It’s safe to say that there seems to be no industry that remains untouched from blockchain technology and its impact. If you understand blockchain technology, you will know that the cryptocurrency industry is entirely an offshoot of blockchain technology. Blockchain technology is extremely powerful and which in hindsight means cryptocurrencies have many limitations too. Some of the limitations are technology-related, but others are a result of an old fashioned culture that has been prevalent for years amongst the financial sector. Interestingly, the antiquated ways of working can be affected by AI in some way.
Take a peek into any industry today, and you can guarantee that AI will be announced as the next best thing to revolutionise it, and the crypto sector isn’t any different. AI and blockchain have undeniably been two of the most significant technologies to catalyse the pace of innovation, causing almost every industry to shift radically. Although new technologies come with their fair share of technical complexities and business implications, they can redesign the whole human and technological interaction paradigm when used together. Here’s a look at the five ways in which conversational AI is transforming the cryptocurrency industry.
To execute crypto mining to perfection, it is incredibly challenging and requires an unrealistic amount of time, money and energy. AI has already proved its efficiency in being able to optimise energy consumption which means there is a good chance that AI would be able to achieve similar results if implemented into crypto mining. The current system of mining means that investors are forced to pay a significant amount of money for mining hardware. The introduction of AI will lower investments in hardware for investors, creating an advantage to the process. Increasing the functionality of the system will only become possible if some pieces of hardware are converted to neural nets.
Fusing AI with crypto will help to ensure that the ownership of personal data isn’t compromised. By doing so, it will ensure no breaches in privacy will be discovered. Currently, to battle privacy issues, there are some encryption solutions which can help for now. However, AI promises a stronger and better way of working.
Cryptocurrencies operate on blockchains which are continually growing at 1 MB every 10 minutes and have already reached 100GB. The founder of Bitcoin, Satoshi Nakamoto, has previously spoken about deleting unnecessary data on completed transactions and named it ‘blockchain pruning’. AI can help form a new decentralised learning system to help increase the overall efficiency of the system by providing new data-sharing techniques which could tackle this issue. It can help ensure that scalability goals are achieved to its full potential.
The adoption of AI will be able to achieve faster transactions through the use of enhanced machine learning. Doing so will increase efficiency and lower energy consumption which we covered in the article. This type of technology could also be used in blockchain smartphones.
As we know, hacking the blockchain network is thought to be impossible. However, its further layers lack security. AI has made machine learning progress incredible over the past years, and it makes it the best tool for blockchain to secure applications. This is especially true when 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.
In conclusion, there are many areas that AI can help improve current systems and ways of working. Although It is great and is a solution to many issues, there is the crucial fact that it can not solve every limitation. This is especially true for some limitations in the crypto industry. At the same time, the human mind is capable of thinking outside of the box, including AI, which means that although AI is a great tech for us to use, it will not be only technology to change things as time goes on. With this in mind, it is essential to note that AI has had an impact on the industry and exercises, to come extent, control over it. The nature of AI and its ability to facilitate everything faster makes it attractive, transforming the crypto industry in a significant way.
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