AI and blockchain: an interplay of promises and challenges

According to Ted Maas, Digital Marketing Specialist at Anycoin Direct, blockchain technology and cryptocurrency are the future. Just like AI. These two have been working together for some time, but will increasingly integrate: 'The question is not whether it will happen, but to what extent.'
Anycoin Direct

Before we can talk about the applications of AI on the blockchain, Ted Maas from Anycoin Direct first takes us back to basics. In their research, researchers Kaplan and Haenlein provide a crystal-clear description of the phenomenon: 'AI is the ability of a system to correctly interpret external data, learn from it and use what has been learned to achieve specific tasks and goals through flexible adaptation. There are different forms of AI, including analytical AI, human-like AI and humanized AI.” The Digital Marketing Specialist explains: 'Analytical AI is based on cognition: knowledge interwoven by using senses. Such as a traffic sign that indicates the maximum speed based on how much traffic is detected, for example. Human-like AI has elements of cognitive and emotional intelligence. Understanding and human emotions therefore play a role in the decision-making process. Humanized AI is actually a combination of the first two, but is also self-aware.'

Boundless character

According to Ted, the merger of AI and blockchain promises many benefits, but also faces some complex issues that could affect its success. 'Blockchain has a number of important properties that are useful for the distribution of AI. For example, blockchain is decentralized, so there is no centralization of power, the middleman is, as it were, eliminated. In this way, AI can become more available to the general public, without a small number of mega companies taking all the power.' In addition, there is another important characteristic: 'Another crucial characteristic is the trustless and limitless character. These features make it possible for any AI solution to participate in various blockchains, without being hindered by, for example, nationality boundaries. In addition, blockchains are always online thanks to distributed validators around the world. This gives AI the ability to operate continuously, without interruptions.' Ted also emphasizes the security aspect: 'The security inherent in blockchains – designed without single points of failure – provides a solid foundation for AI work. AI can not only operate securely, but also detect irregularities on the blockchain, increasing overall security.” As a final benefit, Ted mentions the immutability of a blockchain: “Once captured by validators, it can serve as valuable protection against censorship, an aspect that is essential for the integrity of AI-based applications.”

“AI can become more available to the general public in this way, without a small number of companies taking all the power”

Not all roses and moonshine

However, it is not all roses and moonshine, for example, Ted mentions the scalability issue as the most important point: 'Blockchains often struggle to meet the fast processing needs of AI applications, especially when there is a lot of interaction with validators. The limited scalability of some blockchains can pose an obstacle to the efficient execution of AI tasks, which often rely on fast processing speeds.”

AI is already used in various crypto-related applications, including image processing, statistics, linguistics, logic, pattern recognition and, for example, fraud detection. According to Ted, there are also some important coins that integrate AI into crypto, such as Render, Akash Network, Fetch.AI, Singularity.net, and metaverse networks such as TheSandbox and Decentraland.

trading bots

But nowadays you can even go a step further and get started with so-called trading bots: 'Through AI crypto trading bots you can make a complete analysis of things such as market sentiment, price movements, volumes and other technical matters. Based on this you can give bots instructions to make decisions for the purchase and sale of coins.'

This article was created in collaboration with Anycoin Direct. The company has been active since 2013, making it one of the oldest crypto brokers in the Netherlands. Anycoin has an official registration with the DNB. Buying, selling, sending, receiving and storing crypto is all possible with a free Anycoin Direct account. Curious? View the website here for more information.