Blockchain and AI: Advanced Technologies and Prospects for Their Integration

WhiteBIT
Published 20 July 2022
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Blockchain and AI: Advanced Technologies and Prospects for Their Integration

Content

Blockchain and artificial intelligence are two cutting-edge technologies that are gaining more and more attention, adoption, and investments. What happens if they are combined? We will tell you about it in this article.

What is AI?

Artificial intelligence is the ability of systems and machines to analyze data, learn, and perform tasks that previously required human intelligence. AI learns thanks to a neural network that mimics the human brain and machine learning by recognizing patterns in the collected data.

Artificial intelligence is already being used in many areas of human life, personalizing content, acting as a personal assistant, or optimizing work with clients. However, it often has a very narrow focus.

Scopes of AI technology

Now, let’s talk in more detail about the areas that were already significantly changed by AI and will probably change even more.

Navigation. After analyzing the data, AI plans the best route, calculates the approximate time that will be spent on it, and gives guidance depending on the user’s movement. Also, the existence of autopilots, which can independently make decisions in various scenarios, reduces the likelihood of human error and makes traveling safer.

Medicine. AI can examine medical images and test results to make a diagnosis.

Voice assistants. Perhaps almost everyone is familiar with Siri, Google Assistant, or Alexa. These manifestations of AI can recognize speech, analyze what was said, and execute instructions or conduct a dialogue with users.

Video games. If you have not found a co-player or team to play, then AI may well keep you company. Moreover, artificial intelligence often copes with this task no worse than real people. In the latest news in this area, OpenAI engineers trained the AI to play Minecraft by showing it 2000 hours of gameplay in combination with keystrokes.

Advertising. By studying user requests, interests, previous purchases, and lifestyles, AI offers ads that match their potential desires as much as possible.

In addition, there are many more specific cases of AI application and areas where AI has only recently been applied. For example, the recently introduced Amazon’s CodeWhisperer neural network can provide guidance on coding.

Blockchain evolution

Blockchain technology also does not stand still. Firstly, there are more eco-friendly blockchains that work on the Proof-of-Stake algorithm or alternative ones that do not require a lot of energy. Even a crypto giant like Ethereum plans to abandon Proof-of-Work and switch to a more sustainable and “green” way to mine new coins.

The Ethereum network also continues to scale with Layer 2 solutions. DeFi projects are increasingly oriented towards a multichain approach, not wanting to be limited by the potential of just one blockchain. For example, the Aave protocol, a DeFi giant, has already moved to multichain.

AI blockchain projects

Blockchain and AI have many common grounds for joint application in various areas, and some projects have already taken this idea seriously. Here is a short list of AI & blockchain platforms:

Bext360. The project introduced artificial intelligence and blockchain technologies into coffee supply chains. AI adapts the process of growing coffee beans to weather conditions and determines their quality. The data obtained at each stage of the supply chain is entered into the blockchain, where it can no longer be changed or hacked. In this way, the entire coffee path is tracked and properly controlled.

BurstIQ. The company has released the HealthWallet service focused on the healthcare sector. It is a network for exchanging data on users’ health and treatment. Patients can share this data with medical professionals for research on specific diseases and treatments.

Blackbird AI. This artificial intelligence blockchain project uses a combination of two technologies to combat fake news and hate speech. AI checks the accuracy of the information and sorts it into categories. The already verified content is stored on the blockchain.

What is AI crypto trading software?

Let’s talk about the connection between AI and cryptocurrency. Many of you have heard about trading bots that can make deals on behalf of users according to the given settings. This technology significantly saves the trader’s time and allows you to trade on several exchanges simultaneously.

However, bots limited by settings cannot compete with artificial intelligence, which can learn and improve. After collecting data about the market, the behavior of traders, and news, artificial intelligence for crypto trading develops a trading strategy. After its application, AI analyzes the result and improves the strategy. So, AI trading cryptocurrency can make traders’ life much easier.

Prospects for combining blockchain and artificial intelligence

What are the advantages and potential opportunities of the tandem of artificial intelligence and blockchain?

  • Blockchain for AI. If artificial intelligence components like data and algorithms are publicly available on the blockchain, it will indicate the transparency and honesty of AI, thereby increasing its credibility. In addition, if all the “thinking processes” of artificial intelligence are registered in data chains, it will be easier to track them and understand the logic.
  • Data protection. There are still questions about the security and privacy of information collected by AI, because we have heard more than once about leaks of Facebook user data. The introduction of blockchain technology can eliminate this problem and allow you to track who and when accessed any data. Users will be more willing to share data when confident in its security, which, in turn, will help AI to develop more actively.
  • Data trading. The introduction of the blockchain will allow you to exchange information while maintaining your privacy and trade it. For example, research projects can buy specific data for AI improvement.
  • Computing power selling. There are enough GPUs in the world that aren’t running 24/7. Their owners could provide computing power for AI in their spare time using smart contracts. For this, users, of course, will receive a reward in coins.
  • Blockchain optimization. AI on the blockchain can find solutions to the technology’s problems. For example, to prevent attacks by looking for weaknesses in the network and taking measures to eliminate them or detecting attack attempts and activating defense mechanisms in time. Also, placing AI in blockchain could improve the scalability and reliability of the distributed ledger.
  • The combination of privacy and personalization. Users who do not want their personal data to be sent to a central server for further analysis and personalization of content would benefit from decentralized AI. Blockchain artificial intelligence could do all the calculations and personalization right on the user’s device, without transferring their data anywhere.

As you can see, blockchain and AI combinations, often called blockchain intelligence, have many directions and specific application cases, limited only by human imagination.

Artificial intelligence crypto projects on WhiteBIT

Several crypto projects featured on our exchange have already chosen the path of combining blockchain and AI.

Edain. The project’s ecosystem provides a functional system for analyzing big data based on artificial intelligence. AI analyzes information, categorizes, and determines relationships to give the users the data they need and help them make decisions. Users interact with the platform services using the EAI token.

Nooft. It is an NFT search platform powered by artificial intelligence. AI will help find NFT collections and centralize information about them from different resources much faster. The NOOFT token will help to promote your NFTs on the platform.

Conclusion

Summing up, blockchain and artificial intelligence are a top combination of complementary technologies with a vast range of applications. Successful projects using this combination already exist, and there will probably be even more soon.

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FAQ

Is there a relationship between blockchain and AI?
Whether AI or blockchain, the technology is very promising and rapidly developing. They are already being used in combination in some projects. Blockchain is a reliable and transparent data storage, and artificial intelligence can use this data for analysis and learning. In addition, there are many more options for combining these technologies.
How to use AI for crypto trading?
Artificial intelligence in cryptocurrency trading can analyze the market, news, and traders' behavior to develop and apply trading strategies. Moreover, it improves over time to achieve the best results. So, artificial intelligence crypto automation makes traders’ work much easier and more profitable.
In what areas can a combination of artificial intelligence and blockchain be used?
Blockchain and AI can be used in various areas: logistics, medicine, the information sector, etc. The applications are limited only by human imagination.