| |19HIGHERReviewAPRIL, 2026for companies and users. Generative AI can be used to monitor blockchain activity and point out suspicious activity, such as sudden large transactions or strange wallet activity. This way, generative AI can help catch potential threats at a very early stage. It can also be used to identify patterns which can thus prevent security breaches and financial losses. Furthermore, if any security issue does occur, then generative AI can always be used to alert developers quickly and can even recommend system changes to limit any damage. This makes blockchain systems highly resilient.Improving Blockchain PerformanceSome blockchains can be slow, especially if multiple users are active at the same time. Generative AI can be used to analyse activity and predict busy periods. Based on this information, generative AI can also make suggestions to manage traffic efficiently to reduce lags or delays.Reducing Costs and Better ManagementBlockchain needs power, energy, and storage for computing. Generative AI can actually be used to optimise how these limited resources are used for better efficiency. This will eventually lead to lower operational costs. Also, generative AI can be used to predict future demand, monitor performance drops, and suggest potential upgrades, which can enhance the overall user experience.Improving Connectivity between BlockchainsOver thousands of blockchains exist today, but they often struggle to communicate with each other. Generative AI can be used to help different blockchains exchange information safely by translating data formats between blockchains. This is essential to building secure connections and reducing complexities for developers and businesses.Real-World ApplicationsIn the world of finance, blockchain can be used to secure financial records, while generative AI can help analyse transactions. Together, they can improve trust and transparency and detect fraud in the digital banking sector. Blockchain can be combined with generative AI in supply chain management to verify data, detect errors, and generate reports, which makes supply chains more reliable. Governments are also considering using blockchains to help with managing land records and land registries. Combining this with generative AI can help automate the process to deliver prompt service.There are three main challenges to consider while using generative AI: maintaining data privacy, ensuring the ethical use of AI, and managing energy consumption. Addressing these challenges is essential for startups, corporations, and governments for long-term success. As both technologies continue to evolve, combining blockchain with generative AI will play a key role in building smarter and more secure digital systems. Generative AI also offers ready-made contract templates. This makes blockchain development faster and easier, even for smaller teams and startups
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