Over the past year, AI has garnered significant attention, overshadowing some of the excitement surrounding cryptocurrency. With Silicon Valley’s focus shifting towards Web3 and the Metaverse, the convergence of large language models and applications like ChatGPT has captured the spotlight.
While some blockchain projects have attempted to capitalise on the AI trend, many of these ventures feel more like buzz than substance, despite efforts by startups like Worldcoin, spearheaded by OpenAI founder Sam Altman, which have found practical applications bridging both realms.
Despite potential challenges, Ethereum co-founder Vitalik Buterin believes there is promise in the intersection of crypto and AI. In a recent blog post, Buterin outlined his thoughts on potential collaborations between these technologies, emphasising the need for caution.
Buterin likened the relationship between AI and blockchain to a “game,” categorising their potential overlaps into four distinct areas.
The first category, deemed “viable” by Buterin, involves applications where AI functions as “a player in a game,” contributing predictions or actions based on human inputs within a protocol-controlled environment, such as prediction markets.
The second category, labelled as “high potential, but with high risks,” involves AI serving as an “interface to the game,” aiding users in navigating the complexities of the crypto world, such as detecting scams.
The third category sees AI dictating the “rules of the game,” akin to “AI judges,” which Buterin urges caution when exploring due to potential implications, particularly in decentralised autonomous organisations (DAOs).
Lastly, Buterin identifies use cases where AI becomes the “objective of the game,” involving the use of blockchains as infrastructure for enhancing AI models in the long term.
While Buterin expresses optimism about the convergence of AI and crypto, he acknowledges challenges in balancing the transparency of crypto with the inherent opacity of “black box” AI systems. He warns developers to proceed cautiously, recognizing the importance of finding the right balance between these technologies.
In conclusion, Buterin emphasises the need for careful navigation in exploring the fusion of crypto and AI, recognizing both the potential and the risks involved.
