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Chinese Watchdog Says “Blockchain +AI” Solutions Faces Four Challenges, Still at PoC Stage

The National Committee of Experts on the Internet Financial Security Technology (IFCERT), a Chinese government-backed industry organization, released a report on Monday, analyzing the advantages of the ongoing efforts to combine artificial intelligence and blockchain, as well as the risks.

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IFCERT points out that AI and blockchain will work very well together. The combination of these two emerging technologies will offers huge advantages in many fields, such as improving data security, ensuring data privacy, making AI solutions more credible. However, the infusion also faces two major contradictions.

On the one hand, drawbacks of these two cutting-edge technologies still cannot be effectively addressed ; on the other hand, the combination will possibly undermine their original advantages. The synergy of these two powerhouse technologies has to overcome four challenges: regulatory uncertainty,the uncertain future of the technology integration, projects’ wide adoption and uncontrollability.

The community says that blockchain applications are facing policy risks around the world. It remains unclear whether tokens will be used to incentive AI development or nodes management as it is hard to be defined now.

“Blockchain is currently at its early development stage. And most of “Blockchain +AI” projects also remain at ‘proof of concept’ stage, so there is a long way to go to roll out large-scale adoptions.” IFCERT says.

In terms of technology integration , these two immature technologies have not worked together in a widespread manner. “At present, the main problems of blockchain are scaling, data privacy, and computing power. The mainstream public chains are difficult to support the implementation of artificial intelligence solutions.” IFCERT says.

What’s more, data sharing brought by blockchain threatens the interests of large enterprises. IFCERT says large companies will lose their competitive edge when we weaken data centralization. “If anyone can gain access to this data, it means anyone has the opportunity to compete with the world’s largest company. Thus, big companies may oppose data decentralization, and call for the centralized control of database.” IFCERT says.

The committee adds that hackers are possible to attack a smart contract of a blockchain which will never stop working, thus it will cause economic loss to companies and individuals.

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