chapter  2
39 Pages

Blockchaining and Machine Learning

WithR. Venkatesh, L. Godlin Atlas, C. Magesh kumar

The blockchain is a revolutionary technology that works on a distributed ledger system. It is a decentralized network topology with a heightened level of security. All the transactions are stored in individual blocks. Each new transaction is recorded in a new block which has to be validated by the users connected to the network. All of these blocks are interlinked in the form of a chain. Hence, the name blockchain. The timestamp of each transaction is recorded in a tamper-proof manner. In other words, any addition or changes in data is recorded with a time stamp that cannot be altered. Because of the high level of transparency in the system, the blockchain is much more secure and the data integrity is preserved.

Machine learning is when a machine learns either by programs or by its experience, it is called as machine learning just the way the name suggests. Just like the process of human learning, machine learning also constitutes of identifying patterns in given data and designing a more efficient system to outperform the previous versions. A simple day-to-day example of this is when we mark an email as spam and the mailbox assigns the future emails from that email id to the spam folder without human intervention. Machine learning can be very useful in financial sectors or consulting sector where new patterns can be unearthed.

Machine learning is a technology that relies on extensive quantities of data for model building and accurate prediction. A lot of time is invested in collecting, organizing and auditing this data for accuracy. This is where blockchain comes into play as the time taken can be considerably decreased by using blockchain technology. By using smart contracts in this case, data can be transferred directly and securely.

Blockchain and machine learning perfectly complement each other and very much are the two pillars on which the future innovations are to be built. These two together are bound to make ground-breaking innovations in the near future while also making our present more secure.

By using machine learning to govern the chain, there’s also an opportunity to significantly enhance security. Further, as machine learning 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).