One reason is that blockchain’s use of a decentralized ledger offers insight into the functioning of AI systems and the origin of the data that these platforms may use. As a result, transactions can be facilitated with a high level of trust while maintaining solid data integrity. Not only that, but using blockchain systems to store and distribute AI-centric operational models can help create an audit trail, which in turn allows for enhanced data security.
Moreover, at least on paper, the combination of AI and blockchain seems extremely powerful, one capable of improving virtually any industry in which it is implemented. For example, the combination has the potential to: to expand current food supply chain logistics, healthcare data sharing ecosystems, media royalty distribution platforms, and financial security systems.
That said, while there are many 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 many companies marketing the use of AI as part of their current offerings, giving rise to the glaring question: What exactly is going on here?
With the cryptocurrency As the market continues to grow from strength to strength over the past few years, the idea of artificial intelligence (AI) making its way into the realm of crypto/blockchain technology has been gaining more and more mainstream interest around 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 at Bullieverse – an open-world 3D metaverse gaming platform that leverages aspects of AI technology. According to him, both blockchain and AI address different aspects of the overall lifecycle of a dataset.
While blockchain is primarily concerned with things like data integrity and immutability — ensuring that information data residing on a blockchain is of high quality — AI uses data that is efficiently stored to provide meaningful and timely insights for researchers, analysts, and developers to rely on. react. Krishnakumar added:
“AI can not only help us make the right decisions in a specific situation, but it can also provide predictive heads-up as it becomes more trained and intelligent. However, blockchain as a framework could very well be an information highway, provided scalability and throughput are addressed as this technology matures.”
When asked whether AI is too young a technology to have any real-world impact, he stated that these ideas, like most tech paradigms, including AI, quantum computing, and even blockchain, are still in the early stages of adoption. . He compared the situation to the Web2 boom of the 1990s, where people are only now beginning to realize that it takes high-quality data to train an engine.
He further emphasized that there are already several everyday use cases for AI that most people take for granted in their daily lives. “We have AI algorithms that talk 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 quantitative-based financial platform – pointed out that there are many instances where AI benefits the blockchain. A perfect example of this combination, according to Ismail, are crypto liquidity aggregators that use a subset of AI and machine learning to perform deep data analysis, make price predictions and provide optimized trading strategies to identify current/future market phenomena, adding:
“The combination can help users take advantage of the best opportunities. This really translates into an ultra-low latency and ultra-low cost solution to fragmented liquidity – a multi-trillion dollar problem plaguing the virtual asset market today.
On a more holistic note, Ismail pointed out that any technology must go through a cycle of evolution and maturity. So far, he emphasized that even as the banking and financial industry started to adopt digital assets, there was widespread concern across the board as to whether these assets were sufficiently advanced to be successfully implemented. “AI and its subsets bring huge benefits to the crypto industry, but must be promoted ethically with a long-term vision at the core,” he concluded by saying.
More work may be required
According to Humayun Sheikh, CEO of Fetch.ai – a blockchain project aimed at introducing AI into the cryptocurrency economy – as Web3 and blockchain technologies advance, AI will be a critical element needed to create new value for businesses. bring, and adds:
“Decentralized AI can remove middlemen in today’s digital economy and connect businesses directly to consumers. It can also provide access to large amounts of data from inside and outside the organization, which when analyzed using AI scale, can provide more actionable insights, manage data usage and model sharing, and create a reliable and transparent data economy. .”
In terms of the gap that exists between AI and the apparent lack of use cases, Sheikh believes the dichotomy doesn’t hold, as there are already many use cases out there for everyone to see. For example, Fetch.ai has built systems for deploying AI and blockchain across supply chain ecosystems, frameworks for parking automation, decentralized finance (DeFi), and more. Fetch also plans to release consumer-friendly AI applications in the United States in the near future.
However, Krishnakumar believes that more needs to be done to make AI more data efficient to really serve the world at scale. So far, he noted that with the advent of quantum computing, AI could scale heights like never before, adding:
“For example, this could reduce the time it takes to discover drugs from 12 years to a few years that could be on the cards. Another example is modeling nitrogen fixation and industrializing it to reduce carbon emissions in fertilizer plants. Modeling protein folding and providing tailored cancer drugs is another use case that can be achieved.”
Does blockchain need AI to succeed?
Chung Dao, CEO and co-founder of Oraichain – a smart contract and decentralized app platform – believes that blockchain technology is more than what most people like to believe, which is a closed world of financial transactions without any connection to the real world. world assets and events. He told Cointelegraph:
“AI should help blockchain recognize the utility of the real world, extend its applicability, and enable intelligent decision-making. Both technologies are still in their infancy, but not “very early”. There are many successful AI solutions that recognize patterns better than humans, and there are undoubtedly 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” in the space. In this regard, Oraichain has an entire ecosystem dedicated to this: the project leverages an oracle mechanism that integrates AI into smart contracts and leverages the power of an AI-centric data management system and marketplace.
Therefore, as we move into a future powered by the principles of decentralization, it makes sense that futuristic technologies such as artificial intelligence will gain ground in the global crypto landscape in the coming months and years.