How AI is Enhancing Blockchain Technology

AI and Biochanin – how two technologies can change the world

Blockchain and artificial intelligence (AI) are two rapidly developing areas in the technology field. They have different strengths, but their combination can lead to new opportunities and innovations.

Blockchain is a distributed database that is stored on computers around the world. It provides transparency and data security, as well as protects them from unauthorized access.
AI is a field of computer science that deals with developing intelligent programs. It includes technologies such as machine learning, computer vision, and natural language.

One of the key advantages of blockchain technology is its ability to ensure data integrity and security. It just so happens that arrays of data are what all AI developments revolve around. Using blockchain allows developers to create more secure and reliable platforms for information exchange.

The combination of AI and blockchain also solves the problem of transparency of neural networks. Currently, users do not have access to the data on which a particular service was trained. In other words, only developers know why ChatGPT considers something is right and something is wrong.

Recording the learning processes of neural networks in the blockchain could make the services more transparent. In this case, interested parties would have the opportunity to conduct audits and checks of algorithms to understand the decisions of the neural network and its principle of operation.

Another point of successful connection between AI and blockchain is encouraging users to participate in the development of artificial intelligence. Tokenization of the process implies rewards in the form of tokens for people who provide computing power, train models, or share data.

Moreover, blockchain-based DAOs can be used to make decisions when managing artificial intelligence. In this way, users would be able to decide which data should be used for AI training and which should not.

AI and Biochanin – how to use?

AI is a term that refers to the theory and practice of creating robots (machines) capable of performing tasks that require intelligence. Today, this term refers to 3 areas: machine learning, deep learning, and artificial neural networks.

Blockchain is an innovative digital information storage system in which data is stored in an encrypted, distributed ledger format. Since the data is encrypted and distributed on different computers, this allows you to create tamper-proof, highly reliable databases that can only be read and updated by those who have permission to do so.

The Internet has written about the potential of combining these innovative technologies from an academic point of view, but there are currently few real applications. However, this situation will change shortly. Some companies are already successfully combining AI and blockchain. For example, a few years ago, Walmart and IBM teamed up to create a food supply tracking system based on blockchain and artificial intelligence.

Blockchain in healthcare ensures the protection of patient's private information and the secure exchange of medical records. This data can be used by artificial intelligence to develop personalized treatment regimens and improve diagnosis.

One of the blockchain-based HealthTech platforms is Medicalchain, which allows for health analysis. At the same time, users of the service have full control over their medical data recorded in the blockchain.

The two technologies are also combined by the Quantstamp crypto audit service. The company uses AI to identify vulnerabilities in smart contracts, as well as to counter fraudsters in the industry.

The blockchain can also be used by autopilot transport. In this case, the technology is needed to ensure a decentralized and secure data exchange between AI-controlled cars. MOBI is already doing this, creating an ecosystem of autopiloted cars based on the blockchain.

Creating decentralized datasets

Unlike centralized projects based solely on artificial intelligence, blockchain technology creates decentralized, transparent networks that can be accessed by anyone around the world. Today, the blockchain is a decentralized ledger that guides all cryptocurrencies, but this technology is also used in various industries to ensure decentralization.

There are specialized projects that focus on using blockchain technology to facilitate the wider dissemination of data. These projects are becoming the basis for decentralized artificial intelligence.

Data protection

The progress of AI depends entirely on the input of data - our data. Through the data, the AI receives information about the world and the events taking place in it. The data stored in the blockchain is inherently highly reliable, thanks to the cryptography inherent in the file system.

Blockchain is the system that allows you to encrypt data. It allows you to create fully secure databases that only authorized persons can access. Combining blockchain and artificial intelligence allows you to create a backup system for confidential and very valuable personal data.

Artificial intelligence, which can interact thoroughly with large amounts of data, and blockchain, which can provide a high level of security, together are an ideal combination for managing large databases.

This means that the blockchain is ideal for storing highly sensitive personal data. For example, medical and financial data are very confidential, it is difficult to transfer them to a certain company and be sure of their protection. They can be easily hacked and compromised. The same goes for the recommendation systems used by Amazon and Netflix. However, storing this data on the blockchain and having access to it only by artificial intelligence can provide huge benefits in the form of personalized recommendations with maximum data security.

The data that enters these systems (after it has been collected from us while browsing or interacting with the services) is very personal. The companies that do this invest large amounts of money to ensure a high level of security. And even despite this, large-scale data leaks are increasingly occurring, leading to the loss of personal data.

Data monetization

Another innovation that can be achieved by combining these two technologies is secure data monetization. Monetization of the collected data is a huge source of revenue for large companies such as Facebook and Google.

The fact that others decide how to sell data for profit shows that data is being used against us. Blockchain allows us to cryptographically protect our data and use it as we see fit. It also allows us to monetize data at our sole discretion without putting our personal information at risk. This approach will help us in the future to combat biased algorithms and create different datasets.

The same applies to artificial intelligence, which needs our data. Artificial intelligence takes data from its creators, without them, it cannot develop. Blockchain allows you to create a special data market where AI can directly buy data. This will make the entire personal data system more open than it is now.

Such a data market will also open up AI to small companies. AI development and support are incredibly expensive for companies that do not generate their data. Thanks to a decentralized data market, they will be able to access expensive and private data.

The combination of blockchain and AI: benefits

The following are the main advantages that can be achieved by combining these two technologies:

1. Enhanced security: blockchain provides resistance to data falsification and fraud, and AI can be used to analyze data and identify potential problems.

2. Increased efficiency: blockchain can be used to optimize processes, and AI can be used to automate tasks.

3. Personalization: blockchain ensures the security and authenticity of data, and AI can be used to analyze it and personalize offers for users.

Specific examples of the use of blockchain and AI:

1. Supply chain management: blockchain can be used to track the movement of goods and services throughout the supply chain, and AI can be used to analyze data and identify problems.

2. Financial services: blockchain can be used to create more secure and transparent financial transactions, and AI can be used to analyze data and detect fraud.

3. Healthcare: blockchain can be used to store medical data, and AI can be used to analyze it and diagnose diseases.

The combination of blockchain and AI: potential risks

Of course, the combination of blockchain and AI has its potential risks:

1. The objectivity of AI algorithms: AI algorithms can be biased if they are trained on data that is also biased.

2. Integration challenges: integrating two complex technologies can be difficult and expensive.

3. Regulatory challenges: the regulatory framework may not keep pace with the rapid development of blockchain and AI.

However, the potential for combining blockchain and AI is huge. As these technologies develop, we will see more and more examples of their use in various industries.

Each technology has its degree of complexity, but both AI and blockchain are technologies that can benefit from each other and help each other. Since both technologies interact with data in different ways, combining them can take data usage to a new level. At the same time, integrating machine learning and AI into the blockchain can improve the underlying architecture of the system. Artificial intelligence can significantly improve the efficiency of the blockchain.

Blockchain can make AI more consistent and understandable for humans. This will allow us to track and understand why artificial intelligence made this particular decision during machine learning. A blockchain, for example, Free TON, can record all the data and variables that the AI uses to make a decision made within the framework of machine learning.

Trust in AI solutions

As AI algorithms become smarter through learning, it will become increasingly difficult for data scientists to understand how these programs came to specific conclusions and solutions. This is because AI algorithms can handle incredibly large amounts of data and variables. However, we must continue to check the conclusions drawn by the AI to be sure that they are correct.

As an example, AI algorithms are increasingly being used to make decisions about whether financial transactions are fraudulent and whether they should be blocked.

Some AI solutions need to be tested by humans for their accuracy. And given the huge amount of data that can be taken into account by AI, this can be a daunting task for humans. Walmart, for example, transmits monthly transaction data from all its stores to artificial intelligence, which makes decisions about the importance of goods.

Blockchain can record all decisions and their causes, variables, processes, and data that AI uses. This greatly facilitates the audit of the entire process. Registering the decision-making process using blockchain could be a step towards achieving a level of transparency and understanding of robots.

5 top tokens in the AI space

Many members of the crypto community are waiting for the active growth of tokens of crypto projects focused on developments in the field of artificial intelligence (AI). Investments by large companies in the AI sector are fueling the interest of crypto fans in such coins.

Let’s see the top 5 tokens in the AI space!

NEAR Protocol (NEAR)

NEAR Protocol (NEAR) is a highly scalable open-source blockchain platform created for the development of decentralized applications.

The main idea of the NEAR Protocol is to create a highly scalable and productive blockchain platform that will be convenient for developers of DeFi applications and will be fully compatible with Ethereum. For this, among other things, a relatively new segmentation mechanism is used, called Nightshade, which provides high speed and performance of the blockchain.

The NEAR Protocol tokenomics is based on the native NEAR token, which is used as a means of paying for transactions on the network and stimulating its participants. The total issue of NEAR is limited and amounts to 1 billion tokens.

NEAR token holders can use them to pay transaction fees, participate in voting on important protocol development issues, and receive rewards for participating in the network.

As part of its tokenomics, NEAR Protocol also uses token blocking mechanisms, such as "Lockup Contracts", which allows you to control the availability and use of digital assets for a certain period.

This can be used, for example, to encourage participants to work on the network for a long time or to limit the sale of large volumes of tokens on the market and reduce the volatility of the exchange rate.

NEAR Protocol is a promising project that has quite a lot of potential for further development due to its high performance, scalability, and ease of use.

It also has low transaction fees and protection against cyber-attacks, which makes it more secure for users and investors.

Trade the NEAR token on the Dyor App now!

TAO

Bittensor is an open blockchain protocol that aims to create a decentralized network for collaborative machine learning. The Bittensor protocol allows you to use shared resources to create your own AI solutions, which can then be converted into various IT products.

The non-profit organization OpenTensor is behind the creation of the project. Initially, the Bittensor protocol was a Polkadot blockchain — these are separate user blockchains that are connected to the main or parent blockchain of the Polkadot network.

However, in March 2023, the OpenTensor team decided to launch its sovereign blockchain to become less dependent on the Polkadot ecosystem. The new blockchain network was named Nakamoto and was modeled after the first decentralized Bitcoin protocol.

A powerful impetus for the development of such decentralized AI-based platforms as Bittensor was the surge in global interest in artificial intelligence technologies, which began in 2022 after the release of the world-famous chatbot ChatGPT.

However, even many supporters of AI-based solutions were concerned that the technology was in the hands of a narrow circle of people and was completely centralized. Google, Microsoft, and even Elon Musk's xAI — all these companies are developing their own AI solutions, which they control.

TAO is a native cryptocurrency of the Bittensor network designed to activate miners and validators. In addition to the native cryptocurrency, the asset already exists in the form of ERC-20 and a wrapped WTAO token.

Thanks to TAO's presence in other networks, the possibilities of using cryptocurrency are significantly expanding: users can use all the functionality of the DeFi market by trading tokens in a decentralized environment, offering liquidity, and using them for lending.

TAO is among the top 40 cryptocurrencies by market capitalization, which amounted to more than $3.7 billion as of March 2024, as well as the 4th place among artificial intelligence-based protocols after NEAR Protocol, Render, and The Graph.

The TAO cryptocurrency has a limited issue (the maximum number of assets), which is 21 million — like Bitcoin. Moreover, as of March 2024, only slightly more than 30% — 6.49 million TAO - were traded on the market.

Like the Bitcoin protocol, Bittensor has a built-in deflationary mechanism, better known as halving. Only, unlike bitcoin, the reduction in rewards is determined not by the block number, but by the amount of TAO cryptocurrency mined. Nevertheless, the frequency of halving remains approximately the same — about once every 4 years.

Bittensor is already one of the leading crypto projects in the AI direction, so there is no reason to believe that anything will change dramatically shortly. This is confirmed by statistics: only since November 2023, the capitalization of Bittensor has increased almost 3 times.

Trade TAO cryptocurrency on the Dyor App right now!

Internet Computer ICP

ICP tokens are part of a global plan by their creators: to break the monopoly of IT giants - Google, Facebook, Amazon, and Microsoft — and take away their power over the Internet.

ICP is a virtual token developed by the Swiss blockchain project Dfinity Foundation. It was founded by Dominic Williams in 2016. Since the early 2000s, Williams has been involved in distribution systems - databases that are distributed between several network nodes or computing devices. In 2014, he began working on algorithms for cryptocurrency platforms, and a year later he had a global idea, which became the starting point for the Dfinity project.

About the meaning of the name and logo of Dfinity (Decentralized Infinity), Williams spoke in an interview with Coindesk.

"Satoshi Nakamoto invented Bitcoin, which became digital gold and created the cryptocurrency market. Ethereum has shown how smart contracts should work. And the third step is the "endless blockchain". This is what the Internet Computer should do."

The "Internet Computer" is based on the Internet Computer Protocol (ICP) blockchain computer protocol. Its network consists of a hierarchical structure of building blocks.

Unlike the "regular" Internet, DWeb is better protected. For example, it makes no sense to direct a DDoS attack on a decentralized network: a simultaneous large number of requests that can disable a regular Internet resource in DWeb will be distributed across network devices and will not affect its operation. In addition, it solves the problem of censorship: it will be more difficult for the government to block any site - data will arrive on the user's device from different places, as when downloading a torrent, and not from one server.

With DWeb, users will be able to share information with other users not through centralized services, but directly.

The ICP token itself is an entry in the register, distributed in blocks and indicating a digital balance. When a user buys tokens, they have a tool for interacting within a decentralized network. You can just use DWeb without having tokens.

ICP tokens also give the right to participate in the management of the "new Internet". The fact is that DWeb works under the control of the NNS Network Nervous System — it is a decentralized tokenized and open management system that acts as a network administrator. NNS allows you to combine distributed data centers into a single system. Currently, the project has only 48 centers, as well as 1,300 node computers in North America, Europe, and Asia.

Start to trade the ICP token on the Dyor App now!

Artificial Superintelligence Alliance (FET)

Artificial Superintelligence Alliance (FET) — the cryptocurrency of the Fetch.AI project, which was launched in 2019. The Fetch.AI team is creating a decentralized network for autonomous AI agents.

The goal is to enable programmers to quickly develop, deploy, and coordinate multitasking systems based on artificial intelligence on an open platform.

The project's achievements can be used in various fields: from DeFi trading to the creation of smart power grids and other systems with a large amount of data.

Many large corporations use tools created by Fetch. Al, including ChatGPT chatbot developer OpenAI and Meta. In the context of the crypto market, project coins often work like stocks, interest in the company from such giants can ensure the growth of the FET token.

Trade the FET token on the Dyor App now!

Render Network (RNDR)

Render Network (RNDR) is a cryptocurrency of a decentralized GPU rendering platform that allows artists and developers to use the power of idle graphics cards for large-scale 3D renderers.

The network connects node operators who can monetize computing resources with users who need fast and cost-effective rendering.

Render Network speeds up and reduces the cost of the process due to distributed computing. Therefore, the platform is suitable for creating applications and services in the digital economy.

The project is supported by the non-profit organization Render Network Foundation, which is engaged in the development of the protocol and the community.

RNDR coins are needed to pay for services in the system. The demand for the project's tools helped the cryptocurrency enter the top 30 by capitalization.

The interest in the Render Network suggests that the coin of the project, which has managed to prove its effectiveness and occupy one of the leading positions in the market, has growth potential.

Trade the RNDR coins on the Dyor App now!

Conclusion

The global AI market, according to Statista data for 2024, is estimated at ~ $298 billion, and by 2030 it is expected that its size will reach $1.84 trillion. It is quite obvious that a significant part of this market will be occupied by decentralized AI solutions, since they have clear advantages over centralized products, such as anti-censorship, accessibility, and interaction. It turns out that the market share of decentralized AI solutions already accounts for more than 14% of the entire global sector, and it is likely to grow in the future.

The combination of blockchain technology and artificial intelligence remains the direction that stores many more unsolved problems. Despite this, most of the scientific attention is directed in this direction, since progress in this direction can significantly improve our lives.

The combination of these two technologies allows you to use data in a way that was previously considered impossible. Data is a key component of the development and improvement of AI algorithms, and blockchain ensures the security of this data, allows us to audit all intermediate steps of AI to extract conclusions from data, and allows individuals to monetize the data they produce.

It is quite obvious that blockchain and AI are two technological directions that, being innovative, have the potential to become even more revolutionary. Both of these technologies help empower people while providing opportunities for more effective control and accountability. AI can become more advanced in terms of security, thanks to the blockchain. It is unknown how the interaction between these two directions will develop, but there is a huge potential.