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

Market making

Market making is a crucial process in the crypto trading business, with the important goal of offering liquidity to cryptocurrencies in the market. Let's explore this in detail, as follows: buying parties in the markets place a bid (the bid) for purchasing a particular crypto asset. A seller with an intent to sell the same type of crypto asset may place their asking price (the ask) for the asset. Usually, the values from the buyer and seller do not match because the buyers usually quote for less value and the sellers quote for more value. This can create a gap between the expectations between both parties, thereby creating a spread.

When the disagreement on the mutual price grows, the spread value widens and creates an illiquid token or cryptocurrency. Illiquid tokens are basically non-tradeable since expectations are not matched. Hence, lower trade volumes create a slowdown for the token and reduce the market capitalization of the respective token. This is detrimental...