Why are we debating crypto vs. AI?
The great debate of “crypto vs artificial intelligence” is heating up in 2023, but I don’t think it deserves to be scrutinized in a negative manner. Debates like these come naturally with all emerging technology. Remember the famous headline about the internet? “Internet ‘may be just a passing fad as millions give up on it,’” reads Daily Mail in December 2000.
Blockchain is a decentralized, immutable ledger that facilitates a secure and transparent exchange of encrypted data shared across a network where information is available to all participants simultaneously. It is capable of tracking various types of information such as orders, payments, accounts, production and more. Permissioned members share a single view of the truth via this fully digital log. Each transaction is encrypted with a distinct unalterable hash and stored in a block, along with other transaction records.
In contrast, artificial intelligence (AI) is the ability of computers, data and machines to deploy programs that address issues such as problem-solving and decision-making, efficiently at scale. AI also includes the sub-fields of machine learning and deep learning, which use algorithms trained on data to make predictions or classifications. AI offers various advantages, such as streamlining repetitive tasks and enhancing decision-making processes through trained data sets.
AI fundamentally differs from crypto in the sense that it effectively requires centralized data caches for training, opposing the premise of crypto’s decentralized nature. This current state doesn’t alienate the potential for technology to work together and evolve, both are just at the early stages of development. With the disruption of the current “how” comes the inescapable arguments of “why.” By removing obstacles, expediting operations and boosting efficiency, blockchain has the potential to introduce new benefits to AI-based operations.
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Derogating crypto in order to show excitement about AI is the wrong approach entirely. The most fun is when great concepts intersect and work together, right? Everything serves a purpose as we migrate to an even more digitized world, and there is minimal need to see these two technologies as enemies. In fact, their relationship can be seen as symbiotic since the dynamic essence of AI is to deploy problem-solving capabilities at scale and crypto sets out to help everyone, everywhere.
Opportunity truly unlocks when distributed computing, strong encryption and decentralized environments powered by crypto combine to become implemented into applications far beyond currency and into technology such as AI. Let’s take a look at some sample use cases where crypto and AI can find synergies.
- Making crypto mining more efficient by sampling probability distribution with AI
- Machine learning and generative modeling tools to be audited by forms of blockchain authentication
- Utilizing sentiment analysis for cryptocurrency trading
- Token-based AI ecosystem development and monetizing AI services at scale
- Democratic governance over decentralized networks
- AI utilizing decentralized data to personalize itself within a single centralized entity or multiple dispersed entities (wallets, tethered accounts, etc.)
To summarize, both of these technologies set out to capture the similar sentiment of revolutionizing the convenience of our lives. We live in a world where technology does, and will, constantly evolve. It is important to create a healthy ecosystem that embraces inescapable changes. Ultimately, crypto has the potential to change not only AI but Web3 in a variety of its applications by improving its efficiency, security, user experience and automation — enabling the reach of decentralized services and making them more accessible and beneficial to many.
Megan Nyvold is Head of Media, North America, leading crypto exchange BingX.
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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