The cryptocurrency sector is continuously evolving and upgrading. These changes may be small, but they have the potential to change the entire industry. Along with these changes, there arises a question of its viability. That can be changed if AI technology is implemented into the process of dealing with cryptocurrency.
For instance, much as how the internet is crowded with hackers and spammers, cryptocurrency is susceptible to such threats.
In this article, we have listed 5 ways AI technology can influence cryptocurrency so that the whole process is carried out smoothly and safely.
AI’s Influence on Cryptocurrency
There has been an incredible rise in the adoption of cryptocurrency by new platforms and businesses in the market, but that also makes them increasingly susceptible to fraudulent threats. Fortunately, AI can prevent such threats from happening, as we have discussed below:
Prevention of Fraud
Security is one of the major factors to consider when it comes to dealing with cryptocurrency. Now that crypto is being dealt with in many major corporations and projects, it has unfortunately become a haven for fraud and spam.
This is where AI comes in: it can help to thwart any efforts being made by hackers and spammers to hack into cryptocurrency. For instance, AI bots are designed to identify any fraudulent transactions and then prevent them from being carried out.
Faster Transaction Speed
Slower transaction speeds have been an issue that the cryptocurrency has to deal with. It takes up to 24 hours for the transactional process to complete using the consensus method.
But that has now improved with the help of AI. New consensus methods now include cutting down the transaction durations to a few seconds.
Improvement in Data Collection
Many businesses, that are adopting cryptocurrencies, can use AI’s help to find the right and trustworthy information on the internet.
They can use the natural language, the human language understood by the machine as it is spoken, to analyze user reviews and comments on social media platforms. AI then collects insights about the market from these reviews and comments, so that businesses can make further predictions.
Efficient Use of Energy
When dealing with crypto mining, it requires an excessive amount of time and resources to be carried out perfectly.
Since AI has already proved to be effective at optimizing energy consumption, it can be during the process of crypto mining. AI helps to monitor all equipment used in mining and analyze the available data.
Providing Security
Blockchain technology is naturally impossible to hack, but the layers that it contains do not provide sufficient protection. This job is done by artificial intelligence technology.
AI has a structure of the system in place that makes it an ideal ally in ensuring that the secure deployment of apps is being carried out in the blockchain. It also makes it easier for bitcoin currencies to appear on any cryptocurrency list around the world, without any fear of threat.
Wrapping Up
Cryptocurrency may be regarded as a volatile investment by many, which has led them to wonder if there is a future in it. But with the increase in the adoption of cryptocurrency, the need for AI technology has also grown and become more critical. AI’s ability to accurately analyze data and provide real-time security will be an essential tool used in crypto and many businesses need such assurances. The five influences of AI on crypto mentioned in this article are just the beginning of how it can change the game.
