AI-Infused Blockchain Technology – How It Fortifies Blockchain Security?

AI-Infused Blockchain Technology – How It Fortifies Blockchain Security?

AI-Infused Blockchain Technology – How It Fortifies Blockchain Security?

AI-Infused Blockchain Technology – How It Fortifies Blockchain Security?

AI-Infused Blockchain Technology – How It Fortifies Blockchain Security?

Read Time: 5 minutes

The two transformative technologies– Blockchain and AI are both here to be the future and reform the way things work. 

These two technologies combined have already garnered significant investor interest. Believe not? According to reports, so far in 2023, AI-powered crypto projects have attracted $422 million in investments by venture capitalists. Worldcoin– a verification and identity protocol, and Auradine– an AI and privacy-oriented Web3 protocol, are a few notable projects developed using the combination of AI and blockchain.

On one side, blockchain stands indistinguishable for its key aspects of immutability and decentralization of data. In contrast, AI, on the other hand, possesses the ability of decision-making from data collection.

We certainly know AI and blockchain are two giant technologies gaining rapid momentum. But have you ever wondered how much value we can derive from their united capabilities? Before getting to that, let’s understand AI and blockchain. 

A brief overview of AI and Blockchain Technology

Artificial Intelligence(AI) leverages a vast amount of data and mimics human reasoning capabilities for decision-making. AI gathers data & experiences and exhibits improved performance over time.  

Blockchain works using a decentralized digital ledger that records peer-to-peer transactions without intermediaries. Blockchain powers decentralized applications to perform with greater transparency, immutability, and resistance to censorship.

But on a closer look, concerns around ethics, privacy, and bias are at the forefront of AI. Ensuring AI systems are developed and deployed responsibly, with transparency and accountability, is crucial. As for blockchain, scalability, energy consumption, and regulatory frameworks pose significant challenges.

Fusion of AI and Blockchain

Combining AI and blockchain can have several benefits in the Web3 ecosystem. Firstly, AI can help improve the efficiency and security of blockchain networks. AI algorithms can optimize consensus mechanisms, enhance scalability, and detect and prevent fraudulent activities. 

Secondly, blockchain can enhance the trust and transparency of AI systems. Recording AI-related activities on a blockchain makes it possible to verify the integrity and authenticity of data, algorithms, and results. This ensures accountability and reduces the risk of data manipulation or biased outcomes.

How AI Helps In Blockchain Security?

The convergence of artificial intelligence (AI) and blockchain technology gives rise to an unparalleled tech-enabled decision-making system. The merger of both establishes a virtually invulnerable framework, ensuring data integrity and informed decisions of exceptional reliability. Let’s see how AI brings value to blockchain security. 

1. Threat Identification: AI algorithms by analyzing vast amounts of data, can identify patterns that indicate potential security threats within the blockchain network. For instance, by monitoring transactions, AI-powered systems can catch any suspicious behaviour.

2. Fraud Mitigation: Machine learning models can be trained to recognize known fraud patterns and proactively flag suspicious transactions or accounts, providing additional protection against deceitful activities.

3. Smart Contract Security: Smart contracts are susceptible to vulnerabilities, and AI-powered tools can be used to comprehend the code logic of smart contracts. It thereby helps detect potential security flaws before deployment, reducing the risk of smart contract exploitation.

4. Privacy and Anonymity Protection: AI can be employed to develop advanced encryption and privacy-preserving techniques within blockchain systems. By leveraging techniques such as homomorphic encryption or zero-knowledge proofs, AI can help protect sensitive user data and ensure anonymity while maintaining the integrity and transparency of blockchain transactions.

5. Network Monitoring: By monitoring network traffic, AI-based monitoring systems can right away detect any network intrusions, including distributed denial-of-service (DDoS) attacks.

Manoeuvring The Power of AI and Blockchain Integration

Combining the values of AI and blockchain brings new efficiencies and opportunities across industries. 

  • Supply Chain: The self-executing nature of smart contracts aided by artificial intelligence could greatly impact goods management. The AI-predictive analysis could be leveraged to gain insights into demand patterns for particular goods and stock inventory by data-driven decisions. The digitization of these processes eliminates the fraud which happens in paper-based processes. By this, the resource allocation and supply are well managed.
  • Financial Services: DeFi has grown multi-fold, making peer-to-peer transactions and transparent financial services easily accessible. AI model could make a significant contribution by utilizing the on-chain financial stack of web3 and performing recurring payments without relying on intermediaries. 

Additionally, AI, through its data-driven approach, can suggest investment strategies in DeFi, offering a whole-new financial experience to users. AI’s decision-making capabilities and blockchain’s effectiveness automate the process while protecting the system from fraud.

  • Data Analytics: As blockchain involves human economic and social activity to a larger extent, understanding their needs is crucial. This is where exactly AI comes in and performs large-scale analytics using sophisticated machines and gathers the on-chain data. In this way, it is easier to learn about the trends for businesses and users to make informed decisions on the opportunities that emerge on-chain.
  • Health care: Records of certain sensitive information would live on the blockchain. Utilizing AI models, these data can be used to analyse health data for diagnosing purposes. With blockchain as the foundation for secure data storage, AI-driven diagnostic tools can be developed to create a more personalised healthcare system.
  • Smart Contract Development: With the number of AI tools in place, the productivity of the developers can be increased in the order of magnitude. AI and blockchain together can unleash an out-of-the-world web3 gaming experience for users. Gaming developers can use the combination of tech to generate scripted in-game events, code game mechanics using generative on-chain models, etc.

AI-powered Blockchain Protocols In Effect


The blockchain-based platform VIDT DAO utilizes decentralized timestamping technology to secure and verify digital data, including certificates, firmware, and AI results. VIDT DAO’s recent announcement of FileValidator introduces a user-friendly tool that allows for timestamping AI prompts and results, promoting transparency in AI model performance. 


LunarCrush, a crypto-asset intelligence platform, leverages AI to offer real-time insights and analytics about crypto projects. By using social analytics tools, LunarCrush empowers users to make informed investment decisions based on accurate data, avoiding the influence of fake news and baseless hype from social media.

Closing Thoughts

The convergence of blockchain and AI technologies is profoundly transforming the business operations landscape. Harnessing their immense potential in unison allows for a more secure digital future.

About QuillAudits

QuillAudits has a renowned reputation for safeguarding over $30B in crypto assets through our range of services, including code audits and due diligence. We proactively deploy our expertise to eliminate vulnerabilities in the web3 ecosystem, making it a safer place for users.


Blockchain for dog nose wrinkles' Ponzi makes off ~$127M🐶

Project promised up to 150% returns on investment in 100 days, raising about 166.4 billion South Korean won — or about $127 million — from 22,000 people.

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