When AI Met Crypto: A Love Story of Technological Disruption

This article explores how crypto's reputation system, decentralized storage, and DAO governance could provide solutions as AI evolves, ensuring models align with human values. It also examines predictions that AI and crypto will transform civilization like the internet did...

The latest trends of the internet; Artificial Intelligence (AI) and Blockchain, are the two most revolutionary technologies that could affect our future and transform sectors of society or perhaps, the society as a whole.

The intersection between these two giants becomes inevitable and in this article we will take a look at how this collaboration shines a new light in the context of reputation, storage, and governance.

The Biggest Problems the World Faces Today

The most complex problems the world faces today include climate change, monetary policy, energy, and disease. But every climate forecast has been wrong, and even institutions like the U.S Federal Reserve struggle determining when to raise rates. And while there are numerous clean energy options, some countries are increasing their use of coal.

To put it short, these problems are hard to solve because they require a lot of computing power, plus the cost, the location of the data, and the need for edge computing all pose extra challenges. To tackle these problems, solutions need to be equally dynamic, constantly evolving and innovating as the problems do.

Can AI Provide Solutions?

AI can potentially solve these problems. Large Language Models (LLMs) can dive into vast and incomplete data sets, extracting inferences that traditional programming cannot. However, AI isn't perfect. It's not verifiable; you can't always know what data your model was run on. It can be subject to censorship, and it requires constant data refreshing to remain relevant. Moreover, AI itself needs to continue to innovate, meaning models need to be constantly updated.

Intersection of Web3 and AI

Web3.0, as mentioned in previous articles, can be seen as an effort to regain the interests of sovereign individuals, reshape or create new free markets, and shift the focus to the collective good.

But in order to do this effectively and morally, a trust layer is required. The question one could ask is: should this trust layer be centralized or decentralized?

Knowing that trust which, if centralized or in the hands of elites, can potentially be misused, a logical solution appears: ‘trust the code’. We see that reliance on code is the best because it is immune to greed or fear.

AI and Crypto may not seem immediately connected, but on a fundamental level, AI could be considered a unit that is indifferent to human laws and regulations, just as crypto is, simple code.

AI Writing & Securing Smart Contracts

AI can generate code, including smart contracts. But this code often contains vulnerabilities and should not be used as a final form, without extensive checking.

Because the code writers are trained on large code datasets, including insecure code from open source repositories, they can mimic code patterns without learning security best practices. Directly using the generated code is dangerous, but what can AI help us with when writing code?

Key considerations are:

🤖Progress in benchmarking model capabilities at writing verified code.
🤖 Advances in explaining ability to understand model reasoning and provide effective feedback.
🤖 Improvements in bias testing to avoid learned patterns that lead to vulnerabilities.
🤖 Integration with formal verification, static analysis, bug finding, and testing tools to validate code quality.

So remember that responsible use of AI for code generation - today and in the future - will require an in-depth approach keyed to your crypto security needs.

Proof of Humanity

In a world where fake news and fake identities run rampant, the verification that someone is a unique human being is more than necessary. A current trend in the digital world is the concept of "proof of humanity" or "proof of personhood", where the value lies in connecting these technologies with you as a natural person and proving you are in fact human.

If we look at some cryptocurrency startups such as; World Coin, Proof of Humanity, you can tell we are still in the very early phases of this digital exploration.

Impact on AI content

It is not only important to prove to the ‘online’ world that you are human, but in the midst of this new AI revolution you could say that online content often needs more than community notes or disclaimers.

Previously, online communications moved from non-secure HTTP to secure HTTPS to ensure trust and avoid fakeness. In similar terms, the trust that we have in the content we consume, whether it's an educational blog, blog post, or YouTube video, needs to be checked.

So this is where the cryptographic primitives of the blockchain come in, as it can validate the reputation of content or and their creators across the internet. As AI models generate content within a blink of an eye, it's thus vital to verify their authenticity and association with reputable sources.

Decentralized Storage

As we said with the layer of trust, we could say that AI's need for decentralized storage might not be immediately apparent. But from another perspective, you can say that AI centralized companies for data storage may not be the most secure option. Given the pain points from Web 2.0 and data collection frauds.

Also centralized companies can immediately push changes such as; pricing, user policies, censurable guidelines, and decide what content is getting priority, potentially controlling the narrative in a way social media networks only could dream off. So, the case of decentralized storage could work as a safety patch.

Another essential factor that blockchain can teach its younger brother ‘AI’, is the open source-ness. In a way it is essential, and not just for auditing safety but also for leveraging it as times goes on. The composability that DeFi knows can be a good role model.

So in a world where AI and intelligence become commoditized, it will become crucial to have a decentralized and open system.

Artificial - DAO - Intelligence

At the dawn of the new AI era, there are some key questions to consider, such as; how will these systems be owned and controlled? How can they operate at a collective level? Perhaps the integration of AI into DAOs could potentially address issues of coordination and execution.

The history of Blockchain's has been a significant experiment in governance where DAOs have emerged as a tool to organize and control more decentralization. But even when the principles were right, they haven't fully functioned due to the need for human coordination. Maybe, just maybe, the potential to use AI technology could improve this coordination and execution a little better.

The philosophical question comes up: Will AI take over control, or will we choose it works with or for us, benefiting humanity and which one will be the more effective coordination?

“AI is communist, crypto is libertarian”

Peter Thiel's quote, "AI is communist, crypto is libertarian" has sparked various discussions in the tech industry. As the quote can be interpreted as a reflection on the nature of AI and crypto.

With "communist," you could say that contrarian Thiel refers to the centralized and top-down nature of AI, which is evident because of how AI models have been developed and controlled by tech giants. In contrast, crypto mentioned as "libertarian" refers to the decentralized, individual-empowering nature of it. As we know the two would form a great combination, creating perhaps an egalitarian future..

Future Investments

Just like every new hype, the influx of Venture Capital (VC) firms that are more than likely to invest, are also here for AI. They're poised to pump hundreds of billions of dollars into anything with AI on the pitch deck. Therefore, profiting off the AI mania means investing where the money is going, throw the term ‘crypto’ in there as well and you got yourself a massive funding round.

But many investors believe this time is different and that AI is set to revolutionize human civilization, just as the internet did in the 2000s. It would create tens of trillions of dollars of value and represents the most rapidly adopted technologies in human history. Given the permissionless investment opportunities crypto has to offer, the opportunities are waiting to be seized.

Conclusion

AI and crypto can be a match made in heaven, on one hand the decentralization and permissionless access to global finance and on the other, an all knowing, self learning, game changing model that is impacting various industries already in its short existence.

Together they can learn from each other and be composable and facilitate different models that promote fair access and equal opportunity for everyone, potentially leading to a more global egalitarian future. This presents an exciting landscape for years to come.

The convergence of AI and Web3 is arguably one of the most exciting developments of our digital lifetime. This intersection in the tech industry is not just a passing trend, but rather a significant paradigm shift in how we will interact and live with technology in our daily lives.

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*Important Disclaimer: While every effort is made on this website to provide accurate information, any opinions expressed or information disseminated do not necessarily reflect the views of Bitfinity itself. The information provided here is for general informational purposes only and should not be considered as financial advice.