Opinion: Blockchain embedded with AI is the next big narrative?

Original title: "AI Cryptocurrencies are the next big thing"

Original author: CyberPunkMetalHead

Original compilation: ChinaDeFi

Since the beginning of 2023, artificial intelligence, especially OpenAI's Chat GPT3, has become popular all over the world, and various industries may be profoundly affected by this technology.

Similarly, in the field of cryptocurrency and blockchain, artificial intelligence and machine learning may also bring about a real paradigm shift, which will make the blockchain become safer and more efficient. In this article, we explore together this paradigm shift and why machine learning should be at the heart of every blockchain.

The reason blockchain is classified as a useful technology is because each The wallet and every transaction is recorded on the public ledger, no matter how small an operation is, it is recorded on the blockchain. This is how applications like metamask are able to accurately determine transaction gas. This also brings together an ocean of information, but this resource has not yet been exploited. Only a few companies provide chain analysis today, but their use cases are relatively limited, and users cannot take actual actions based on such analysis.

Artificial Intelligence and Blockchain

The proposition made in this paper is to use artificial intelligence or deep neural network as an integral part of blockchain. Simply put, we can think of it as an intelligent entity that includes blockchain awareness. This kind of integration can make the chain aware of itself, and have certain agency and correct authority. This self-aware system can repair and improve its own efficiency in a way that traditional centralized networks cannot.

The above proposition will bring a lot of advantages, among which the more important areas are:

In 2022, we will see a lot of exploits and hackers in the blockchain field have one thing in common, that is Once the entry point to the exploit is discovered, neither the chain nor the validator nodes nor anyone else can react quickly enough to recover. There have even been group robberies like the Nomad Hack.

Introducing neural networks and ensuring that the blockchain keeps track of all transactions will hopefully make such attacks a thing of the past. Below is a practical example at work, which assumes human intervention.

- AI will identify an unprecedented number of transactions, and when these transactions are processed in a new and unused wallet, then those transactions will be marked as abnormal.

- These transactions will be sent to the pending pool and validator nodes will be notified.

- Validator nodes will vote on whether these transactions are legitimate.

The above is also vulnerable to 51% attacks because it still relies on majority decision to reach consensus, but it keeps the network decentralized.

A second example is choosing to give AI agency. Since then, the intelligence layer of the blockchain is not simply reporting to the validator nodes, but acting in the best interest of the chain. It will be faster, safer, and we will no longer talk about centralization-decentralization. This conscious organism has already shouldered the task of maintaining itself and the chain rule. Of course, the verifier node will continue to play an important role in decentralized computing and decision-making, but the transaction verification is put on the neural network.

Network Optimization 

The performance of the blockchain network will be affected by many factors , such as the number of nodes, the distribution of transactions in the network, the efficiency of the consensus algorithm, etc. These factors may introduce certain bottlenecks to the network, slowing down transaction processing.

Artificial intelligence can be used to analyze the performance of blockchain networks and identify these bottlenecks.

Based on the data on the chain, the neural network can propose ways to optimize the network to reduce the time required to process the trading platform. Artificial intelligence algorithms can analyze the distribution of transactions in the entire network and propose ways to balance the load, thereby reducing the burden on nodes. AI can be used to predict potential problems before they occur, enabling the network to proactively address them. This reduces downtime and increases the overall speed of transactions.

A better consensus algorithm

The consensus algorithm is safe and secure for any blockchain Running efficiently is critical as they decide how transactions should be verified and added to the blockchain.

AI will be able to dynamically suggest new and improved versions of the current consensus algorithm based on the state of the chain. Once enough on-chain data has been analyzed to make a decision, the number of validations required to process exchanges can be increased or decreased depending on network congestion.

Predictive Maintenance

Every part of the blockchain network needs maintenance and Monitor to make sure it is running smoothly. And this maintenance can be very time-consuming and resource-intensive, which causes it to go down or slow down transactions.

AI can be used to predict problems before they occur, allowing the network to proactively address them. For example, our neural network can monitor the performance of nodes and predict when they are likely to fail, enabling the network to take action before failure occurs.

These predictions can also be applied to the consensus and transaction layers.

Predictive maintenance can not only reduce downtime and risks, but also help to improve the overall efficiency of the network, reduce the cost of maintenance and repair, and make the development of the network more sustainable continued.

Summary

The more autonomy the AI has, the more efficient the blockchain will be high. The claims of this paper, from a certain perspective, represent a real paradigm shift from current validator-controlled networks to new types of self-aware, self-regulating networks.

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