Exploring AI and Blockchain: A Look into the Future of Decentralization

Did you know that AI tools like ChatGPT and Midjourney are revolutionizing industries and transforming how we interact with technology?

With the increasing popularity and widespread use of AI, it's no wonder that skeptics and naysayers have voiced concerns about their effectiveness and potential threats.

However, in this piece, we will explore the numerous benefits and positive impact of disruptive technologies such as blockchain and AI on various aspects of society.

AI tools like ChatGPT and Midjourney offer specific benefits and advantages in various industries or sectors. For instance, ChatGPT can understand natural language and retrieve relevant information, enabling customer service chatbots to respond to queries efficiently.

Midjourney can optimize marketing campaigns by analyzing customer data and personalized targeting, leading to increased customer engagement and brand loyalty.

Real-life examples or case studies showcase the positive outcomes achieved using these tools. For instance, a National Business Research Institute survey revealed that 82% of customers were satisfied with their chatbot experience.

Additionally, AI tools can enhance productivity, efficiency, and decision-making processes, leading to cost savings and improved customer experiences.

According to Sharon Yang, CFA, Blockchain’s immutable digital records may be a way to offer insights into AI’s framework and model to address the challenge of transparency and data integrity.

A critical benefit of blockchain technology is that it provides transparency and accountability in the decision-making process of AI. Blockchain enables an immutable and auditable record of an AI system's transactions and actions.

This allows the public to see how decisions are made and ensure they are fair and unbiased. Additionally, the blockchain's transparency can help build trust in AI-powered systems, which is crucial for the public to accept and adopt these technologies.

Furthermore, blockchain can also help protect the privacy of individuals by giving them control over their data. Traditional centralized systems often collect and store large amounts of personal data without the consent or knowledge of the individuals.

AI and DAOs: A perfect mix?

One of the main benefits of incorporating blockchain technology into AI is that it can help to create decentralized, autonomous organizations (DAOs).

Trent McConaghy from Ocean Protocol believes that AI DAOs facilitate access to resources, the ability to amass more resources, and the possibility that humans can’t control them once they’re going.

By using blockchain to create DAOs, AI can automate repetitive tasks and create new opportunities for work and income. For example, a DAO powered by AI could automate mundane tasks such as data entry, customer service, or financial transactions.

This would free human workers to focus on more creative and fulfilling tasks. Additionally, by creating a decentralized system, the blockchain allows for a fairer distribution of wealth and power, where many people can participate in decision-making.

What are some other use cases for AI and Blockchain technology?

AI and blockchain can positively impact the banking, healthcare, supply chain, and energy industries. For example, blockchain technology can make global supply chains more traceable, efficient, and trustworthy.

At the same time, AI can optimize various logistics processes to ensure optimal delivery times and minimize the waste of resources.

In healthcare, blockchain can provide a secure platform for sharing medical data with the patient's consent and enable AI applications that can assist with diagnosing and predicting diseases.

AI can automate the execution of smart contracts on a blockchain network. For example, an AI system could automatically execute an intelligent contract when certain conditions are met, such as payment receipt or task completion.

When exploring predictive analytics, AI can analyze the data on a blockchain network and predict future trends or events. For example, an AI system could predict the price of a cryptocurrency based on historical data and market conditions, much like the CryptoForcast app on iOS and Android.

AI could also be used to verify the identities of individuals on a blockchain network. For example, an AI system could use facial recognition or biometric data to confirm an individual's identity before allowing them to access a blockchain-based service.

In the world of Web3, AI models can be trained and sold on blockchain-based marketplaces, where businesses can purchase and use the models to improve their operations.

Concerning governance, AI-based governance mechanisms have been proposed to automate decision-making processes in blockchain-based organizations. These mechanisms can include AI-based voting systems and AI-based budget allocation systems.

Integrating blockchain and AI tools internationally can optimize processes and increase transparency, fairness, and accountability in international legal migration.

The UN Department of Economic and Social Affairs has developed Migranet - a one-stop solution for migrants and accredited migration practitioners by automating the processing of migration applications.

It assists refugees with a skills assessment to integrate them into their host countries post-selection subject to existing national legislation and regulations.

The platform will facilitate a fraud-free, corruption-free, and affordable means of migrating and/or traveling transparently and securely. This will improve speed, fairness, accuracy, and accountability throughout the global migration system.

Can AI be exploited to manipulate blockchain technology?

The short answer is yes; AI can certainly be exploited in the following ways:

Sybil attacks

AI can create multiple identities (Sybils) on a blockchain network, disrupting network operations or manipulating the outcome of decentralized decision-making processes.

Blockchain networks can implement identity verification mechanisms such as proof-of-work or proof-of-stake to mitigate Sybil attacks. Additionally, reputation systems can be used to assign trust scores to identities on the network, making it more difficult for Sybils to gain a foothold.

Smart Contract Exploitation

AI can automatically identify and exploit vulnerabilities in smart contracts. This can allow malicious actors to steal funds or disrupt the operation of decentralized applications (dApps) built on the blockchain.

Blockchain networks can implement smart contract verification and testing mechanisms to mitigate exploitation. Additionally, smart contract audits can be performed by third-party organizations to identify vulnerabilities before they can be exploited. AI can be used to predict the prices of cryptocurrencies or other assets on a blockchain network. However, if the predictions are manipulated, it can lead to market manipulation and destabilization.

Blockchain networks can implement mechanisms such as oracles that provide external data feeds to smart contracts. Additionally, using multiple oracles and having a mechanism to validate them can discourage manipulation. AI can analyze the transaction data on a blockchain network and potentially identify users' identities. This can be a privacy invasion, mainly if the data is used for malicious purposes.

Barriers to Applying AI to Blockchain

Integrating AI and blockchain technology can be technically complex. Both technologies have challenges and limitations, and combining them can make the process even more challenging. There must be established standards for integrating AI and blockchain. This can make it difficult for developers to create systems that are compatible with each other and can lead to fragmentation in the ecosystem.

AI systems require much data to train and improve performance. However, the data on a blockchain network is often limited and may need higher quality. This can make it difficult for AI systems to function effectively. Both blockchain and AI technologies have scalability issues. AI algorithms require a lot of computational power, and the decentralized nature of blockchain can lead to slow transaction processing speeds. Improving the scalability of these technologies is crucial to enable the integration of AI with blockchain.

AI and blockchain are relatively new technologies, and regulations surrounding them are still being developed. This can make it difficult for businesses and organizations to navigate the legal landscape and inhibit the adoption of these technologies. As AI and blockchain both deal with sensitive data, ensuring the privacy and security of the users are crucial. However, it needs to be clarified how these two technologies will interact regarding privacy and security, an open research area.

Despite these barriers, many companies and researchers are working on solutions to overcome them. As the technology matures and the ecosystem evolves, these barriers will likely be addressed, and the application of AI to blockchain technology will become more widespread.

Harnessing the Power of AI and Decentralization for a Better World

AI and blockchain have the potential to revolutionize various industries and create decentralized, transparent, and accountable systems. However, there are concerns about AI's negative impacts and exploitations in blockchain technology.

We can mitigate these exploitations by implementing identity verification, smart contract automation, and data privacy-enhancing technologies.

As the field is still new, more use cases and applications are expected to emerge, and developers, researchers, and regulators must be aware of the potential risks and continuously improve the security of the systems to harness the power of AI and blockchain for the greater good.

Laura Marissa Cullell is an MA Graduate of the UN University for Peace in International Law and Human Rights. She wrote her thesis on Blockchain and the Sustainable Development Goals: Utilizing Disruptive Technologies to Promote Human Rights, Peace, and Good Governance. Currently, she is working in Comms/as a degen in the world of Web3.

She loves puns, cookie dough, glitter, and reading an obscene amount of books at the speed of light.