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

Before we can talk about the applications of AI to blockchain, Ted Maas of Anycoin Direct first takes us back to basics. Indeed, in their research, researchers Kaplan and Haenlein provide a crisp description of the phenomenon: "AI the ability of a system to correctly interpret external data, learn from it and use what it has learned to accomplish 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. Like a traffic sign that indicates the maximum speed based on how much traffic has been detected, for example. Human-like AI has elements of cognitive and emotional intelligence. So understanding and human emotions play into the decision-making process. Humanized AI is actually a combination of the first two, but in addition is self-aware.

Boundless character

According to Ted, the fusion of AI and blockchain promises many benefits, but also encounters some complex issues that may affect its success. "Blockchain possesses a number of important properties that come in handy in the distribution of AI. For example, blockchain is decentralized, so there is no centralization of power, the middleman is eliminated, so to speak. AI can thus become more available to the general public, without a small number of mega-companies taking all the power right away.' There is another important feature: 'Another crucial feature is its trustless and borderless nature. These features make it possible for any AI solution to participate in various blockchains without being hindered by nationality boundaries, for example. Thereby, 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 cites the immutability of a blockchain: "Once captured by validators, it can serve as valuable protection against censorship, an aspect essential to the integrity of AI-based applications.

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

Not all roses and sunshine

However, it's not all roses; for example, Ted cites scalability issues as the main issue: '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 hinder the efficient execution of AI tasks, which often depend on fast processing speeds.'

AI is already being used in several crypto-related applications, including image processing, statistics, linguistics, logic, pattern recognition and, for example, fraud detection. Also, according to Ted, there are some major coins integrating AI into crypto, such as Render, Akash Network, Fetch.AI, Singularity.net, and metaverse networks such as TheSandbox and Decentraland.

Trading bots

But you can even go a step further these days and get to work with so-called trading bots: 'Through AI crypto trading bots, you can make a complete analysis of things like market sentiment, price movement, volumes and other technical issues. Based on this, you can give bots commands to use them to make decisions for buying and selling coins.'

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