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AI can help make Blockchain networks much more seamless and help with Smart Contract Executions.
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Fraudulent activities can be detected with the help of AI
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AI can bring flexibility to smart contract design and resolve disputes much faster
The rise of AI has taken the world by storm and with AI applications like ChatGPT we are moving into a new era of blockchain-based smart contracts. Comprehensive development of technology will change the way industries work and improve contract efficiency, automation, development and ease of use.
Cryptocurrencies like Bitcoin and Ethereum powered by the Blockchain decentralized ledger have gained a lot of popularity due to their extreme ability to provide transparency and promote trust among users. Simultaneously to this, machine learning and natural language processing are two areas in which artificial intelligence has had significant development. Both, together with the development of AI, have the power to improve the functioning of the Blockchain network and the execution of smart contracts.
AI in the Blockchain network
Blockchain networks are completely decentralized and do not ensure any point of control or failure. Although decentralization has the ability to strengthen security, efficiency and scalability remain challenges. AI in this field is poised to improve data processing and storage on the blockchain. Due to the heavy and widespread use of Blockchain, slow transaction speed is one of its drawbacks compared to traditional means, but AI here can help by processing payments faster, reducing transaction times, enabling a smoother user experience fluent and improve confirmation time. AI can help the blockchain network maintain peak performance by recognizing and identifying patterns of network congestion
AI also helps in the prevention and detection of fraudulent activities that occur on the blockchain network. Machine learning (ML) algorithms can suspect malicious behavior by analyzing transaction data on the network and highly enabled security approach and spot potential red flags and improve network reliability. Artificial intelligence elevates smart contract execution
Execution of smart contracts with AI
Smart Contracts are not exactly Smart Contracts according to their name, they are basically agreements encoded in a block chain input as codes that can be self-executed and run automatically when a set of predetermined conditions are met. Unlike traditional contracts, smart contracts offer transparency, are tamper-proof, and are cost-effective. Although smart contracts have many advantages over traditional ones, they cannot be easily adapted to the ever-changing circumstances and this is where AI steps in and plays its role in improving the execution and functionality of smart contracts.
Improvement in Smart Contracts
Most of the problems smart contracts face are due to their rigid and inflexible design which can now be fine-tuned with the help of AI. AI has the ability to make smart contracts and quickly adapt to any conditions or new information that arises. Artificial intelligence and machine learning algorithms can help update contract terms based on current market conditions and asset performance. The embedding of AI in smart contracts makes them more responsive and better meet the needs of the parties.
Dispute resolution in smart contracts
Many problems like disputes between parties, misunderstandings in contracts and errors increase, but with Artificial Intelligence things can become much smoother. AI can improve the dispute resolution process, evaluate and execute smart contract terms on its own, and resolve issues before contract execution takes place.
Future ahead with AI
The impact of AI on the blockchain can be very beneficial in the coming years as it is making the smart contract ecosystem much more seamless and hassle-free. With the combined potential of Artificial Intelligence and Blockchain, many developments can take place in both industries and can greatly improve the user experience.
