Artificial intelligence (AI) is one of the most talked-about technologies in 2024. Most of these are driven by the success of tools like ChatGPT for language processing and Midjourney for image generation. However, the concept of AI goes far beyond these applications and its potential can help push for blockchain adoption in 2025.

Blockchain adoption is the goal of a decentralised finance (DeFi) ecosystem but it has several challenges that can hinder its success. AI could help by improving automation, addressing its weaknesses, and enhancing its strengths. But how can this tandem work? To understand this, it’s essential to be familiar with the basics of both technologies:

What is blockchain?
Blockchain is a decentralised ledger technology (DLT) used as a data-sharing platform. It’s the most popular structure for crypto like Bitcoin (BTC), so any development in this technology boosts what digital assets can do. Today, crypto is widely used for payments in services like BTC casinos or utilities like apps on Ethereum (ETH).

What is AI?
AI is the umbrella term for machine learning technology capable of processing human instructions and executing them as intended. This is a step above bot technologies that can only respond to prompts with preset instructions. Thanks to AI’s complexity, various online features have already improved like online search engines like the introduction of Google Gemini.

If the same tech can be applied to blockchain technologies, it can perform more complex tasks that were once limited to smart contract instructions. The possibilities are as endless as what AI is capable of learning as it continues to evolve.

What problems does blockchain have that require AI?
To understand how helpful AI can be in blockchain development, you should be familiar with the common problems in the crypto industry. Many of them are experienced worldwide across users of popular exchanges and the best Bitcoin casino sites. Here are some examples of problems that AI can address:

Smart contract optimisation
Smart contracts are self-executing agreements coded on the blockchain between two or more parties. At its core, the intent is to hold onto funds and release them when the conditions are met. AI can minimise bugs and vulnerabilities to optimise performance as well as enable ways contracts to evolve based on predefined AI-driven conditions.

AI can also analyse activities and trends, allowing it to predict potential failures before deployment. If implemented the correct way, this can save many investors from scammers or improve the function of a smart contract.

Automation for auditing and maintenance
Blockchain networks require constant monitoring to detect and solve issues before they cause any problems for their users. Automated auditing using AI can fix this issue to help detect vulnerabilities and provide solutions before any bad actors exploit them. AI can also predict potential threats and offer solutions so developers can implement them before they escalate.

Improve transparency and accountability
The blockchain is complimented for its transparency but the sheer amount of information it shares can overload the average user. AI can help filter these data and allow users to identify specific activities and users on the network. This way, people can sort trades and track ownership in real-time, encouraging strong accountability among its users at all times.

AI-powered transparency can help detect and address fraud or other suspicious activities before they find more victims. It also helps recover stolen/missent assets on the network which used to be a difficult task requiring government intervention. AI may take a while longer to be capable of operating this way but it can help regulators and enforcers protect investors.

AI can revolutionise blockchain
Blockchain is an impressive technology but it still has flaws that prevent it from gaining full confidence from various regulatory bodies. If it can implement AI’s complex structure and potential, then it can tap into solutions to its common problems as mentioned above.

That said, there is still a lot to learn about AI, including its potential vulnerabilities. If left unchecked, it can bring those weaknesses to the blockchain and hinder crypto adoption. The ultimate goal is to encourage more industries to embrace decentralised finance as commonly as online Bitcoin casinos. This is why developers wish to spend more time perfecting AI for blockchain.