Blockchain is a hot topic, with global businesses recognizing that the technology does more than secure financial transactions. From healthcare to manufacturing, Blockchain is changing the game when it comes to key business processes. It’s this vast range of applications that makes the blockchain industry boom.
In 2022, the blockchain sector’s value was at $4.8 billion 2022; most studies anticipate it reaching $2.33 trillion by 2032. Its ecosystem is also expanding at a record pace, with a compound annual growth rate (CAGR) of 85.7% between 2023 and 2032.
That’s not all there is in blockchain, though. The industry will only keep advancing to greater heights with the advent and integration of artificial intelligence (AI). Indeed, the dynamic convergence of the blockchain AI market is something to watch out for.
This infographic outlines the blockchain AI landscape in relation to businesses and industries.
The State of the Blockchain AI Market
Blockchain and artificial intelligence (AI) are technological innovations that shape the business world, but what happens if you put them together? They make a formidable team-up, that’s what.
As of 2021, the blockchain AI market size was valued at $230.10 million, signifying its strong presence in the tech industry. However, what truly sets the stage for excitement is the projected blockchain AI market growth.
Nowadays, AI is among the top 10 sectors posting significant market cap growth (323%) within the crypto space. By 2030, this market may be worth $980.70 million as it experiences a 24.06% CAGR.
These numbers suggest promising opportunities in the field of blockchain AI. In particular, the projected CAGR describes a future where blockchain AI rapidly evolves and expands into various industries worldwide.
Currently, North America is the largest region in the market. However, the spotlight may shift toward Asia-Pacific by becoming the fastest-growing region from 2023 to 2032.
With blockchain’s trust and security integrated with AI’s data processing capabilities, you can anticipate innovative applications in various sectors worldwide. As such, you must be ready for a transformative blockchain AI wave.
8 Major Growth Market Drivers of Blockchain AI Technology
Blockchain AI market’s remarkable growth is attributable to factors critical in the tech landscape.
1. Data transparency
86% of Americans value transparency from businesses, and blockchain AI fits the bill. Blockchain networks ensure data transparency by creating a public record of all transactions. In turn, customers have real-time access to order or purchase histories.
Besides transparency, data accuracy is just as crucial. Blockchain systems empowered by AI can cross-check various sources of information to prevent costly errors in production, record-keeping, etc.
2. Process automation
A steady pace in any business or industry makes daily operations more efficient and productive. However, it’s even more effective if you automate the processes of repetitive tasks using reliable technology like AI.
For example, AI-powered customer service chatbots integrated with blockchain applications can efficiently handle routine inquiries, such as order tracking and FAQs. Plus, automating general tasks frees human agents from more complex issues and allows them to focus on improving customer satisfaction.
3. Data storage decentralization
Data security is paramount for all sectors, especially since data breaches in the first quarter of 2023 exposed more than six million data records worldwide. Fortunately, decentralized data storage enables you to keep the integrity of business data while allowing company and third-party networks to access it.
In healthcare, authorized parties can use patient data stored on a blockchain, including medical records, without compromising data privacy or security.
4. Data scalability through augmentation
Traditional systems may struggle with large volumes of data, which might make it difficult for you to identify patterns surrounding your business or industry. By contrast, blockchain AI can quickly manage and analyze extensive data, allowing you to keep pace with the steady flow of information in and out of your organization.
5. Data provenance
Data sharing comes with security risks, including privacy concerns. Fortunately, blockchain AI solutions let you trace the source, owner, and inconsistency of data across networks. You can then use the blockchain’s highly secure code to grant access or modify permission based on the data trail.
6. Authenticity verification
The proliferation of deepfake videos is an example of manipulating content to spread misinformation or discredit someone. Thankfully, AI can retrieve timestamps and electronic signatures from blockchain records to confirm the legitimacy of digital materials and assets like video content, images, text documents, etc.
7. Data monetization and sharing
The Internet of Things (IoT) makes data exchange possible. This interconnectedness of devices requires technologies like blockchain to enable data monetization via processing fees for financial transactions. Meanwhile, AI enhances decision-making by using data to identify areas for improvement.
8. Development of smart contracts
Smart contracts are digital agreements that automatically carry out predefined actions upon meeting specific conditions. Blockchain AI provides robust support by automating contract coding and validation to reduce manual errors and security vulnerabilities cost-effectively.
6 Key Sectors Leveraging Blockchain AI Technology
The merge of blockchain and AI is reshaping various industries keen to harness the transformative potential of blockchain AI technology.
1. Finance
Blockchain and AI transform finance by fundamentally altering how organizations conduct transactions. These technologies bring speed, simplicity, and enhanced trustworthiness to financial activities like loan applications.
Borrowers and financial institutions alike benefit from easy access to blockchain ledgers or records. Since AI organizes data and makes it readily available, loan transactions have reduced processing times and efficient outcomes for both parties.
2. Healthcare
Blockchain enhances healthcare services by storing sensitive data and relying on advanced AI for accurate diagnoses while preserving privacy with encryption techniques. This secure data sharing supports collaboration among healthcare researchers in physical and virtual environments, allowing for a decentralized record hub.
3. Environmental science
AI solutions interpret environmental data, like carbon emissions, to identify trends and suggest sustainability measures. With the data stored on a blockchain, stakeholders can access and verify relevant information with utmost accuracy.
4. Manufacturing and procurement
Blockchain AI is pivotal in revolutionizing supply chains across industries by digitizing traditional paper-based processes. With automation, your team can meticulously track inventory. It also makes procurement more efficient while reducing manual intervention to oversee various supply chain processes. This results in improved productivity, cost-effectiveness, and overall operational excellence.
5. Security services
Blockchain is an excellent barrier against technological misuse, as it employs private keys to impose stringent access controls on data systems. Plus, its decentralized structure makes it exceptionally challenging for malicious actors to compromise the system since everyone in the network can see it. Similarly, AI’s ability to recognize irregular patterns can alert security teams of potential data breaches.
6. Data analytics
Again, blockchain technology offers unparalleled data provenance. The ability to holistically and accurately track data complements machine learning models in recognizing trends and providing actionable insights to improve business processes. Likewise, AI models improve consensus algorithms in Bitcoin mining as computer nodes perform faster and more efficiently.
Charting the Future of Blockchain and AI
The convergence of blockchain AI market is a game-changer. From healthcare to finance and supply chain, blockchain AI provides your business with data storage, management, and security capabilities.
If you’re interested in knowing how to leverage blockchain as a beginner, CoinGeek is an ideal starting point. We offer a wealth of resources to kickstart your journey into blockchain. Check out our page for more content.
