According to experts, the disruptive capacity of artificial intelligence in connection to blockchain’s potential being greatly underestimated.
One argument is that blockchain’s usage of a decentralized ledger provides transparency into the workings of AI systems as well as the provenance of data used by these platforms. As a consequence, transactions may be completed with confidence while retaining data integrity. Furthermore, using blockchain technologies to store and disseminate AI-centric operational models may aid in the construction of an audit trail, allowing for improved data security.
Furthermore, at least on paper, the combination of AI with blockchain seems to be highly powerful, capable of enhancing practically any business in which it is used. The combination, for example, has the ability to improve current food supply chain logistics, healthcare record-sharing ecosystems, media royalty distribution platforms, and financial security systems.
However, although there are numerous initiatives advocating the use of these technologies, what advantages can they truly bring, particularly given that many AI specialists feel the technology is still in its infancy? Many companies are pushing the usage of AI as part of their present products, raising the obvious question: What precisely is going on here?
The concept of artificial intelligence (AI) finding its way into the arena of crypto/blockchain technology has continued to draw an increasing amount of public attention throughout the globe as the cryptocurrency industry has grown from strength to strength over the past couple of years.
Are AI and blockchain’s potential compatible?
Coinkurry talked with Arunkumar Krishnakumar, chief growth officer of Believers, an open-world 3D metaverse gaming platform that employs features of AI technology, to acquire a wider and deeper knowledge of the issue. Both blockchain and AI, in his perspective, target various portions of a dataset’s whole lifetime.
While blockchain is mainly concerned with data integrity and immutability — ensuring that the data stored on a blockchain is of high quality – AI leverages efficiently stored data to give valuable and timely insights that researchers, analysts, and developers can act on. Krishnakumar continued:
“AI can assist us not only make the proper judgments in a given scenario, but it can also offer predictive forewarning as it becomes more trained and clever.” However, blockchain as a framework is perfectly capable of serving as an information highway, as long as scalability and throughput issues are solved as this technology grows.”
When questioned whether AI is too new to have an influence in the real world, he responded that, like other tech paradigms, such as AI, quantum computing, and even blockchain, these concepts are still in their early phases of acceptance. He compared the scenario to the Web2 explosion of the 1990s, when people are just now realizing the need of high-quality data for engine training.
Furthermore, he emphasized that there are already a number of ordinary AI use cases that most people take for granted in their daily lives. “We have AI algorithms on our phones that chat to us, and home automation systems that detect social sentiment, forecast cyberattacks, and so on,” Krishnakumar said.
According to Ahmed Ismail, CEO and president of Fluid, an AI quant-based financial platform, there are several examples of AI benefiting blockchain. Crypto liquidity aggregators, according to Ismail, are a great illustration of this combination since they employ a subset of AI and machine learning to undertake deep data analysis, make price forecasts, and provide optimal trading methods to spot current/future market occurrences, adding:
“The combination may assist users in taking advantage of the greatest chances.” This translates into an ultra-low latency and ultra-low-cost solution to fragmented liquidity – a multitrillion-dollar issue that now plagues the virtual assets market.”
On a broader level, Ismail said that any technology must go through a cycle of development and maturity. To this point, he emphasized that even as the banking and financial industries started to integrate digital assets, there were widespread worries about whether these assets had advanced enough to be properly deployed. “AI and its subsets provide significant benefits to the crypto business, but should be developed ethically with a long-term vision at its heart,” he said.
More work may be required.
According to Humayun Sheikh, CEO of Fetch.ai, a blockchain startup focused at integrating AI to the cryptocurrency market, as Web3 and blockchain technologies advance, AI will be a critical component necessary to deliver new value to enterprises.
“In today’s digital economy, decentralized AI can eliminate middlemen and link firms directly to customers.” It may also enable access to enormous amounts of data from inside and outside the enterprise, which, when processed on an AI scale, can deliver more actionable insights, control data use and model sharing, and establish a trustworthy and transparent data economy.”
Sheikh argues that the perceived gap between AI and its seeming lack of use cases does not hold true since there are currently numerous use cases for everyone to observe. For example, Fetch.ai has been developing solutions for implementing AI and blockchain inside supply chain ecosystems, parking automation frameworks, decentralized finance (DeFi), and other applications. Fetch also intends to launch consumer-friendly AI apps in the United States in the near future.
However, Krishnakumar feels that more has to be done to make AI more data efficient in order for it to really serve the world at scale. To that end, he said that with the arrival of quantum computing, AI might reach unprecedented heights, adding:
“This may, for example, reduce the time required for drug discovery from 12 years to a couple of years.” Another example is modelling nitrogen fixation and industrializing it to minimize carbon emissions in fertilizer companies. Another use case that might be realized is modelling protein folding and giving personalized cancer therapy.”
Is AI required for blockchain to succeed?
Chung Dao, CEO and co-founder of Oraichain, a smart contract and decentralized app platform, thinks that blockchain technology is more than just a closed world of financial transactions disconnected from real-world assets and events. He said to Coinkurry:
“AI must arrive to assist blockchain in recognizing real-world usefulness, broadening its application, and enabling intelligent decision-making.” Both technologies are in their infancy, but not’very infancy.’ There are several effective AI systems that spot patterns better than humans, and there are undeniably many benefits to automation in a variety of enterprises.”
Dao said that there is already a strong AI infrastructure ready to be built on top of current blockchain technology, which can improve “trust, identity, and decentralization” throughout the market. In this sense, Oraichain has built a whole ecosystem around it: The project makes use of an Oracle method for incorporating AI into smart contracts, as well as the capabilities of an AI-centric data management system and marketplace.
As we progress towards a future guided by decentralization principles, it stands to reason that futuristic technology like artificial intelligence will gain traction in the global crypto environment in the following months and years.