In recent years, both blockchain and cryptoasset industries have faced challenges, including legal and regulatory actions and the infamous crypto winter.
However, amidst these hurdles, the conversation around artificial intelligence (AI) has become ever-present. With the rapid adoption of AI technologies like ChatGPT and significant investments pouring into AI projects, it is clear that the integration of AI and crypto is gaining traction. While some may view AI and crypto as adversaries, the reality is that these two mega trends are set to accelerate and reshape the future of the industry.
Despite the concerns and problems that have arisen within the cryptoasset space, the trends of blockchain-based transactions, tokenized financial assets, and the integration of AI into businesses are here to stay.
Recent moves to promote bitcoin and crypto investing options, as well as the increasing focus on AI projects and constructive policy, highlight the growing momentum in this field. However, challenges such as a lack of trust, past collapses, legal actions against fraudsters, and transparency issues continue to hinder the progress of firms operating in the crypto space.
One significant issue plaguing the crypto sector is the lack of transparency, real-time reporting, and comparable reporting standards. Regulators and investors have expressed concerns about these issues, leading to a call for improved practices.
AI, in its various forms such as large language models and neural networks, can play a crucial role in addressing these challenges. By leveraging AI applications, firms can enhance their efforts to reduce fraud, improve transparency, and implement real-time reporting. For instance, Mastercard’s recent launch of Mastercard Crypto Credential demonstrates how AI can support transparency and fraud detection in the financial industry.
Smart Contract Review
Smart contracts are essential components of blockchain-based and cryptoasset applications. They enable decentralized finance applications and non-fungible tokens to interoperate with other cryptoassets, counterparties, and established financial institutions.
However, issues with implementation, lack of widespread standards, and the specificity required by smart contracts have limited their applicability in many businesses. AI, whether in the form of large language models or other AI technologies, can assist firms in analyzing, reviewing, and revising smart contracts. These AI-powered tools can streamline the implementation of smart contracts, making them more efficient and effective for businesses.
Both blockchain and cryptoassets have been searching for a “must-have” application and use case. The rise of AI, particularly with the emergence of intuitive and user-friendly applications like ChatGPT, has brought attention to this need.
As chatbots and other bot-augmented processes become more prevalent, the likelihood of bots interacting, transacting, and paying each other for services or products increases. This presents an ideal opportunity for blockchain-based payments using tokenized assets. AI-powered bots and applications have the capability to continuously analyze and transact information, making them ideal for bot-to-bot payments and confirmations. This integration of AI and blockchain opens up new possibilities for seamless and automated transactions.
AI is not a panacea for all the challenges faced by the crypto space, but it holds tremendous potential to improve understandability, transparency, and comfort in utilizing cryptoassets effectively. Real-time transparency, smart contract review, and bot payments are just a few areas where AI can make a significant impact. As the adoption of AI accelerates, it will help cryptoassets find their must-have use cases and pave the way for the next level of growth and innovation in the industry.
By embracing AI and leveraging its capabilities, firms in the crypto space can navigate the complexities and build a more secure and efficient ecosystem for crypto transactions. The integration of AI and crypto is an exciting development that will shape the future of the industry and unlock new possibilities for businesses and investors alike.