This article explains how AI will likely be used in conjunction with blockchain technology in the future – this article also discusses the issue of trust when it comes to robots (what if they become too smart?) as well as some other issues that need to be addressed before AI can truly be viable on decentralized networks.
Blockchain and Artificial intelligence working together will likely make the future a much better place. However, a recent report in June 2022 produced by the European Investment Bank and the European Commission, raised concern over the lack of investment of both technologies. It stated that Europe needs to address an investment gap of up to €10 billion that is holding back the development and deployment of artificial intelligence and blockchain technologies in the EU.
The report claims that a lack of investment in the two technologies is restricting economic growth and further innovation. The study found that Europe was trailing behind the US and Asia in these two sectors, with AI software investment far lower than in North America at only €70 million compared to €6 billion.”
This article attempts to address this issue by highlighting some potential benefits of the synergy between blockchain technology and artificial intelligence. Blockchain technology has had many success stories, but it is still relatively new, while artificial intelligence has been around for decades but never really took off due to lack of widespread adoption. Nowadays, there are converging opinions on the fact that combining both technologies will lead to significant product development opportunities as well as economies-of-scale for businesses looking into these fields.
Some recent advances in blockchain and artificial intelligence have been made:
1. Storiqa
A blockchain-based marketplace for peer-to-peer trading of goods and services with an integrated platform that uses artificial intelligence to tailor business processes. The platform employs smart contracts in the following way: product characteristics, terms and conditions, delivery timescale, after-sales service, etc. are encoded into predefined contracts which can be verified by any third party at any moment during the order fulfilment process; there is no risk for a customer because all agreements are encoded in smart contracts on blockchain so they cannot be modified or tampered with; payment transactions will only be executed upon confirmation from both sides – buyer and seller – once all agreed objectives have been achieved (e.g., once the goods are delivered).
2. Algory Project
An advanced cryptocurrency trading terminal which uses artificial intelligence to increase the efficiency of crypto traders on a variety of exchanges; it helps with automatic market analysis, price projections as well as asset recommendations based on technical and fundamental indicators. More broadly, the Algory Project aims to change how people look at crypto markets by improving their understanding of these markets; more specifically, it provides detailed information about nearly every altcoin available in circulation, while addressing problems like: high amount of false or misleading information about cryptocurrencies in circulation (i.e., misinformation), lack of transparency during ICOs which leads to loss of investor trust over time – for example, only 10% of all funds raised from ICOs are actually invested in the development of the companies – and lastly, a lack of efficient solutions forcing people to use one exchange for trading while using another for storing coins (i.e., just holding your coins on exchanges leaves you exposed to hacking risks). Such problems can lead to numerous benefits of AI implementation, which will be elaborated upon further on:
- Automatic market analysis – this means that AI can identify new opportunities or trends in real time based on financial instruments; factors like analyzing historical data (e.g., database with many years worth of information available) as well as current live market events (e.g., transactions happening every second, volumes on different exchanges, possible manipulated market activity etc.) can all be considered in order to find new trends which can then be used by traders who want to try their hand at the crypto markets; AI enabled software is capable of doing all this work on its own, round the clock with virtually no errors, so human traders will not have a chance without using similar bots for themselves.
- Price projections – very useful feature which allows traders (and other stakeholders interested in the outcome of events such as electronic wallet holders) to see what the future prices are going to look like depending on different factors; AI can analyze historical data and use machine learning algorithms based on it in order to make predictions about cryptocurrency behavior in future situations – e.g., if you hold certain coins then your would like to know if it is better to hold them or sell them to maximize possible profits; if you are considering investing in a new ICO then having an AI tell you what its chances of success look like depending on the amount invested, stage of development etc. would help investors make more informed decisions based on certain criteria which normally they wouldn’t have time for – e.g., they can be too busy with work/school and simply don’t have enough time to do basic market analysis by themselves…
- Asset recommendations – very valuable feature as mentioned above because when we speak about trading and investment opportunities, not everyone has the same opportunity costs or restrictions – some people may not want to invest large sums while others may still prefer larger investments in the hopes of generating a higher return; for these people, it is important to find out whether they should invest their existing capital (e.g., hard earned money) into cryptocurrencies or if they should wait until further markets develop so that they can put larger amounts at work; AI implementation would mean that each trader would have access to such kind of data (and possibly more) from a variety of exchanges while taking into account certain criteria which are most relevant in his/her case – i.e., not all people will want to know how price is going to move over the next 2 days because some may be happy with 1 day and others may prefer 90 days.
3. Pecunio
An ICO platform with a direct focus on the gold standard (i.e., investment in real assets); Pecunio will create a crypto/gold investment platform where people can buy shares of companies which are currently mining physical gold; by doing so, investors will receive dividends from their holdings within 1 month of acquiring them (as opposed to traditional offerings where you need to wait 1-3 years for dividends to kick in) and also benefit from the fact that gold is an inflation hedge (i.e., when your fiat currency loses its purchasing power then all you have done is exchange it for something which has not lost its value – i.e., gold).
4. Investoland
A decentralized peer-to-peer knowledge sharing platform; Investoland will have tutorials, video and text based content for trading on the crypto markets; this means that you can choose to pay particular people for their content or not (i.e., it is free so you are only paying if you really find value in what they are offering); although there are a lot of sites out there which offer such information, many of them do not work as advertised because when money is involved then scammers come out of the woodwork…
5. Hive
An AI/robotics powered one stop shop to offer a wide range of services (e.g., investment advice, legal counseling, technological support) via user’s personal digital assistant; imagine being able to speak directly with your advisor about your investment portfolio, being able to ask him/her questions and have your specific answers sent directly to your email address or even better – having it done automatically by robots. This is the future of AI in financial services…it will disrupt the way people interact with financial institutions (i.e., via machines because they are less costly and more efficient).
6. Acorn
An asset management platform with a focus on creating funds where you can invest crypto into real world assets; if you own certain coins then why not use them to purchase real estate, company shares etc.; practical example: you own NEO and believe that its price will go up in value over time – so instead of leaving it on exchanges as fiat which may eventually lose its value, you can exchange it for some of the best performing assets in the world (e.g., real estate) to store your wealth and have a pleasant early retirement at some point in time; at Acorn, they will help you with this process – from putting your money into an escrow account until it arrives safely at its destination after paying all relevant transaction costs so that all you need to do is sit back and wait…
7. Zeus Exchange
A decentralized peer-to-peer derivatives trading platform; how many times in life did you hear about people complaining about not being able to get rich without taking substantial risks? The truth is that there are more options on the table than just risking everything by investing into a hot IPO on the stock market or buying a lottery ticket with hopes of winning huge amounts (which rarely ever happens); Zeus Exchange is an example of decentralized future where you can benefit from price volatility by entering into smart contracts which will pay out according to certain predefined criteria…
8. EYCHAIN
A payment processing platform for freelancing services; here is how it works – if you are a programmer who writes code and signs it electronically with your personal key in order to release it publicly, after you have done so then all you need to do is make sure that this transaction gets confirmed asap; however, why should Bitcoin miners get paid just because they included your transaction into one block and not another? Therefore, EYCHAIN allows you to pay a small fee in order to guarantee timely confirmation; this means that if you are hired by someone then they can pay their workers automatically via EYCHAIN because it will ensure that your transaction gets confirmed almost instantly…
9. Crypto Currencies Market Data
An open source platform which provides users with real time data about crypto related products; this is the sort of information which people need in order to make better informed decisions (i.e., the Coinranking website, for example, only supplies price and volume stats) whereas for many other things such as – trade history, volume distribution across exchanges, open/close prices etc., one needs to use a tool like TradingView on its own or on top of another website which provides real-time price updates; we are slowly moving toward a world where all this information will be provided directly from the source (i.e., exchanges themselves) and not via external websites;
10. CryptoCompare
An award winning platform which supplies clients with lots of valuable data – indicators, live charts etc.; in time it could transform into a comprehensive tool for cryptocurrency investors which would provide them with direct access to all of their trading activity by using the API or simply by integrating at least some components directly onto their own website.
AI On Blockchain: the next big thing?
Blockchain technology has already found widespread adoption in several industries such as finance and supply chain management but was mostly known for providing the infrastructure behind Bitcoin, the first decentralized cryptocurrency which came to life around 2009/2010; however, it has been very successful at that task so far. In recent years, there have been rumors that Apple would be incorporating a sort of blockchain technology into their iOS devices – although they denied it – many people believe this will eventually happen given Apple’s history with innovation and their position on AI (i.e. Siri).
