The terms ‘interoperability’ and ‘cross-chain interoperability‘ might seem daunting at first, but they are fundamental to unlocking the full potential of blockchain technology by allowing different chains and networks to communicate efficiently.
When we introduce artificial intelligence (AI) into this mix, it amplifies these capabilities significantly. AI enhances smart contracts, making them smarter by automating processes in finance, supply chain management, and data analysis.
In this article, we explore four real-world examples where the synergy of AI and blockchain is transforming the Web3 and cryptocurrency landscape.
1. Chainlink’s Oracle Network
Chainlink utilises artificial intelligence to create highly reliable oracles that connect AI smart contracts across different blockchains. By applying machine learning algorithms, Chainlink ensures accurate data feeds and reduces the likelihood of tampering.
A prime example is Arbol, a crop insurance platform that leverages Chainlink’s decentralised oracle network to provide farmers with parametric insurance.
How It Works
- Data collection: Chainlink’s oracle network gathers real-time weather data from multiple reliable sources like weather stations and satellites, including temperature, rainfall, and humidity
- AI-powered analysis: The collected data is processed using AI algorithms to assess crop health and predict potential yield losses due to adverse weather conditions
- Smart contract execution: Based on AI-powered analysis, parametric insurance smart contracts are triggered on the blockchain. These contracts automatically issue payouts to farmers when predefined weather thresholds are met, indicating a high risk of crop damage.
- Decentralised claims processing: This automated process eliminates manual entries, reducing errors, fraud risks, and delays
Benefits
Farmers receive quick financial support during extreme weather events, thanks to tamper-proof data and automated underwriting. The use of AI oracles fosters trust in the insurance process.
2. Fetch.ai and Bosch
Fetch.ai, an AI-powered blockchain platform, and Bosch, a global leader in engineering and technology, showcase a successful partnership between AI and blockchain.
Fetch.ai employs machine learning to create autonomous economic agents capable of tasks like data sharing and transactions across multiple blockchains.
Challenges Addressed
- Traditional industrial systems often face data silos, inefficient processes, and limited automation.
- Fetch.ai and Bosch aimed to tackle these issues by developing a Web3 decentralised intelligent infrastructure for industrial applications.
Solution
- Autonomous Agents: Utilising Fetch.ai’s Autonomous Economic Agent (AEA) framework and Bosch’s industrial expertise, they built a decentralised network of intelligent agents. These agents autonomously communicate, negotiate, and collaborate to optimise industrial processes.
Applications
- Supply chain management: AEAs can autonomously negotiate supply contracts, plan optimal logistics routes, and manage inventory levels, leading to cost savings and increased efficiency
- Energy management: The agents help regulate energy consumption by adjusting usage based on real-time demand and supply, enhancing sustainability efforts
3. Polkadot’s AI-Powered Substrate
Polkadot integrates AI to manage its multi-chain environment, optimising network performance and automating seamless interoperability between parachains. AI-driven analytics enhance security and predict potential network threats.
Astar Network, a leading Polkadot parachain, leverages Substrate’s flexibility and Polkadot’s interoperability to implement the dAppStaking initiative, allowing users to stake tokens on both the Astar Network and the decentralised applications (dApps) built atop it.
How It Works
- Substrate flexibility: Astar Network uses Substrate’s modular framework to create a custom runtime for dAppStaking, defining unique tokenomics and incentivising developers and users
- AI-powered optimisation: AI algorithms analyse factors like dApp usage, transaction volume, and community engagement to allocate staking rewards efficiently. This incentivises developers to build high-quality dApps and encourages user participation.
- Polkadot interoperability: Astar’s connection to Polkadot allows seamless interaction with other parachains. Users can transfer tokens across parachains and participate in dAppStaking on Astar, regardless of where their assets are held.
Benefits
Developers earn a direct revenue stream by building on the Astar Network, while users are more engaged as they interact with dApps to earn additional staking rewards.
Did You Know? aelf is Joining the AI Blockchain Movement
Earlier this year, aelf announced its new chapter on the AI frontier, utilising large language model capabilities to enhance the blockchain’s intelligence and adaptability. Central to this initiative is a groundbreaking partnership between aelf and AgentLayer, the world’s first decentralised network and AI protocol provider, aiming to create a permissionless network for AI agents.
Current Developments:
- Decentralised AI infrastructure: aelf is accelerating the growth of infrastructure that facilitates the development and deployment of AI-powered decentralised applications (dApps).
- Developer-friendly tools: With an in-house toolkit, dApp builders can smoothly transition into aelf’s emerging AI landscape.
Benefits of aelf’s Shift into AI:
- Advanced task automation: Reduces human bias and enables fairer validations.
- Lower barriers to entry: Developers can leverage AI technologies for easier smart contract creation and receive on-demand support.
- Intuitive user experience: Offers intelligent personalisation features to meet the needs of a growing user base.
- Enhanced security protocols: Helps prevent fraud and malicious activities, promoting peace of mind.
Decentralised finance (DeFi) projects on aelf’s layer 1 AI blockchain, such as Forest and Project Schrödinger, are set to benefit from these advancements.
*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. Aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.
About aelf
aelf, an AI-enhanced Layer 1 blockchain network, leverages the robust C# programming language for efficiency and scalability across its sophisticated multi-layered architecture. Founded in 2017 with its global hub in Singapore, aelf is a pioneer in the industry, leading Asia in evolving blockchain with state-of-the-art AI integration and modular Layer 2 sK Rollup technology, ensuring an efficient, low-cost, and highly secure platform that is both developer and end-user friendly. Aligned with its progressive vision, aelf is committed to fostering innovation within its ecosystem and advancing Web3 and AI technology adoption.
For more information about aelf, please refer to our Whitepaper V2.0.
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