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Artificial Intelligence (A.I.) Meaning

Nov 21, 2023 | Updated Nov 21, 2023
Artificial intelligence (AI) is the simulation of human-like intelligence by machines or computer systems to accomplish tasks. It is also a computer science field that focuses on creating intelligent systems.

What is Artificial Intelligence?

Artificial intelligence (AI) is the capacity of a computer program to learn or perform tasks often associated with human intelligence. AI systems are designed to analyze large datasets, interpret patterns, and solve problems with minimal human involvement. AI systems take user input, analyze the objective, and autonomously make decisions that achieve the desired outcome.

Artificial intelligence is categorized as either “narrow AI” or artificial general intelligence (strong AI). Narrow (weak) AI focuses on achieving a dedicated purpose, such as chatbot popups, trading bots, and facial recognition applications. Strong AI is not limited to performing a specific task. Instead, strong AI systems can perform a wide array of actions at human-level precision. 

Potential Impacts of Blockchain and AI Integration

Synergy between blockchain technology and artificial intelligence could have a significant effect on the future of technology. Such possibilities include:

  • Enhancing the AI training process – AI heavily relies on data to learn and perform its intended functions, and blockchains are known for immutable and permanent data storage. A data economy built on blockchains can offer AI models access to large datasets, which could help train AI systems faster and more effectively. Blockchain users could also be incentivized to lend their computing power to train artificial intelligence systems. 
  • Improving blockchain storage needs – Since blockchain systems permanently store transaction history, their size continually increases. AI could potentially introduce novel database sharding techniques, which would reduce the distributed ledger size and optimize data storage. 
  • Optimizing consensus mechanismsProof-of-work algorithms are criticized for their intensive energy consumption processes. AI can help improve the mining algorithm by optimizing power and energy consumption. It could lead to mass adoption of the technology.
  • Improving AI decision-making – Blockchains could be used to store every decision made by AI systems in an immutable and transparent manner. This would leave a clear audit trail that can be assessed, increasing the trust in the algorithm’s decision-making.

Cryptocurrency traders already leverage AI in algorithmic trading and trading bots to analyze market data, predict patterns, and automate the buying and selling of digital assets. The integration of AI and cryptocurrency is still in its infancy, with significant potential down the road.

Hot Storage

Hot storage, also known as a “hot wallet” is a crypto wallet that is connected to the internet, allowing users to manage their crypto assets online.

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Sharding

In the context of blockchain, sharding refers to dividing the network into smaller partitions to improve accessibility, scalability, and process more transactions per second.

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Staking

Staking refers to when a blockchain user locks up their cryptocurrency to secure the network and earn rewards.

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