AI Digital Identity on Blockchain — A New Era of Accountability

Ajeet Yadav
4 min readOct 4, 2023

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Reference: Made by Illusion Design Studio

The digital age has brought forth innovations that are reshaping the fabric of society. Two of the most transformative technologies of our time are Artificial Intelligence (AI) and blockchain.

While each has its own set of revolutionary applications, their convergence promises a future where AI can have its own verifiable digital identity. But what does this mean, and how can we develop such a system?

1. The Need for AI Accountability

As AI systems become more integrated into our daily lives, the question of accountability becomes paramount. Who is responsible when an AI makes a decision that leads to harm or financial loss? Traditional models of accountability are not always applicable to AI, given its autonomous nature.

2. Why We Need Blockchain-Based AI Identities Now

The urgency to integrate blockchain-based digital identities for AI is driven by several contemporary challenges and opportunities:

a. Rapid AI Integration in Critical Sectors

AI is no longer confined to experimental labs or tech giants’ server rooms. It’s being integrated into critical sectors like healthcare, finance, transportation, and public services. As these systems make decisions that can directly impact human lives and societal structures, the need for transparency and accountability becomes non-negotiable.

b. Increasing Complexity of AI Models

Modern AI models, especially deep learning networks, are becoming increasingly complex. Often termed as “black boxes,” their decision-making processes can be hard to interpret, even for experts. A blockchain-based record of an AI’s interactions and decisions can provide an immutable history, aiding in understanding and auditing its actions.

c. Public Trust and Ethical Considerations

There’s a growing public concern about unchecked AI, especially regarding privacy, bias, and autonomy. To foster public trust, we need systems that not only ensure AI behaves ethically but can also prove it. A transparent, blockchain-based identity can serve as this proof.

d. Economic and Business Implications

As businesses increasingly rely on AI for operations, investments, and strategy, the financial stakes associated with AI decisions skyrocket. Stakeholders need assurance that AI operations are transparent, traceable, and accountable. A mishap caused by a rogue AI could lead to significant financial and reputational damages.

e. Preparing for Advanced AI Systems

While current AI systems are powerful, they’re still far from the sci-fi depictions of superintelligent entities. However, as we move towards more advanced AI, the potential for them to operate with significant autonomy increases. Before we reach that stage, establishing robust accountability mechanisms is crucial.

f. Legal and Regulatory Frameworks

Governments and regulatory bodies worldwide are grappling with the challenge of creating legal frameworks for AI. A blockchain-based identity for AI can provide a foundational infrastructure upon which regulations can be built, ensuring that AI developers and users adhere to established norms and standards.

3. Blockchain: A Ledger of Trust

Blockchain technology, at its core, is a decentralized ledger that records transactions in a transparent and immutable manner. This makes it a perfect tool for creating a system of trust and verification. By giving AI a digital identity on the blockchain, we can track its decisions, interactions, and evolution over time.

4. Developing AI’s Digital Identity

To create a blockchain-based identity for AI:

  • Initialization: When an AI is created, a unique digital identity is generated for it on the blockchain. This identity serves as its “birth certificate,” marking its inception and original parameters.
  • Interaction Logging: Every decision and interaction the AI has is recorded on the blockchain. This creates a transparent history of the AI’s behavior.
  • Reputation System: Based on its interactions and feedback from users or other systems, the AI earns a reputation score. Positive interactions increase its score, while negative ones decrease it.

5. Holding AI Accountable

With this system in place, accountability becomes a matter of managing the AI’s reputation and access:

  • Trust Scores: If an AI consistently makes beneficial decisions, its trust score rises, granting it more autonomy or access to certain tasks. Conversely, an AI with a declining score might face restrictions.
  • Auditing and Review: Since all interactions are logged on the blockchain, any questionable decision by the AI can be audited. Stakeholders can trace back the AI’s decision-making process to understand the root cause of any issues.
  • Intervention and Adjustment: If an AI’s behavior becomes problematic, developers can intervene, adjust its parameters, and note the changes on the blockchain. This ensures transparency in the AI’s evolution.

6. The Future of AI and Blockchain Convergence

The integration of AI and blockchain doesn’t just stop at accountability. This convergence can lead to:

  • Decentralized AI Networks: Multiple AIs can collaborate, share data, and make collective decisions, all recorded on a transparent blockchain.
  • Smart Contracts with AI Arbitration: In disputes, an AI with a high trust score could act as an arbitrator, making decisions based on its vast data and unbiased nature.
  • Enhanced Security: Blockchain’s decentralized nature can protect AI systems from centralized attacks, ensuring their integrity and reliability.
Reference: Cointelegraph

Conclusion

The marriage of AI and blockchain offers a promising path towards a future where AI systems are not just tools but entities with verifiable histories and reputations.

By developing a blockchain-based digital identity for AI, we can usher in a new era of transparency, trust, and accountability in the digital realm.

By proactively developing blockchain-based digital identities for AI, we’re not just responding to current challenges but also preparing for a future where AI’s role in society is even more pronounced.

As with any technological advancement, ethical considerations and robust frameworks will be essential to ensure this convergence benefits society at large.

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