AI is compatible with blockchain making it the perfect match for cryptocurrency
- The standard variable in the blockchain AI equation is its attempt to deliver more accurate and faster results than any prior system
- The processing power of an AI is a feat deemed the world’s most outstanding achievement. The ability to learn patterns that are impossible to comprehend is the critical factor that coins AI in crypto trading
- AI crypto can mitigate Africa’s crypto issues by offering a simple solution to guiding new crypto traders in the world of cryptocurrency
Web3 is a new concept encompassing various elements such as cryptocurrency, blockchain, and AI, all of which run under decentralization. There have been significant applications of different blockchain technology in cryptocurrency, leading to more extraordinary discoveries and applications.
However, a new age of technology might be helpful in Africa’s crypto development, AI in crypto trading. Artificial intelligence is currently one of the most outstanding achievements in the technological world. By combing the mechanism in both aspects of Web3, we can achieve a concept known as AI crypto.
More often than not, you might not have come across such a term, but the compatibility of both crypto and Artificial intelligence is astonishing. It has the potential to not only completely change the dynamics of Africa’s crypto trade but also usher in a new age in blockchain technology.
Background check on Artificial Intelligence
Artificial Intelligence research has been on the rise since the early 1960s. Mentioning this brings out a picture of autonomous human-like machines that are fascinating. This is a facade implemented by science fiction.
It is the development of machines, software or computer systems (exceedingly) capable of mimicking human intelligence. The devices should be able to learn the reason, generate conclusive reasoning and self-correct mistakes.
The sheer thought of mimicking a sentient being that can function independently and adapt and give new ideas has led to its application in blockchain technology and cryptocurrency. There are two kinds of AI:
- Weak Artificial Intelligence exists in the form of self-driving cars and personal assistants. The relatable examples include Google Assistant, Apple’s Siri, Microsoft’s Cortana, Amazon’s Alexa and IBM’s Watson Assistant.
- Strong Artificial Intelligence, or Advance General Artificial Intelligence, still exists as scientists’ long-term goal. Many envision it as being able to speak, learn and relate to the environment as normal human beings. It should have a well-structured and advanced neurological structure and the ability to exhibit emotions.
AI has numerous benefits, one of which is its ability to process big data and notice errors and patterns that man cannot. This concept of accuracy birthed AI crypto, a way to apply AI in crypto trading to boost its value and benefit crypto traders globally.
A slice of AI in blockchain
To fully grasp the benefits of AI crypto, we need to understand the relatability of its mechanism with the very core of crypto; blockchain. Numerous articles show the benefits of blockchain and its compatibility in Africa’s crypto development.
Blockchain is a distributed digital ledger shared across peers in the network. Each node exists in a chain-linked network where transactions are verifiable by each one or none. The primary goal of blockchain is to offer a faster, more reliable system of transactions that is secure in such ways human intervention is scarcely required.
On the other hand, AI attempts at perfection and offers a system or “mind” that can process things faster. The standard variable in the blockchain AI equation is its attempt to deliver more accurate and faster results than any prior system.
This equation, however, offers several vital differences: AI works based on centralization, while blockchain is decentralized. This mix of a self-teaching decentralized network has caused many goosebumps in the technological world. Many developers and scientists are working on a way to realize this blend of simple ingenuity with complex processing.
AI impact on cryptocurrency; the age of AI crypto
The processing power of an AI is a feat deemed the world’s most outstanding achievement. The ability to learn patterns that are impossible to comprehend is the critical factor that coins AI in crypto trading.
In our day and age, data is produced at an astronomical amount and analyzing the consistent patterns can bring insight into predicting the subsequent rise or steep slop in the market. Thoroughly analyzing this data is an impossible feat for any crypto trader.
The average crypto trader can use no amount of software, data, and hardware to predict the next dip. However, this feat is within reach of AI crypto.
Its processing power allows it to sift through a lot of blockchain data, including historical market data, articles, forums and anything and everything that has to do with crypto. Through data analysis, AI crypto can predict and forecast market price-altering events moments before it happens.
The main attribute of AI is the ability to think independently based on a given set of data. Through the analysis, massive data sets can create logical strategies for traders to obtain relevant and clean data on a platform.
In addition, other blockchain technology can classify and categorize these strategies based on a crypto coin, document kind and even time or place.
Remember, these features are merely limited to the single field of cryptocurrency.
AI also can determine potential profit-making parties. A primary example is TradeConnect, which uses machine learning, a subsection of AI, to employ a side-matching system to assist crypto traders in locating potential parties to profit from.
AI crypto’s final but critical impact is the ability to predict crypto market sentiment. Most people don’t usually know this, but the general attitude toward cryptocurrency affects its price in one way.
The more positive reviews crypto gets, the more crypto traders it attracts; hence, the higher the demand. AI can analyze various forums and platforms to analyze the sentiment surrounding a crypto coin to predict its likeability. This is a cheat code to know where to invest next.
AI crypto in Africa’s crypto development
AI crypto can significantly reduce the workload of a crypto trader. Africa’s crypto ecosystem is rapidly growing and is currently the new buzz in the crypto world.
Unfortunately, only a small portion of African countries actively participate in cryptocurrency. Although there are attempts to increase awareness, cryptocurrency still has a massive stereotype.
AI crypto can mitigate this issue by offering a simple solution to guiding new crypto traders in the world of cryptocurrency. Its capabilities make it the perfect learning tool to increase awareness and showcase its useability. Since it’s a machine, most people would trust it more likely than a random individual trying to convince you crypto is doable.
We must face facts, especially with a new crypto winter brewing. Africa’s crypto adoption rate will rise during the first few months of the crypto winter. Although a significant decline is more likely to occur afterwards. We are providing AI in crypto trading that will enable African crypto traders to know which crypto to invest in. To obtain the correct steps to take to cushion themselves during this period.
Finding blockchain and crypto technology that utilizes AI is no easy feat. Only major exchange platforms use AI within cryptocurrency for market and price predictions.
At the moment, Africa’s crypto development rate is rapidly progressing. We will reach unimaginable heights if we can identify a way of incorporating AI into our endeavours to be a powerhouse in cryptocurrency. This is a cry for innovation, to find a way to merge AI and crypto by Africa for Africa.