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We are in the age of the unfathomable evolution of modern technology, and AI and cryptocurrency are a huge part of it. AI and crypto have their own set of classified dynamics. However, it is surprising to know that these two have much in common and are deeply connected.
There are uncountable things that you can buy using digital coins. For instance, you can claim a casino cashback bonus, invest or buy items, etc. With AI you can get great driving directions. Yet, AI and crypto complement and intersect with each other in various ways which we will learn about in this blog.
We have divided the article into two groups: one describing how AI is important for blockchain technology and the other showing the necessity of blockchain technology in the field of AI.
Here is how AI and Cryptocurrency are linked together:
Ways How Cryptocurrency or the Blockchain Technology Plays a Vital Role in AI Development
Using Blockchain Technology to Check AI Transparency
Blockchain plays a considerable role in checking AI transparency, creating an alliance between the two. AI is still in its developing phase, so it becomes difficult to completely trust its decision-making. This is the sector of AI where block chain technology is required.
Blockchain technology tracks and records AI decisions so that they can be more trustable, reliable, and transparent.
When AI is applied in crucial sectors like Healthcare, to make quick diagnosis and treatment suggestions, its trustability plays a defining role. Blockchain entirely checks how these decisions are made making them acceptable and flawless.
Using Crypto for the Research of Artificial Intelligence
As we said, cryptocurrency and artificial intelligence largely complements each other and paves the path for their development. Cryptocurrency is used by AI researchers as a crucial tool.
AI is all about elaborated data to develop and testify. Blockchain, on the other hand, has a decentralized nature helping AI with shareable and accessible data sets.
Blockchain also plays a role in creating new algorithms for AI. Many crypto platforms provide crypto rewards if users contribute new computing power to artificial intelligence research projects. Hence, everyone becomes entitled to contribute to the advancement of new AI-based algorithms and technology.
How AI Significantly Aids Crypto Technology?
AI Helps in Crypto Trading
Trading is the sector that creates a substantial interconnection between AI and cryptocurrency. Even the experts can't predict the crypto curve due to its extremely volatile nature. However, AI is capable of analyzing crucial market data and making trustworthy market future predictions.
As we can observe, new AI-powered trading tools are making a place in the trading market for predicting crypto movements.
Some of these tools can even do trades of their own after predicting the price movements without any outward human input by analyzing huge amounts of order books, price charts, market data, etc.
AI Ensures Blockchain Security
Blockchain networks must be incredibly critical about their security to avoid theft and forgery. AI helps in strengthening the security of crypto networks. AI systems created for machine learning are good at detecting abnormalities in vast databases and datasets. Hence, AI can nullify probable safety threats in block chain datasets.
Is There Still a Barrier Between the Connection of AI and Cryptocurrency?
Throughout the article, we have learned how artificial intelligence and cryptocurrency have paved the path to future development for each other. However, there are still a few challenges that need to be overcome.
User privacy is the biggest challenge. As cryptocurrency follows an anonymous transaction data system, this becomes difficult for AI to read a user's transaction without concession to the user's privacy.
Cryptocurrency is regulated in a completely different system compared to other financial instruments, making it difficult for these instruments to adopt AI and crypto together.
Crypto & AI: A Crucial Interconnection
The interrelation between artificial intelligence and cryptocurrency is evident though complex. However, in reality, we can see various instances where AI and cryptocurrency complement each other and are deeply connected. The future, mainly of financial institutions, is apparently dependent on blockchain-based AI research functions or AI-empowered trading methods.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.