Artificial intelligence has had a huge impact on the future of bitcoin. This is largely due to advances in big data, which have made AI more versatile than ever. Last year, NewsBTC published a list of 10 of the biggest AI projects shaping cryptocurrencies. Some of these projects are versatile and can be used for applications beyond crypto. However, some are turning the cryptocurrency market around in a good way. Peculium is using big data to improve savings and will be hugely popular with cryptocurrency investors.
How AI is Changing Cryptocurrency in a Huge Way
The crypto world has been in a lull, thanks to its poster child’s recent bearish bent. Bitcoin has had its good time in the limelight, hitting a $19,800 all-time high in December 2017. The gods of decentralized currencies smiled on EOS, Ripple and other altcoins, driving the market capitalization of cryptocurrencies to the $795 billion mark in the same year.
Major investments in blockchain
As investors hold their breath, awaiting a price correction, something many pundits view as “the second generation of the Internet,” is rocking the digital currency world. Blockchain technology development has hit the floor running, and it is estimated that by 2023, blockchain investments will hit a $19.9 billion in revenues. This is largely due to advance in big data. As AI and big data play a more prominent role in its future, blockchain is bound to impact the world the same way the dawn of the internet did. Institutional investors, once very skeptical of bitcoin and all it represents are quickly staking their claims on blockchain technology.
J.P Morgan’s CEO, Jamie Dimon once referred to bitcoin as “worse than tulip bulbs and a bubble.” But their CIO Lori Beer has been quoted saying that blockchain will “replace existing technology.” J.P Morgan has recently launched a blockchain based payment platform.
Some of the expected blockchain solutions in 2019 include:
AI and big data are antidotes to blockchain’s trilemma problem
AI and big data are solving some of the most pressing challenges in blockchain. This will help make the cryptocurrency market more efficient. There has been a lot of hype over blockchain, but its more substantial premise remains unfulfilled. Blockchain has had the three-pronged issues of an imbalance between its decentralization, security, and scalability. The need to speed up transactions while keeping them secure and decentralized has pushed many researchers to solutions that are without a doubt controversial yet promising. EOS has crowned itself king of all decentralized applications infrastructure and with good reason. This blockchain based system, unlike Ethereum, is focused on solving blockchain’s trilemma shortcomings by enhancing scalability, the speed of transaction and flexibility. These three issues tend to bottleneck blockchain based systems, thanks to the limited availability of network resources. EOS has an authentication process that performs separately to its execution process. It also has a free usage ownership structure, role-based permission and delegated proof of stake concept for faster high-level decisions. Needless to say, EOS sacrifices a significant level of the decentralization feature of blockchain through its model, but its level of scalability is posed to handle real-world volume blockchain technology innovations.
Big Data, AI and Blockchain Fusion
Due to more sophisticated data driven AI algorithms, computers are getting tinier by the day. They are finding their way into every nook and cranny of our lives. This means that big data is continually bringing more information into our lives. It’s the IoT or Internet-of-Things age. Blockchain technology once merged with big data and the IoT to take the innovation world to levels unimagined before. IoT and blockchain were meant for each other and will both push the decentralization agenda further. IoT market is set to hit $520 billion by 2021. Blockchain plays a vital role in this future with platforms like EOS making this interaction seamless with lightning speed transactions. IoT will solve problems collectively in a Skynet type of sentience, liberating us to live a quality lifestyle, while focusing on things that matter the most in our lives. To fully maximize blockchain’s potential, it is paramount to find a way to address the innovation’s standard problems. Platforms like EOS have a lot of potential in increasing the adoption and integration of blockchain innovation to real life situations and this year will be key as EOS ecosystem takes form.
Big Data and AI Are Shaping the Future of Crypto
The cryptocurrency market is maturing, but it is still evolving with technology. Big data and AI are playing an essential role in the years to come. This will make the market more robust and efficient than ever.