While being in its infancy, the use of Artificial Intelligence (AI) in cryptocurrency is showing signs of development. The blockchain AI industry is anticipated to increase from $220.5 million in 2020 to $973.6 million in 2027 at a compound yearly growth rate of 23.6%, according to a report from Fortune Business Insights.3
The crypto industry is actively using artificial intelligence (AI) in several ways, including:
- Fraud detection: AI algorithms can be trained to detect fraudulent activities in cryptocurrency transactions. This can help prevent scams and improve the overall security of the crypto industry.
- Trading bots: Crypto trading bots use AI algorithms to analyze market data and make trading decisions automatically. These bots can be customized to execute trades based on specific parameters and market conditions.
- Price prediction: AI models can be trained to analyze historical price data and predict future price trends. This can be useful for investors and traders looking to make informed decisions about buying and selling cryptocurrencies.
- Smart contracts: Smart contracts are self-executing contracts that automatically execute when certain conditions are met. AI can be used to develop more complex smart contracts that can take into account a wider range of conditions and variables.
- Anti-money laundering: AI algorithms can be used to detect suspicious activities in cryptocurrency transactions, helping to prevent money laundering and other illegal activities.
- Decentralized finance (DeFi): AI can be used to develop new DeFi applications and services that offer greater automation and efficiency. For example, AI-powered lending platforms could help borrowers get faster and more accurate loan decisions.
The crypto business is rife with AI initiatives, despite Tesla CEO Elon Musk and other well-known tech titans writing an open letter urging AI companies to temporarily halt large-scale AI work. These are a few instances of current crypto-AI initiatives in the community:
Blocktrace
Blocktrace is a company that offers services for blockchain forensics and analysis supported by AI. Its AI chatbot is made to make tracking blockchain transactions easier. Blocktrace, an Austin-based company, wants to use artificial intelligence to speed up the blockchain analysis process and make it easier to spot trends and abnormalities.
In order to communicate with data on the Bitcoin blockchain, the company created an AI chatbot dubbed Robby the Robot, named after the famous character from the science-fiction movie Forbidden Planet.
SingularityNET
Blockchain technology is used by SingularityNET, a decentralized AI market place, to give AI developers a venue to share and make money from their algorithms. It makes it possible to create decentralized applications (DApps) with AI capability that may be applied to a variety of sectors, including banking, healthcare, and transportation.
Liquid Artificial Intelligence
A decentralized network called Artificial Liquid Intelligence uses blockchain and AI to create a market for data. It enables data owners to profit from the sale of their data while still maintaining control over privacy and security. The Artificial Liquid Intelligence (ALI) utility token is used to run the AI protocol.
Fetch.ai
Fetch.ai is a decentralized platform that uses AI and machine learning algorithms to create autonomous economic agents. It was introduced via an initial exchange offering (IEO) on Binance. Users can create and deploy their own digital twins on the network using Fetch.ai (FET) tokens.
iExec
iExec, a decentralized cloud computing platform, combines blockchain and AI to offer a safe environment for running DApps that need a lot of processing power. It offers an alternative to conventional cloud computing services and allows developers to monetise their computing resources.
