In the modern tech world, there are few things that drudge up more hype than “blockchain technology” and “artificial intelligence.” These fields have experienced massive amounts of growth and interest, which means that they’re both the targets of lofty announcements and futuristic claims. Combining the two, it would seem, would be nothing more than a ploy to drive up clicks on a website, but in reality, there’s actually a variety of ways to mesh artificial intelligence with blockchain technology. In this article, we’ll explore both the technical and real world integrations that blockchain technology and artificial intelligence could be implemented together.
Mining on the blockchain exacts a heavy toll on network latency, but it doesn’t always have to be that way. With artificial intelligence, the calculations that act as the basis of mining can be optimized, improving network latency for quicker transactions, as well as reducing the carbon footprint associated with mining activities. On top of that, artificial intelligence can further the efficiency of the blockchain through the use of decentralized learning systems that, over time, implements tactics to streamline the system as a whole.
One of the major selling points of blockchain technology, apart from the anonymity that is offered, is that the records kept in the blockchain are iron-clad and trustworthy. This is especially useful in conjunction with artificial intelligence because it means that all steps in the software’s “thought process” are recordable and viewable by the average user. Artificial intelligence would also assist in building secure systems, as they can be fed massive amounts of data to help determine what kinds of activities are indicative of fraudulent behavior.
Decades ago, the New York Stock Exchange was full of traders yelling buys and sells in a frantic bid to get the best deal. With the rise of modern computing systems and algorithms, much of the activity at the stock exchange has been reduced to a mere tradition. Now, high frequency trading algorithms, run by artificial intelligence, make up the vast majority of trading volume. Like the stock market, cryptocurrency exchanges would benefit from a large scale implementation of artificial intelligence. Artificially intelligent trading bots would be able to assess current industry news, as well as take advantage of a variety of tools like technical and fundamental analysis, to make buys and sells. These trading bots help remove much of the panic and irrational behaviors that can appear in a market by remaining impartial.
These days, the monetization of information serves as the basis of many companies’ bottom line, such as Google, Facebook, and even Amazon. While helpful for receiving targeted advertisements, monetized data is often considered an invasion of privacy, especially for those who’d rather mega-corporations didn’t have access to their information. Oftentimes, datasets for artificial intelligence programs are derived from privately traded information, which can be disconcerting considering the ability of artificial intelligence systems to derive patterns and adapt to the data that is fed to it. Blockchain technology could help with keeping data private, and ensure that a company would have to purchase that data directly from the creator, instead of from private companies, as the current system stands. Furthermore, under this system, it would be cost prohibitive for large companies to buy enough information with which to feed artificial intelligence programs, helping to democratize private information.
Artificial intelligence and blockchain technology are two booming industries that are often connected to whimsical dreams and futuristic aspirations, but that doesn’t mean that all projects involving the two are unrealistic. The above implementations are just a few ways that blockchain technology and artificial intelligence can be combined to make for a better tomorrow.