How Can AI Improve Blockchain?

MARKET_WATCH Blockchain

Crypto and AI have been fighting a battle for relevance. In recent months, AI has come out as the clear winner. What if we could merge the two? AI is currently the most popular kid in the playground. A recent JP Morgan survey reached out to 835 institutional traders in 60 markets. In 2022, blockchain and distributed ledger technology were deemed second to mobile apps in key technologies expected to shape the future, alongside machine learning and AI.  

 

However, this year, 53% of respondents identified AI as the most exciting technology for the future. Only 12% believed blockchain would have the most impact. To top it off, a huge 72% had no plans to trade crypto. The AI hype is obvious in the crypto markets too. In the first few weeks of the year, the crypto markets went AI-crazy. Since then, the market has started to cool. Most of the most popular AI tokens by 24-hour market volume are down from the year’s ATH. SingularityNET (AGIX) is down approximately 23% since its peak on Feb 7. Fetch (FET) also peaked on Feb 7 and is down approximately 16% since then. Most are still trading with momentum, and investors still look bullish that prices will increase again. But how much of this market pump is based on real technology? Or is this a classic case of herding? (Herding is when investors imitate other investors instead of making independent decisions, which can create a feedback loop where one investor’s actions influence others and create a self-reinforcing trend.) How Can We Augment Blockchains With AI? There have been disagreements about how much you can integrate blockchain and AI. Fantom founder Andre Cronje recently said it was like trying to “mix oil and water.” There is also a significant risk that investors do not fully understand the technology. First of all, you cannot put AI into a blockchain. 

 

However, it can significantly enhance blockchain’s utility and capabilities. “Most AI tokens today are using decentralized platforms to leverage AI features, including models, data, and other features focused on things such as data analytics, bots, and decision execution,” says Tim Tully, co-founder and CEO at Zelcore. However, most AI is based on machine learning and needs a large dataset to effectively learn and make accurate predictions or decisions. The more complex the task, the larger the dataset needs to be. “Blockchain will never contain all the necessary data to present the complete picture (think NFT serial number on blockchain, image on a website with data backend). It is very likely that AI will be used for indexing that supplemental data to the blockchain record.” From Smart Contracts To “Intelligent Contracts” AI can also improve the accuracy and reliability of smart contracts on the blockchain. Machine learning algorithms can analyze detail, identify patterns, learn from previous transactions, and analyze the performance of smart contracts in real time.  These developments may usher in a new era of “intelligent contracts” (IC), says Bill Xing, head of financial products at Bybit. But there are drawbacks. “The main appeal of smart contracts is their “trustless” nature, so proponents of the IC model will need to answer why a user would prefer to trust an AI over a trustless, verifiable smart contract.” Anyone who has interacted with AI-based tools knows that they can be wrong. In the case of self-driving cars, they can be catastrophically so. Whether it’s strange-looking hands from AI image generators or factually incorrect outputs from ChatGPT, we still have a long way to go. “In terms of integration, an AI could interact with blockchain-based systems, including smart contracts and data storage, to create efficiencies across the modular components of the system — for example, interpreting vast amounts of decentralized data and coming up with solutions at speed.” For The Moment, It’s More Hype Than Substance Most of the people BeInCrypto spoke to agreed that the current market pump was more hype than substance. Traders were mostly excited by the potential for easy or big returns. 

 

Most people don’t appear to be reading the project’s whitepapers. “The recent spike in prices of AI-related digital assets has been largely driven by speculation rather than real technological breakthroughs, though those will come,” continues Xing.  “This has caused prices to skyrocket quickly, leading to a hive of trading activity where traders (and copy traders!) continue to find rich pickings as hype cycles come and go. However, long-term investors should be cautious and always look into each token project carefully before making any decisions about how heavily they should invest their funds into them.”  ChatGPT is only a glimpse of the future, says Aaron Rafferty, CEO at StandardDAO and Co-Founder of BattlePACs. But we shouldn’t become delirious or complacent.  “The hype has also led to many tokens without solid use cases or teams behind them. Some AI crypto projects have been around for 5+ years. However, they are not the same teams launching the most innovative AI tech today. We will see a real use-case for this merge, but expect it to come from a number of new players, not old. Invest wisely and remember, the crypto market is inherently speculative.” Disclaimer All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk. 

 

Source : [How Can AI Improve Blockchain?](news.google.com/rss/articles/CBMiRWh0dHBzOi8vYmVpbmNyeXB0by5jb20vYWktY291bGQtcmV2b2x1dGlvbml6ZS1ibG9ja2NoYWluLWJ1dC1ub3QteWV0L9IBAA?oc=5) undefined - BeInCrypto / February 16, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.