One reason is that blockchain’s use of a decentralized ledger offers insights into how artificial intelligence systems are working and where the data these platforms may be using comes from. As a result, transactions can be facilitated with a high level of trust while maintaining strong data integrity. Not only that, but using blockchain systems to store and distribute AI-centric operating models can help in creating an audit trail, which in turn helps improve data security.
Furthermore, the combination of AI and blockchain, at least on paper, appears to be extremely powerful, capable of improving virtually every industry in which it is implemented. For example, the combination has the potential to improve today’s existing food supply chain logistics, healthcare record sharing ecosystems, media royalty distribution platforms, and financial security systems.
That said, while there are plenty of projects touting the use of these technologies, what benefits do they realistically offer, especially since many AI experts believe the technology is still in its relative infancy? There are plenty of companies marketing the use of AI as part of their current offerings, leading to the glaring question: What exactly is going on here?
With the cryptocurrency market growing stronger and stronger in recent years, the idea that artificial intelligence (AI) is making its way into the cryptocurrency/blockchain technology arena has continued to generate increasing interest. largest in the world. .
Are AI and Blockchain a Good Match?
To gain a broader and deeper understanding of the topic, Cointelegraph spoke with Arunkumar Krishnakumar, Chief Growth Officer of Bullieverse, an open-world 3D metaverse gaming platform that uses aspects of AI technology. In his opinion, both blockchain and AI address different aspects of the overall life cycle of a data set.
Kismet, a robotic experiment in affective computing and AI.
While the blockchain is primarily concerned with things like data integrity and immutability, making sure that the data of information that sits on a blockchain is of high quality, AI uses data that is stored in a secure way. efficient in providing meaningful and timely information that researchers, analysts, and developers can act on. Krishnakumar added:
“AI can help us not only make the right decisions in a specific situation, but can also provide predictive prompts as it becomes more trained and intelligent. However, blockchain as a framework is quite capable of being an information highway, provided the scalability and performance aspects are addressed as this technology matures.”
When asked if AI is too nascent a technology to have any kind of real-world impact, he stated that like most technological paradigms, including AI, quantum computing, and even blockchain, these ideas are still in their early stages of adoption. He compared the situation to the Web2 heyday of the 1990s, where people are only now beginning to realize the need for high-quality data to train an engine.
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In addition, he highlighted that there are already several everyday use cases of AI that most people take for granted in their daily lives. “We have AI algorithms that speak to us on our phones and home automation systems that track social sentiment, predict cyber attacks, etc,” Krishnakumar said.
Ahmed Ismail, CEO and president of Fluid, an AI quantity-based financial platform, noted that there are many cases where AI benefits the blockchain. A perfect example of this combination, according to Ismail, is crypto liquidity aggregators that use a subset of AI and machine learning to perform deep data analysis, provide price predictions, and offer optimized trading strategies to identify current/future market phenomena, adding:
“The combination can help users capitalize on the best opportunities. What this really translates to is an ultra-low latency, ultra-low cost solution to fragmented liquidity, a multi-million dollar problem plaguing the virtual asset market today.”
On a more holistic note, Ismail noted that all technology has to go through a cycle of evolution and maturity. At this point, he highlighted that even as the banking and finance sectors began to adopt digital assets, there was widespread concern about whether these assets had progressed enough to be successfully implemented. “AI and its subsets bring huge advantages to the crypto industry, but they must be promoted ethically with a long-term vision at its core,” he concluded by saying.
More work may be needed
According to Humayun Sheikh, CEO of Fetch.ai, a blockchain project aimed at introducing AI to the cryptocurrency economy, as blockchain and Web3 technologies advance, AI will be a crucial element needed to bring new value to companies, adding:
“Decentralized AI can cut out the middleman in today’s digital economy and connect businesses with consumers directly. It can also provide access to big data from inside and outside the organization, which, when analyzed with AI scale, can provide more actionable insights, manage data usage and model sharing, and create a trusted data economy. and transparent”.
As for the gap between AI and its apparent lack of use cases, Sheikh believes the dichotomy is not true as there are too many use cases for all to see. Fetch.ai, for example, has been building systems to implement AI and blockchain within supply chain ecosystems, parking automation frameworks, decentralized finance (DeFi), and more. Fetch also plans to launch consumer-friendly AI applications starting in the United States in the short term.
However, Krishnakumar believes more needs to be done when it comes to making AI more data-efficient if it is to truly serve the world at scale. At this point, he noted that with the advent of quantum computing, AI could scale heights never seen before, adding:
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“This can, for example, reduce the time needed for drug discovery from 12 years to a couple of years. Modeling nitrogen fixation and industrializing it to reduce carbon emissions in fertilizer factories is another example. Modeling protein folding and providing personalized cancer drugs is another use case that could be achieved.”
Does Blockchain Need AI to Succeed?
Chung Dao, CEO and co-founder of Oraichain, a decentralized application and smart contract platform, believes that blockchain technology is more than most people like to believe it is, that it is a closed world of financial transactions without no connection to the real world. assets and events. He told Cointelegraph:
“AI must help blockchain recognize real-world utility, broaden its applicability, and enable intelligent decision-making. Both technologies are in their early stages, but not ‘very early’. There are many successful AI solutions that recognize patterns better than humans, and there are certainly many benefits of automation across a wide range of businesses.”
Dao noted that there is already a robust infrastructure for AI ready to be implemented on top of existing blockchain technologies, one that can improve “trust, identification, and decentralization” across the space. In this sense, Oraichain has an entire ecosystem dedicated to this: the project uses an Oracle mechanism that integrates AI into smart contracts and harnesses the power of an AI-centric marketplace and data management system.
Therefore, as we move into a future driven by the principles of decentralization, it stands to reason that futuristic technologies such as artificial intelligence will continue to gain traction within the global crypto landscape in the coming months and years.
This post How AI can change the decentralized ledger
was published first on https://cointelegraph.com/news/blockchain-s-potential-how-ai-can-change-the-decentralized-ledger