AI and Crypto: The Future of Blockchain Innovation

Artificial intelligence (AI) and cryptocurrency are key emerging technologies. Combined, they boost each other’s potential, reshaping innumerable interactions, including finance and social. In this article, we’ll show you how these technologies may work together to change the world.

Written by: Anatol Antonovici   |  Updated  April 10, 2024

Reviewed by: Mike Martin

Fact checked by: Ryan Grace

Table of Contents

🍒 tasty takeaways

  • AI and crypto are a perfect match. A recent report found that most small and medium-sized enterprises (SMEs) viewed AI and blockchain as complementary technologies.

  • Blockchain can bring trust and transparency to AI, addressing AI’s ‘black box’ challenge.

  • AI can transform many crypto use cases, including DeFi, NFTs, oracles, trading, and compliance.

Summary

Key Concept Insight
AI & Crypto Synergy Combining AI and cryptocurrency enhances finance and social interactions through improved transparency and efficiency.
Blockchain's Trust Blockchain technology adds trust and transparency to AI, addressing its "black box" challenge.
AI's Transformative Role AI transforms crypto use cases such as DeFi, NFTs, and compliance, streamlining operations and security.
Crypto Evolution From Bitcoin's launch in 2009 to today's diverse market, crypto has evolved to empower decentralized finance and communities.
AI Advancements AI's growth, from neural networks to ChatGPT, showcases its potential to revolutionize problem-solving and creativity.

The Evolution of Crypto

The cryptocurrency market ‘officially’ began in 2009 with the launch of Bitcoin (BTC), marking the first use case of the underlying blockchain technology.

Later, Ethereum (ETH), which popularized the smart contract feature, spurred the initial coin offering (ICO) craze in 2017 and eventually paved the way for the growth of the decentralized finance (DeFi) sector.

In about 15 years, crypto has evolved into a diverse market comprising DeFi, non-fungible tokens (NFTs), security tokens, and Web3 apps, among others.

Crypto’s main goals are to democratize finance, enable secure peer-to-peer interactions, and empower communities through decentralized governance.

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The Evolution of AI Technology

Unlike crypto, AI’s origins can’t be traced back to a precise date. The technology was conceptualized decades ago by thinkers and scientists witnessing the rapid growth of innovative computing technologies.

Alan Turing, a pioneer of AI, envisioned in the mid-20th century a computing machine capable of simulating any task requiring human intelligence.

AI made a significant leap in the 1990s, with developers building neural networks that mimic our brain’s structure.

The 21st century has seen major advancements in robotics, natural language processing, speech and image recognition, and deep learning.

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Source: Dr Paul Marsden

The evolution of AI has culminated with the launch of the ChatGPT chatbot by OpenAI, which reached 100 million users in a record short period.

The goals of AI are to improve problem-solving, streamline automation, promote creativity, and take social interactions to a new level.

AI & Crypto Synergy

Both AI and blockchain play a major role in the so-called Fourth Industrial Revolution (4IR), a term popularized by the World Economy Forum (WEF).

Interestingly, AI and cryptocurrency create a powerful synergy with unpredictable outcomes.

While the WEF calls for a highly centralized global society with AI-powered corporations at the helm, the crypto sector promotes decentralization and community-driven economies. Therefore, the merger between these two major technologies has two vectors of development.

According to a report by the European Investment Bank, the total capital invested in AI and blockchain SMEs is accelerating, reflecting increasing adoption rates.

Source: EIB

A recent report by Casper Labs found that most surveyed businesses regard blockchain and AI as complementary technologies.