As an analyst with over two decades of experience in technology and finance, I have witnessed the evolution of various industries, from the dot-com boom to the rise of mobile apps. Today’s intersection of Artificial Intelligence (AI) and Blockchain is a fascinating development that has caught my attention.
Today, we delve into the connection between Artificial Intelligence (AI) and blockchain, as explained by Kelly Ye of Decentral Park Capital. This synergy is set to propel the increasing popularity and applications of both technologies.
Subsequently, Alec Beckman, representing Advantage Blockchain, addresses queries concerning the collaboration of AI, blockchain, and cryptocurrency in our “Ask an Expert” segment.
–S.M.
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Crypto X AI: Why Blockchain is the Secret Sauce for Mass AI Adoption
As a researcher delving into the realm of Artificial Intelligence (AI), it’s clear that its transformative potential spans numerous industries and personal lives. However, the widespread adoption of AI encounters obstacles – resource-intensive operations, ethical dilemmas, insufficient customization, and complexities surrounding proof of sentience or ‘humanhood’.
The Challenges of AI Adoption
- Resource Intensity: Developing advanced AI demands immense computational power, data, and expertise, favoring well-capitalized firms and sidelining smaller players.
- Ethical Concerns: Centralized AI monetization often mirrors Web2’s exploitative model: “If you don’t pay for the product, you are the product.” This raises concerns about user privacy and data exploitation.
- Lack of Customization: AI must address diverse, nuanced human needs. Standardized models frequently fail to provide tailored solutions, underscoring the necessity for adaptable, task-specific AI agents.
- Proof of humanhood: As AI evolves, distinguishing human-generated content from machine output becomes increasingly difficult, leading to risks of misinformation and content piracy.
Blockchain: A Game-Changer for AI
As a cryptocurrency investor, I find blockchain technology to be an intriguing alternative in the realm of decentralized artificial intelligence (AI) development. Its open architecture and permissionless design, coupled with token-based incentives, empower massive resource coordination. This unique setup directly addresses some of the most critical challenges that AI currently faces.
- Decentralized Infrastructure: Projects like Render and Akash leverage token rewards to crowdsource global GPU power, offering competitive alternatives to centralized providers like Amazon Web Services (AWS). While reliability challenges persist, applications like Render’s image-rendering successes showcase blockchain’s viability.
- Open-Source Model Development: Platforms like Bittensor and AI Alliance incentivize AI model development using their platform tokens. By fostering innovation and reducing reliance on centralized funding, these platforms empower independent developers. Successful models can increase token value, creating a virtuous growth cycle.
- Identity and IP protection: Blockchain’s transparency and immutability make it a strong tool for storing and verifying identities and intellectual property (IP). Zero-knowledge proof technology enables privacy-preserving verification. Projects like Worldcoin illustrate blockchain’s potential to address proof-of-humanhood concerns.
The Path Ahead: Blockchain Fills AI’s Missing Piece for Mass Adoption
In a similar fashion to how YouTube and TikTok made content creation accessible for all, blockchains facilitate the spread of AI agents that are collectively sourced. These agents offer tailored services, operating independently from centralized commercial entities. Moreover, blockchain technology could establish seamless payment systems, facilitating transactions between autonomous agents without any need for human or financial intermediaries.
Blockchains play a pivotal role in the progression of Artificial Intelligence (AI), not just as a sidekick but as the essential backbone of a future AI economy that is both scalable and equitable. They help overcome resource limitations, encourage ethical implementation, and offer customization options. When combined, these technologies have the power to reshape our lives and work environments significantly. This partnership signifies the beginning of an era where technology will undergo transformative changes.
– Kelly Ye, portfolio manager and head of research, Decentral Park Capital
Ask an Expert
Q. Why does AI need crypto and blockchain technology?
AI benefits from crypto and blockchain in several ways:
- Data integrity: Blockchain ensures the authenticity of data used to train AI models, reducing the risk of manipulation.
- Decentralization: Crypto-powered networks like Fetch.ai enable AI to operate on decentralized infrastructure, reducing reliance on centralized servers.
- Monetization: Cryptocurrencies allow smooth microtransactions, allowing AI models to pay for data or services without intermediaries.
- Transparency: Smart contracts make AI decisions traceable and auditable in public permissionless blockchains, fostering trust in AI-powered systems.
Engaging AI with other AIs or people through better data exchange and equitable distribution of financial rewards could foster stronger motivations and advanced interactions.
Q. Why do crypto and blockchain technology need AI?
AI can enhance crypto through:
- Improved efficiency: AI can optimize blockchain networks by improving consensus mechanisms and reducing transaction costs.
- Fraud detection: Machine learning models can detect suspicious activity and enhance security against hacks.
- Market insights: AI-driven analytics aid investors by predicting price trends and analyzing market sentiment.
As a forward-thinking crypto investor, I find tools like Virtuals Protocol empowering. They enable me to develop an AI assistant at minimal cost, which can boost my business operations, conduct market analysis, streamline workflows, and even help with scaling – all while reducing expenses traditionally associated with these tasks.
Q. What are the emerging opportunities at the intersection of AI and crypto?
- DeFi automation: AI can optimize yield farming and liquidity provision strategies.
- Tokenized AI models: Developers can tokenize and trade ownership of AI models on blockchain platforms.
- Autonomous economies: AI agents use crypto for self-sustaining operations, such as managing decentralized energy grids or supply chains.
AI agents offer tremendous benefits for both individuals and businesses by conducting market research, identifying profitable opportunities within the cryptocurrency sector, and independently managing transactions using a digital crypto wallet.
- – Alec Beckman, co-founder and president, Advantage Blockchain
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
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2024-12-13 13:41