Many note that disruptive, innovative technologies intersect with one another; there are examples of the results being compelling for investors and users alike. One pairing that could eventually ascend to that enviable status is artificial intelligence (AI) and blockchain.
Knowing about the applications of the AI/blockchain combination and its long-term potential is of course important, but knowing how to position for that potency is also crucial. Among exchange traded funds, the Amplify Transformational Data Sharing ETF (BLOK) could be a long-term winner as the two technologies increasingly combine forces.
There are myriad benefits and investment implications to this pair working in tandem. Not only does that “team” increase usage cases for both technologies, but as that happens, it helps reshape views that blockchain is only relevant in the cryptocurrency world. Some BLOK holdings have already proven that claim false, and as artificial intelligence takes shape in the blockchain arena, some BLOK components could benefit.
BLOK Could Reap AI Benefits
What could make BLOK an appealing, long-term blockchain play is that the technology can act as an AI enhancer. Consider the findings in a recent report by the European Union’s Blockchain Observatory and Forum (EUBOF).
“Blockchain can provide a secure and transparent framework for AI data, ensuring data integrity and privacy. This is particularly important in sectors such as healthcare and finance, where data security is paramount,” according to the report. “Blockchain can enable decentralized AI networks, where AI models and data are distributed across a blockchain network. This can reduce the risk of data monopolies and promote collaborative AI development.”
In the report, the EUBOF observes that use of decentralized finance (DeFi) is likely to increase in the years ahead. Alone, that supports more crypto-based relevance for blockchain – and expectations that artificial intelligence can enhance efficiencies in smart contracts further that case.
