AI has the potential to fundamentally change the way the crypto world works. It can also fix issues that caused the industry to crash in the past. As Kriptokoin.com, we have compiled the good works of artificial intelligence and crypto for you.
Artificial intelligence takes its place
Language bots like ChatGPT and AI image generators like Midjourney and Dall-E have shown the world what artificial intelligence can do. A few weeks after its launch, Microsoft is allegedly close to finalizing a $10 billion deal with creators.
Despite its ups and downs, cryptos have become a serious player in the world economy. Some investors are transferring their entire portfolios to Bitcoin and Ethereum. Many are confident that the crypto market will bounce back stronger than ever. However, there are projects that stand out in the field of artificial intelligence. Some AI coins are:
- The Graph
- SingularityNET
- fetch.ai
- Ocean Protocol
- iExec RLC
- Numeraire
- dCargo
- Phala Network
- cortex
- covalent
Good work of crypto and artificial intelligence
The strength of AI lies in pattern recognition. Cryptos’ ethos of decentralization is admirable, but currently flawed in practice. That’s why we were able to see the beginning of the formation of a beautiful friendship. Crypto and blockchain are all about anonymity. This makes it vulnerable to a range of scams such as market manipulation and outright theft. An AI algorithm trained to detect anomalies in transactions could help prevent these common cash grabs.
Artificial intelligence has the potential to protect investors from huge losses through algorithmic trading. AI can detect trends and make decisions faster than any human. The average retail investor can use this to their advantage with crypto trading packages similar to ETFs.
This is perhaps the greatest strength of introducing artificial intelligence to crypto. Hours spent researching which cryptocurrencies or tokens are best to buy would be gone. AI can decide everything for you, freeing up your precious time. It can also reduce human errors in crypto data.
Where can artificial intelligence go with crypto?
In a few years, we may see artificial intelligence having a significant impact on the crypto industry. Risk and compliance have the potential to collectively oversee trading decisions and portfolios. AI-powered natural language processing can suggest which cryptocurrency is best to buy. If fed with the right streams of data such as Twitter posts and news articles, the AI program will quickly sense public sentiment against certain currencies.
If you know anything about Web3, you’ve probably heard of DAOs. But you may not have heard of their cousin, DAAs. These agents are coded programs designed to make decisions. DAA becomes a powerful AI-powered fund manager. There is no human error or bias to worry about. You can sit back and relax while the AI takes care of your crypto portfolio.
We can see artificial intelligence being used to definitively bring crypto to the mainstream. One of the main gateways currently stopping crypto is the technical language and understanding required to make a transaction. AI can create personalized recommendations tailored to risk tolerance, tailor marketing and communications to a user’s browsing habits, or provide curated lists of educational resources about crypto.
If financial institutions can catch up with AI fast enough, they too can harness its power to protect banks. Implementing compliance and anti-money laundering plans will be easier with AI monitoring for signs of financial crime. Real-time transaction systems monitored by artificial intelligence can flag anything undesirable and give cryptocurrency an extra layer of security that banks often complain is missing.
Artificial intelligence may have some disadvantages
The main concern is that AI is still in its infancy. It is ready to meet the demands of a multi-billion dollar market like crypto. AI needs a lot of data to train. If there is any bias in this data, it can lead to problems. In the crypto example, we can see the emergence of artificial intelligence-assisted market manipulation in the market.
The darker side of Microsoft’s proposed large stake in ChatGPT is that it can completely remove it from the market. The technology could be entirely owned by the big companies that later have the controlling factor in the crypto market. Controlling the power of artificial intelligence in the hands of a few people will not be promising for any innovation.
However, artificial intelligence is an exciting new possibility that gives crypto investors a lot of hope. Given how quickly both of these industries are moving, it may be a matter of time before we see AI and crypto make some big moves together.
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