How AI can change the decentralized general ledger

One reason is that blockchain’s use of a decentralized ledger provides insight into how AI systems work and the origins of the data these platforms can use. As a result, transactions can be simplified with a high level of trust while maintaining solid data integrity. Not only that, but the use of blockchain systems to store and distribute AI-centric operating models can help create an audit trail, which in turn provides increased data security.

Furthermore, the combination of AI and blockchain appears, at least on paper, to be extremely potent, one that is capable of improving virtually any industry in which it is implemented. For example, the combination has the potential to improve current existing food supply chain logistics, healthcare sharing ecosystems, media royalty distribution platforms and financial security systems.

That said, although there are many projects out there that address the use of these technologies, what benefits do they provide realistically, especially since many AI experts believe the technology is still in its relatively infancy? There are many companies that market the use of artificial intelligence as part of their current offering, which gives rise to the obvious question: What’s really going on here?

With the cryptocurrency market continuing to grow from strength to strength over the past few years, the idea of ​​artificial intelligence (AI) entering the realm of crypto / blockchain technology has continued to garner a growing amount of mainstream interest worldwide.

Is AI and blockchain a good match?

To gain a broader and deeper understanding of the subject, Cointelegraph spoke with Arunkumar Krishnakumar, growth manager at 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 a dataset’s total life cycle.

While blockchain primarily deals with things like data integrity and immutability – making sure the information data on a blockchain is of high quality – AI uses data stored efficiently to provide meaningful and timely insights that researchers, analysts and developers can act on. Krishnakumar added:

“AI can help us not only make the right decisions through a specific situation, but it can also provide predictive heads-up as it becomes more trained and intelligent. However, blockchain as a framework is quite capable of being an information highway. “provided that scalability and throughput aspects are addressed as this technology matures.”

Asked if AI is too new a technology to have any impact on the real world, he said 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 boom of the 90’s, where people are only now beginning to realize the need for high quality data to train an engine.

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Furthermore, he emphasized that there are already several everyday use cases for AI that most people take for granted in everyday life. “We have AI algorithms that talk to us on our phones and home automation systems that track social emotions, predict cyberattacks, etc.,” Krishnakumar said.

Ahmed Ismail, CEO and president of Fluid – an AI quantum-based financial platform – pointed out that there are many cases of AI that benefit the blockchain. A perfect example of this combination, according to Ismail, is cryptocurrency 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 take advantage of the best opportunities. What this really translates into is an ultra-low latency and ultra-low-cost solution to fragmented liquidity – a multi-billion dollar problem plaguing the virtual asset market today.”

On a more comprehensive note, Ismail pointed out that every technology must go through a cycle of evolution and maturity. At this point, he emphasized that even when the banking and finance sector began to use digital assets, there were major concerns across the board as to whether these assets had been sufficiently implemented. “AI and its subgroups offer enormous benefits to the crypto industry, but should be promoted ethically with a long-term vision at the core,” he concluded.

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 Web3 and blockchain technologies move forward, AI will be a crucial element required to bring new value to companies, and adds:

«Decentralized AI can remove intermediaries in today’s digital economy and connect businesses directly to consumers. It can also provide access to large amounts of data from within and outside the organization, which when analyzed on an AI scale can provide more effective insight, manage data usage and model sharing, and create a reliable and transparent data economy. “

As for the gap that exists between AI and its apparent lack of use cases, Sheikh believes that the dichotomy is not correct since there are already many use cases for everyone to see. Fetch.ai, for example, has built systems to deploy AI and blockchain within supply chain ecosystems, parking automation frameworks, decentralized finance (DeFi) and more. Fetch also plans to release consumer-friendly AI applications starting in the US in the short term.

However, Krishnakumar believes that more needs to be done to make AI more data-efficient in order to truly serve the world on a large scale. To this point, he noted that with the advent of quantum computing, AI could scale heights like never before, adding:

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“This can, for example, reduce the time it takes for the discovery of medicines from 12 years to a couple of years can be on the cards. Modeling nitrogen fixation and industrialization to reduce carbon emissions in fertilizer factories is another example. Modeling protein folding and offering customized cancer medications is another use situation that can be achieved. “

Need blockchain 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 think it is, which is a closed world of financial transactions with no connection to real world assets and events. He told the Cointelegraph:

“AI must come to help the blockchain recognize real-world utility, expand 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 undoubtedly many benefits to automation in a wide range of businesses. ”

Dao noted that there is already a robust artificial intelligence infrastructure ready to be deployed on top of existing blockchain technologies, one that can enhance “trust, identification and decentralization” across space. In this regard, Oraichain has an entire ecosystem dedicated to this: The project uses an oracle mechanism that integrates AI into smart contracts, in addition to harnessing the power of an AI-centric data management system and marketplace.

Therefore, as we move into a future driven by the principles of decentralization, it is natural that futuristic technologies such as artificial intelligence will continue to gain more ground in the global crypto landscape over the coming months and years.