Why Crypto Degens Are Pumped about AI

AI and The Blockchain

AI tools like ChatGPT and OpenAI are taking the world by storm. Everyone is posting ChatGPT screenshots on Twitter, Reddit, and many other websites! Lensa AI, which helps you create fantastic avatars, has also risen to the top of the app charts, and everyone is posting their superhero avatars on social media! On the other hand, crypto and web3 are changing how we deal with money and ownership of digital assets. How can these two groundbreaking technologies and trends combine and create something that genuinely changes the world?

The convergence of AI and blockchain technology can revolutionize various industries and change how we interact with technology and each other. No wonder that I have seen a lot of tweets wondering whether the crypto crowd is more intrigued by AI, no thanks to the current bear market. In this article, I am expounding on a few ways in which these two technologies can be combined without the need to choose one or the other.

Decentralized AI

One of the key ways these two technologies can combine is through decentralized AI, which utilizes blockchain technology to enable a distributed network of computers to train and operate machine learning models. This approach has several potential benefits, including increased user privacy and security and reduced reliance on large centralized organizations to develop and deploy AI systems.

One potential use case for decentralized AI is in the realm of personal assistants, such as chatbots or virtual assistants. These systems are typically trained on large amounts of personal data, often collected and controlled by a single organization. By using decentralized AI, individuals could train their personal assistant models using their own data while accessing the broader network's collective knowledge and resources. Data providers (the actual users) could also get rewarded for their data using crypto.

The use of blockchain technology in the financial industry has already begun to gain traction with the proliferation of cryptocurrencies and other DeFi (decentralized financial) instruments. However, the integration of AI into these systems has the potential to take this even further by enabling more sophisticated and intelligent financial instruments and services. Another potential application of decentralized AI is in the field of finance. For example, decentralized AI could develop advanced trading algorithms to make more accurate and profitable investment decisions based on vast market data. Crypto degens could theoretically make smarter investment and trading decisions based on these HFT models.

Decentralized AI could also create more intelligent and personalized financial services, such as budgeting and savings tools that can learn from an individual's spending habits and offer tailored advice and recommendations. This could help individuals to manage their finances better and make more informed decisions about their money.

Digital Identity

Another potential use case for the convergence of AI and blockchain technology is in the realm of digital identity and authentication. The use of blockchain-based systems for storing and verifying identity information has the potential to improve the security and privacy of online interactions significantly.

By integrating AI into these systems, it would be possible to develop more sophisticated and intelligent methods for verifying and authenticating identities, using a combination of traditional credentials, such as passwords and security questions, as well as biometric data, such as fingerprints and facial recognition. This could give individuals more control over their digital identities while making it harder for attackers to impersonate or steal their personal information. Soon, this kind of AI could also assist in thwarting Sybil attacks.

Overall, the convergence of AI and blockchain technology has the potential to create a wide range of exciting new applications and services that could significantly improve our lives. By enabling decentralized networks of computers to train and operate machine learning models, these technologies could increase privacy and security, reduce reliance on large centralized organizations, and create more intelligent and personalized services. The possibilities are limitless, and it will be exciting to see what the future holds for this rapidly evolving field.