News headlines regarding the latest internet security breach have become all too commonplace, underscoring the growing importance of strengthening cybersecurity. However, a powerful tool has emerged recently to help combat the problem: The unique combination of artificial intelligence and blockchain technologies.
While cybersecurity may not come immediately to mind with respect to AI or blockchain use cases, in fact, together they offer potential ways to protect sensitive data, and detect potential cyberattacks.
Protect. Blockchain is essentially a decentralized database system that allows organizations and individuals to share encrypted data. The way blockchains are constructed may help ensure the data remains secure, obviously critical to cybersecurity efforts. In addition, they are decentralized, making them less susceptible to cyberattacks and often include secure authentication.
Detect. For its part, AI, through sophisticated algorithms can analyze vast amounts of data to identify potential threats to cyber security. It can detect unusual patterns of behavior that appear to deviate from the norm or analyze prior cyberattacks to predict future ones. It is important to note that AI could also be used by cyber attackers, which underscores the importance of pairing the use of AI to detect threats with blockchain to protect data.
In short, blockchain technologies can help protect data integrity, while AI enhances threat detection, increasing operational efficiency and bolstering cybersecurity. Cyberattacks are getting more sophisticated – and dangerous. But the sophisticated combination of AI and blockchain offer a potential solution to a vexing problem facing businesses and consumers.
It’s like playing defense and offense at the same time.
Future projections for these technologies are eye-opening:
As they continue to evolve, their adoption and indispensable use are expected to grow further.
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71% of Decision-Makers: Casper-Labs-Exploring-Convergence-Between-Blockchain-AI-Report-PDF.pdf (casperlabs.io 5 Digital Disruption Profile: Blockchain’s Radical Promise Spans Business and Society (gartner.com). I 1https://www.statista.com/statistics/1319369/global-blockchain-technology-market-size/ I 2 CAGR is the compound annual growth rate I 3Artificial Intelligence market size 2030 |
BLOK: Blockchain technology may never develop optimized transactional processes that lead to realized economic returns for any company in which the Fund invests. Such investments may be subject to the following risks: the technology is new and many of its uses may be untested; theft, loss or destruction; competing platforms and technologies; cybersecurity incidents; developmental risk; lack of liquid markets; possible manipulation of blockchain-based assets; lack of regulation; third party product defects or vulnerabilities; reliance on the Internet; and line of business risk.
HACK: The fund is concentrated in technology related companies that face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. Such companies may have limited product lines, markets, financial resources or personnel. The products of such companies may face obsolescence due to rapid technological developments, frequent new product introduction, unpredictable changes in growth rates, competition for the services of qualified personnel, and competition from foreign competitors with lower production costs. Technology companies are heavily dependent on patent and intellectual property rights. The loss or impairment of these rights may adversely affect the profitability of these companies. Investments in foreign securities involve political, economic and currency risks, greater volatility and differences in accounting methods. The Funds are non-diversified, meaning they may concentrate its assets in fewer individual holdings than a diversified fund. Investments in smaller companies tend to have limited liquidity and greater price volatility than large capitalization companies. Diversification does not assure a profit or protect against a loss in a declining market. The Fund’s return may not match or achieve a high degree of correlation with the return of the Index. To the extent the Fund utilizes a sampling approach, it may experience tracking error to a greater extent than if the Fund had sought to replicate the Index. Amplify Investments LLC is the Investment Adviser to the Fund, and Penserra Capital Management serves as the Investment Sub-Adviser.
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