Why Blockchain and Chatbot are a Perfect Couple

We have become accustomed to using digital technologies. Our daily routine is unthinkable without laptops and smartphones. Both terms ‘blockchain’ and ‘chatbot’ represent a highly promising technology. But is it really safe to provide personal data to a chatbot you have never used before? There are many concerns. However, chatbots based on blockchain technology are expected to solve this trust problem.

In bots we trust

The growing popularity of chatbots increases the risk of cyber crimes, e.g. phishing. The lack of mutual trust and frequent cases of unethical chatbots can cause mistrust and rejection of the technology by a user. But what if a customer would view the history of successfully confirmed transactions? This could essentially influence the customer decision.

The blockchain technology provides a perfect solution for the trust issue. It represents a decentralized transactions tracker and a secure way of transmitting personal bank account data through a multi-step verification process.

Reputation

Distributed Ledger Technology for reliability confirmation totally differs from feedback evaluation systems. It shows the actual amount of successfully completed transactions that were validated by real and existing chatbot users.

The DLT as a basis of such trust rating system can help to create a mechanism that provides a confidence value for a chatbot and a unique opportunity for the user to estimate risks before accepting the deal.

For example, a customer wants to order a good on the Internet. The chatbot represents a variety of online shops and is integrated into all popular messengers. As soon as the desired good is selected, the payment process follows. The central question here: can you trust the chatbot and is it secure to transfer money using the digital assistant?

The customer can identify the security level using trust rating based on the number of successfully ordered and received goods in the past.

After a successfully completed order, the exact date, time and the unique payment identifier are noted in the distributed ledger. The personal data is not stored in the register. When all the members confirm the transaction, it will be recorded and adjusts the rating of a particular chatbot.

Relevant: Bot, or Not? Factors To Consider Before Implementing The Technology

Insured over blockchain

Creation of trust and process automation: those two things the blockchain technology is really good in.

Every day numerous transactions happen between strangers. Chatbots can protect buyers on online marketplaces by insuring users against fraud, theft, and scams.

Based on blockchain technology, a chatbot can verify the reputation of buyers and seller in a database. If the verification is successful, it fixates the time of transaction and reputation check.

That is how chatbot Kevin developed by Spanish startup works. It provides micro-insurance for P2P- transactions and takes the role of an arbitrator during the deal.

Warranty services

A further example is warranty service. A blockchain-based guarantee chatbot by Deloitte provides assistance in warranty coupon registration and cooperation with clients.

How does it work? The user receives a guarantee coupon with a unique QR-code. Using an instant message, the client sends the image of the code to the bot. The provided data is then safely stored on the blockchain. The user can track the entire guarantee service history without the need to keep the paper coupon.

Hence, the combination of blockchain technology and chatbots creates a safe and user-friendly system.

Relevant: Car as a Wallet: Blockchain goes Automotive

A perfect match

The blockchain is still a nascent technology.

However, the reliable chatbot technology provides financial enterprises with a great perspective in the future. Instead of using complex systems with several authorizations, users can easily complete the transactions using a chatbot.

Insurance data, purchase history, warranty services: any kind of data can be collected using blockchain and safely used by different service providers via chatbots. The companies can communicate with their clients in real-time and provide safe transactions.

Chatbot and blockchain are simply a perfect match. That’s why more and more new services based on the technology are expected to appear in the coming future.