Why are we debating crypto vs. AI?
The big “crypto vs artificial intelligence” debate is heating up in 2023, but I don’t think it deserves to be examined in a negative way. Debates like these come naturally with any new technology. Remember that famous headline about the internet? “The Internet ‘may be just a passing fad as millions give it up,'” said the Daily Mail in December 2000.
Blockchain is a decentralized, immutable ledger that enables a secure and transparent exchange of encrypted data that is shared across a network where information is available to all participants at the same time. It is capable of tracking various types of information such as orders, payments, accounts, production and more. Members who have permission share a simple view of the truth via this fully digital log. Each transaction is encrypted with a distinct immutable 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 problems such as problem solving and decision making, efficiently at scale. AI also includes the subfields of machine learning and deep learning, which use algorithms trained on data to make predictions or classifications. AI offers various benefits, such as streamlining repetitive tasks and improving decision-making processes through trained datasets.
AI is fundamentally different from crypto in the sense that it effectively requires centralized data buffers for training, contrary to the premise of crypto’s decentralized nature. This current state does not alienate the potential for technology to work together and evolve, both are only in the early stages of development. With the disruption of the current “how” comes the inevitable arguments about “why.” By removing obstacles, speeding up operations and increasing efficiency, blockchain has the potential to introduce new benefits to AI-based operations.
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Denigrating crypto to show enthusiasm for AI is completely the wrong approach. The funnest thing 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 view these two technologies as enemies. Indeed, their relationship can be seen as symbiotic since the dynamic essence of AI is to deploy problem-solving capabilities at scale, and crypto aims to help everyone, everywhere.
The possibilities really open up when distributed computing, strong encryption and decentralized environments powered by crypto combine to be implemented in applications far beyond currency and in technologies like AI. Let’s take a look at some examples of use cases where crypto and AI can find synergies.
- Making cryptomining more efficient by sampling probability distribution with AI
- Machine learning and generative modeling tools to be audited by forms of blockchain authentication
- Using sentiment analysis for cryptocurrency trading
- Token-based AI ecosystem development and monetization of AI services at scale
- Democratic governance over decentralized networks
- AI that uses decentralized data to personalize itself within a single centralized entity or multiple dispersed entities (wallets, linked accounts, etc.)
To summarize, both these technologies aim to capture the similar feeling of revolutionizing the convenience of our lives. We live in a world where technology does, and will, constantly develop. It is important to create a healthy ecosystem that embraces inevitable change. Ultimately, crypto has the potential to change not only AI, but the Web3 in a variety of applications by improving 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 the Cointelegraph Innovation Circle, a researched organization of top 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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