How Blockchain And AI Integration Is Changing The Industry
With the brewing narrative AI and OpenAI being all over Twitter we wondered how artificial intelligence (AI) and blockchain will shape the future of business. In this blog post, we will explore the potential of these two technologies and how they can change the way we do business. From security to upgrading a business’ infrastructure, servers and software. Read on to learn more about AI, blockchain and how it can revolutionize the way we work.
Blockchain And AI
Before we dive deeper into the big potential of blockchain and AI, we briefly want to educate on these topics. Until now everybody should know what a blockchain is. It was first described in 1982 and the first decentralized blockchain was conceptualized by the famous inventor of Bitcoin Satoshi Nakamoto. To date, it has made a steep ascent and is integrated into the most innovative projects in the world.
Artificial intelligence (AI) is a field of computer science and engineering focused on the creation of intelligent agents, which are systems that can reason, learn, and act autonomously. AI research deals with the question of how to create computers that are capable of intelligent behavior. There are three types of AI: rule-based AI, decision tree AI, and neural network AI. Rule-based AI uses a set of rules to make decisions, while decision tree AI makes decisions by considering all possible outcomes of an action. Neural network AI is the most advanced type of AI, and it works by mimicking the workings of the human brain. In practical terms, AI applications can be deployed in a wide variety of areas including health care, finance, manufacturing, robotics, and automotive.
After this brief explanation let us have a look into the challenges of integration and how these two technologies can profit from each other.
The Challenges Of Implementation
One big challenge of implementing AI into blockchain is security. It raises concerns around privacy and security, as sensitive data may be at risk of being accessed or manipulated by malicious actors. A blockchain-based system is hard to hack and steal sensitive information because it uses cryptography algorithms. Nevertheless, decrypting the files, before making changes, leaves them vulnerable to hackers’ attacks.
Another one is the issue of scalability, as the use of AI in blockchain systems may require a large amount of computing power and storage, which could slow down the network and make it less efficient.
Finally, there is the issue of fairness and bias in AI algorithms, which could lead to unfair or biased outcomes if not properly addressed.
How Do Blockchain And Artificial Intelligence Work Together?
Blockchain and Artificial Intelligence (AI) are two of the most talked-about technologies in the world today. And for good reason: they have the potential to change the way we live, work, and interact with each other.
So how do these two cutting-edge technologies work together? Let’s take a look.
Decentralization is one of the key advantages of blockchain technology. Now let us add AI into the mix. AI can be used to help verify and validate transactions on the blockchain. For example, let us say you are sending money to someone using a blockchain platform. An AI system can help verify that the transaction is valid and that you have enough money in your account to cover it.
AI can also be used to help prevent fraud on the blockchain. By analyzing data on past fraudulent activity, AI systems can help identify patterns that may indicate a fraudulent transaction. This information can then be used to flag potential fraudulent transactions in real time so that they can be stopped before they happen.
In addition, AI can be used to improve the efficiency of blockchain systems. For example, by identifying bottlenecks in the system, AI can help make changes that will improve overall throughput. Let us have a look at some examples.
Examples Of AI Integrated Into Blockchain Technology
Even though implementing AI into blockchain technology is an ongoing challenge, there are already some projects that have successfully demonstrated how AI can improve blockchain technology.
CertiK
CertiK provides tools powered by AI and formal verification to secure blockchain, smart contract and Web3 applications. With four offered products, CertiK technology helps identify security risks, monitor data insights and visualize where crypto funds are going. The company also offers SkyTrace, a digital wallet that lets users store and provide security data on their cryptocurrency.
Token Metrics
Using AI technology, Token Metrics is a tool for analyzing cryptocurrency trends for personal investment purposes. The technology scans the data of over 6,000 cryptocurrencies and extracts market insights and updates to help users make investment decisions. Token Metrics has been used by large companies such as Coinbase, Amazon and Facebook.
Core Scientific
Core Scientific integrates personalized blockchain and AI infrastructure with current business networks, upgrading a business’ infrastructure, servers and software in the process.
At more than 273 acres, the Core Scientific campus contains two on-site substations and a dam that collects hydroelectric power. Because blockchain and AI take up massive amounts of computer processing and power, Core Scientific ensures that company controlled data centers and blockchain and AI infrastructures always run at optimal efficiency.
Conclusion
Blockchain and AI are two technologies that have the potential to revolutionize the way we work in a number of ways. By improving supply chain management, enabling more secure and efficient transactions or improve data security and privacy.
It will be exciting to see where we are heading with these two technologies in the next few years and are sure that AI can improve the current blockchain technology and raise it to a new level.
Who We Are
Moonrock Capital is a Blockchain Advisory and Investment Firm, incubating and accelerating early stage startups since 2019.
Website: https://www.moonrockcapital.io
Twitter: https://twitter.com/MoonrockCapital
