The intersection of artificial intelligence (AI) and blockchain technology represents a significant opportunity for entrepreneurs, according to a recent research report by Coinbase. The largest US-based cryptocurrency exchange emphasized the potential benefits of combining both technologies to address specific societal challenges presented by AI.
Decentralized data marketplaces, for instance, could help generative AI meet the demand for verified and diverse data sets to train its models. Token-based incentive mechanisms could also improve the quality of data sourced from these marketplaces. Additionally, computational power from decentralized networks that use graphics processing units (GPUs) could be provided for AI projects to train their models, thereby improving data authenticity and making AI algorithm’s opaque decision-making process more auditable.
Furthermore, the marriage of AI and blockchain technology could address issues such as algorithmic bias and digital identity verification. Blockchain technology can also tackle disinformation risks, as it can be used to establish the provenance of images, videos, music, and other media through blockchain and non-fungible tokens (NFTs).
Making the decision-making processes of generative AI models more transparent is another potential area where blockchain can play a vital role. This would allow users to scrutinize the logic and reliability of AI-produced outcomes, fostering trust in the technology.
Since the release of OpenAI’s ChatGPT in November last year, the AI craze has found its way across numerous industries, including the cryptocurrency sector. AI-driven crypto projects, which incorporate AI technology into their capabilities or service offerings, have emerged as new companies try to leverage their AI expertise to create novel opportunities in the crypto space.
According to Messari, the market cap of crypto projects that are directly involved in AI currently stands at around $772 million. While this still makes up a small fraction of the overall crypto market value, accounting for only 0.07% of the total crypto market cap, tokens classified under the AI category by crypto data platform CoinGecko have experienced significant inflows since the beginning of the year.
For example, the utility token of The Render Network, RNDR, a provider of decentralized GPU-based rendering solutions, is up more than 262% over the past year. Similarly, the native token of SingularityNET, a decentralized AI marketplace that leverages the power of blockchain technology to provide unrestricted access to algorithms and applications, has gained more than 374% over the past year.
In conclusion, the convergence of AI and blockchain technology offers immense opportunities for entrepreneurs to address societal challenges and create novel use cases in the crypto space. Time will tell how these synergistic technologies will contribute to shaping the future of cryptocurrency and addressing current issues in the AI landscape.
Source: Cryptonews
