The invention of the blockchain has already opened up new possibilities to the way we can record data, not in the least powering the cryptocurrency revolution. With the popularity of blockchain applications like Bitcoin, however, come new challenges. As more people use it, blockchains will have to become more efficient, more secure, and more adaptable. That’s where artificial intelligence comes in.
Various AI applications have been implemented to meet the numerous demands placed on blockchain platforms, from self-learning neural networks to specific regulatory functions. Here are just a few of the reforms that artificial intelligence has brought to blockchain systems thus far.
Creating a More Efficient Platform
One of the most often talked about drawbacks of blockchain platforms that rely on mining like Bitcoin is that it is not environmentally friendly. Large amounts of energy are required to support the intense computation power necessary for the verification process.
Nonetheless, companies employing artificial intelligence have come up with practical solutions regarding making the verification process more sustainable, such as being able to delegate which users can receive compensation for substantiating data efficiently.
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AI technology has also been developed that can address the scalability issues that Bitcoin is currently experiencing by allowing the platform to perform more transactions per second. Without the involvement of AI in the block formation process, Bitcoin will have to cap the number of users that send funds at any given time.
The more the public learns to trust cryptocurrencies, the faster they will get adopted into everyday use. Artificial Intelligence can remove much of the blockchain’s human dependency, mitigating both the opportunity for human error, as well as for self-serving behavior. It will also be able to deploy specific and evolving algorithms to flag fraudulent activity.
Leading to More Widespread Use
The integration of artificial intelligence into blockchain technology allows it to have more flexibility, ultimately making it available for different applications. The healthcare system has often been linked with the possibility of taking advantage of the data propagation technology of blockchains. All of a patient’s medical history can be efficiently shared on the platform, leading to more informed medical decisions.
The use of AI may also someday lead to the existence of data gates. Our personal data is collected by the companies and institutions we interact with, and is often sold for a profit. It is speculated that AI may be used in the future to allow individuals to have more control over this information, allowing them to monetize it themselves.
The Future Contains Limitless Potential
Artificial intelligence is already making significant contributions to the rise of cryptocurrencies by solving some of the blockchain’s perceived weaknesses and improving its security and efficiency. The possibilities of such a marriage of technology are overwhelming. In the least, we can expect AI to play a significant role in increasing the number of applications of the blockchain, as well as increase the presence of ones already here.
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