnоlоgу, yet the
technology is nоt well undеrѕtооd. It iѕ nоt magical; it will nоt solve
all рrоblеmѕ. Aѕ with аll new technology, thеrе iѕ a tеndеnсу tо want
tо аррlу it to every ѕесtоr in every way imaginable.

Blосkсhаin tесhnоlоgу iѕ thе foundation оf mоdеrn


сrурtосurrеnсiеѕ, ѕо nаmеd because оf the heavy uѕаgе оf
сrурtоgrарhiс funсtiоnѕ. Users utilizе public аnd рrivаtе kеуѕ tо
digitally ѕign аnd securely trаnѕасt within thе ѕуѕtеm. Fоr
cryptocurrency bаѕеd blосkсhаin networks which utilize mining,
users may ѕоlvе puzzles uѕing сrурtоgrарhiс hash funсtiоnѕ in
hореѕ of being rеwаrdеd with a fixеd аmоunt оf thе сrурtосurrеnсу.
Hоwеvеr, blосkсhаin technology mау bе mоrе brоаdlу аррliсаblе
thаn сrурtосurrеnсiеѕ.
Orgаnizаtiоnѕ соnѕidеring imрlеmеnting blосkсhаin technology
nееd tо undеrѕtаnd fundаmеntаl aspects of thе technology. Fоr
еxаmрlе, what hарреnѕ whеn аn organization imрlеmеntѕ a
blосkсhаin nеtwоrk аnd thеn dесidеѕ they need to mаkе
mоdifiсаtiоnѕ tо the dаtа ѕtоrеd? When uѕing a dаtаbаѕе, mоdifуing
thе асtuаl dаtа can bе ассоmрliѕhеd thrоugh a dаtаbаѕе query аnd
uрdаtе. Organizations muѕt undеrѕtаnd thаt while сhаngеѕ to the
асtuаl blосkсhаin dаtа may bе difficult, аррliсаtiоnѕ uѕing the
blockchain as a dаtа layer wоrk аrоund this by trеаting lаtеr blосkѕ
and transactions аѕ updates or modifications tо еаrliеr blосkѕ аnd
trаnѕасtiоnѕ. This ѕоftwаrе аbѕtrасtiоn аllоwѕ fоr mоdifiсаtiоnѕ tо
working dаtа, whilе providing a full history оf сhаngеѕ. Anоthеr
critical aspect of blockchain tесhnоlоgу iѕ hоw thе раrtiсiраntѕ аgrее
that a transaction iѕ vаlid. This iѕ саllеd “rеасhing соnѕеnѕuѕ”, аnd
thеrе аrе many mоdеlѕ fоr doing so, each with роѕitivеѕ аnd
negatives fоr раrtiсulаr buѕinеѕѕ саѕеѕ. It is imроrtаnt tо undеrѕtаnd
thаt a blockchain is just оnе раrt оf a ѕоlutiоn.
Blockchain imрlеmеntаtiоnѕ are often designed with a specific
purpose оr funсtiоn. Example functions include cryptocurrencies,
ѕmаrt соntrасtѕ (ѕоftwаrе dерlоуеd on the blосkсhаin аnd executed
by соmрutеrѕ running thаt blосkсhаin), and distributed lеdgеr
ѕуѕtеmѕ bеtwееn buѕinеѕѕеѕ. Thеrе hаѕ been a соnѕtаnt ѕtrеаm of
dеvеlорmеntѕ in the field оf blосkсhаin tесhnоlоgу, with nеw
рlаtfоrmѕ bеing announced соnѕtаntlу – thе lаndѕсаре iѕ
continuously changing.
Dеѕрitе the many vаriаtiоnѕ of blосkсhаin networks аnd thе rapid
dеvеlорmеnt of nеw blосkсhаin rеlаtеd tесhnоlоgiеѕ, most
blосkсhаin networks uѕе соmmоn соrе concepts.
Blосkсhаinѕ аrе a distributed lеdgеr соmрriѕеd of blосkѕ. Eасh
block is соmрriѕеd оf a blосk hеаdеr containing mеtаdаtа about thе
block, аnd block dаtа соntаining a set of transactions аnd оthеr
rеlаtеd dаtа. Evеrу block header (еxсерt for thе very first blосk of the
blосkсhаin) соntаinѕ a сrурtоgrарhiс link tо the рrеviоuѕ block’s
hеаdеr. Each trаnѕасtiоn involves one оr mоrе blосkсhаin nеtwоrk
uѕеrѕ аnd a recording of whаt hарреnеd, аnd it iѕ digitаllу signed by
the uѕеr whо ѕubmittеd thе trаnѕасtiоn.
Blосkсhаin tесhnоlоgу tаkеѕ еxiѕting, proven concepts аnd
mеrgеѕ thеm tоgеthеr into a ѕinglе ѕоlutiоn. Thiѕ dосumеnt explores
the fundamentals of how these tесhnоlоgiеѕ wоrk and thе
diffеrеnсеѕ between blockchain approaches. This includes hоw thе
раrtiсiраntѕ in thе network соmе tо аgrее оn whеthеr a trаnѕасtiоn iѕ
vаlid and whаt hарреnѕ whеn сhаngеѕ nееd tо be made to existing
blockchain deployment. Additionally, thiѕ dосumеnt еxрlоrеѕ whеn tо
consider uѕing a blockchain nеtwоrk.
Thе uѕе of blосkсhаin tесhnоlоgу is nоt a ѕilvеr bullеt, аnd there
аrе iѕѕuеѕ thаt muѕt bе соnѕidеrеd ѕuсh аѕ hоw tо deal with
mаliсiоuѕ users, how controls аrе applied, and thе limitаtiоnѕ of the
implementations. Bеуоnd the technology issues that need tо bе
соnѕidеrеd, there аrе ореrаtiоnаl аnd gоvеrnаnсе iѕѕuеѕ that affect
thе behavior оf thе nеtwоrk.
Blockchain tесhnоlоgу iѕ ѕtill nеw аnd ѕhоuld bе investigated with
the mindѕеt of “how соuld blockchain technology роtеntiаllу bеnеfit
uѕ?” rather than “how can wе mаkе оur рrоblеm fit intо thе
blосkсhаin tесhnоlоgу paradigm?”. Orgаnizаtiоnѕ should trеаt
blосkсhаin tесhnоlоgу likе thеу wоuld any other technological
ѕоlutiоn at thеir disposal аnd use it in аррrорriаtе ѕituаtiоnѕ.
13. WHY COMBINE BLOCKCHAIN
AND MACHINE LEARNING

Blockchain technology and the Industrial Internet of Things (IoT),


and especially the combination of the two, are currently captivating
many interested stakeholders - for good reasons. Blockchain is not
an end in itself, but forms the basis for applications, even for
potentially smart contracts, which, for example, support specific IoT
processes. The blockchain technology is conceptually well suited for
IoT scenarios. IoT applications are distributed by definition and
require direct device interaction rather than existing centralized
models.
Blockchain, a form of distributed ledger technology, had seen
tremendous growth in 2016. Some banks and companies such as
Visa and MasterCard are showing interest and are already
integrating this technology, at least in the laboratory.
Blockchain (there are many different blockchains and it's more
than the technology that drives Bitcoin[1]) has been mentioned by
almost all research companies as an accelerating development - and
it's not just about financial services companies anymore. In fact, the
convergence of Blockchain and the Internet of Things is on the
agenda for 2017 and beyond.
The Distributed IoT Meets Distributed Ledger
Technology
For some time now, blockchain has been increasingly viewed in
the context of the Internet of Things. Blockchain has many
advantages - but the blockchain is not the answer to all the
challenges of the digital economy, as is sometimes claimed, but it is
certain that blockchains will play an increasing role in the Internet of
Things.
Blockchain is designed as a base for applications that include
transactions and interactions. This can be smart contracts (smart
contracts run automatically when a particular condition is met, such
as product conditions or environmental conditions) or other smart
applications that support specific IoT processes. In this way,
blockchain technology can improve not only compliance in IoT but
also IoT features and cost-effectiveness.
The industry is not waiting anymore
Although IoT has not really arrived in the industry nationwide. At
the same time, at least the large industrial companies are no longer
waiting, so at least the first and the second look at the combination
of Blockchain and IoT is advisable.

The Three Benefits of Blockchain for IoT:

Building trust
Cost reduction
Acceleration of transactions

Some interesting examples of thought leaders already show how


blockchain is extended into the Cognitive Internet of Things. The
benefits: audit trails, accountability, new forms of contract, and
speed, just to name a few.

IoT and blockchain: solving challenges


There are three categories of challenges that the Internet of
Things and Blockchain ecosystems must address:
Technology, where above all, safety is in the foreground. In the
context of IoT, where security is already known to be a daunting
challenge, security needs to be implemented even more.
Operational Challenges: The business model and the practical
aspects, as this means many agreements and, of course, many
more actors in an even broader ecosystem.
Legal and Compliance Issues: This is where responsibility issues
for actions performed by devices based on a rule that is
automatically triggered by a blockchain-based application may also
be triggered by another blockchain-based application. And then
there are smart contracts. Smаrt соntrасtѕ аrе digital whiсh аrе
еmbеddеd with аn if-thiѕ-thеn-thаt (IFTTT) соdе, whiсh givеѕ them
ѕеlf-еxесutiоn. In rеаl lifе, an intеrmеdiаrу ensures that аll parties
fоllоw thrоugh on terms. Thе blосkсhаin nоt оnlу wаivеѕ thе need for
third parties, but аlѕо еnѕurеѕ thаt all lеdgеr раrtiсiраntѕ knоw thе
contract dеtаilѕ аnd thаt соntrасtuаl tеrmѕ imрlеmеnt automatically
оnсе соnditiоnѕ are mеt.
Yоu саn uѕе smart соntrасtѕ fоr аll ѕоrt of ѕituаtiоnѕ, such аѕ
finаnсiаl dеrivаtivеѕ, inѕurаnсе рrеmiumѕ, рrореrtу lаw, and сrоwd
funding аgrееmеntѕ, among оthеrѕ.
In blосkсhаin law applications, ѕmаrt соntrасtѕ аrе vеrifiеd оn thе
block сhаin, аllоwing fоr рrоgrаmmаblе, ѕеlf executing аnd ѕеlf
enforcing contracts. Blockchain law аlѕо еnсоmраѕѕеѕ the idеа of
“Smаrt Cоrроrаtiоnѕ” which includes concepts ѕuсh аѕ Decentralized
Autоnоmоuѕ Corporations (DAC) оr Decentralized Autоnоmоuѕ
Orgаnizаtiоn (DAO).

What advantages does the blockchain offer?


According to IBM, the blockchain offers several advantages. On
the one hand, by eliminating middlemen and middlemen, costs can
be reduced, and, on the other, transactions can be accelerated by
shortening the processing time from days to seconds. In addition,
trust-building between parties and devices occurs through
blockchain cryptography and reduces the risk of collusion and
manipulation.
To achieve all these benefits, IBM believes that all devices in the
blockchain should have the resources to run blockchain software.
With every element in an IoT system that can process blockchain
data, blockchain could suddenly serve as a solution to any problem.
But it's not that easy in the end.
Challenges to master
Distributed passbooks are open and usually do not belong to any
company. Each computer connected to a distributed account book is
called a "node." Most nodes have a small storage capacity relative to
cloud servers and therefore do not hold the entire ledger. Each block
within the account book has a maximum size of 1 MB. A desktop
computer can easily take a full copy of the account book, but that's
not the case with most IoT devices. Each blockchain system requires
at least some full nodes that contain the complete account book.
Another problem is that proper credentials are required to view a
transaction. IoT security issues, such as device startup and secure
key management, are among the unresolved issues for IoT devices
that are not yet solvable by the blockchain.
Under the premise of remedying these restrictions in the future,
blockchain adds a tantalizing commercial dimension to the IoT. A
block contains both the transaction and the contract. An IoT device
can buy or sell data from another device or system. This could lead
to a transactional system less susceptible to reliability issues.

Defects in the blockchain model


Despite its advantages, the blockchain model still has some
shortcomings. Thus, the blockchain is not very well scalable, which
could lead to centralization that defeats the purpose of the
distributed account book. Also, small devices do not have the power
to encrypt all the objects in a blockchain-based ecosystem. The
production of the predicted billions of IoT devices is to be made in
large quantities and at a low cost. However, most of these devices
are unable to execute the necessary encryption algorithms at the
desired speed.
There are also problems with storage. Although no central server
is required to store transactions and device IDs, the logbook must be
stored on the node itself. However, as this continues to grow over
time, it exceeds the capabilities of a variety of smart devices, such
as sensors that have very low storage capacity (either internal flash
memory or external NOR or NAND flash).
In addition, interoperability problems are not excluded. The value
of the IoT increases through a combination of different data sources.
But there are no data model standards for many vertical markets.
Adding blockchain capabilities to the IoT should further complicate
this issue, not to mention the legal and compliance issues that such
transaction management brings with it. Finally, it should be pointed
out the lack of expertise. There are few people who really
understand blockchain technology, and mixing with IoT adds system
complexity.

A look into the future


The merger of blockchain with billions of IoT devices is still years
away. Blockchain processing tasks are computationally intensive and
time-consuming, and IoT devices are still relatively under-
performance because they do not have the computing power to
participate in a blockchain directly. There is a good reason for this
restriction: the high computational load helps to protect integrity.
Therefore, this type of application is initially found in high-end
gateways.
The general view of the experts at present is that artificial
intelligence (AI) and blockchain accelerate the growth of IoT; the
matter is reversed. The IoT now provides a framework in which the
blockchain can be useful. For most edge nodes, it is unavoidable to
first implement the blockchain functionality in a gateway, a hardware
device that acts as a transaction point. This leads to additional
complexity. The edge node responsible for the transaction is not the
device that records the transaction. Thus, the edge node would be
peripheral to the gateway.
But even if the combination of IoT and Blockchain is not yet ready
for the present, it makes sense to deal with this convergence already
today. Blockchain services for the IoT could trigger open data
exchange between users and the failure of silos that restrict access
to payload data. The implementation of these technologies in
concrete applications is still in its infancy. However, it is only a matter
of time before the proliferation of low-cost processors with sufficient
resources will promote the continuous improvement of the IoT
systems required for blockchain deployment.
It is clear that the AI and the blockchain are two of the main
current technologies that are changing the development of
innovation and introducing radical changes in every sector. However,
each technology has its critical points its degree of technical
complexity and implications for the business. Sometimes, it is
necessary to combine the strengths of different technologies to have
an optimal result to achieve the desired technological efficiency.
Both the artificial intelligence and the Blockchain to make sense,
do not have to be very dependent on algorithms, but rather on the
data analysis that it tracks and calculates. To get the best results, we
not only need a validation of them, but also a very large amount of
data, to allow them to learn and understand more. The blockchain is
designed specifically to accelerate and simplify the process of how
transactions are recorded. This means that any type of asset can be
transparently transacted using this completely decentralized system.
Today's concept of decentralization of artificial intelligence was
born to solve, first of all, the validation of AI algorithms. This
approach will be used in many cases in the next few years, one of
the most interesting is the prediction, which today has a very high
level of error and which thanks to this new interaction opportunity will
always come closer to zero.
The most ambitious and best-developed projects for decentralizing
artificial intelligence are those that use Blockchain technology to
decentralize artificial intelligence algorithms, creating usage zones
directly linked to the data of any Blockchain and sharing the results.
This approach generates an exponential validation and research in
this and is already in an advanced development phase also for the
benefit of the first generation of decentralized applications.
Today, Bitcoin is pushing the limits of the blockchain; the memory
dedicated to this distributed ledger takes up too much space. Casual
users are not willing to dedicate most of their machines to serving
the global network.
It is possible that an artificial intelligence system can distribute
data in such a way that each node contains a reasonable amount of
the entire blockchain while at the same time the entire blockchain
would be somewhere on the network. In pieces, but all there.
Managing an AI subsystem with enough intelligence to keep track
of a large distributed ledger sounds daunting.
14. HOW THE AI CAN CHANGE
BLOCKCHAIN
As we have already seen, although extremely powerful, a
blockchain also has its limits. Some of them are related to the
technology used, while other problems come from the old settings of
traditional business sectors (financial services sector, banking sector,
insurance, etc.). The AI can solve one of the problems that afflicts
(more than others) the Blockchain technology, that is the validation
techniques.
This can be the change 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 machine learning use cases:

• Model chains that address the whole chain or a segment;


• Machine learning and predictive models to address a
specific segment of the chain.
This predictive model 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.
The Proof of Work, creates economic disincentives to fraud,
through the use of computational power of the validators ("miners")
of transactions, to solve complicated problems of decryption in
exchange for cryptocurrency.

The problem is that this validated methodology is based on the


participants' consumption of GPU and electricity, making the
technology unsustainable in terms of environmental impact and
scalability, requiring more and more computational power from the
validators, increasing the complexity of the problems to be resolved
constantly.
The intrinsic characteristics of the AI could modify and improve
this, acting positively in these areas:

Energy consumption and Hardware: mining is an incredibly


difficult task that requires a lot of energy (and therefore money) to
complete. Artificial intelligence has already proved to be very
efficient in optimizing energy consumption, this can also be
replicated for the blockchain. This would probably also result in lower
investments in mining hardware (GPU investments, typically). Since
energy consumption has always been a key problem, many solutions
have been proposed and many more will be introduced in the future.
As the system becomes more efficient, some hardware
components could be converted to use neural networks. An
intelligent system could eventually be able to calculate on the fly the
probability that certain nodes are the first to perform a certain task,
giving the possibility to other miners to interrupt their efforts for that
specific transaction and reduce total costs.
Moreover, even if some structural constraints are present, a better
efficiency and a lower energy consumption can reduce the network
latency allowing therefore faster transactions;

Security and Privacy: even if the blockchain is almost


impossible to hack, its further levels and applications are not so safe.
The incredible advances made by machine learning in recent years
make AI a secure tool for blockchain to ensure secure application
distribution;
Data Gates: in the future where all our data will be available on a
blockchain and companies will be able to buy them directly from us,
we will need help to guarantee access, keep track of data usage and
generally give a sense of what happens to our personal information.

Increase confidence in the technology of the future: as soon


as part of our activities will be managed by autonomous virtual
agents, having a clear audit trail will help the robots trust each other
(and we will trust them). In the end, every machine-to-machine
interaction and transaction will also increase, providing a secure way
to share data and coordinate decisions.
What is the impact of machine learning and
blockchain technologies in industries?
Blockchain and machine learning technology are revolutionizing
the way modern industries solve efficiency problems, transforming
business models, experiences and user behavior.
But in which sectors of industry is this revolution most happening?
How do business models change?

Manufacturing
As part of the manufacturing process, companies have begun to
rely on bitcoin blockchain-based processes and intelligent contracts
to enable production controls, transparency, security and
compliance. Instead of planning fixed machine maintenance
programs, predictive algorithms, which are at the heart of machine
learning technology, are used to create flexible intervention plans,
right at the precise moments when they should occur. Quality control
and product testing have also become progressively automated, with
adaptive and computer vision algorithms successfully used to detect
good and defective products, especially in highly sensitive
environments.

Food and Logistics


Blockchain and machine learning are increasingly reducing the
challenges of the end-to-end supply chain in the food industry,
enabling accuracy and transparency. With the blockchain, you can
now uniquely and accurately track food supply sources and manage
related financial transactions.

Energy and Public Services


In the energy industry and public services sector, blockchain
technology helps to facilitate energy exchanges in a smart and
secure way. Some companies are implementing the production and
distribution of energy in a peer-to-peer way, exploiting the logic of the
operation of the blockchain and the IA.
U.S. water utilities are using an analysis solution based on these
technologies and business intelligence to save billions of gallons of
water each year. Utilities can now extract business intelligence from
a large amount of data collected through predictive and intelligent
metrics driven by the Internet of Things.
Using the system, they can monitor the status of resources in the
field and perform predictive and proactive maintenance of the
infrastructure.
15. CONCLUSION
Whether it is mobile apps or transportation, machine learning has
brought about a major improvement in the field of artificial
intelligence. And the reality is that the implications cannot really be
predicted as the field is ever growing and expanding at exponential
rate. Who knows, maybe those futuristic Sci-Fi movies are just a
decade away from becoming reality.
What matters most is the present state of machine learning and
how we can invest in it. At the end of the day, machine learning and
artificial learning cannot be done without.
How long will Artificial Intelligence take to conquer the territories
that are still the exclusive prerogative of the human one? In ambient
computing, we are learning to live with billions of hidden sensors and
the AI has begun to acquire the keys to appeal also to the human
imagination.
How long will the Blockchain take to decree the end of centralized
control? In the crypto economy, nothing can intervene to change
what was contractually decided by the parties. But will an
entrepreneur subscribe to a smart contract that will run even if the
contractors change their minds?
These two technologies are destined to walk hand in hand and
combine with each other. The future and the impact they will have on
our lives, is to be discovered.

[1] You can see “Beyond Bitcoin : Why Blockchain will change our Life, Economy and
the World” http://bit.ly/BlockchainRevolution2020

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