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Beyond Trading Data: The Hidden Influence of Public Awareness and Interest on Cryptocurrency Volatility

arXiv.org Artificial Intelligence

Since Bitcoin first appeared on the scene in 2009, cryptocurrencies have become a worldwide phenomenon as important decentralized financial assets. Their decentralized nature, however, leads to notable volatility against traditional fiat currencies, making the task of accurately forecasting the crypto-fiat exchange rate complex. This study examines the various independent factors that affect the volatility of the Bitcoin-Dollar exchange rate. To this end, we propose CoMForE, a multimodal AdaBoost-LSTM ensemble model, which not only utilizes historical trading data but also incorporates public sentiments from related tweets, public interest demonstrated by search volumes, and blockchain hash-rate data. Our developed model goes a step further by predicting fluctuations in the overall cryptocurrency value distribution, thus increasing its value for investment decision-making. We have subjected this method to extensive testing via comprehensive experiments, thereby validating the importance of multimodal combination over exclusive reliance on trading data. Further experiments show that our method significantly surpasses existing forecasting tools and methodologies, demonstrating a 19.29% improvement. This result underscores the influence of external independent factors on cryptocurrency volatility.


Review of blockchain application with Graph Neural Networks, Graph Convolutional Networks and Convolutional Neural Networks

arXiv.org Artificial Intelligence

This paper reviews the applications of Graph Neural Networks (GNNs), Graph Convolutional Networks (GCNs), and Convolutional Neural Networks (CNNs) in blockchain technology. As the complexity and adoption of blockchain networks continue to grow, traditional analytical methods are proving inadequate in capturing the intricate relationships and dynamic behaviors of decentralized systems. To address these limitations, deep learning models such as GNNs, GCNs, and CNNs offer robust solutions by leveraging the unique graph-based and temporal structures inherent in blockchain architectures. GNNs and GCNs, in particular, excel in modeling the relational data of blockchain nodes and transactions, making them ideal for applications such as fraud detection, transaction verification, and smart contract analysis. Meanwhile, CNNs can be adapted to analyze blockchain data when represented as structured matrices, revealing hidden temporal and spatial patterns in transaction flows. This paper explores how these models enhance the efficiency, security, and scalability of both linear blockchains and Directed Acyclic Graph (DAG)-based systems, providing a comprehensive overview of their strengths and future research directions. By integrating advanced neural network techniques, we aim to demonstrate the potential of these models in revolutionizing blockchain analytics, paving the way for more sophisticated decentralized applications and improved network performance.


Machine Learning on Blockchain Data: A Systematic Mapping Study

arXiv.org Artificial Intelligence

Context: Blockchain technology has drawn growing attention in the literature and in practice. Blockchain technology generates considerable amounts of data and has thus been a topic of interest for Machine Learning (ML). Objective: The objective of this paper is to provide a comprehensive review of the state of the art on machine learning applied to blockchain data. This work aims to systematically identify, analyze, and classify the literature on ML applied to blockchain data. This will allow us to discover the fields where more effort should be placed in future research. Method: A systematic mapping study has been conducted to identify the relevant literature. Ultimately, 159 articles were selected and classified according to various dimensions, specifically, the domain use case, the blockchain, the data, and the machine learning models. Results: The majority of the papers (49.7%) fall within the Anomaly use case. Bitcoin (47.2%) was the blockchain that drew the most attention. A dataset consisting of more than 1.000.000 data points was used by 31.4% of the papers. And Classification (46.5%) was the ML task most applied to blockchain data. Conclusion: The results confirm that ML applied to blockchain data is a relevant and a growing topic of interest both in the literature and in practice. Nevertheless, some open challenges and gaps remain, which can lead to future research directions. Specifically, we identify novel machine learning algorithms, the lack of a standardization framework, blockchain scalability issues and cross-chain interactions as areas worth exploring in the future.


Blockchain Intelligence: When Blockchain Meets Artificial Intelligence

arXiv.org Artificial Intelligence

Blockchain is gaining extensive attention due to its provision of secure and decentralized resource sharing manner. However, the incumbent blockchain systems also suffer from a number of challenges in operational maintenance, quality assurance of smart contracts and malicious behaviour detection of blockchain data. The recent advances in artificial intelligence bring the opportunities in overcoming the above challenges. The integration of blockchain with artificial intelligence can be beneficial to enhance current blockchain systems. This article presents an introduction of the convergence of blockchain and artificial intelligence (namely blockchain intelligence). This article also gives a case study to further demonstrate the feasibility of blockchain intelligence and point out the future directions.


Jeff Garzik's Bloq acquires Skry for machine learning and AI blockchain data analytics

#artificialintelligence

Bloq, the blockchain studio led by Jeff Garzik, has acquired Skry, a pioneer in blockchain analytics, to enhance its suite of analysis tools. The move will maximise the value of blockchain data sets through artificial intelligence and machine learning, said a statement. The transaction, which closed on February 24, is Bloq's first acquisition and includes all of Skry's intellectual property and team. Jeff Garzik, CEO and co-founder of Bloq, said: "Blockchain networks need more than a rudimentary finder or explorer. We're ensuring that enterprises won't have to'fly blind' without a complete understanding of the performance, economics and irregularities of their underlying networks."


Bloq Acquires Skry, Supercharges Blockchain Analytics With AI and Machine Learning

#artificialintelligence

Bloq, a provider of blockchain technology solutions for global enterprises, announced that it has acquired Skry (formerly Coinalytics), a pioneer in blockchain analytics, to accelerate the development of its analytics capabilities and open the door for Artificial Intelligence (AI) on its platform. With the acquisition, Bloq wants to enhance its suite of analysis tools and position itself to maximize the value of blockchain data sets through AI and machine learning. The Chicago-based company focuses on solving key business issues surrounding security, provenance, authentication and reconciliation. The new acquisition, whose detailed terms haven't been disclosed, includes Skry's intellectual property and team, which seems a perfect fit for Bloq's focus on empowering better visibility and decision-making in a multi-blockchain, multi-network world. "Financial institutions will need a full suite of tools to take blockchain [technology]'s role from high-tech database to business-driver," Bloq's Co-Founder and Chairman Matthew Roszak explained to Bitcoin Magazine.


IBM Watson and FDA collaborate to explore the use of blockchain data in population health management

#artificialintelligence

IBM Watson Health has announced a joint initiative with the US Food and Drug Administration to study the use of blockchain technology to share health data to ultimately improve public health. At first, the two-year collaboration will focus on oncology data, pulling together and exchanging data from a variety of sources including that from clinical trials, genomic data, EMRs, and from miscellaneous Internet of Things data from wearables, apps and connected devices. IBM and the FDA will look at how the technology can facilitate information exchange across a spectrum of data types, including clinical trials and real world data. For example, patient-generated data from connected devices could provide clinicians with more insights into population health, potentially offering up research opportunities and ways to leverage large quantities of data into biomedical and healthcare industries. At the core of the collaboration is blockchain technology, which allows secure data sharing between organizations more freely and has been increasingly favored among industry leaders.