Co-founder of Ethereum Vitalik Buterin says he believes there is a promising future for combining artificial intelligence (AI) with cryptocurrencies, but he cautions against any possible risks.
The architect of Ethereum recognized the long-awaited synergy between the two technologies in a blog post dated January 30. He also highlighted the major hurdles as well as the tremendous opportunities that both present.
He said that although there have long been theoretical similarities between the automation of AI and the decentralization of cryptography, practical applications have taken time to emerge. He said that this was due to constraints in both domains, but that new developments are altering the landscape.
According to him, the development of strong AI language models and cutting-edge crypto tools like safe multi-party computing and zero-knowledge proofs is opening the door for a productive coexistence of the two fields.
He noted in the blog post, “In the last three years, with the rise of much more powerful AI in the form of modern LLMs, and the rise of much more powerful crypto in the form of not just blockchain scaling solutions but also ZKPs, FHE, (two-party and N-party) MPC, I am starting to see this change.”
He added, “There are indeed some promising applications of AI inside of blockchain ecosystems, or AI together with cryptography, though it is important to be careful about how the AI is applied.”
Vitalik Buterin lists four possible applications of AI in the cryptocurrency industry in his blog post:
- AI as a Player: Here, he envisions AI taking part in blockchain-based systems where the underlying incentives are provided by protocols that were created by humans.
- AI as Interface: Vitalik claims that tools with AI capabilities can handle transactions, clarify complicated crypto ideas, and shield consumers from fraud.
- AI as the Rules: He proposes using AI directly within the core logic of blockchains and decentralized autonomous organizations (DAOs). He proposed using “AI judges” to arbitrate disagreements within DAOs, but he cautioned about the opaque nature of AI algorithms.
- AI as the Goal: According to Vitalik, the creation and upkeep of AI will be accomplished through the design of blockchain, DAOs, and related systems. These mechanisms will be employed “using the crypto bits either to better incentivize training or to prevent the AI from leaking private data or being misused.”
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