In my second blog I wrote about the urge to test your smart contract for vulnerabilities. In that article I talked about how smart contracts can have big security flaws in them. To counter this, you can check your own smart contract for flaws. To do this you can use tooling to check if the smart contract code is correct. But all these steps take a lot of time, especially for someone who doesn’t know how to code. So, to make it easier and quicker, there is another solution. This solution is called AI, and in this blog, I will explain why it can improve the security of smart contracts.  

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly translated into lines of code. This code is then stored and replicated on a blockchain network, which ensures that the contract is transparent and cannot be altered. 

 Smart contracts provide several benefits, including immutability, reduced transaction costs, increased efficiency, and improved security. However, like any other piece of software, they are not immune to security vulnerabilities. 

 As mentioned in my previous blogs there’re multiple ways to detect vulnerabilities, manual or automated. A totally new way to improve the security of smart contracts is by using AI. Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It encompasses a wide range of technologies, including machine learning, natural language processing, and computer vision.  

 So, AI Is the broad term for many different technologies. But for this blog we will be focussing on the AI algorithms, because they’re the most interesting for smart contract security. But what is an AI algorithm? And what are some examples?  

 An AI algorithm is a set of instructions or rules that a machine follows to perform tasks associated with artificial intelligence. These algorithms can be used to enable machines to learn from data, make predictions, and make decisions. There are many different types of AI algorithms, including: 

1. Machine learning algorithms: These algorithms enable machines to learn from data and make predictions or decisions without being explicitly programmed. Examples include supervised learning algorithms, unsupervised learning algorithms, and reinforcement learning algorithms. 

2. Natural Language Processing (NLP) algorithms: These algorithms enable machines to understand, interpret, and generate human language. Examples include language translation algorithms, sentiment analysis algorithms, and text summarization algorithms. 

3. Computer vision algorithms: These algorithms enable machines to understand and interpret visual information, such as images and videos. Examples include object recognition algorithms, facial recognition algorithms, and image segmentation algorithms. 

4. Rule-based systems: These algorithms are based on a set of if-then rules and decision-making techniques that enable the machine to make decisions based on certain conditions. 

5. Evolutionary algorithms: These algorithms are based on the principles of natural evolution, such as genetic algorithms, used to optimize the performance of the AI system.

In summary, AI algorithms are the specific set of instructions or rules that a machine uses to perform tasks associated with AI, such as learning from data, making predictions, and making decisions. 

Now we know what AI algorithms are, we want to know how they can help with the security of smart contracts. AI algorithms can help with the security of smart contracts in several ways: 

1. Smart Contract Auditing: AI algorithms can be used to automatically review and analyse the code of a smart contract for potential vulnerabilities, such as security flaws or bugs. This can help identify potential issues before the contract is deployed, improving the overall security of the contract.

2. Anomaly Detection: AI algorithms can be used to continuously monitor the activity on a blockchain network and detect any unusual or suspicious activity, such as attempts to hack or manipulate a smart contract. 

3. Risk Assessment: AI algorithms can be used to analyse the data from the blockchain network and assess the risk of a potential security breach, such as identifying patterns in the data that indicate a potential attack. 

4. Fraud Detection: AI algorithms can be used to detect and prevent fraudulent activities such as, identifying fake identities, double-spending, or money laundering. 

5. Self-healing contracts: AI algorithms can be used to improve the security of smart contracts by allowing them to automatically adapt and update themselves in response to changes in the environment or to new threats.

Overall, AI and in particular AI algorithms are still in early development. As time passes it will mature and become a big part in the security of smart contracts. For example, as can be seen with chatgpt, it can go very quickly.  

One final thing to note is when one party uses AI to secure the smart contract, another party (E.G., criminal hackers) can use AI as a tool to attack smart contracts more easily. So, keep this quote in mind when using or coding your smart contract: ‘Time is what determines security. With enough time nothing is unhackable.’ 

Written by Tim Hoeksma  

Tim is a third year HBO ICT student at the Hague University, with a speciality in Innovative Development. During his intern at Guardian360 he will perform research into vulnerabilities. With blogs, he will keep you up to date with his research. 

In my second blog I wrote about the urge to test your smart contract for vulnerabilities. In that article I talked about how smart contracts can have big security flaws in them. To counter this, you can check your own smart contract for flaws. To do this you can use tooling to check if the smart contract code is correct. But all these steps take a lot of time, especially for someone who doesn’t know how to code. So, to make it easier and quicker, there is another solution. This solution is called AI, and in this blog, I will explain why it can improve the security of smart contracts.  

Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly translated into lines of code. This code is then stored and replicated on a blockchain network, which ensures that the contract is transparent and cannot be altered. 

 Smart contracts provide several benefits, including immutability, reduced transaction costs, increased efficiency, and improved security. However, like any other piece of software, they are not immune to security vulnerabilities. 

 As mentioned in my previous blogs there’re multiple ways to detect vulnerabilities, manual or automated. A totally new way to improve the security of smart contracts is by using AI. Artificial Intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It encompasses a wide range of technologies, including machine learning, natural language processing, and computer vision.  

 So, AI Is the broad term for many different technologies. But for this blog we will be focussing on the AI algorithms, because they’re the most interesting for smart contract security. But what is an AI algorithm? And what are some examples?  

 An AI algorithm is a set of instructions or rules that a machine follows to perform tasks associated with artificial intelligence. These algorithms can be used to enable machines to learn from data, make predictions, and make decisions. There are many different types of AI algorithms, including: 

1. Machine learning algorithms: These algorithms enable machines to learn from data and make predictions or decisions without being explicitly programmed. Examples include supervised learning algorithms, unsupervised learning algorithms, and reinforcement learning algorithms. 

2. Natural Language Processing (NLP) algorithms: These algorithms enable machines to understand, interpret, and generate human language. Examples include language translation algorithms, sentiment analysis algorithms, and text summarization algorithms. 

3. Computer vision algorithms: These algorithms enable machines to understand and interpret visual information, such as images and videos. Examples include object recognition algorithms, facial recognition algorithms, and image segmentation algorithms. 

4. Rule-based systems: These algorithms are based on a set of if-then rules and decision-making techniques that enable the machine to make decisions based on certain conditions. 

5. Evolutionary algorithms: These algorithms are based on the principles of natural evolution, such as genetic algorithms, used to optimize the performance of the AI system.

In summary, AI algorithms are the specific set of instructions or rules that a machine uses to perform tasks associated with AI, such as learning from data, making predictions, and making decisions. 

Now we know what AI algorithms are, we want to know how they can help with the security of smart contracts. AI algorithms can help with the security of smart contracts in several ways: 

1. Smart Contract Auditing: AI algorithms can be used to automatically review and analyse the code of a smart contract for potential vulnerabilities, such as security flaws or bugs. This can help identify potential issues before the contract is deployed, improving the overall security of the contract.

2. Anomaly Detection: AI algorithms can be used to continuously monitor the activity on a blockchain network and detect any unusual or suspicious activity, such as attempts to hack or manipulate a smart contract. 

3. Risk Assessment: AI algorithms can be used to analyse the data from the blockchain network and assess the risk of a potential security breach, such as identifying patterns in the data that indicate a potential attack. 

4. Fraud Detection: AI algorithms can be used to detect and prevent fraudulent activities such as, identifying fake identities, double-spending, or money laundering. 

5. Self-healing contracts: AI algorithms can be used to improve the security of smart contracts by allowing them to automatically adapt and update themselves in response to changes in the environment or to new threats.

Overall, AI and in particular AI algorithms are still in early development. As time passes it will mature and become a big part in the security of smart contracts. For example, as can be seen with chatgpt, it can go very quickly.  

One final thing to note is when one party uses AI to secure the smart contract, another party (E.G., criminal hackers) can use AI as a tool to attack smart contracts more easily. So, keep this quote in mind when using or coding your smart contract: ‘Time is what determines security. With enough time nothing is unhackable.’ 

Written by Tim Hoeksma  

Tim is a third year HBO ICT student at the Hague University, with a speciality in Innovative Development. During his intern at Guardian360 he will perform research into vulnerabilities. With blogs, he will keep you up to date with his research.