As blockchain navigates a challenging landscape marked by recent lawsuits from the US Securities and Exchange Commission against Coinbase and Binance, a new ally appears on the horizon.
Artificial Intelligence (AI), brought into the mainstream by OpenAI’s ChatGPT bot, is now showing potential as a transformative force in the blockchain industry.
While crypto once held the public’s fascination, AI has now claimed center stage, attracting significant attention from the innovators and investors who once spurred the crypto boom. However, this isn’t a shift away from blockchain; it’s a convergence.
The confluence of AI and blockchain
Adam Struck, founder and managing partner of Struck Crypto, believes AI could be the much-needed catalyst that brings blockchain back to the limelight.
He posits that blockchain technology could enhance the transparency and decentralization of AI, which currently operates behind an opaque curtain. Alex Felix, managing partner and chief investment officer at CoinFund, seconds this sentiment.
Felix points to a real-world example: Tools for Humanity, a crypto startup co-founded by OpenAI’s Sam Altman. Tools for Humanity developed a digital currency, Worldcoin, and devised a novel method to generate a unique ID for individuals using blockchain.
This method creates a digital “proof of personhood,” linking it with Worldcoin for secure payments, demonstrating an innovative blend of AI and crypto.
Apart from enhancing transparency, AI also has the potential to bolster security in the blockchain ecosystem. Decentralized protocols have been plagued by cyberattacks that have drained millions of dollars.
Struck suggests that AI bots could be a robust defense against such attacks, using these bots to simulate attacks and pinpoint vulnerabilities in the smart contract code that hackers could exploit.
AI bots can also offer another line of defense by moderating content on messaging platforms such as Telegram, Discord, Signal, WeChat, and WhatsApp. This could significantly reduce the risk of scams, which often originate from these platforms.
Enhancing user experience in transactions
Improving user interactions with crypto is another area where AI can play a crucial role. Solana Labs, creators of the Solana blockchain, have already integrated ChatGPT to simplify and enhance user experience.
This plugin helps guide users through blockchain transactions in a conversational manner, making blockchain more accessible to everyday consumers.
However, despite these promising developments, there remains a level of apprehension within the crypto industry regarding the full integration of AI. Concerns range from the potential for users receiving misleading information to privacy concerns related to biometric data collection.
For instance, Tools for Humanity’s eye-scanning tech, while innovative, has raised questions about the security of sensitive biometric data it collects.
Moreover, while companies like Edge & Node are leveraging AI and machine learning to make blockchain data more accessible, they remain cautious about fully integrating AI into their business model due to perceived risks.
The convergence of blockchain and AI presents a new frontier in technology, with both challenges and opportunities. With AI’s ability to enhance transparency, boost security, and improve user experience, the union of these two technologies signals a promising future for the crypto industry.
However, the industry must also carefully navigate the potential pitfalls associated with integrating these two transformative technologies. This union brings us a step closer to the dawn of a new era in blockchain, opening the door to a world of opportunities and challenges.
