Blockchain-based AI Marketplaces and Financial Analysis: Real Use Cases for AI and Crypto

We’re rolling out genuine use cases for AI and crypto each day this week — including reasons why you shouldn’t necessarily believe the hype. Today get two for the price of one: Blockchain based AI marketplaces, and financial analysis.

Blockchain-based AI Marketplaces

AI is an incredibly fast-growing industry requiring ever-increasing amounts of computing power. Microsoft alone is reportedly investing $50 billion into data center infrastructure in 2024 just to handle demand. AI also needs enormous amounts of raw data and training data, labeled into categories by humans.

Decentralized blockchain-based marketplaces are seen as the ideal solution to help crowdsource the required hardware and data. These marketplaces can be built using blockchain technology to create more effective and equal marketplaces for AI projects. Currently, AI projects often have to negotiate with a few big cloud providers, making it difficult to access the required capacity. Decentralized marketplaces offer an opportunity to source AI resources from a larger pool of providers.

Blockchain-based marketplaces for AI resources are gaining traction. Akash Network and Render Network are examples of successful companies that offer decentralized computing resources for AI. Aleph.im and SingularityNET are also notable platforms that provide access to computing and storage resources for AI projects.

Another emerging use case for blockchain-based AI marketplaces is tokenizing and trading AI models. Super Smash Brothers-like fighting game AI Arena allows users to train AI models that can be tokenized as nonfungible tokens and bought, sold, or rented.

Financial Analysis

AI analytics tools are perfectly suited for analyzing and understanding the ocean of data produced by on-chain financial transactions. These tools can summarize and interpret patterns, trends, and anomalies in the data, and provide insights and strategies for market participants.

Mastercard’s CipherTrace Armada platform recently partnered with AI firm Feedzai to use AI technology to analyze, detect, and block fraudulent or money laundering-related crypto transactions across 6,000 exchanges. GNY.io’s machine learning tool attempts to forecast volatility of the top 12 cryptocurrencies, and its Range Report uses ChatGPT-4 to analyze trends and buy/sell signals.

Bridgewater, a major investment firm, is launching an AI-driven fund that aims to analyze patterns in financial markets and make predictions for investors to capitalize on. However, previous attempts to use AI in financial markets have produced lackluster results. Combining AI with blockchain technology and standardized data can revolutionize traditional finance by ensuring trust, transparency, and accurate information for AI models.

Blockchain technology can provide an assurance layer that guards against companies fudging their results. It allows for comprehensive and accurate recording of data, which is essential for effective AI analysis and prediction.

While AI’s predictive abilities have shown mixed results so far, combining AI with trusted and reliable data recorded on the blockchain can enhance its capabilities and lead to more accurate prediction models.

Real use cases for AI and crypto are emerging in the form of blockchain-based AI marketplaces and financial analysis. These applications demonstrate the potential of AI and crypto to revolutionize industries and address current challenges.