What if AI combines blockchain in the crypto world?

What if AI combines blockchain in the crypto world?

AI and Blockchain are terms that are no longer unfamiliar to information technology enthusiasts as these are the two leading technologies in the world currently in the 4.0 technology revolution that will later become 5.0.

So, what would the crypto world (which is created from blockchain technology) look like if AI was added? Let's find out with FinFan in the following article.

What is AI technology?

AI technology is technology that is programmed so that robots, or machines, are capable of performing some daily human activities such as: driving, working in factories, delivering goods, etc.

At this point, you will definitely think about what is special about this technology, right, because modern machines and equipment in the 3.0 technology era have contributed to supporting people in performing those actions.

That's true, but the difference between artificial intelligence and previous logic programming is the ability to think independently. Instead of being pre-programmed according to human logic, AI can consider the situation and come up with the most optimal solution, thereby helping to save costs and increase work efficiency. The self-calculating ability of artificial intelligence also helps it come up with new opinions, contributing many new ideas in human development.

For example, with machines and equipment in the 3.0 technology era, you cannot ask them to change jobs flexibly like humans (most will be produced on production lines), for example, they cannot classify goods at the same time packing them (unless you pre-program the next actions on the machine).

However, with the advancement of technology, programmers have added self-learning capabilities to machines and robots, allowing them to perform alternating actions in the work sequence and increase labor efficiency. Movement is about 3-5 times normal (because it can do the work of 3-5 different parts and machines do not have emotions like humans).

Read more:

What is blockchain? – How can the started like science fiction thing change all payment systems?

AI and its applicability in different industries

In the transportation and logistics industry

The transportation industry is currently applying many uses of AI. A typical example is the electric vehicle industry when Elon Musk’s company created the world's first driverless Tesla cars.

From now on, people can completely free themselves from driving and at the same time help reduce unwanted traffic accidents when people are no longer aware when holding the steering wheel (drunk or psychiatric problems).

At the same time, artificial intelligence technology also helps a lot in arranging warehouses and delivering goods. This helps the logistics industry as well as e-commerce benefit as they can increase their working efficiency without losing too many workers. Some typical examples can be mentioned:

  • Amazon has used these AI robots for its warehouses,
  • Some e-commerce or food delivery sites in China have started to apply robots for door-to-door delivery.

In office building and retail industry

AI can support in the form of taking fingerprints or scanning QR codes from employee cards to score, using AI cameras to recognize faces as well as customers' buying habits to introduce products and take care of customers in the most reasonable way.

In particular, AI cameras can extract and provide the clearest information about a thief or robber so that the sales shop can send appropriate documents to the police.

In gaming

This often happens with games that use metaverse technology (a variation of AI) where game makers create maps that completely resemble the real world so that people can both interact with the real world and the entertaining world to relax. Pokémon Go is a typical example of this type of game.

The power of combining blockchain and AI in the crypto world

AI combined with blockchain will be a remarkable development for the crypto world, it supports:

  • Enhanced security: The crypto world itself is related to Blockchain, which provides a strong security system and authentication information for data. When combined with AI, it helps authenticate and protect data from attacks and fraud.
  • Ensuring authenticity and transparency: Blockchain stores data in blocks linked together in a chain. When combined with AI, it helps ensure the authenticity and transparency of data collection, processing, and usage. With good input data, AI will be able to make smarter and more effective decisions.
  • Handling large amounts of data: AI with the ability to process big data can use blockchain to store and manage distributed copies of data. This helps solve the problem of storing and processing large data efficiently and securely.
  • Fair decentralization and inspection: Blockchain can be used to create an egalitarian hierarchy, and implement checks in the use of data and AI technology. Thanks to the transparency and traceability of transactions on the blockchain, evaluation, and decentralization can be done fairly and honestly.
  • Automated smart contracts: Smart contracts deployed and managed on the blockchain network can automate and perform transactions based on contract conditions when combined with Artificial Intelligence (AI).
  • Enhance trust: Combining AI and blockchain helps users check how their sensitive information is stored, managed and used without jeopardizing privacy and security. It helps analyze each step in the decision-making process, creating a higher level of trust from customers.
  • Accessibility: AI and blockchain in one unified entity can eliminate connectivity difficulties in the payment process. Current cryptocurrencies based on blockchain technology have eliminated geographical barriers and promoted international transactions. AI will play a role in increasing the efficiency of the working process, ensuring safety and minimizing costs for the transaction process.
  • Energy saving: The combination of artificial intelligence (AI) and Blockchain can help optimize the entire data mining process. By improving the data mining system, AI models on blockchain can create streamlining in this process. This will mean reducing the effort and time invested in data mining, thereby saving more energy.

In short, incorporating AI into blockchain in the crypto world will help transactions in this market become more transparent, faster, and more personalized.

However, this combination also brings many inconveniences for users using crypto platforms to conduct transactions as they also bring security risks, privacy risks, accuracy is not perfect, difficulty in managing large data, and unstable performance. The above issues will be mentioned by FinFan in part 2 of this article.