Blockchain, Bitcoin and Artificial Intelligence 1.0: All you need to know

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In basic terms, cryptocurrency is digital or virtual currency that uses cryptography for security. It is difficult to counterfeit because of its security are cryptocurrency bitcoin and artificial intelligence ai linked. More importantly it is not issued by any central authority, which makes it immune to government interference.

Bitcoin was the first to come onto the scene in and was created as a form of digital payment with an unchangeable database or ledger. It allowed individuals to are cryptocurrency bitcoin and artificial intelligence ai linked 3rd parties or middlemen from their payment processes.

This ability is highly attractive as you save significant fees. Everyone became a trusted 3rd party through a technology called blockchain, similar to a digital accounting ledger. You can see the history of every bitcoin and who owns it through the blockchain and no one can change an entry since everyone else can see a modified or missing transaction. The rise of cryptocurrency parallels the rise of an incredible wealth of data gathered by institutions belonging to virtually every industry.

With all this financial, behavioural, health etc. A loss of privacy and security 2. A diminished role that paper and manual transactions play in day to day life. We see this in action now with every Apple Pay or WeChat payment and the normalization of work collaboration in the cloud using an array of different documents for various purposes. What creates value for a digital coin or ICO initial coin offering is in many ways similar to attempting to value a brand new start-up.

Of course not all potentially valuable coins may have all the above features, but it will include a are cryptocurrency bitcoin and artificial intelligence ai linked of them.

Zcash — initially people used Bitcoin for private transactions but Bitcoin was not designed to be fully anonymous. This is where Zcash is useful. The technology behind Zcash allows it to be fully private and cryptographically hides information, revealing only what you want to be revealed. In other words, Zcash is both a coin and are cryptocurrency bitcoin and artificial intelligence ai linked protocol.

It is also one of the only coins built by professional and academic cryptographers. At present, with an increasing amount of personal information available online one can easily understand why this kind of private transaction enablement is appealing to many are cryptocurrency bitcoin and artificial intelligence ai linked.

Like Bitcoin, Zcash also has a limited supply of 21 million units. They are cryptocurrency bitcoin and artificial intelligence ai linked the first and their platform has the biggest adoption. Most coins are built on top of Ethereum. Ethereum can run apps and contracts eg. With smart contracts for example, if someone wanted to buy your car, the Ethereum smart contract can be programmed to verify the transaction and execute it once the payment is received in Ether digital token of Ethereum.

No lawyers, accountants or bankers! Amazon is one retailer many are looking to in terms of facilitating mass adoption of cryptocurrencies. There have been many rumours they are next in line as a major retailer to accept Bitcoin.

To fuel these rumours further, they recently secured three cryptocurrency domain names. The fervor surrounding the industry right now should be tempered, but volatility inherently creates opportunity. This is where AI and automation play a part. It is rare that intrinsic value in an asset changes from day to day so quickly, but this will be present in the cryptocurrency world for some time. Machine learning is a form of AI and this forms a critical part of chatbots or trading bots.

Bots are essentially automated systems that share information, answer queries and perform actions. They have exploded onto the cryptocurrency scene due mainly to the market volatility noted above and the desire for skilled traders to capitalize on this.

These bots use machine learning to improve themselves over time as are cryptocurrency bitcoin and artificial intelligence ai linked people use and interact with them for more tasks.

With bots and automation, arbitrage trading has become a reality for many traders and has helped the industry grow, increase its worth and significance. Although bots simplify the entire trading process through automation, you as the trader ultimately are cryptocurrency bitcoin and artificial intelligence ai linked to decide on the trades and transactions that the bot should focus on and set the parameters.

This is true for automation bots in other industries as well. Automation bots are designed to do something specific and carry out a specific set of instructions, which requires working knowledge of the process in question and the market it is in. For trading purposes, these bots are extremely useful for taking advantage of market inefficiencies. Over time, with a greater number of traders use these bots, these inefficiencies will slowly disappear which will create greater market stability.

In a separate but related space, a newly created hedge fund launched in June is using crowdsourced machine intelligence and proprietary digital tokens in an attempt to create a new collaborative finance culture.

Traditionally, a hedge fund will hunt for an edge and guard it. The ultimate path to generating wealth for their clients is finding market inefficiencies that no one else can. This new hedge fund company called Numerai wants to leverage machine intelligence to create a positive network effect by incentivising collaboration to create better trading models.

Underlying their ambitions is an AI system that chooses all the trades. Several thousand data scientists compete to create the best trading algorithm to win Numeraire digital tokens. The value of the Numeraire token grows in proportion to the overall success of the hedge fund. Richard Craib and his team at Numerai believe that the most successful hedge fund in the coming future will the one that first brings network effects to capital allocation.

Cryptocurrency enthusiasts believe that cryptocurrencies are here for the long term contrary to what some traditional economists and bankers believe.

The industry is still at a very early stage and many draw comparisons of this market to the early Internet boom. There will be many digital currencies and ICOs that fail but the ones with strong fundamentals, again similar to the Internet boom eg.

Amazon, eBay, Priceline etc. As mentioned earlier, it seems inevitable that money, already virtual will become more so as we shift to a digital economy. Money as with many other aspects of our lives has become data.

According to MIT Are cryptocurrency bitcoin and artificial intelligence ai linked David JohnsonBitcoin specifically can still affect the world economy even if it does not become a currency that everyone uses or understands:. As the role of cryptocurrency continues to grow around the world, AI and automation related to machine learning will form a big part of building the credibility and value of the crypto market.

Their role in facilitating the reduction of market inefficiencies over time will ultimately create greater investment stability for digital tokens. From an economics perspective economies are already inextricably tied due to global trade.

The cryptocurrency market will affect these ties - are cryptocurrency bitcoin and artificial intelligence ai linked it is still too early to assess the specifics.

One thing is certain, we are venturing into novel yet exciting times. AI and automation will play an important role in some of the potential impacting factors for the economy related to the cryptocurrency market:. Cryptocurrencies are traded across borders with no centralized authority, government or otherwise.

Globally crowdsourced machine intelligence and digital coin mining by private individuals based around the world creates an open form of a global financial economy. One that is based heavily on collaboration. Cryptos and the ability to crowdsource AI models from around the world can possibly build a more secure and diverse financial economy.

From a tech industry perspective where the crypto market emerged, the founding concepts related to this currency - collaboration, decentralization and security were formed to create an alternate financial economy that in some ways is superior than the traditional system for consumers. As the crypto market enters the mainstream, it begs the question: Only time will tell if the cryptocurrency market will be able to intersect positively with the traditional financial economy.

In the meantime, some firmly believe that AI and automation's supporting but vital role may help determine that one of the core fundamentals of the cryptocurrency market based on collaboration, can enrich more people than its traditional counterpart in finance - competition. Does it create value? Does the coin have a solid useful purpose?

Who makes up the team? Have they built other technologies before? What is their news coverage like? Is the coverage solutions based? Is there a limited supply? For example, there will only ever be 21 million Bitcoin units created, no more. This is by design in its code.

Crowdsourced Machine Intelligence In a separate but related space, a newly created hedge fund launched in June is using crowdsourced machine intelligence and proprietary digital tokens in an attempt to create a new collaborative finance culture. According to MIT Economist David JohnsonBitcoin specifically can still affect the world economy even if it does not become a currency that everyone uses or understands: Long Term Impact and Significance From an economics perspective economies are already inextricably tied due to global trade.

AI and automation will play an important role in some of the potential impacting factors for the economy related to the cryptocurrency market:

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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. 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. 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. 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. 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.

Customers can use it to acquire business AI services and insights. Users can monetize AI: It could aid robotics, biomedical analytics and cybersecurity areas. It is in alpha but planning for a scalable solution in mid SingularityNET started on Ethereum blockchain but is hoping to move to a faster blockchain this early 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 but was officially deployed on Ethereum in June Currently, it hosts more than 30, 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. 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.

Peculium is the first savings management platform on the blockchain. 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. 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 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. 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. 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. 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. After that, you watch for high-performing algorithms that you can buy and sell on the Antonio marketplace.

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.

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.

Check their trading instructions here. A number of ICOs are scheduled this year by a number of startups in various industries, from health care, business automation, robotics, finance and research. We cover some details about these projects below. AICoSoft is creating an artificial intelligence for medical researches. It is innovative because traditional methods of medical research take a lot of time since there is a lot of data to be analyzed.

They are looking at a machine that is able to collect all that information and speed up the process. They will work with universities, independent medical researchers, foundations and doctors in generating this data on the blockchain. AI can therefore help do the research much easily. Also, not all useful traditional researches in the area of medical research are being used for medical purposes as they should. How helpful would it be to being all this data and information together on the blockchain?

They hope to release an AI-Software and the app in June Skychain is more of an AI medical marketplace. It will bring together medical big data owners, developers of medical neural networks, doctors and patients and crypto miners in a blockchain environment that facilitates treatment of diseases, illnesses and conditions by leveraging neural networks and data accuracy. These networks are built by distributed and independent labs and research centers and will have all types of information and data that doctors can use to treat patients and pay developers a fee.

Developers of the neural networks can also train these networks for a fee on many datasets. Medical data providers can provide their datasets for a fee to allow the neural network training.

Crypto miners will provide their computer resources for neural network training and calculation. The company has already developed proof-of-deep-learning-training and proof-of-inference algorithms. Patients can expect more accurate treatment due to application of neural networks.

This will improve a situation where 1 in 10 medical diagnosis are wrong. Participants were able to get a 50 percent bonus on the ICO sale at sign up. GraphGrail Ai is what you would need if you are able to create linguistic applications and want to sell them and make money. It can also be used to create neural networks using Google Tensorflow and other tools. They hope to solve the problem of lack of enough datasets in data-science and text mining.

For instance, they say there is not enough datasets with seven figure sample sizes from thousand to million samples to teach neural networks in banking, telecom, media and government agencies and other industries. They say using machine learning to gather, clean and make training and test sets is very difficulty and takes a lot of time 5 and 10 months. Magnus held a pre-ICO which ended on February 5th.

The main ICO started on February 15th and is ended. It is a robotics and AI automation and marketplace for organizations. It will bring together intelligent A. The MGS tokens can be used to lease robotic platforms and buying and deploying skills. Users can also use the tokens to stake and earn part of transaction fees from the collective. Farma Trust provides a global tracking system that ensures counterfeit drugs do not enter the medical chain. However, it does provide additional value added services to the phamaceutical industry to allow for efficicency and to better the marketplace.

They also cause about a million deaths per year. This is the problem they will be tackling by bringing together pharmaceutical companies, governments, regulators, warehouses, manufacturers, logistic and shipping companies and hospitals, as well as the public on the blockchain. For instance, they will use blockchain and AI to improve reporting and eliminate the supply chain of fake drugs.

Users will use an app and a token. They extended their pre-TDE from 15 February The ICO took place on 15 March CREDITS is a separate blockchain targeting to use smart contracts and a public data registry to facilitate for financial and loan services, trade, medicine, identification, exchanges, Internet of Things IoT , and many other applications.

For instance, financial institutions can use it to connect to markets and IoT devices and data. Credit robots can issue loans with most optimal terms regardless of where the customer is located.

It will also provide a software development kit that developers and users can utilize in the process. It goes beta this march and the platform would be released in June.

The platform will include a construction materials and supplies marketplace that brings together customers, producers, logisticians, warehouses and network partners for automated sale of goods and services without middlemen networks.

Koios is a decentralized AI and Machine Learning blockchain marketplace that hopes to bring related technologies to even smaller companies. They hope to bring together data scientists and AI developer communities to construct and maintain multiple libraries.