How AI is Disrupting the Future of Blockchain, from Oracles to Smart Contracts

Artificial intelligence (AI) and blockchain technology are two of the most promising fields in today's digital landscape. AI is a rapidly growing field that has the potential to revolutionize the way we live and work. At the same time, blockchain technology is a decentralized digital ledger system that is considered to be the backbone of many emerging technologies. Together, these two technologies can create robust new solutions in various industries. 

How developers are using artificial intelligence in the blockchain space

One of the most significant ways AI is used in the blockchain industry is by developing smart contracts. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. This code is then stored and replicated on the blockchain network, allowing the contract to be executed automatically when certain conditions are met. With the help of AI, smart contracts can be made more efficient, secure, and accurate. 

AI can help automate the process of creating and verifying smart contracts, making it easier for businesses and individuals to develop and execute agreements faster and cost-effectively.

Artificial intelligence is also being used in oracles that transmit real-world data to the blockchain. For example, the data oracle platform Oraichain is a protocol that aggregates and connects AI APIs to smart contracts, decentralized applications (dapps), and standard applications. Smart contracts can then make data requests through those AI APIs, so, for example, a deep learning program can request real-world data via an oracle instead of a user doing so directly.

The platform uses an artificial intelligence marketplace that allows users to search and test different AI algorithms created by data providers and community members. Requests can be made via a portal if users cannot find the AI algorithm or service they seek.

The process works by a user sending a request from the AI API to the oracle platform, with a test being assigned to each request. For the request to be accepted, the API must successfully pass multiple tests to access the quality of the AI models. Validators carry out tests on the network.

After validators get information from AI service providers, they must check that the data is correct before adding it to the blockchain. Users, smart contracts, and other test providers can all help validate an AI API by giving validators test cases to run. When users need help with what to test, they can ask test providers for specific test cases.

Oracle scripts can be accessed through the platform's gateway or marketplace and called by users or smart contracts to complete a request. The script contains the data sources for the artificial intelligence provided by the AI API and the test cases and fees for completing each request. The request is then sent to a random validator, who will run the test scenarios for the data provider who submitted the request. The result is added to the blockchain if the data provider passes the test. If not, the request is canceled.

Testing is used to check the quality of AI service providers. Users of an AI API may also benefit from suggestions from test providers who can give them relevant test cases to run. Using test cases could give AI service providers a reason to improve the accuracy of their models.

The community could also rate the validators based on how well they have improved high-quality AI APIs in the past. When a validator does something wrong, like not running test cases or validating AI providers, taking too long to respond, or not being reachable, the value of the tokens it holds will decrease.

One of the key benefits of using AI in the blockchain industry is increased security. With AI, smart contracts and blockchain oracles can be more secure by detecting and preventing fraud, hacking, and other malicious activities. AI can also help detect and prevent code errors, which can help ensure that the contract is executed correctly.

Another benefit of using AI in the blockchain industry is increased efficiency. AI can automate the process of creating and executing smart contracts, making it faster and more cost-effective. It can also help filter and validate the data provided to the smart contract, ensuring that the contract is executed only when the conditions are met. This can reduce the time and costs of creating and executing contracts.

Using AI in the blockchain industry can lead to new business opportunities in addition to these benefits. For example, businesses can use AI-powered smart contracts to create new products and services, such as predictive contracts, which can help predict a contract's outcome before it is executed. This can help businesses to make better decisions and to improve their overall performance.

Conclusion

The combination of AI and blockchain technology is a powerful one that has the potential to revolutionize the way we live and work. Using AI in the blockchain industry can create more secure, efficient, and accurate smart contracts and blockchain oracles. These solutions can reduce costs, improve performance, and create new business opportunities. As technology continues to evolve, we can expect to see more.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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