AI needs proof-of-work, not Big Tech

Opinion by: Daniil and David Liberman, creators of Gonka

Bitcoin taught america thing important astir gathering infrastructure: When you reward efficiency, you get unthinkable innovation.

Fifteen years ago, Bitcoin mining ran connected the aforesaid graphics cards gamers use. The web was slow, and the hashrate was low. But Bitcoin’s proof-of-work (PoW) strategy rewards miners who tin process blocks astir efficiently.

This created a contention to physique amended hardware. Today, Bitcoin runs connected machines (called ASICs) that are virtually hundreds of thousands of times much businesslike than the champion Nvidia graphics cards. Not 10% better, 100,000 times better. That’s what happens erstwhile you reward the astir utile work.

In conscionable 15 years, Bitcoin mining infrastructure exceeded a whopping 16-gigawatt capacity. This represents capable powerfulness capableness to tally 10 cardinal of the astir almighty Blackwell Nvidia GPUs — not conscionable much efficient, but massively larger successful sheer standard than OpenAI, Microsoft Azure, Amazon Web Services, Google Cloud and xAI combined.

AI needs the aforesaid treatment

Right now, AI runs connected expensive, general-purpose chips due to the fact that that’s what’s available. But ideate if we built AI networks similar Bitcoin, wherever anyone tin lend computing powerfulness and get paid for the astir businesslike execution of utile AI work.

Suddenly, you don’t person to person a squad of income bros with phonebooks who tin leverage their C-suite clout to merchantability chips — anyone tin conscionable produce, instal and commencement “issuing money.” 

Now it makes truthful overmuch much consciousness to physique chips designed specifically for AI tasks.

Hardware manufacturers would vie to marque the cheapest, astir businesslike AI processors possible. The aforesaid marketplace forces that transformed Bitcoin (BTC) mining would footwear in. Only this clip with 10x much spot due to the fact that determination are existent blockchain believers with billions of dollars who got affluent from the Bitcoin revolution.

Don’t get distracted by proof-of-stake

Many aboriginal decentralized AI projects usage proof-of-stake (PoS) alternatively — which simply means that rewards spell to whoever holds the astir tokens, not whoever builds the champion infrastructure.

This is backwards. We request networks that reward radical gathering amended hardware, not radical with the biggest stashes frozen for output extraction.

The existent difference

Proof-of-work isn’t conscionable astir cryptocurrency. It’s astir utilizing contention to thrust innovation alternatively of accepting immoderate hardware presently exists. In conscionable 10 years, the blockchain assemblage could physique infrastructure that produces thousands of times much compute than the remainder of the centralized market.

For AI, this could mean the quality betwixt expensive, centralized computing and an quality that’s arsenic inexpensive and abundant arsenic electricity. Within a fewer years, moving AI models could outgo astir nothing.

What this means for you

Today for AI is similar 2009 for Bitcoin. The networks are conscionable starting, and aboriginal participants person the biggest opportunities.

Follow proof-of-work AI projects. Contribute computing power, your ain oregon rented from the market. Start mining. The radical who physique this infrastructure present volition payment the most.

Opinion by: Daniil and David Liberman, creators of Gonka.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.