The recent Coinbase State of Crypto Summit shed light on a fascinating and potentially controversial topic – the future relationship between crypto/blockchain technologies and AI. While the crypto industry continues to face many challenges, including mounting regulatory pressure and recent lawsuits filed against Binance and Coinbase, it seems that AI could become an integral part of the industry’s future.
One of the main principles of the crypto industry is that users should have full control over their assets, data, and identity. However, this concept seems to be at odds with the business models of modern social media platforms, which often use their users’ data in ways they might not necessarily agree with. On the other hand, banks maintain control over people’s money, having the power to freeze accounts at their discretion.
Crypto enthusiasts argue against this level of control, advocating for user autonomy when it comes to data management. Interestingly, this concept of data ownership can also be applied to AI, as highlighted by Union Square Ventures’ Fred Wilson. He believes that, in the future, users employing AI tools will want to retain control over their data and determine which models can or cannot train themselves using their information.
Many industry insiders agree with Wilson’s viewpoint, suggesting that AI could potentially open up new opportunities for the blockchain sector. Adam Struck, founder and managing partner of Struck Crypto, believes AI could act as a catalyst to drive blockchain’s resurgence. His company has been heavily invested in AI since the advent of the ChatGPT bot.
CoinFund, another firm in the industry, recently backed a crypto startup called Tools for Humanity, co-funded by OpenAI’s Sam Altman. The startup raised $115 million and showcased real-world use cases for crypto within the AI field. CoinFund’s Chief Investment Officer, Alex Felix, asserts that blockchain technology can bring greater transparency and decentralization to AI.
Tools for Humanity developed a unique digital currency called Worldcoin, using a small orb to scan users’ eyeballs and generate a unique ID, providing them with “proof of personhood.” This, combined with Worldcoin, can be used to facilitate secure payments. Tiago Sada, head of product at Tools for Humanity, highlights the intersection between AI and crypto, stating, “For us, it started with where’s the world going with AI? And the way to solve that was crypto.”
Ultimately, the integration of AI and crypto has the potential to revolutionize both industries, fostering greater transparency, user control, and decentralization. While challenges and uncertainties remain, the synergy between these two areas could lead to a more secure and innovative future.
Source: Cryptonews
