For the past few decades emergence of artificially intelligent technologies such as machine learning has advanced the means through which threats are detected. The ability of machine learning to extract intelligent insights from data and its high accuracy in fraud detection has led to its adoption in the blockchain industry. The combination of blockchain and AI is proving its relevance in cyber security. Digital currency such as bitcoin has facilitated the growth of blockchain technology. Distributed ledger technology is used in powering blockchain technology. Since blockchain operates in distributed ledgers, they form part of the distributed database systems. Basically, blockchain is associated with the nature of transparency and trust, especially when storing sensitive data in between various transactions that must be approved by various entities in an organization that is linked together. Blockchain and AI are gaining noticeable momentum in various industries, such as medicine, banking, and marketing, where trust is the major driving issue. Although AI has facilitated the growth of blockchain technology, it has exposed the technology to various threats as described below.
- Ai can be used to manipulate the blockchain users
In some cases, AI-powered bots can be used to generate false transactions with the primary aim of manipulating blockchain users. The methods used to achieve this depend on various situations and the motive of the AI users. For example, the behavior of blockchain users can be analyzed using an AI-based model. In the process of analyzing the user’s behavior, the weakness and vulnerabilities that can be associated with the user can also be monitored. This information can be exploited by launching attacks on innocent blockchain users.
- Ai can be used to compromise the security of the blockchain network
Malicious actors can gain access to very sensitive data of the blockchain network using ai. This can lead to the dysfunction of the network. Several algorithms can be vulnerable to hackers giving them access to the network, and they end up tampering with the network. AI can be used in analyzing network protocols. this is done basically to identify the vulnerability in such networks. For malicious actions, AI users can use this information to launch attacks against the network, and this will lead to the disruption of the network.
- The Use of AI can compromise the privacy of the data of blockchain users.
AI chatbots can also access private data from the user, which can later be mishandled.AI is used to analyze data on blockchain networks by identifying patterns that can be used to give detailed insight about a specific user. For example, AI can be used to analyze the transaction behavior of such users. When such sensitive information of the user, such as financial data or personal identification information, lands in the wrong hands, it can be used to score wrong goals.
- Ai can be used to deceive blockchain users. Ai bots can be used to send phishing messages to innocent blockchain users.
- The application of AI in blockchain makes the blockchain’s operation centralized, leading to the concentration of power at the mercy of a few people who have access to advanced technology in the organization.
- Ai can also be misused by some users in the blockchain to achieve malicious purposes such as money laundering.
- Application of ai in blockchain has led to the loss of jobs for some people in the blockchain industry. This is because most of the activities are automated.
As seen from the above explanation, artificial intelligence is the key enabler of blockchain technology. A number of implementations in the blockchain are made possible by the presence of artificial intelligence. It is worth noting, however, that when artificial intelligence is not used carefully, it can lead to major negative impacts on blockchain technology.