Most of the times we come across scenarios where one technology uplifts the other one. But the case is somewhat different when we talk about AI and blockchain. While both have their own perks, the incorporation of these techs into a venture could enhance the robustness and efficiency of the ecosystem.
Before we dig into the specifics, let’s skim through an overview of AI and blockchain.
Well, Artificial Intelligence or AI (as it is most widely recognized as) happens to be a combination of theory and practice where machines and algorithms are developed in order to act intelligently, as close to human reaction and behavior as possible. One of the common misconceptions is that AI is only used for robotics or hardware, but that’s wrong. Its use cases are applicable wherever programming is required. As far as blockchain is concerned, I assume you already know about it. But just to clue in the newbies, it happens to be a decentralized technology that stores your data under high encryption.
Let’s have a look at the reasons as to how the combo could work really well.
Encryption and AI have a taste for each other
Please note that the data held at HighBank (or any other blockchain network for that matter) is already very secure. That’s one of the foremost traits of the tech we use. This is the reason why we confidently store your private information, including the one obtained through KYC or listing procedure.
However, we have kept the long term scenarios in mind and since we are offering extensive use cases, we are hopeful that our adoption will surge in the near future. Therefore, a couple of months or years down the road, when our customer base increases and the system needs to handle a huge amount of sensitive data, the use of Artificial Intelligence could make it hassle-free.
In order to prevent any switching over in the future and disturbing our users, we have incorporated AI into our systems such that it allows the network to generate algorithms and process the data while it stays in a highly encrypted state. In short, we allow the AI-based algorithms to apply operations on the data without taking it out of the ‘secure shell’, hence diminishing the likelihood of a cyber-attack.
At this stage, it might seem like an exaggeration. However, in the long run, it is a very decent initiative. Plus, using it at an early stage allows us to test the efficiency and make any changes for when the user influx surges.
Blockchain can help us audit the AI algorithms
In the above heading, we talked about using AI to make algorithms and keeping the network’s data secure. However, in the beginning, when the AI-based system is not that robust, we might want to audit each of its moves to evaluate the decisions it is making in different situations.
At HighBank, one of the core uses of AI is to perform a rigorous background check of the team members and ventures and decide whether to allow it to be listed or not. In the initial months, we will be using the technologies together to ensure that our AI is performing just the way it should.
Using AI to manage the blockchain
The blockchain is a very powerful technology on its own but it needs someone or something for management. No doubt that humans could be used to serve the purpose or audit some reports, but when it comes to clusters of data, we need automation.
You must be thinking about using ‘mere’ computers right now. You know what? Computers are efficient when it comes to calculations. But when we talk about making decisions in varying situations, they are dumb! They only do what you tell them to.
But with the advancement in technology, it is crucial to deploy AI algorithms for managing entire blockchain networks.
For instance, let’s take mining as an example to understand the problem. Traditionally, the algorithms make use of the brute force mechanism for verifying a transaction. It basically refers to checking every possible sequence of characters before a match is found. It’s a waste of time.
Contrary to this, HighBank encourages all of its clients and ICO owners to make use of a more ‘intelligent’ and ‘humanly’ approach. It does not involve checking every single sequence. In fact, mathematical formulas are used to rule out the probability at every iteration in order to hit the answer. The process is several times faster than the brute force approach and is only achievable with the help of Artificial Intelligence.
Where does HighBank use AI in the ecosystem?
We use it pretty much everywhere for implementing efficient decision making. However, as mentioned above, we do plan to audit the decisions made by our AI system to ensure it is ‘really efficient’.
But the primary and most crucial aspect is the ICO listing. We do not only use it for verifying the legitimacy and lucrative nature of a crowdfunding campaign, in fact, HighBank has offices all across the Globe and if you ever pitch an idea to one of our teams, they will make it run through an AI-based algorithmic check.
Furthermore, when it comes to reviewing different ICOs, we believe that the industry is already suffering from biased reviews and rumors. This is one of the reasons as to why crypto niche is so volatile. In order to stop or at least prevent this from happening, we run every ICO through AI algorithms which pick a couple of most unbiased reviews regarding the project.
Such a transparent procedure does not only encourage the investors to pour in their hard-earned money, but it also provides a lucrative business model to the ICO owners and increases their likelihood of getting fully funded.