AI is the concept that machines can be used to mimic human decisions making and learning behaviors. These AI systems are only as good as the data that gets put into them.
How can blockchain be used in conjunction with AI?
Nowadays, cutting-edge technologies striving to make this a reality include machine learning, artificial neural networks and deep learning. On the other hand, blockchain is a new, ground-breaking filing system for digital information, which stores data in an encrypted, distributed ledger format. Because data is encrypted and distributed across many different computers, it enables the creation of tamper-proof, highly robust databases that can be read and updated only by those with permission.
Ref: Modex Tech
Blockchains are by nature an information storing tool that is secure and transparent. This makes it ideal for information being fed into the AI systems and also for the results coming out so that they can be tracked and understood.
Bad data can contain biases or be susceptible to modification. As usual, these technological advancements are developing at a rate much faster than legislation can keep up with and creates a problem moving forward as regulations could hurt the progress.
Even though development is usually a good thing. Data is a precious commodity and has more sinister opportunities for people to take advantage of. The more personal data that gets fed into AI systems, the more at risk we are of falling prey to groups with bad intentions.
A working example of AI learning is the group at AICON. This group has the aim of using AI learning to make profits from the cryptocurrency markets. They have developed AI models that track and identify trading patterns across the main crypto exchanges.
Their business idea.
GENERATING PROFITS THROUGH CRYPTOTRADING FOR INVESTMENT IN A GROWING PORTFOLIO OF EARLY STAGE AI AND BLOCKCHAIN COMPANIES.
The purpose of the AICOIN team is to take the market data which they can then feed through their AI models. The purpose of these models is to make profits trading on the crypto markets and create short term gains. These gains are then reinvested in the AI and public blockchain space.
Holders of AICOIN then vote using smart contracts on which start –ups receive investment capital so it is the human factor that decided in the long run which direction the investments will take after the AI creates the initial profits.
The token holders gain by a steady purchase of the holding token form the retained profits.
As a project, this seems like a very interesting use of machine learning technology. AI would have a huge advantage in the markets over human traders as they have access to a lot more information and can read the trends across all of the markets in a fraction of the time.
Information is key to making money on any market and especially one as unstable as the cryptocurrency markets. With the right information it should be very possible to keep making short profitable trades and build up a nice um of capitol. As AI and blockchain is a huge emerging market it makes sense to re invest the capitol into new groundbreaking technologies where the long term returns could be substantial.
I like that they bring the human element into some of the decisions making but it is probably the weak point in the chain as long term investment strategy is being dictated by the masses rather than a few influential people and backed up by AI data. I know that these options will be handpicked but “wisdom of the crowd” as described on their site is not my ideal way to make valuable choices.
Either way it is an interesting project and worth keeping an eye on for the future.
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