When exploring AI, There are 7 factors blockchain protocols should take into account

There are a number of crucial factors to keep in mind while investigating how blockchain protocols and AI interact.

It seems like artificial intelligence is all everybody is talking about across sectors. Even less tech-savvy businesses are frantically trying to figure out how AI works and what it might be able to accomplish for them. Given the projected influence of AI, it should come as no surprise that blockchain protocols, which are a part of a distinctly tech-forward industry, are investigating what role(s) AI might play for them.

AI may prove to be a potent tool in the arsenal of blockchain protocols, helping with data analysis, enhancing scalability, and fostering interoperability. Nevertheless, it’s crucial to thoroughly consider both the potential drawbacks and the benefits. As blockchain protocols start to investigate AI.

protection of data security and privacy

Protocols must place a priority on strong encryption, anonymization mechanisms, and secure data handling procedures because AI relies on enormous amounts of data for training and decision-making. Additionally, federated learning or differential privacy implementation are privacy-enhancing technologies that can lessen the danger of sensitive data exposure. 

The creators of an AI product

Think carefully about the people that created each thing. Even though many AI developers make lofty promises, you should always check their track record to see if the outcomes they predict are indeed feasible. In general, protocols should search for businesses with a continuous history of delivering high-quality items on time and on budget. 

maintain or improve decentralisation

The creation of AI solutions that sustain or improve decentralisation should be given priority in protocols, perhaps using distributed AI models or decentralised decision-making algorithms. Protocols should also take into account the possible dangers of AI, such as bias and security flaws. 

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The moral use of AI

To address issues with prejudice, fairness, and responsible data use, ethical frameworks and rules should be put into place. In order to make blockchain solutions with AI capabilities simple to use and comprehend, protocols’ user experiences must also be streamlined and uncomplicated. Protocols can result in technologically sound, morally upright, and user-centered solutions. 

Privacy and power must be balanced

Dance with the titans two! Consider the balance between privacy and power when you introduce AI to the world of blockchain. Blockchain supports privacy but AI desires data. The secret is finding the appropriate balance: Utilise AI’s power without jeopardising the confidentiality of blockchain transactions. The blockchain ballet could change if this delicate dance is performed correctly! 

AI’s mutability

AI is not rigid by design. Depending on its experience, it may respond differently to the same stimuli at two distinct times. The function of a blockchain protocol is to be observably time-consistent. There is a fundamental tension; the addition of AI might make a blockchain system useless. If AI doesn’t alter the protocol, using it to learn how to create new smart contracts is another matter.

There are numerous usage cases

With AI, protocols can open up a fascinating new range of use cases. DeFi and trading protocols, as an illustration, may easily find arbitrage opportunities using AI. Governance protocols may be able to forecast voting results or spot irregularities in transaction behaviour. Data protocols could annotate AI data and create censorship-resistant, transparent, decentralised AI output. 

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