Even as blockchain and crypto asset companies face a barrage of legal and regulatory measures and the much-discussed crypto winter, they also face the never-ending debate over artificial intelligence. Spurred by the rapid adoption of ChatGPT (and ChatGPT-like solutions), VCs and other investors have begun to rapidly shift interest and money into AI projects. According to CB Insights, AI startups raised more than $5 billion in venture capital in the first quarter of 2023 alone, after raising more than $40 billion in 2022. Meanwhile, other related projects with blockchain, web3, tokenization and artificial intelligence are in continuous development and construction. Exploratory cryptocurrencies are portrayed by some as adversaries.
This misses the most important point.
The truth is that the big trends of blockchain-based transactions, tokenized financial assets, and AI integration are not going away in almost all businesses. Instead, these trends will only accelerate progress, as evidenced by recent steps and measures to further improve investment opportunities in Bitcoin and/or cryptocurrencies, as well as enthusiasm for AI projects (and constructive politics). However, the concerns and problems that have arisen in the crypto assets space are equally real. A lack of trust, past crises, lawsuits against suspected fraudsters and a general lack of transparency remain difficult hurdles for local businesses to overcome.
AI isn't a panacea for all crypto-related problems, but AI-powered tools can and will improve understanding, transparency, and the ease with which businesses and investors can leverage crypto when it works.
Real-time transparency
One of the main ongoing issues that has angered regulators and investors is the ongoing lack of transparency, real-time reporting, and comparable reporting standards in the cryptocurrency industry. Various models have been applied, briefly highlighting evidence of reserves before addressing issues of inconsistency in the fulfillment of these accounting requirements.
AI in its various forms, be it a large language model, a neural network or any other form of advanced AI can be used to support these processes. Audits and other certification processes are mainly aimed at collecting, confirming and communicating information about a specific company to the external market. In this context, AI applications appear to be well positioned to advance the industry's existing fraud reduction efforts. MasterCard credit card
Smart contract review
Moving up the crypto-asset industry value chain, smart contracts play an important role in the proper functioning of blockchain-based applications and crypto-asset applications. For example, decentralized finance applications and non-fungible tokens should be able to transact with other cryptocurrency pools and partners, as well as established financial institutions. These important connections and interactions are largely driven by smart contracts, which are programmable tools that allow blockchain-based tools to automate certain tasks, interact with other technology tools, and ultimately deliver much of the promised value.
Despite all the promises of smart contracts, there are problems with their implementation. The lack of widely used standards, inability to quickly make changes to blockchain records, and required data protection could limit the applicability of smart contracts for many companies.
AI, whether in the form of a fancy language model or some other form of AI, can help companies analyze, review, revise, and beta test smart contracts. in the respective company.
Android Payments
Blockchain and crypto assets have long been in search of a “must-have” application and use case, and the meteoric rise of AI in public market awareness has underscored that fact. For all its shortcomings, ChatGPT provided an intuitive, easy-to-use, no-code application that conveyed an easy-to-understand value proposition to individuals and organizations. The advent of artificial intelligence and the rapid growth of interest and investment in this space could indirectly lead to more payments-based applications for crypto asset pools.
For example, as chatbots and other bot-enabled processes and tasks become more common in businesses, the likelihood of bots interacting, conducting transactions, and paying each other to provide services or deliver products increases. This is a near-perfect opportunity for blockchain-based payments via tokenized assets to play a pivotal role in the future. Robots and AI applications have the ability to continuously analyze and process information, even outside of business hours. Combined with smart contracts, the ability for these bots and other apps to run on a variety of apps and tools provides a near-perfect sandbox for payments and bot-to-bot verification.
Artificial intelligence is attracting a lot of interest and investment, and also has the potential to help cryptocurrencies find the use cases they need faster.