The combination of chatbots and blockchain can revolutionize many sectors. That’s why chatbots need blockchain to be more effective in different industries. The fact that we live in a digital era can not be contested. Even now, most of you would be reading this blog after having scrolled web pages via your smartphone or computer.
Nearly everyone has got accustomed to working with popular digital helpers. Such has been the technological advancement that chatbots have taken over the role of humans in assisting people in their tech-related interactions. While this may sound very promising, making payments through chatbots on social networks may not be too secure. That is precisely the reason, along with many others, why chatbots need blockchain.
Most people might not feel comfortable entrusting their bank card information to a chatbot initially. The absence of mutual understanding and frequent cases of unscrupulous chatbots gives rise to distrust among the users toward the technology and prompts them to discard it altogether. But the situation could be much more comfortable, and the customers can be relieved if they can see the history of successfully confirmed transactions by the chatbots.
This can significantly affect the client and motivate them to cooperate. Talking of building trust, blockchain technology is an ingenious way of building credibility. Due to it’s multi-step verification process, it acts as a decentralized tracker of transactions and offers people a secure way to provide their bank account details.
Feedback evaluation systems might be useful, but nothing can match the efficiency of distributed ledger technology (DLT) for reliability confirmation. It shows the actual number of transactions that were successfully carried out and received approval from the members. The bots earn a trust rating based on several factors like timing of the previous deal, the duration of the activity, the number of successful transactions, and the average time for customer interaction.
While the DLT is used as a base for such a trust rating system, a mechanism can be created for the indication of a value of the trust for the chatbot. It should also provide the user with the opportunity to analyze risks before they accept the deal. When paying for an order, the customer can indicate the level of security via trust rating based on the number of orders received successfully. After the order is successfully paid for, the time, date, and the unique payment identifier are noted down in the distributed ledger. Any identified data that is personal in nature is not recorded in the register.
Upon the confirmation of the transaction by all the participants, it will be recorded in the register and influence the trust rating of chatbots in the future. Through this increased level of trust, a higher level of interaction will develop between the user and technology.
Blockchain can be used in the insurance sector to provide microinsurance for peer-to-peer transactions. When an electronic platform is used to make a purchase, the chatbot verifies the buyer and seller’s reputation and from the database by looking for potential issues in the past deals.
The transparency of the agreement shows the chatbot users the liability of the credit system. Infusing blockchain in the insurance sector would enhance the interaction experience with online marketplaces. With so many insurance scams taking place all around the year, this is another reason why chatbots need blockchain.
Another application of blockchain is in the warranty sector. People often tend to lose or throw away their warranty coupons. After thorough blockchain analysis, the Deloitte company came up with a working structure for chatbots using blockchain.
Whenever a client makes a purchase, they get a guarantee coupon with a unique QR-code on it. It includes general information like the product’s name, purchase date, and serial number, along with the address of the chatbot that is operating on the Facebook Messenger Platform.
Once the chatbot receives the picture of the QR-code, the purchase information is saved. The customer’s Facebook profile serves the function of a personal identifier. The application of the QR-code is also time-saving as the seller is not required to fill out the coupon. They can get the code printed on the check. Combining the blockchain technology with chatbots helps in the creation of a safe and reliable system with a UI-friendly and straightforward interface.
The mere usage of chatbots doesn’t imply payment. Chatbots can be used to send and accept cryptocurrency transactions, as you might already know if you read cryptocurrency news daily. They can also be used to create UI- friendly smart contracts with the help of blockchain.
Chatbots act as an interface for interaction. They also help in tracking the contract conditions. It does so while blockchain serves as a cryptographic part for the chatbot operation. This allows for a healthy competition among chatbots and also gives the user the chance to choose from among a variety of smart contracts.
Through the examples given above, it is evident that chatbots need blockchain. For most financial organizations, the deployment of trustworthy chatbots creates a broad perspective. Chatbots would help the user to make transactions directly instead of turning to an intricate system to access finances. This would rid the clients of useless conversation with the banking staff and save them a lot of time. The combination of chatbots and blockchain can play a significant role in automating the marketing sector. In the insurance sector, blockchain can help users collect all the information about different services and purchase history. This would also allow users to engage with different companies without worrying about their security.
Credits — Sujit Kumar Pathak
Sujit is a Crypto enthusiast and a blogger by passion. He Works for a Crypto news Company Cryptoknowmics. Cryptoknowmics is one of the best companies in this industry because they have a passion to provide users the relevant crypto, bitcoin, and altcoin news today. You can follow him on LinkedIn and Twitter too.