Choose any industry, and you can guarantee that AI will have been proclaimed as its next big thing. The cryptocurrency sector isn’t any different either with many ICOs integrating the concept into their whitepapers in their bid to present their idea as “cutting edge.” AI is to technology what blockchain is to the crypto industry- a concept whose real applications are substantially outnumbered by the projects that are interested only in latching onto the buzzword and surfing and milking it for all that it is worth. Considering that startups associated with AI fetch about 15–50% of extra funding than other tech projects, it can understand why companies seek to align their plans with artificial intelligence.
AI and blockchain have undeniably been two of the most significant technologies that have catalyzed the pace of innovation and acquainted every industry with radical shifts. While every technology has its share of technical complexities and business implications, using them together can help in redesigning the entire human and technological paradigms from scratch.
It is highly likely that the negative implications of AI will not be as bad as sci-fi movies and books depict. However, the possible negative consequences of AI can still pose significant threats to the human race. Experts have discussed consequences like losing jobs to AI, where humans may soon be replaced by AI in various roles. The competence of AI can already be witnessed in different industries such as healthcare, retail, aviation, manufacturing, and many more as AI-enabled applications have transformed and streamlined various business procedures. Hence, well-established businesses are leveraging AI for automating core tasks. For instance, Goldman Sachs had replaced almost 600 traders with AI-powered robots. Likewise, a majority of customer service jobs are now handled by AI-enabled chatbots. Hence, people are concerned about AI taking over jobs in just about every industry.
There are various areas in which artificial intelligence is proving it’s worth when it comes to automated trading. Amongst these are high-frequency trading (HFT), which depends on the examination of technical indicators across different exchanges to respond to market-moving trades much more quickly than the rest of the market. For instance, if a trader was required to place a large Bitcoin purchase on Kraken, HFT could arrange for an order to be completed on another exchange instantly so that the price spike could be capitalized upon, thereby, eliminating the issue of dead crypto coins.
Artificial intelligence can neither serve as a panacea that can be applied to make up for every limitation of the cryptocurrency industry, nor is it going to render the brightest human minds redundant overnight. Nevertheless, it has already begun exercising a great deal of control within the industry. Its ability to facilitate everything from faster order execution to bot detection and scammer identification has helped it in transforming the cryptocurrency industry to a significant extent.
Credits — Sujit Kumar Pathak