How is Artificial Intelligence Affecting the Security of Crypto?

• Artificial Intelligence (AI) plays a crucial role in safeguarding the user’s data and assets from AI-powered attacks.
• Security of data with the use of AI is only possible when there is a robust structure for it.

AI and Crypto

As the world moves towards digitalisation, cryptocurrencies have gained significant attention as a means of transferring and storing money. This is simply because they operate on decentralised blockchain networks that provide top-notch security and immutability. 

With the crypto market’s growth, scalability, security, and efficiency have become essential requirements. The emerging trend of Artificial Intelligence (AI) has also made its way into the cryptocurrency world, addressing market shortcomings and enhancing efficiency and security. However, AI can also have significant negative effects on the crypto industry and its security.

AI-based Attacks

While AI has its advantages and disadvantages, hackers can leverage this technology for their gain. AI can help hackers identify patterns exposing weaknesses in computer devices and software. 

Phishing emails and malware are common methods of collecting sensitive information, particularly targeting popular custodians and their employees, exploiting personal data from social media. 

AI-based malware can infiltrate systems undetected, collecting useful information before launching an attack, emphasising the need for AI-powered security systems.

AI as a Security Tool against Cyber Attacks

The first defence strategy of any cyber attack is to study its pattern and its past episodes. By the use of AI, one can identify methods, timings, and hacker behaviour. 

By letting the AI review the previous transactions, attack patterns can be identified which can be used to handle the problem at hand as well as prepare defence strategies for the future.

The use of machine learning, which is a subdivision of Artificial intelligence, can increase the resiliency of smart contracts against cyber attacks. 

To improve the security of smart contracts, which are the pillars of strength of almost all decentralised finance platforms. It is important to ensure the toughness of a structure to get more users. This can be done by extensive testing of smart contracts and improving their defence against network invaders.

Another feature of AI is, it triggers automated and semi-automated responses to security attacks. Rapid action from the defence system affects the hacker’s behaviour. Moreover, employing a robust authentication process and better user identification can fortify the defence mechanism.

Tools like AMLbot can be used to identify potential dangers and check the wallet history of the user.

Conclusion

Understanding the potential risks of AI-powered cyber attacks is crucial in building effective defence mechanisms. Participants worldwide, including the team behind AMLbot, continuously work to enhance AI-powered security structures.