Crypto for Advisors: AI + Blockchain + Crypto

6 months ago

In today’s issue, Kelly Ye from Decentral Park Capital takes america done the narration betwixt AI and blockchain and however this operation volition thrust these increasing technologies' adoption and usage cases.

Then, Alec Beckman from Advantage Blockchain answers questions astir however AI, blockchain and crypto enactment unneurotic successful Ask an Expert.

–S.M.

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Crypto X AI: Why Blockchain is the Secret Sauce for Mass AI Adoption

Artificial Intelligence (AI) holds transformative imaginable crossed industries and regular life, yet its wide adoption faces hurdles—resource intensity, ethical concerns, deficiency of customization, and challenges surrounding impervious of humanhood. With its decentralization and assets coordination strengths, Blockchain provides a compelling solution to these challenges, paving the mode for wide AI integration.

The Challenges of AI Adoption

Resource Intensity: Developing precocious 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 wage for the product, you are the product.” This raises concerns astir idiosyncratic privateness and information exploitation.

Lack of Customization: AI indispensable code diverse, nuanced quality needs. Standardized models often neglect to supply tailored solutions, underscoring the necessity for adaptable, task-specific AI agents.

Proof of humanhood: As AI evolves, distinguishing human-generated contented from instrumentality output becomes progressively difficult, starring to risks of misinformation and contented piracy.

Blockchain: A Game-Changer for AI

Blockchains connection a compelling counterpoint to centralized AI development. Their open, permissionless quality and token-based incentives alteration large-scale assets coordination, addressing AI’s astir pressing challenges:

Decentralized Infrastructure: Projects similar Render and Akash leverage token rewards to crowdsource planetary GPU power, offering competitory alternatives to centralized providers similar Amazon Web Services (AWS). While reliability challenges persist, applications similar Render’s image-rendering successes showcase blockchain's viability.

Open-Source Model Development: Platforms similar Bittensor and AI Alliance incentivize AI exemplary improvement utilizing their level tokens. By fostering innovation and reducing reliance connected centralized funding, these platforms empower autarkic developers. Successful models tin summation token value, creating a virtuous maturation cycle.

Democratizing AI Agents: The emergence of decentralized AI agents marks blockchain’s strongest product-market acceptable successful the AI space. These agents, trained connected foundational models, necessitate less resources than exemplary improvement and tin beryllium tailored to circumstantial usage cases. For instance, Virtuals, an AI cause level built connected the Base blockchain, has launched implicit 2,000 agents wrong months. AI cause applications span gaming, DeFi and entertainment, with agents continuously improving done idiosyncratic interactions. Source: Dune Dashboard 12/6/2024

Identity and IP protection: Blockchain’s transparency and immutability marque it a beardown instrumentality for storing and verifying identities and intelligence spot (IP). Zero-knowledge impervious exertion enables privacy-preserving verification. Projects similar Worldcoin exemplify blockchain's imaginable to code proof-of-humanhood concerns.

The Path Ahead: Blockchain Fills AI’s Missing Piece for Mass Adoption

Much similar however YouTube and TikTok democratized contented creation, blockchains alteration the proliferation of crowd-sourced AI agents. These agents present personalized services portion remaining autarkic of centralized commercialized interests. Furthermore, blockchain could supply businesslike outgo rails, enabling autonomous agent-to-agent transactions without quality oregon fiscal intermediaries.

Blockchains are much than a supporting histrion successful AI’s evolution—they are the captious enabler of a scalable, equitable, and user-centric AI economy. By addressing assets constraints, fostering ethical use, and enabling customization, blockchains and AI unneurotic person the imaginable to redefine however we unrecorded and work. As the instauration for an emerging agentic AI economy, this synergy marks the dawn of a transformative technological era.

- Kelly Ye, portfolio manager and caput of research, Decentral Park Capital

Ask an Expert

Q. Why does AI request crypto and blockchain technology?

AI benefits from crypto and blockchain successful respective ways:

Data integrity: Blockchain ensures the authenticity of information utilized to bid AI models, reducing the hazard of manipulation.

Decentralization: Crypto-powered networks similar Fetch.ai alteration AI to run connected decentralized infrastructure, reducing reliance connected centralized servers.

Monetization: Cryptocurrencies let creaseless microtransactions, allowing AI models to wage for information oregon services without intermediaries.

Transparency: Smart contracts marque AI decisions traceable and auditable successful nationalist permissionless blockchains, fostering spot successful AI-powered systems.

As AI interacts with different AI oregon humans, amended information and improved sharing of monetary benefits tin pb to much incentives and almighty interactions.

Q. Why bash crypto and blockchain exertion request AI?

AI tin heighten crypto through:

Improved efficiency: AI tin optimize blockchain networks by improving statement mechanisms and reducing transaction costs.

Fraud detection: Machine learning models tin observe suspicious enactment and heighten information against hacks.

Market insights: AI-driven analytics assistance investors by predicting terms trends and analyzing marketplace sentiment.

Tools similar Virtuals Protocol tin let anyone to make an AI cause to amended their concern inexpensively, supply marketplace research, heighten workflows, scale, and more.

Q. What are the emerging opportunities astatine the intersection of AI and crypto?

DeFi automation: AI tin optimize output farming and liquidity proviso strategies.

Tokenized AI models: Developers tin tokenize and commercialized ownership of AI models connected blockchain platforms.

Autonomous economies: AI agents usage crypto for self-sustaining operations, specified arsenic managing decentralized vigor grids oregon proviso chains.

AI agents tin supply immense worth to individuals and companies by providing marketplace research, uncovering bully investments successful the crypto world, and autonomously trading with a crypto wallet.

- Alec Beckman, co-founder and president, Advantage Blockchain