Blockchain and AI: A Growing Interdependence
Introduction
Over the past few years, the technological innovations in the artificial intelligence (AI) and blockchain industries have been nothing short of remarkable. Despite their independence, these sectors are facing common challenges that could be alleviated through collaboration. According to a new report by TenSquared Capital (10SQ), AI and blockchain are poised to benefit from each other’s strengths, leading to a more diverse and enriched technological landscape.
The Need for Integration
Stan Miroshnik, founder of 10SQ, believes that AI needs blockchain more than the other way around. He cites the need for secure data sharing and decentralization marketplaces for AI models, as well as model validations and auditing, which blockchain technology can provide. On the other hand, blockchain technology can benefit from AI models and agents in real-time to improve moderating for vulnerabilities, among other things.
The Symbiotic Relationship
Research and development activity across both sectors has risen significantly over the past five years. There are now over 6,900 blockchain and AI-related GitHub repositories, 539,000 GitHub pull requests, 1,500 filed patents, and 5,600 research publications related to blockchain and AI as of December 31, 2023. This growth is indicative of the growing interdependence between AI and blockchain.
Challenges and Opportunities
The biggest challenges to adopting blockchain and AI are scalability, compatibility, and governance issues. Blockchain networks have been working to improve their infrastructure and scale, but many are still struggling to process high volumes and data. However, this presents an opportunity for AI and blockchain to complement each other, leading to more secure and efficient cybersecurity systems, among other benefits.
A Potential Solution
Blockchain technology can be used to build encrypted networks, verifying content authenticity and creating secure data sharing platforms. Combining AI and blockchain technology could lead to the development of more secure and efficient cybersecurity systems, as well as improved data analysis and visualization tools.
A Surveys and Trends
A November 2023 Casper Labs survey of 608 IT decision-makers found that a majority of respondents believe that AI and blockchain technology are complementary. However, 19% of respondents believed that the two technologies are unrelated and have no potential intersection. The same survey found that 51% of respondents use blockchain technology to work more efficiently with AI.
Investment and Growth
Despite the current venture capital downturn in crypto, the web3 and AI category was one of the most well-funded in 2023, with around $600 million, or 11%, of total investment going to this sector. This growth is a testament to the potential of AI and blockchain to work together.
How Integration Can Be Achieved
AI integration can be achieved through various means, including smart contracts, protocols, and web3 security at the infrastructure level of blockchain technology. Decentralized applications (dApps) can also be used to integrate AI and blockchain. Additionally, AI can help lower the barrier to entry in blockchain coding by sharing code-writing tools that enable developers to write code more quickly.
Vitalik Buterin’s Perspective
Vitalik Buterin, co-founder of Ethereum, has written about the promise and challenges of crypto and AI applications. He believes that “pure AI interfaces are probably too risky at the moment” and that AI should be integrated with human inputs. However, he sees AI as a player in the game, and the ultimate source of incentives will come from a protocol with human inputs.
A Future of Integration
Stan Miroshnik believes that it is early for AI and blockchain, and that they are finding a natural intersection. He expects that AI frameworks will shift to an open, distributed model and use blockchain mechanisms to achieve that. He envisions a future where AI and blockchain are not separate technologies, but rather a continuum.
Conclusion
The interdependence of AI and blockchain is becoming increasingly clear. As these technologies continue to evolve, we can expect to see more innovative applications and solutions emerge. The potential for collaboration and integration is vast, and the future of AI and blockchain is bright.
FAQs
Q: Why does AI need blockchain more than blockchain needs AI?
A: According to Stan Miroshnik, AI needs blockchain more because it requires secure data sharing and decentralization marketplaces for its models, as well as model validations and auditing, which blockchain technology can provide.
Q: What are the biggest challenges to adopting blockchain and AI?
A: The biggest challenges are scalability, compatibility, and governance issues. Blockchain networks are working to improve their infrastructure and scale, but many are still struggling to process high volumes and data.
Q: How can AI and blockchain be integrated?
A: AI integration can be achieved through various means, including smart contracts, protocols, and web3 security at the infrastructure level of blockchain technology, as well as decentralized applications (dApps) and AI sharing code-writing tools to lower the barrier to entry in blockchain coding.
Q: What is the potential for AI and blockchain to work together?
A: The potential is vast. AI and blockchain can combine to create more secure and efficient cybersecurity systems, improve data analysis and visualization tools, and create secure data sharing platforms, among other benefits.
Q: Will AI and blockchain continue to evolve separately or together?
A: Stan Miroshnik believes that AI and blockchain will continue to evolve together, and that they will eventually become a continuum, rather than separate technologies.
