AI is simply machine learning where machines have capability to learn from input data and perform set and mixture of complex tasks as desired such as predicting future trends without human intervention. At its current state, AI functionality is expensive, time-consuming, and hard to use. Those are some of the hurdles that stand the way of AI's market projected growth from $200 billion to $3.1 trillion by 2025.
How exactly will blockchain technology help achieve that remains to be seen with only a handful of projects specializing in blockchain AI projects. Nevertheless, blockchain might play a major role in facilitating that growth.
In the recent past, two main trends have emerged in relation to AI markets. The first is decentralized AI markets that involve combination of blockchain, on-device AI and edge computing and the Internet of Things (IoT).
For instance, decentralized autonomous organization on Ethereum are run by AI agents in charge of managerial decisions. These are employed in the distributing of royalties, subscription payments and more. Still, device-centric AI supported by mobile machine learning libraries like Apple’s CoreML is another segment. Complex AI algorithms can also be run on IoT devices like sensors, security cameras, drones or autonomous vehicles. This is AI-based edge computing, which is related to on-device AI algorithms.
The other trend is development of Decentralized Intelligence Networks on the blockchain. For instance, SingularityNET allows for coordinating and transacting AI services.
Using the network, companies can not only monetize AI solutions (which enables a global AI marketplace) but also access different AI algorithms. The network runs a protocol shared by AI products and which supports data exchange and sharing across different algorithms.
AI can be applied in hedge funds and cryptocurrency trading which requires predictions and crypto mining. It can help reduce energy consumption in mining, improve blockchain scalability problems, improve security and privacy, improve network efficiency and help open many "data gates" such as data trading avenues.
On the other hand, blockchain can help AI redefine itself, lower market entry barrier, increase artificial trust, reduce risks.
Here is a look at a few companies combining blockchain, cryptocurrencies and AI.
AGI tokens is the native cryptocurrency for the SingularityNET, which is a decentralized autonomous organization of AI Agents. We already described this project above, but AIs can pay other AIs for services using AGI cryptocurrency.
It facilitates a digital global “token economy.” A community of AI agents determines the number of AGI tokens to be paid as rewards as well as the AI agents to be rewarded, for instance for delivering great AI services, accurate or impactful ratings of other AI agents or other tasks.
Customers can use it to acquire business AI services and insights. Users can monetize AI: companies and developers can buy and sell AI at scale. It could aid robotics, biomedical analytics and cybersecurity areas. It is in alpha but planning for a scalable solution in mid-2018.
SingularityNET started on Ethereum blockchain but is hoping to move to a faster blockchain this early 2018 and move from Proof of Work algorithm.
Numerai is an AI hedge fund platform using artificial intelligence to make trades. It uses a Numeraire (NMR) cryptographic tokens to incentivize data scientists who participate and contribute intelligence to the hedge fund's learning model. The AI generated from the inputs is then used to determine trades. The project started in 2015 but was officially deployed on Ethereum in June 2017. By that time, it had paid over $200 000 in payments to their users using Bitcoin.
Numerai protocol links machine intelligence to the stock market.
Currently, it hosts more than 30,000 data scientists from around the world who come together to improve the machine learning strategy.
Data scientists are able to earn money by staking it on their predictions as an incentive method.
Furthermore, datascientists can earn Numeraire by competing in Numerai’s data science tournament.
The token was not sold in a “crowdsale” or “ICO” because the company raised $7.5 million in traditional venture capital from Union Square Ventures, Joey Krug (Augur), Juan Benet (FileCoin), Fred Ehrsam (Coinbase), and Olaf Carlson-Wee (Polychain).
What's more? The company won a Forbes Fintech 50 for 2016 award.
Aieve is an AI and ML software to help people manage their savings and portfolio and to trade cryptocurencies by leveraging multiple and cross-platform and device data and advanced info analysis. It is powered by Peculium and supported by Artificial Intelligence, Nature language processing NLP, Machine Learning, Big Data, Predictive Analytics and Data Visualization.
Peculium is the first savings management platform on the blockchain. It uses the Peculium Tokens (PCL).
Natural Language Processing (NPL) is used to extract and gather semantic meaning from large volumes of unstructured text from multiple sources including social media or RSS feeds and other platforms. This helps predict the cryptocurrency market with a higher accuracy level.
Market predictions are generated using variety of models such as ARIMA, Neural Networks, Xgboost and Prophet in order to make portfolio management much better. Near real-time analysis of blockchain is done using big data and the data is streamed using Kafka to make gathering fast. Fast analytics is possible due to use of Impala or Kudu.
AICoin is run by First Global Credit (FGC), which is a blockchain market company since 2014. AICoin works like a cryptocurrency investment collective (tokenized investment pool) and is basically used for trading other cryptocurrencies. Market opportunities are identified and trades executed using AI.
It runs on the Ethereum Blockchain and raised over $3 million in a last year ICO. AICoin bridges a conventional trading or investment company and a DAO without using a formal structure. It is used to trade various products on a live trading site.
It entailed two stages. The first was use of the ICO funds to make short term trades in multiple crypto markets using AI. In other words, AI models are used to score the market in order to identify profit opportunities in top seven cryptocurrency markets. In the second stage, profits from these trades (in this stage) are used to finance investment in early stage AI and public blockchain companies. This creates wealth for coin holders.
Anyone can take investments through a traditional equity stake or in the purchase of ICO tokens.
The investment decisions are made by AICoin Investment Board some of whose members are voted by the participants.
Forty percent of the profits are distributed back into the trading while fifty percent goes into a start-up investment pool and 10 percent to additional research and development.
Meet out-of-Xian's, China, Antonio project, which is actually quite an innovative project using AI to facilitate trading cryptocurrencies. You will pay just $50 monthly subscription ($20 registration fee) in the platform's native cryptocurrency NIO (Ethereum ERC 20 token) in order to run the live trading system on your computer or virtual private service network.
After that, you watch for high-performing algorithms that you can buy and sell on the Antonio marketplace. It works on Windows, Linux and Apple iOS.
That said, you do not have to spend 16 hours a day running technical analysis or spend thousands of dollars for centralized algorithm bots to make more from cryptocurrencies. Worse still, you do not have to do manual analyses that takes time and turn out worse for your profits.
Besides, you do not have to be a professional trader to trade cryptocurrencies profitably, no matter what anyone said to you about it.
Traders can also user more than 25 trading indicators such as Exponential Moving Average (EMA) crossovers, Relative Strength Index (RSI), Bollinger Bands, and Ultimate Oscillator to analyze the market and generate appropriate buy/sell signals and maximize returns from their trades.
You will need not be an expert programmer to trade on the platform. You will be able to trade dozens of coin pairs on major exchanges. Some of the features include stop-loss order, take profit order, and exchange.
Next month, There will also be AI trading bots that adopt to changing market conditions. Satisfied? Check their trading instructions here.
The team collected just $54,000 worth of Ether tokens in its ICO and the token is already on sale on EtherDelta exchange.
The tokens are used to trade, as well as reward participation.