The necessary convergence of AI and crypto

Disclosure: The views and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of crypto.news editorial.

The 21st century has no shortage of high-tech buzzwords that are sure to pique the interest of any true technologist. Blockchain, big data, cloud computing, internet of things, machine learning… the list will continue to grow exponentially. As we leave a quarter of a century behind in the 2000s, artificial intelligence and cryptocurrencies appear to be among the most prominent innovations that will continue to transform society.

At first glance, AI and crypto may seem fundamentally different in terms of technology and philosophy. Crypto focuses on cryptography, decentralization, and economics, while AI focuses on statistics, neural networks, and big data. But when harmoniously combined, these two technologies have the potential to deliver more equitable and significant progress than either could achieve independently.

Centralization, security and efficiency in AI and crypto

The fundamentals of AI development, such as large language models and neural networks, offer unparalleled scale and complexity but often concentrate a significant amount of power in AI developers such as OpenAI. This centralization can come at the expense of user privacy, security, and autonomy. In contrast, crypto networks prioritize user control over raw computing power, but they face challenges in scalability, accessibility, governance, and broader adoption.

Decentralized crypto can help address the weaknesses of centralized AI by finding synergy opportunities and vice versa. This collaboration enables AI to develop more safely and deliver powerful, beneficial features that serve humanity without being driven solely by private interests.

Similarly, incorporating AI into crypto could help expand its role beyond a niche and allow it to realize its potential as a practical tool for fair, democratic participation in technology, finance, and other areas of daily life. For example, in financial fraud detection and risk management, AI models can process large volumes of transaction data to detect potential fraud, while blockchain offers a secure, immutable record. This combination strengthens the reliability of AI-driven decisions and increases trust in automated systems.

Synergies in privacy and authentication processes

The enormous scale and complexity of modern AI often comes at a high cost in terms of user privacy, security, and autonomy. But innovations inspired by crypto’s emphasis on decentralization can help overcome these challenges and promote fair outcomes. The centralized data collection required for training AI models inherently conflicts with individual privacy rights.

Consider a scenario in which a large technology company develops an AI-driven personal assistant that learns about you by accessing your data over time. What options do this company have if it changes its services or users want control over their data? Blockchain technology is coming. Cryptographic techniques such as zero-knowledge proofs enable machine learning that preserves privacy without revealing sensitive user data. While these techniques increase privacy, they currently pose challenges in terms of computational efficiency, model accuracy, and debugging compared to today’s data-intensive methods. However, rapid advances in zero-knowledge cryptography offer promising potential to close these gaps in the coming years.

Similarly, cryptographic techniques could be invaluable in combating the proliferation of AI-generated deepfakes. The immutable properties of blockchain provide a structured way to distinguish and verify AI-generated content from human-generated content. The main challenge will be to develop a scalable solution that also protects user privacy. Additionally, computational data storage is essential in this type of authentication structure. Effective solutions to combat deepfakes will need to include video, audio recordings, text and images. When implemented correctly, blockchain can play a crucial role in ensuring we can reliably and efficiently pick out human content in a sea of ​​AI-generated fakes.

A way forward

Artificial intelligence and cryptocurrencies both offer enormous technological potential but face unresolved challenges. Crypto often lacks the user-friendly sophistication needed for widespread adoption; whereas AI in its current form could further expand the reach of centralized big technology.

By thoughtfully combining these two transformative technologies, we can create a synergy where each addresses the limitations of the other. This could lead to a new era of blockchain-powered AI that prioritizes privacy and unlocks powerful new applications. The potential is huge, with exciting possibilities emerging from grassroots development. As we embrace this evolving reality, our focus must extend beyond embracing new technologies to rethinking how we interact with the world around us. It is about building a future that uses digital innovation to enhance human experiences to ensure that society progresses in an inclusive and responsible way.

Felix Xu

Felix Xu is a crypto enthusiast, early adopter, and NFT collector; He graduated from NYU Stern School of Business and founded two crypto projects, ARPA and Bella Protocol. They are among the global top 500 in terms of market capitalization. Felix previously worked at Fosun Investment, the Sackler family office and Vertical Research in New York and Beijing. Felix loves sailing and kitesurfing, and The Wall Street Journal and The New York Times feature him in their NFT collection.