There are clear comparisons that can be made between Artificial Intelligence and Bitcoin, as well as other cryptocurrencies. Generally speaking, in itself the blockchain is a primary form of artificial intelligence, as it is able to make decisions and does include some aspects machine based learning, though in the future we expect that the blockchain will become more integrated with AI technologies, neural networks, deep learning and that sort of thing.
What is AI?
Artificial Intelligence or AI is dubbed as the next technological revolution, first we had the data revolution and now, computers are able to manage and manipulate that data themselves, hence the ‘intelligence’. According to Techopedia:
“Knowledge engineering is a core part of AI research. Machines can often act and react like humans only if they have abundant information relating to the world. Artificial intelligence must have access to objects, categories, properties and relations between all of them to implement knowledge engineering. Initiating common sense, reasoning and problem-solving power in machines is a difficult and tedious task. Machine learning is also a core part of AI.”
Cryptocurrency and blockchain firms are already exploring how AI can help improve their products and services. Indeed, the development of the blockchain does have big implications for the future of AI and Machine Learning too, especially when we consider data storage and fast access. The blockchain allows huge amounts of data to be stored securely and of course, shared across other entities on that network. These entities, could very well be computers or programmes that have been built to learn from the blockchain, and thus, we see a huge amount of information spread that these programmes can learn from, making Artificial Intelligence, better.
According to Bitcoin.com, Danil Myakin, the co-founder of Squilla Capital, a crypto analytics service, there’s a huge surge in the number of applications that blockchain technology, cryptocurrency and Artificial Intelligence share:
“Human bias is almost impossible to eliminate. People trade on their emotions, often unwittingly. Data-based decision-making eliminates the noise that can cloud people’s judgement, preventing them from acting rationally, and focuses solely on the signal.”
“Provided you have a large enough sample set, computers that have been trained using machine learning will consistently derive more accurate insights than humans. In recent years, this theory has been proven in every major financial market, and it’s now being applied to the cryptoconomy with equally convincing results.”
These are two technologies that are growing and seeing expansion at an alarming rate. When the two industries fully collide, a huge number of new and exciting products will be created. This is great for the adoption of Bitcoin and cryptocurrencies and also has positive implications for the development of our everyday technologies too, such as the smartphone which is now seeing more AI based implementations than ever before.