Blockchain technology has inadvertently become the hottest topic of discussion when discussing about ledger based technology. And Artificial Intelligence is another, completely different concept that has garnered equal and competitive traction. But imagine the possibilities when these two worlds collide?
This article is a brief insight that delves into this collusion. Cryptocurrency has been touted as the future of financial transactions and modules. Different countries have started taking a firm and resolute stance on the incorporation of a standardized and regulated cryptocurrency. The Big 4, which are the world’s largest accounting firms namely E&Y, PwC, KPMG and Deloitte, have started incorporating blockchain into their operations and are further developing this technology into different sectors.
But whilst referring solely to cryptocurrency, AI has found a way to get involved. In the field of Bitcoin mining, everyone has stepped up to take part and thereby making it more difficult to mine. As the number of miners increase per day, the difficulty in solving the block code becomes harder by default! Also, the sheer computing power and electrical surge required to mine bitcoins has gone up seismically! Bitcoin mining machines require Gigawatts and hours-to-days to mine bitcoins. The speed of computing power is termed as FLOPS (Floating Point Operations per Second). Currently, the total power input for bitcoin mining is roughly around 8.22×1023 FLOPS across the globe. But the total average computing power used on a daily basis for regular activities is only around 1.23×1023 FLOPS. A rough calculation has deduced that bitcoin mining consumes close to 18 percent of the global computing power, contradicting the reality that this power could be used more productively.
And this is where AI enters.
Specifically designed AI algorithms can be created to solve the block codes and mine bitcoins. AI Company ‘Matrix’ is in the process of re-designing mining algorithms by including an AI into the sequence using a Markov Chain Monte Carlo (MCMC) algorithm. This algorithm functions closely to the principle of mining and thus can be used for this specific operation. The AI can operate with lower power consumption numbers as compared to the bitcoin mining machines or ASIC’s (Application Specific Integrated Circuit).
This makes it cheaper to operate and increases profitability for mining. The speed at which the AI can solve the block code is also greater. A basic over the counter ASIC is known to be able to mine approximately 0.05 bitcoins per day, as long as the required power is supplied. A specifically constructed AI would be able to mine twice this amount with half the power requirement roughly!
Apart from mining, Intel recently filed a patent for a piece of technology that is in development in their labs. The AI powered system will harness the energy (Heat and Electrical) output from the process of cryptocurrency mining and use it for other purposes, which is genetic sequencing in their case! Different companies are developing suitable technologies to harness this power to fuel other research capabilities in the fields of chemistry, financial module simulation and even medical diagnoses!
By effectively using the excess power and contributing to the reduction of power consumption in cryptocurrency mining, AI has effectively optimized the Blockchain industry. AI has cemented itself as the future of every industry! It is now the era of disruptive technology and AI is the disruption!
Many companies have either started incorporating AI tools into their operations or are further sourcing these innovative solutions through a variety of means, including attending summits like the World AI Show on 16-17 April, 2018 at The Address Dubai Mall in UAE.
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