Enhancing Blockchain Scalability Through AI

Blockchain technology continues to advance its decentralized and security-driven nature, with public blockchains like Ethereum and Bitcoin continuing to increase in adoption and continuing to prove their long-term viability. Simultaneously, Artificial Intelligence (AI) has made significant advances and taken the spotlight. US President Donald Trump has extensively discussed its importance, and companies like OpenAI face increased adoption while platforms like X continue to integrate and further develop AI.

With Blockchain and AI developing side by side, some speculate that these two sectors will eventually become synonymous.

Scalability Challenges

Blockchain networks can be called scalable when they are able to handle additional and unexpected transactions without compromising their operational efficiency. Ethereum's current transaction rate is approximately 15 transactions per second, which is sufficient for some use cases but can be problematic for high throughput applications in specific scenarios, not only due to transactions per second but also the costs involved in conducting these transactions on a large scale.

The situation creates difficulties for users and developers as network responsiveness or cost-efficiency limitations can discourage usage and development.

The Role of AI

While a number of layer two and layer three blockchains have emerged on top of the Ethereum Blockchain to alleviate some of these concerns, AI is an additional solution that can help overcome certain performance challenges and other issues. Its predictive analytics capabilities, pattern recognition abilities, and other automation features provide countless solutions ranging from enhancing data management to processing.

Some of the enhanced capabilities that AI can provide include:

Dynamic Resource Allocation: AI can forecast demand across a blockchain network and distribute workloads, reducing congestion.

Transaction Sorting: AI systems can assess the value or urgency of transactions and organize them for optimal processing, smoothing traffic during busy periods.

Data Handling: Predictive models can cache frequently accessed data, which helps reduce retrieval time and improve overall responsiveness.

Refined Consensus Models: AI can improve consensus mechanisms, such as Proof of Stake, by adjusting parameters based on real-time system conditions to reduce processing overhead.

Storage Management: Algorithms may also identify and manage redundant data, supporting a more balanced use of available resources.

Other Blockchain projects, such as Onyx Protocol and its Layer 3 XCN Ledger blockchain built on Arbitrum Orbit and Coinbase's Base, are examples of how AI is being explored in the real world. According to the Onyx 2025 whitepaper, potential future integrations of AI that are being explored could include:

Smart Contract Adjustments: AI models may support real-time gas fee adjustments, liquidity planning, and automated responses within governance mechanisms.

Security Monitoring: Machine learning may detect unusual activity or patterns that could signal fraudulent behavior.

Predictive Scaling Tools: AI may support systems that anticipate and respond to traffic changes, reducing the likelihood of slowdowns during peak usage.

AI-based Marketplaces: Plans suggest that Onyx could host on-chain marketplaces to deploy AI models, expanding its use beyond blockchain performance.

While, according to the Whitepaper, these features are only currently being explored, they illustrate a potential approach to integrating AI technology with preexisting blockchain systems.

Conclusion

The development of artificial intelligence is a substantial advancement toward enhancing blockchain scalability. Multiple development teams in the Blockchain space have shown interest in its capabilities and potential benefits. At the same time, communities continue to use it for marketing, promotion, and other use cases to grow projects from a community perspective.

Projects such as Onyx Protocol demonstrate how AI is being explored to help manage resources and enhance transaction flow while solving scalability issues restricting typical blockchain usage.

Despite this, the technology still has limitations and is not a substitute for other approaches, such as Layer 2 and 3 systems. It is, however, one component of a more comprehensive strategy that will likely shape the future development of blockchain technology as developers test and implement these ideas in the coming months and years.

About Chain

Chain is a blockchain infrastructure solution company that has been on a mission to enable a smarter and more connected economy since 2014. Chain offers builders in the Web3 industry services that help streamline the process of developing, and maintaining their blockchain infrastructures. Chain implements a SaaS model for its products that addresses the complexities of overall blockchain management. Chain offers a variety of products such as Ledger, Cloud, and NFTs as a service. Companies who choose to utilize Chain’s services will be able to free up resources for developers and cut costs so that clients can focus on their own products and customer experience. Learn more: https://chain.com.

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