AI and the Blockchain technology are introducing major shifts in the decentralized exchange platform development. Every coming technology comprises its own technicalities as well as business implications. But the combination of two technologies can reshape the whole technological standards from scratch. The same happens with AI & blockchain. These both technologies are challenging as well as exciting. It offers plenty of potentialities while intersecting each other for the best outcome.
The blockchain is a distributed ledger which stores data in an encrypted as well as high absolute format. Whereas AI is a term utilized to define a machine capable to execute multiple tasks that needs intelligence.
The use of AI in Crypto Trading
Seasoned and beginner investors losing money by taking an on-the-go decision because of the market behavior. Emotional crypto trading is liable for rapid sales and unreasonable acquisition. AI is intentionally outlined to eliminate guessing work and thinking from the equation. AI calculates risks in a blink of an eye and empowers to take proper decision for buying and selling of digital coins.
Because of the booming efficiency of the crypto-economy, beginners and experts are coming together on the crypto trading platforms. It’s obvious, each investor needs accurate information to understand the market in more detail as well as to safeguard their investment. They want an environment which has minimal risks. To analyze this, AI is needed.
- It makes traders more independent and let them make more money.
- Investors can be more confident and analyze the market.
- It aids to make a decision without having any advanced level financial knowledge.
- Traders can keep track the gains and escape from losses without restraining the level of exposure.
- AI empowers to expand a trading portfolio by delivering better market understanding and increasing the speed of trading.
- As people are embracing and trusting AI & crypto trading more, volumes will increase.
Role of AI and Blockchain
Each trader out there requires the best tools to get the better of a market. The quickness offered by AI and its analysis ability would be the deal breakers in digital asset trading. The top investors in data nowadays will make the best promising investment decisions. When it associates with the Artificial Intelligence’s speed, one can close the deal before others take a decision. AI will there to generate the next class of billionaires in the crypto ecosystem.
Companies are focused on the combination of blockchain and AI as it boosts the systems’ security. It keeps decision-making key aspects in the blockchain instead of separate machine learning (ML) systems. It means while taking the decision using machine learning (ML), every factor are posted to a blockchain. It is shared with everyone so if something goes wrong, it is easy to identify the root.
The use of smart contracts that automatically executes tasks when specific conditions satisfy. It offers promise in many AI-specific scenarios.
The blockchain technology pointing toward a distributed computing future where control is in the hands of crowds rather than a few ultra-powerful computing leaders. AI, on the other side, pursues to change outdated human involvement/awkward handwritten algorithms with smart coding that can absorb and adjust from the detail it gathers.
Major benefits
#1 Decentralized Intelligence
Because of its decentralized nature, the blockchain technology can possibly defuse the risk of one party’s control of AI and their capability to manage most powerful and risky technologies known to man.
#2 Data security
The process of AI is reliant on data input. AI obtains info about the things happening on it. Data feeds AI. The Blockchain enables an encrypted data storage on a distributed ledger. When joining both, it delivers a backup system for the sensitive information of individuals.
#3 Data monetization
Blockchain makes it conceivable to monetize the data generated through data marketplaces. By utilizing blockchain, it is possible to actually own the data and choose what to do with it. The similar work for AI programs that require the data. For AI algorithms to develop, it needs AI networks to buy data directly from its makers via data marketplaces. This will make the whole procedure a fair procedure than it currently is.
#4 Believing AI Decision making
As AI algorithms are being more and smarter via learning, it will be very tough to understand how these programs conclude with a decision. This is because AI algorithms can process very large amounts of data/variables. With the use of blockchain, there are unassailable records of data, variables, and procedures utilized by AIs for their decision-making procedures. This makes it extremely smooth to audit the whole procedure.
Combined features of AI and Decentralized system
#1 AI & Blockchain need Data Sharing
A decentralized database highlights the significance of data sharing among different customers on a specific network. Likewise, AI greatly depends on big data, so obviously, data sharing. As there is more open data to evaluate, the estimate & valuation of Machines will be measured as more accurate, and the created algorithms are more trustworthy.
#2 Security
It needs high security while dealing with high-value transactions on the blockchain network. This is imposed through the current protocols. For AI, the self-directed nature of the machines also needs a high-level of safety to decrease the possibility of a terrible incidence.
#3 Trust is a Necessity
It is very dangerous if there is a lack of reliability in the advancement of widely accepted technology. Neither Artificial Intelligence nor blockchain are absent from this. Trust is very necessary to perform certain transactions on the blockchain network as well.
Major challenges
As more people and devices are making, sharing and utilizing info in each corner of the world, there is a requirement for an improved way to leverage this info. It enhances the performance of smart contract decision-making.
When Bitcoin can utilize to purchase goods/services, it can’t be utilized to implement a smart contract. Ethereum can be utilized in smart contracts. But it can only execute quite small programs and a code that have a limited number of lines. It can’t allow for new and latest information to make intelligent, as well as precise decisions.
Traditional smart contracts face an issue of a lacking ability to get the useful info that can’t be utilized in the smart contract once it is written. Lacking efficiency because such contracts can be enhanced by using smarter decision-making algorithms.
Credit to add this level of computational power into a smart contract goes to blockchain and AI combination.
The Future
With the development of industry, everyone is engaging more with blockchain based products looking to get the best out of what A.I. deliver. The long-term possibilities for blockchain as well as AI is amazing. Blockchain + AI is a much robust combination than any of these technologies alone. The power of this combination will transform many fields for sure.
