Can Artificial Intelligence and Blockchain, yield High Benefits Together?
Living at ease with the help of technology is not a luxury, but a necessity. Simplification of lengthy processes through emerging technologies like Artificial Intelligence (AI) is turning to be new normal. Humans everyday life is filled with high-end technical gadgets like smartphones, speakers, etc. People are used to giving commands to Alexa and Siri every day. With the sudden upraise of Artificial intelligence, the 21st century has marked a rapid advancement of technology in every aspect of human life and interaction. Artificial intelligence has been in existence for decades now. But the use of artificial intelligence replicating human intelligence in machines is getting popularized at the current state.
According to a report published by Statista, with the companies rushing to adopt growing technology, the market size is expected to grow to $ 126 billion (US dollars) in 2025. As business giants switch to an all-powered technological strategy, distributed ledger technology and cryptocurrencies have exceeded everyone’s expectations. Blockchain Cryptocurrencies are now overtaking the traditional fiat currencies.
Artificial intelligence is most often used as a theory and practice of building machines capable of performing tasks that require intelligence. Meanwhile, Blockchain is a new filling system for digital information that stores data in an encrypted, distributed ledger format. With AI espousing cryptocurrency, it unleashes new possibilities to the world.
Some remarkable ways in which AI is helping the blockchain market
AI analyses cryptocurrency trading: Blockchain has existed for a decade now. But the usage of Blockchain spiked the post-crisis era when people faced huge losses due to their investment in money moving sectors. People learned a lesson as money value plummeted, causing economic turmoil. Later, the blockchain industry has started attracting investors and cleared the chaos of doubters. In December 2017, Bitcoin (BTC) value rose to an all-time high of $20,000 (US dollar). After that, the cryptocurrency market gained recognition from various sectors, and people started infusing more money. The current market capital of cryptocurrency is over $ 339 billion (US dollar).
With the significant growth in the cryptocurrency market, usage of AI technology in the sector aids bring in more revenues. Cryptocurrency traders were able to avoid loss by making bad investments with the help of fast, effective, and impartial AI trading bots. The AI technology helps analyze the investments and predicts accurate solutions with the data input on the cryptocurrency market. The pervaded AI has made traders increase their profit while seeing considerably low losses.
AI detects and protects from malware: Like any other industry, Blockchain is also a victim of security breach and theft at some stages. Every day, an estimated amount of $ 9 million (US dollar) is lost in crypto scams. The blockchain industry has suffered 51% malware attacks, among other corrupt endeavors.
Many crypto exchanges haven’t been very lucky in dealing with hacks and attacks. Blockchain hacks are time-sensitive, with the first response of the hack being critical. To relieve the crypto market grom attacks, AI-based cybersecurity systems are designed. The cybersecurity system can identify threats in no time, understand the nature of the thread, and prevent future attacks by blacklisting its source.
AI cybersecurity is a gift to the crypto market as it detects patterns, study the malware that attacked and improve the security system on its own to deal with the attacks.
AI aids in fast payment to Bitcoin miners: Bitcoin miners who maintain the Blockchain’s integrity and transaction, by the process of verification are rewarded through cryptocurrency. The transaction process is painstaking, sensitive, and energy-consuming, and ultimately requires many graphic processing units (GPU).
Many mining companies are adapting to the AI-based GPU to conserve energy and maximize computing power. Some mining companies have provided facilities of AI-based ecosystems where miners can share and economize computing power while making considerable profits. The AI algorithms have made Bitcoin mining more profitable and efficient. Bitmain, a major Blockchain manufacturing company, has increased its operations to include AI in the chips of its application-specific integrated circuits in 2017 to progress with the development.
With the increase of technology, Blockchain and cryptocurrencies are highly benefitting from the infusion of Artificial Intelligence (AI) in the sector by blocking hacks, predicting trades, and providing fast transactions.