Posted February 01, 2023

The AI and Crypto Connection – How Blockchain and Artificial Intelligence Can Create the Future

The AI and Crypto Connection – How Blockchain and Artificial Intelligence Can Create the Future

Since the beginning of this year you could hardly open a social network without reading something about the incredible progress of artificial intelligence.


In this, ChatGPT is leading the way – the platform behind the company OpenAi, which reached millions of users in record time and fascinates a wider audience day by day.


This is an exciting technology that is growing rapidly – just like crypto.

In short, it is a DeFi project built on the Ethereum network that allows people to borrow and lend, just like a large number of projects in the crypto space.

 

 

What Alchemix singles out is that loans are not necessarily dependent on the borrower repaying the loan.

 

 Instead, the borrower may decide to borrow on some time-frame. It’s like getting a salary in advance from the company you work for. Your loan repayments are deducted from your future salaries.

These two technologies in combination can create practically completely decentralized and autonomous systems that can independently complete a whole series of processes without the involvement of humans at any stage.

Such potential could bring great changes in numerous activities and industries.

Application of Blockchain and Ai – a new chapter Finances

“Traditional” finance could significantly benefit from the combination of these two innovations.

One of the biggest benefits is reflected in the removal of “friction” during transactions.

The two technologies together can provide additional security to users, speed up transactions and fully automate numerous processes such as various checks that often affect the efficiency of the system.

AI can provide an assessment of the information stored on the blockchain and compare it to past experiences before smart contracts are created.

In this way, additional trust is gained by preventing irregularities and raising the level of transparency both in relations between companies and individuals.

Healthcare and Pharmacy

Building on the efficient and secure management of patient data provided by blockchain,AI can be used to analyze available information and offer insights and provide personalized recommendations for next steps in the treatment.

It can also spot patterns in large databases that could facilitate patient monitoring.

The combination of advanced data analysis, automation and transparency also has the potential to significantly improve clinical trials. In addition to the observation of earlier cases, this integration could also facilitate the integrity of the obtained data.

The supply chain of medicines would be easier to monitor and analyze, and institutions and companies would have the possibility for complete automation.

Logistics

The combination of AI and blockchain brings similar benefits to logistics and transportation in practically all industries.

Blockchain is already advancing the digitization of processes by providing data integrity and availability, and artificial intelligence could help automate and create better procedures.

For example, manufacturers who want to reduce the emission of harmful gases can apply AI to optimize all steps from production to transportation, while the blockchain ensures their transparent execution and records everything for further analysis.

The advancement of blockchain and its impact on the crypto industry

In addition to joint action, AI can find application in improving existing networks and providing new opportunities for their development.

 

Fraud detection and prevention

 

The decentralized nature of crypto provides room for fraud and manipulation.

 

 Artificial intelligence algorithms trained to spot irregularities could identify different patterns and alert users to potential suspicious activity.

 

The use of AI could also make investing safer by checking the correctness of links, analyzing the legitimacy of projects and different requests that users receive.

Artificial intelligence is also used in compliance support and the fight against money laundering.

Transaction systems monitored in real time by AI could flag any suspicious activity, which would provide cryptocurrencies with an additional level of security for institutions, something that stands out as a lack of crypto transactions.

 

User experience and automation

 

One of the obstacles for many crypto users is a lack of understanding of technology and technical terms.

 

Artificial intelligence has the potential to make the journey easier from the start – according to your interests and habits, AI would create personalized lists of educational resources and deliver appropriate customized communications.

 

In addition, with such a “personal assistant” the use of various applications such as digital wallets would become much simpler.

 

And other activities that you have been doing so far could become more efficient.

 

Using different extensions based on artificial technology provides space to automate your regular activities like DCA (dollar cost averaging), but also spotting trends and providing suggestions based on your previous activities.

This could also include portfolio management – various tools for assessing market opportunities could become one of the main sources of advice for many users.

 

 

By analyzing various discussions on social networks and portals, opportunities in society and market movements, AI could develop the ability to assess price movements and give you suggestions according to your affinities.

 

 

Transactions would also become simpler and more efficient, eliminating room for errors such as using of inappropriate protocols.

 

Also, again in this case, security comes to the fore, as the possibility of your funds falling into the wrong hands is reduced.

Potential challenges

Of course, as with any new technology, there are some features that need attention in order to overcome potential obstacles and risks for users.

 

 

As the prevalence of artificial intelligence grows and its integration with blockchain becomes more common, it is very important to ensure that the technology is used responsibly and ethically.

 

 

As one of the most important issues for the future, the issue of trust emerges. To what extent do we trust artificial intelligence to which we entrust different (important) processes?

 

 

AI algorithms rely on large databases to learn, but if that data is biased, the system will automatically become biased as well.

 

Blockchain technology can help by providing transparency and security of data, but it cannot ensure its validity and objectivity.

In addition, the problem of privacy also arises.


More and more data is shared between different parties that use blockchain, and as AI systems rely on data to make recommendations and predictions, when integrating AI and blockchain, it is necessary to find a solution that will ensure the confidentiality of user information.


Also, the large amount of information being added to blockchain networks also leads to scalability challenges – as databases grow, AI could encounter the problem of timely processing and validating data according to the needs of the network.



Binance

It is a popular Cryptocurrency exchange because they list more than 100 different coins. It is one of the most trusted platforms as they support multiple fiat currencies like USD, EUR, RUB, TRY etc. It has become so popular that it has stopped creation of new accounts.

Kraken

From day one, they are designed and built for newcomers and experts alike. They become one of the largest bitcoin exchanges, serving clients in over 190 countries, and continue helping people discover the world of crypto. Learn How to buy Tron.

CEX

Established in 2013, London based CEX.io is a Bitcoin exchange as well as a cloud mining providing company. The company supplies both a trading platform and brokerage services for Bitcoin, Ethereum and a range of other cryptocurrencies.

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