What if AI combines blockchain in the crypto world? – Part 2
In the last part of this series about the combination of AI and blockchain in the crypto world, FinFan discussed the definition of AI and shared information about the benefits of combining AI and blockchain to produce the most optimal products for users.
In this article, let’s find out with FinFan the negative side of this combination of AI and blockchain and some products that apply this form of combination.
The dangers of combining AI and blockchain in the crypto world
- Security risks
AI or Blockchain are also technologies created by humans, so they cannot avoid errors or encounter security-related issues. If not implemented properly, AI applications that use data from blockchain can become targets of security attacks.
- Privacy risks
While blockchain provides data privacy and security, its combination with AI can pose a potential privacy hazard. AI's processing, analysis, and detection capabilities can expose sensitive information or reveal users' identities.
- Accuracy is not absolute
Artificial intelligence (AI) depends on input data to train models and make predictions. If the input data on the blockchain is insufficient or inaccurate, the AI may produce misleading results or misclassifications. This can create threats to AI trust and accountability.
- Difficulty in managing big data
When combining AI and Blockchain, Big Data management becomes more complex. Data must be encrypted and stored securely, while still ensuring transparency and traceability.
- Performance is unstable
Blockchain always has an element of instability, it may encounter limitations in processing speed, scalability, or related problems of network congestion. In this case, the combination with AI will not be effective; complex data processing is required to achieve high performance.
Applications that combine AI and blockchain in the crypto world
In fact, there have been a number of businesses that have successfully applied the combination of these two types of advanced technology into the crypto market and achieved certain successes. We can name the uses of this combination. This case includes.
- Portfolio management and investment assets
The fact that cryptocurrencies are created using blockchain gives them security, consistency, and transparency in transactions. However, users still must mostly depend on themselves, and sometimes due to the influence of emotions, those investments lead to a failed result in the market.
With the intervention of AI, the investment portfolios of investors in the market will be supported to best suit their investment tastes (AI will calculate and produce parameters suitable to their ability).
- Automated smart contracts
Smart Contracts are special applications built on blockchain technology, allowing transactions to be performed without the need for an intermediary. Combined with the intelligence of AI, smart contracts can automatically execute predetermined terms and conditions automatically and cannot be changed, and AI can also analyze and make decisions in case of disputes.
- Ensuring authenticity and transparency
When AI and blockchain are combined, it helps ensure authenticity and transparency in data collection, processing, and usage. Blockchain stores transactions and data transparently on blocks, while AI can be used to check data accuracy and confirm system reliability.
- Privacy and identity management
Blockchain and AI can be combined to manage and protect privacy and personal information. Personal data can be encrypted and managed using blockchain technology, and AI can help confirm and check user identities securely and reliably.
In short, although there will be issues surrounding security and data management, the combination of blockchain and AI in the crypto market is still showing very positive results. Hopefully, in the future, all transactions in the market will be automated according to each person's taste and will provide customers with a faster and safer experience.