Book Image

Practical Artificial Intelligence and Blockchain

By : Ganesh Prasad Kumble
Book Image

Practical Artificial Intelligence and Blockchain

By: Ganesh Prasad Kumble

Overview of this book

AI and blockchain are two emerging technologies catalyzing the pace of enterprise innovation. With this book, you’ll understand both technologies and converge them to solve real-world challenges. This AI blockchain book is divided into three sections. The first section covers the fundamentals of blockchain, AI, and affiliated technologies, where you’ll learn to differentiate between the various implementations of blockchains and AI with the help of examples. The second section takes you through domain-specific applications of AI and blockchain. You’ll understand the basics of decentralized databases and file systems and connect the dots between AI and blockchain before exploring products and solutions that use them together. You’ll then discover applications of AI techniques in crypto trading. In the third section, you’ll be introduced to the DIApp design pattern and compare it with the DApp design pattern. The book also highlights unique aspects of SDLC (software development lifecycle) when building a DIApp, shows you how to implement a sample contact tracing application, and delves into the future of AI with blockchain. By the end of this book, you’ll have developed the skills you need to converge AI and blockchain technologies to build smart solutions using the DIApp design pattern.
Table of Contents (15 chapters)
Section 1: Overview of Blockchain Technology
Section 2: Blockchain and Artificial Intelligence
Section 3: Developing Blockchain Products

Making price predictions with AI

Traditional markets, as well as the cryptocurrency market, are considered efficient if the growth of market capitalization increases gradually over time. One dimension of the market that deserves more attention in making margins has always been price prediction. Predictive analytical concepts have been put into practice in traditional markets for money making through algorithmic trading.

Several timestamped datasets serve as an input to a model that is able to classify whether a stock or a cryptocurrency price has increased or decreased based on dynamics such as news, announcements, and also reactions of the market to any regulatory actions made to a specific cryptocurrency.

Let's now try to understand some of the top issues faced by price prediction markets in cryptocurrencies.

Issues with price prediction

Let's look at the top two issues with regard to price prediction of cryptocurrencies. They are detailed as follows:

  • Unable to adjust the...