The influence of blockchain and its technology means that it is now present in many different industries. Many investors and industry specialists believe that the cryptocurrency industry that is supported by blockchain is an offshoot of blockchain technology. Hence claiming the real value lies in blockchain technology itself.
Blockchain technology is a powerful standalone technology but it can only be taken to certain heights in the crypto industry due to the limitations of cryptocurrencies themselves. Some of the crypto limitations are technology-related, but others are a result of an antiquated way of working that has been present and prevalent for many years in the financial sector. However, interestingly, new technology such as AI can change this, catapulting it into a new direction.
Many industries claim that AI technology will be the next best thing to change and revolutionise it. Without a doubt, AI and blockchain have undeniably been two significant technologies to improve the pace of innovation, radically shifting industries into new ways of working and helping boost the economy overall.
New technologies, as we know, come with their fair share of technical complexities along with business implications. However, when used together, they can redesign the human and technological interaction paradigm. Let’s take a look at five ways conversational AI is currently transforming the cryptocurrency industry.
A large amount of unrealistic amount of time, money and energy goes into executing crypto mining to perfection as it is incredibly challenging. Thankfully, AI has proved its efficiency in being able to optimise energy consumption for a range of different industries and so there is a high chance that AI would be able to achieve very similar results when implemented into crypto mining.
Currently, crypto mining forces investors to splash out a significant sum of money for mining hardware. However, the introduction of AI will help lower investments in hardware, creating an advantage for investors as smart machine learning will be able to take over the mining process. To do so, some pieces of hardware will need to be converted to neural nets, increasing the functionality of the system.
Marrying AI with crypto will increase security, ensuring that ownership of personal data isn’t compromised for investors making the industry much more attractive. It will ensure no breaches in privacy will be discovered. At present, to concur privacy issues, encryption solutions have been put into place. However, AI promises a stronger and better way of working and can be used in the same ways banks use AI for credit card fraud.
Cryptocurrencies operate on blockchains. Blockchain technologies are continually growing at 1 MB every 10 minutes, having reached 100GB already. Bitcoin founder, Satoshi Nakamoto, has spoken about deleting unnecessary data on completed transactions on a chain, naming the process ‘blockchain pruning’.
(Graph showing the size of the blockchain market. Image Source: Statista)
AI technology can help form a new decentralised learning system. This will help increase the overall efficiency of the blockchain pruning system by providing it with new data-sharing techniques. AI can ensure that scalability goals for crypto are achieved to their full potential.
Faster transactions will be achieved through the adoption of AI and the use of enhanced machine learning. Doing so will improve and increase efficiency while simultaneously lowering energy consumption as mentioned above. This type of technology could also be used in blockchain supporting smartphones, becoming an increased feature.
Hacking into the blockchain network is thought to be impossible. However, there are some layers to the process that lack security. AI technology has helped machine learning progress to new heights over the past few years, making it a solid tool for blockchain to use to secure applications. Taking into consideration that the blockchain system is a fixed structure, enhanced security of the blockchain would also enable crypto coins to find their way into any crypto-list in the world, transforming the industry and its flexibility of use.
There is a range of different areas AI can help improve current systems and improve the industry overall. However, it’s important to understand that there are some limitations it simply can not overcome. At the same time, unlike AI technology, the human mind is capable of thinking outside of the box. Although AI is a great technology for the industry to use, it will not be the only technology to be implemented to help better it. The nature of AI technology and its vast ability to be able to facilitate everything faster makes it increasingly attractive with the hope that it can one day transform the crypto industry in a significant way.
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