The adoption of cryptocurrency and blockchain technology is shifting the way we usually interact with various business processes. The change is especially seen in the finance sector. Also, this year has been the period of price rise for Ethereum and Bitcoin with the launches of their new versions. Due to all the active innovations, we can say that the market will become more widespread in the future.
Aside from this, NFTs are also adding value to the blockchain market. However, there are some security issues that blockchain still has to deal with. Though the network follows exceptionally strong security protocols, there are still some loopholes. Hence to solve this problem, blockchain is leveraging machine learning technology. Experts say that the combination of two robust technologies will make the processes more efficient.
Let us see ways in which blockchain leverage machine learning:
Table of contents
- Understanding machine learning
- Understanding blockchain technology
- Ways in which blockchain can leverage machine learning:
- Better cryptocurrency trading with machine learning
- Security enhancement for payment networks
- Utilizing deep learning techniques to tackle cryptojacking
- Closing Thoughts
Understanding machine learning
Machine learning is one of the branches of computer science and artificial intelligence. Basically, the intent of machine learning is to utilize algorithms and available data to mimic the manner in which humans learn. Doing so can improve its accuracy.
Additionally, the data science space also considers machine learning as one of its crucial elements. Further, the system can train algorithms to make predictions and classifications and extract critical insights from the projects by using statistical techniques. Having such insights can benefit the decision-making process for businesses.
In addition to this, companies will also be learning about key growth metrics. Furthermore, due to the expansion of big data in today’s tech world, the demand for data scientists is increasing. The individual with data scientists roles assists in identifying the relevant business queries and extracting information to provide answers.
Understanding blockchain technology
Blockchain technology creates a framework where it records the data on a public digital ledger. The process of information addition over its network takes place in a manner that the chances of hacks, alteration, or frauds become minimal.
Moreover, each member on the network has access to information copies of every transaction on the system. Due to this quality, members can detect any modification on information in real-time and reject the transaction right away.
A certain number of transactions takes place in a single block on the ledger, and when a new transaction happens, the system automatically adds transaction data to every member’s ledger. This concept is possible due to distributed ledger technology. Further, it creates a decentralized environment for carrying out the transaction processes.
Also, to learn more, you can visit many blockchain certification programs available for beginners.
Ways in which blockchain can leverage machine learning:
Better cryptocurrency trading with machine learning
Cryptocurrency trading of popular currencies like Ethereum and Bitcoin is becoming popular among investors in the retail industry. Currently, the stock market uses machine learning algorithms to facilitate trading bots that provide efficient service. Hence, blockchain can leverage ML methods in cryptocurrency trading processes as well. Furthermore, by using reinforcement learning, the crypto community can have a better user experience and profits.
Security enhancement for payment networks
One of the main advantages of blockchain technology is providing a permissionless payment system. Thus, blockchain platforms serve as a decentralized solution to offer smooth payments at a low transaction price.
Furthermore, this solution is more feasible for people as current centralized banking charges high costs and provides slow transactional speeds. However, even though it is an effective change in the finance industry, the mass adoption of blockchain is stuck due to security concerns.
It is because transactions over a blockchain network only need a set of private and public keys. And, chances of theft and fraud are known to be common in such settings.
This is where blockchain can leverage machine learning to enhance its security. With the help of ML techniques, systems can find consistency in users’ activity in real-time. Additionally, it will protect blockchain investors along with users.
Optimization in the space of crypto mining
Cryptocurrency mining involves the use of a supercomputer to solve complex equations on a blockchain network. Also, the miners on the network who solve the complex equations get remarkable incentives in the form of cryptocurrencies. Hence, employing powerful supercomputers can solve such equations more quickly. Here machine learning can come in handy to optimize mining processes and prevent misuse of mining resources. For this, using traditional reinforcement learning algorithms on a blockchain network can offer miners better mining strategies. Further, it will also help them to gain better rewards.
To learn more about this subject, you can check out the blockchain council, a platform where highly knowledgeable blockchain advisors will help you out.
Utilizing deep learning techniques to tackle cryptojacking
Concerns related to security is a problematic issue in the crypto mining space. Moreover, institutions with massive computing infrastructures like government and academic institutions are the typical targets for crypto-jacking. Hence, deep learning can effectively identify the occurrence of any malicious programs. By doing so, it can eliminate the risk of hackers hijacking computing resources.
The applications of machine learning in the realm of blockchain go beyond the price valuation of cryptocurrencies. Apart from this, machine learning can also efficiently answer the security concerns within blockchain technology. For this, it can use reinforcement learning and deep learning and optimize the background functions of cryptocurrency mining and trading.
Blockchain can employ machine learning to build its applications in various sectors and
satisfy the communicative needs of industries. However, the original objective of blockchain technology must be the priority to get to its highest potential. Even though both these technologies have an uncertain future, We cannot deny what they bring to the table. The combination of machine learning and blockchain may transform the existing roadmap across multiple industries.
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