artificial intelligence and blockchain are two of the most disruptive technology of Our Generation AI tools just as of right now they're not they're not good enough it's basically like having a a bunch of dumb Partners who can adhere to a very basic commands we use AI to organize your portfolio those things are fun but they're not technologically impressive artificial intelligence is reshaping every sector of the world economy including the crypto industry but is it really in this video I will cut through the noise and uncover the truth about AI in crypto I'll be addressing the main areas where AI is supposedly changing the crypto industry crypto trading blockchain analytics crypto user experience and finally some thoughts on the essence of these two technologies I'm Giovanni your host and this is a coin Telegraph report thank you one of the crypto areas where AI seems to have the most potential is trading you must have heard of AI trading Bots foreign these are computer programs that leverage Ai and machine learning to execute traits in an automated way these Bots can recognize patterns in crypto price movement and help traders in their decision making wait a second you may say trading Bots have been around for many years already so what Novelties AI bringing to the table well trading Bots that have existed so far are based on preset rules and algorithms basically they execute trades when certain technical criteria are met with the Advent of large language models such as chat CPT AI trading Bots are now able to process large amount of historical data which can then be used by Traders to make decisions to understand more about the potential of AI trading Bots we talked to Marcelo Mari CEO of Singularity Dao a project that is pioneering artificial intelligence in decentralized vitals so we could for example use artificial intelligence machine learning um to understand price fluctuation for example um we can try to trade the where major cryptos are going uh in the next day we can use natural language processing to understand social sentiments around certain cryptos we can understand which influencers are actually influencing the market in what way some crypto trading platforms are already using AI powered Bots the world's second largest crypto exchange by trading volume okay X has implemented an AI algorithm that allows users to capture volatility in the crypto markets still why they can be useful tools to enhance Traders capabilities AI trading Bots are still not sophisticated enough to replicate human trading we talked to Eric Crowell a veteran crypto Trader who told us about his own personal experience with AI trading Bots I mean a bot is not like a superpower it's not anything that's um it's not anything that you can't do yourself it's basically it's basically like having a a bunch of dumb Partners who can uh who can adhere to very basic commands but they can't do any like very um uh complicated thinking themselves I think people want or are looking at Ai and machine learning to actually actively create a strategy which right now it's it's I at least in my experience it's not good enough you know there's still going to be a pretty big component of human input into these things so that means be wary of any Bots that promise to make you rich while you are sleeping we are not there yet by the way if you want to know more about AI in crypto trading check out our latest video where I compete with Chachi PT in an investment challenge the potential of artificial intelligence is not just limited to Trading one of ai's core functions is gathering and analyzing a large amount of data in a short period of time some say this would be particularly useful in crypto where a large amount of public data is scattered across thousands of different blockchains in theory investors can use the data to predict market trends and make more informed decisions whatever there are data we can use artificial intelligence to better understand correlations and patterns we can see how certain entities are moving cryptos between exchanges between wallets between um between ecosystems for example we can see if a wallet or or a liquidity pool has been interacting with a flagged with a slight wallet or a bad ample to understand and analyze the counterparty risk associated with interacting with that label still there are serious limitations in terms of the data AI can use a large amount of Market data is generated on chain but kept off Chain by centralized crypto exchanges these entities decide how much of it is publicly available price prediction tools are still very are still failing inaccurate for for a number of reasons they should be using off-chain data but obviously off-chain data produced by exchanges and not easily accessible and if you train them using on-train data then the quality becomes the quality and the consistency becomes a real problem to actually make accurate addiction so when it comes to blockchain analytics AI is offering real value by processing data quickly and efficiently still the problem is the quality of the data the AI is using which is not always up to the task another way AI can provide value to the crypto industry is by improving the user experience in the last few months crypto exchanges have been integrating AI tools into their platforms as part of their customer support for example in May crypto.com has launched its own AI assistant called Amy which provides users with Market updates and other real-time information by leveraging chat GPT this function of AI can be applied to crypto education as well binance has integrated chat CPT into its web 3 Academy earlier this year this tool uses machine learning to elaborate answers using the information available on binance Academy so all these tools are definitely improving user experience on crypto platforms however they can be hardly called revolutionary Tristan green a writer at cointelegraph focused on AI told us why I'm not seeing anything out there other than just chat GPT and some of the chat GPT style plugins that I think is revolutionary today I mean obviously if you're going to run any type of interface on the internet well I don't care what you're selling if you're selling cars or you're selling nfts you got to have ai running the site because otherwise you've got to have 20 employees answering phones we use AI to organize your portfolio and chat GP told us the top 10 crypto those things are fun but they're not technologically impressive they're not going to make any VCS they're returned back so no real breakthroughs when it comes to user experience but I would say also not much hype either finally a few thoughts on a major obstacle that I think could slow down the integration of AI into crypto this has to do with the essence of these two technologies crypto is about decentralization and democratization of financial services it's about building web 3 a new internet where users are full in control of their own identities and finances AI on the other hand is very much centralized at the moment Tech giants like Google and Microsoft are developing the most advanced AI models behind closed doors and we all know what happens when too much power is concentrated in the hands of these big companies do we trust these entities to create such a powerful technology I think AGI should be open should be a collaborative as for it should be transparent potentially human regulated in order to be truly compatible with the ethics of crypto AI needs to be trained on data that is verifiable and transparent on the blockchain data that is not controlled by single entities that is why the development of web3 a decentralized version of the internet could have a very positive impact on AI let's face it most of the current Integrations of AI into crypto are experimental and there is no killer up yet still there is a lot of potential at the intersections of these two technologies and Innovation is happening very fast so when the dust settles in a few months I'm excited to see what will be left behind the hype that's all for today's video I'm Giovanni your host see you next time [Music]
