AI-integrated blockchains can herald development environments

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Blockchain is one of today’s biggest tech buzzwords, and rightfully so. For a technology that began as a way to democratize user authority across many industries, blockchain has moved beyond technical whitepapers to real-world applications that impact many consumer-facing spaces. But with increasing demand, its limitations are becoming quite apparent. Not to mention the increasing cost of development for developers looking to test and build their own networks. So how can the ecosystem make room for the next generation of creators?

There is no doubt that as the blockchain skills gap widens globally, the largest participants in the ecosystem need to empower developers with simplified production environments. The dominance of a few leading networks has highlighted both the strengths and weaknesses of a single approach. Therefore, we need more developers to boldly deploy solutions targeting specific segments such as financial services, healthcare, gaming, etc.

The blockchain trilogy of scalability, security, and efficiency continues, and this is where the integration of on-chain AI is key to enabling networks to be more responsive and naturally evolve with user needs. If done right, private networks can enable alternative blockchain infrastructures to be tailored to the specific needs of different industries, requiring a trustless system for 100% data privacy, scalability, and speed.

We see L2s like rollups and sidechains providing a practical solution by processing transactions off the main chain. This significantly increases throughput without compromising the security of the underlying L1.

The role of AI in blockchain goes beyond simply improving functionality and efficiency. AI-integrated networks can optimize operations such as transaction validation and network security management by dynamically adjusting blockchain parameters in real time. The ability to predict and manage network load allows transactions to be distributed more efficiently across shards or aggregates, reducing latency and significantly improving scalability.

By enabling developers to build their own AI-integrated L1 and L2 solutions, the dependency on large networks can be reduced. Further diversifying the blockchain landscape helps avoid monopolies and creates a healthier, more competitive environment that spreads the associated risks.

Several platforms have begun to demonstrate the benefits of this approach. For example, L2 solutions such as zero-knowledge rollups and optimistic rollups on the Ethereum network have successfully reduced transaction costs and increased throughput without compromising the security of the underlying blockchain. These technologies use complex cryptographic techniques to process transactions off the main chain and demonstrate the potential for scalability and efficiency.

Despite these advances, integrating AI into blockchain is not without its challenges. The computational intensity of AI models, the ethical implications of autonomous systems, and the regulatory hurdles associated with new technologies require careful consideration and proactive management.

All said and done, the future of blockchain technology must embrace flexibility, innovation, and above all, customization. But to make this a reality, developers, stakeholders, and regulators must come together to support blockchain’s evolution into a tool as diverse as the industries it aims to transform. This approach will not only solve current challenges, but will also pave the way for a future where blockchain technology is at the core of the global digital infrastructure, supporting everything from economic transactions to securing sensitive data, while maintaining the integrity and efficiency that users demand.

Igor Bershadsky

Igor Bershadsky, co-founder of Phron AI, is a web3 entrepreneur with a background in cybersecurity and blockchain, enriched by 13 years of experience in traditional finance before moving into fintech. His extensive background includes a key role as a regional advisor at Hacken, focusing on blockchain security challenges and solutions. In addition to his role at Hacken, Igor has held influential positions such as President of Cybersecurity Services at Helasoft, CEO and Co-Founder of TowerFox, LLC, and COO at the International Cybersecurity Center, where he developed and implemented comprehensive security strategies. At Phron AI, he is building the future of dynamic proof-of-consensus AI integrated blockchain networks, focusing on cybersecurity and flexible throughput for various industries.