It was only inevitable that two groundbreaking fields, blockchain, and artificial intelligence, are now coming together. Currently, and in a variety of innovative ways, AI is being implemented to help overcome inherent limitations to blockchains that record data and power cryptocurrencies. Paramount of what AI is doing for blockchains include enhancing security and providing for a more efficient network.
AI Increases Blockchain Security
While the decentralization of economic exchanges—cutting out the need for banks or other institutions—is one of the most attractive components of cryptocurrencies for most users, others fear that it opens up the door for various types of manipulation. The use of AI technology, however, helps remove many of the opportunities for malicious actors.
One of the most talked about security concerns with blockchain technology is the 51% attack, in which if one group gets control of more than half of the computational power, they can effectively rewrite the ledger. Nonetheless, several AI ventures are already addressing this issue. Velas, for example, implements an AI-operated delegated proof of stake (AIDPOS) consensus algorithm, which works to remove human dependencies and build a fault tolerance system that addresses the 51% attack, as well as other common security concerns.
Also, part of a blockchain’s inherent security advantage is the use of encrypted data. Because AI technology can access algorithms that allow it to work with encrypted data, it prevents the information from ever needing to be decrypted, which could have exposed it to various types of risk. AI Blockchain is among one of the companies working on providing an AI service to handle encrypted information.
Making a Better Network
It has been estimated that the global cost of operating transactions with blockchain technology exceeds half a billion dollars a year. One of the often-quoted drawbacks of using some cryptocurrencies like Bitcoin is that they require massive energy consumption. While blockchain use has the makings of a social revolution, it hasn’t been good for the environment so far.
Nonetheless, the use of AI has been successful in addressing this problem. Companies such as Matrix work to alleviate the need for the massive computing power required for mining by creating a more efficient way to determine who gets the rewards of verifying a transaction. This can allow other minors who are not likely to get selected for a particular blockchain to shut down their efforts and save energy.
Also, many self-learning AI systems include neural nets that help reduce the need for complex hardware and energy consumption. This can lessen the computation power needed to power a blockchain, as well as ultimately improve the network’s efficiency to include more transactions per second (tps).
Artificial intelligence and blockchain technology are two pioneering fields that were destined to meet and work in concert with each other. AI is already solving some of the inherent challenges faced by the various applications of blockchains, and will only continue to benefit both the environment and the user.