A London based company called
Elliptic recently made a claim that only 2% of
Bitcoin transactions are unlawful. To respond to that a partnered study was created by
IBM and
MIT to check whether the statement was actually true. It "utilized Artificial Intelligence and deep learning algorithms to reach its conclusions, represents something of a landmark for the use of AI in the blockchain and cryptocurrency industry. Of the 200,000 transactions analysed throughout the study, two percent were deemed unlawful, 21 percent were considered legal, while the remaining 77 percent were left unclassified. A key element in the success of the recent study is the utilization of artificial intelligence throughout the procedure. The integration of AI into the process of AML(Anti Money Laundering) protocols is significant in that it highlights how far the technology has come. Artificial intelligence is now sophisticated enough to both analyse and navigate the complexities that the blockchain presents.
Artificial intelligence’s role in the world of cryptocurrency and the prevention of criminal behaviour is already fairly well defined at this point, but the integration of the technology into the blockchain industry could be a game-changer of significant proportions." Especially considering the reputation
Bitcoin is creating for itself for unlawful and illegal activities despite the evidence this research has created against it. "Today there is still a lot of skepticism of the blockchain and crypto worlds, more so the latter, but that is to be expected of an industry that is still relatively young and finding its feet. What cannot be denied is the vast potential that blockchain technology offers, and the integration of AI is yet another facet of this industry that could change the way we go about business in the future.
The
Elliptic report isn’t the first time we’ve seen AI technology used in the blockchain and crypto world. Companies such as Singapore-based
DeepBrain Chain and
Velas, a startup based out of Europe have been forging a path for quite some time now.
For Alex Alexandrov, CEO of both
Velas and crypto payments gateway
CoinPayments, the role of artificial intelligence in the blockchain industry is simple: To solve problems. “Here at
Velas, our purpose is to address and fix existing issues and challenges faced by most existing Blockchains, such as centralization for example, or 51% attack, nothing at stake problem, scalability, security, high upfront expenses and so on. This is done by using neural networks optimized by artificial intelligence to enhance its consensus algorithm.”
In a recent interview with a leading cryptocurrency news outlet,
DeepBrain Chain CEO He Yong explained that
DeepBrain Chain aimed to “connect all the idle AI computing resources globally so that the entire network can share computing power.”
We are seeing the technology gain more and more acceptance from academics and developers alike, which can only be a good thing for overall progress within the space. The work carried out thus far by companies like
Velas and
DeepBrain Chain is shining examples of what is possible when AI is utilized alongside blockchain technology."
-Source
https://www.investing.com/analysis/elliptic-data-ibm-find-only-2-of-bitcoin-transactions-are-unlawful-200453542
