Will AI Blockchain Become The New Trend Of Cryptocurrency In 2023?
- Cryptocurrency projects in the field of artificial intelligence (AI) have recorded impressive growth.
- Users can create and use advanced algorithms to make better investment decisions, manage crypto assets more efficiently, and even automate trading.
- The first trend of AI is OpenAi with ChatGPT initiative that has caused a technology boom with more than 1 million users recorded.
- The great potential of the AI trend in the future cannot be denied.
Recently the concept of AI and Blockchain are combining together and become a difficult word to be searched for. Although these two concepts are separated, it may not be too strange, but when combined, AI Blockchain is still quite new, so not everyone is well aware of this trend. So what exactly is AI in crypto? Where do they come from? What are the benefits they bring? Do they have a future? Let’s find out in detail through today’s article.
What is AI Blockchain?
AI stands for Artifical Intelligence or artificial intelligence. AI technology helps to simulate human thoughts, learning abilities, behaviors, … and apply them to machines.
Blockchain technology is an advanced database mechanism that enables transparent information sharing within a business network. Blockchain databases store data in blocks that are linked together in a chain. The data has chronological consistency because you cannot delete or modify the chain without consensus from the network. Therefore, you can use blockchain technology to create a ledger that cannot be edited or changed to keep track of orders, payments, accounts, and other transactions. The system has built-in mechanisms to prevent unauthorized transaction entries and create consistency in the overall view of these transactions.
AI Blockchain is a combination of 2 technologies: AI and Blockchain together. AI crypto projects are typically AI platforms that allow users to create and use AI-powered applications. This means users can create and use advanced algorithms to make better investment decisions, manage crypto assets more efficiently, and even automate trading.
Where does Trend AI Blockchain come from?
The first trend of AI is OpenAi and ChatGPT. OpenAI is considered a tycoon in the AI development industry, run by Sam Altman. This company developed a bot called ChatGPT and announced it in 2015. But it was not until November 2022 that ChatGPT was released. Upon its launch, this AI chatbot system providing automated chat services with customers has recorded more than 1 million users, and Microsoft has recently announced plans to invest $ 10 billion in ChatGPT.
The crypto community is curious and excited about information related to the ChatGPT artificial intelligence (AI) product developed and launched by the OpenAI tycoon at the end of November 2022.
OpenAI released a series of AI products last year, the most famous being the Dall-E 2 visualization program and ChatGPT chatbot. Accordingly, OpenAI can create bots that help support Web3 development as well as create beautiful interfaces and good user experiences.
However, the product has received mixed reviews, with the experience not really good. But analysts still think this is a big step forward and a premise for many other developments in the future.
The rise of the AI trend began after the news that Microsoft wanted to invest $ 10 billion in OpenAI, in exchange for a 49% stake in the company. Previously, in 2019, Microsoft poured 1 billion USD into OpenAI and became the preferred partner to commercialize new technology for Bing search engine and Microsoft Design design application, in order to compete directly with competitors Google.
This event is like a milestone marking a new development. Immediately, a number of AI crypto projects received attention and attracted inflows of money. In particular, combined with the general recovery of the cryptocurrency market, AI projects also received a strong surge, thanks to many investors looking for trends. crypto in 2023 and potential AI coins are also among the best candidates currently.
The benefits when AI combines with Blockchain
AI Improvements for Blockchain
Cryptocurrency mining requires a lot of computing power and energy. Distributed ledgers trade off efficiency to retain properties such as immutability and censorship resistance. AI can be very effective at optimizing energy consumption, which can come in handy for improving mining algorithms.
One of the main arguments against the use of blockchain systems is the extremely high energy requirements. Cryptoeconomics and security properties introduce unnecessary computational tasks. Reducing the consumption of Proof of Work blockchains will benefit the entire industry and can drive mainstream adoption of blockchains.
AI can also optimize blockchain’s storage needs. Since the transaction history is stored in all the nodes, the size of the distributed ledger can quickly grow. If the storage requirements are high, the barrier to entry is also higher, which potentially reduces the decentralization of the network. AI can introduce new database splitting techniques that make blockchains smaller and store data on them more efficient.
Decentralized data economy
Data is an increasingly valuable asset that not only needs to be stored securely, but also needs to be exchanged. Effective AI systems rely heavily on data, which some blockchains can store with extremely high reliability.
A blockchain is essentially a secure, distributed database shared by all participants in the network. Its data is stored in blocks, and each block is cryptographically linked to the previous block. This makes it possible to modify stored information without losing network consensus in some way, for example, through a 51% attack.
Decentralized data exchange aims to create a new data economy running on the blockchain platform. These exchanges make it possible for anyone (or anything) to access data and store it. When connected to this data economy, AI algorithms can use a larger set of external input data and learn faster. On top of that, algorithms can also be exchanged in these markets. This will make them more accessible to a wider audience and can speed up their development.
Decentralized data exchange has the potential to revolutionize the data storage space. Basically, anyone can rent out their local storage for a fee (paid in tokens). In turn, existing data storage service providers will have to improve their services to stay competitive.
Some of these data markets are already active, although they are in their infancy. By incentivizing data and storage providers to maintain high data integrity, AI systems will also benefit.
Training AI not only requires quality data from which algorithms can learn, but also a lot of computing power. AI algorithms typically use a type of computer system known as an artificial neural network (ANN). ANN learns how to perform tasks by looking at lots of examples. These ANNs typically require massive computing power to pass millions of parameters to perform a specified task.
If data can be shared on a blockchain network, why not share computing power? In some blockchain implementations, users can lend the computing power of their computers’ machines on a peer-to-peer (P2P) marketplace to those seeking to perform complex computations. Users get tokens back when lending their computing power.
AI systems can be trained on these computing platforms much more efficiently and with less cost. The initial use cases are mainly related to 3D computer graphics rendering, but it may gradually move to AI.
As these Decentralized Applications (Dapps) grow, companies providing computing power could see a wave of competition. By allowing users to earn income by renting out their idle computing power, most of it will be used more efficiently. In theory, when not in use, every CPU or GPU in the world could act as a node in a decentralized supercomputer.
Check AI decisions
Decisions made by AI systems can be difficult for humans to understand. These algorithms can work with data so rich that it is impossible for any human to examine and duplicate their decision-making.
If decisions are recorded against every data point, there is a clear vetting process for humans to check, which can increase confidence in the decisions made by AI algorithms.
Above are our shares about the concept of AI Blockchain. It is clear that many AI Blockchain projects are currently being focused and focused on development. It can be said that when combined they bring outstanding benefits in terms of information, storage and verification. As both technologies develop further, more innovations can be discovered through the simultaneous exploitation of blockchain technology and AI.
The potential outcomes are difficult to assess, but it is fairly certain that they will lead to improvements in many aspects of our economy. While AI Blockchain may be the trend in the future, it may take some time for this technology to reach the masses and crypto users in particular.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu