The debut of artificial intelligence (AI), specifically large language models (LLMs), and blockchain had the world in a frenzy. With AI promising efficient automation in problem-solving and blockchain offering security and transparency, many were excited to see how these technologies, probably separately, would transform the world.
However, what we’re seeing now is an AI and blockchain convergence that no one thought possible a few years back. In fact, experts believe that, when put together, these innovative technologies can solve each other’s biggest problems.
The Fundamental Limitations of AI
AI, with its predictive power, seeks to make systems more efficient without human interference. From decision-making to problem-solving to perception and language understanding, AI systems employ techniques to imitate human cognition, enabling machines to process data, learn, and adapt efficiently.
In fact, machine learning, one of AI’s subsets, utilizes unique algorithms allowing computers to identify patterns and make predictions. And that’s how generative AI produces contextually relevant and human-like outputs across various industries. We see this in action when shopping online, where we find lists of recommendations based on our previous browsing or purchase behaviour. The same applies to those who enjoy online casino gaming.
However, despite the efficiency AI promises, it still faces a crisis of trust, plagued by opaque decision-making and data privacy issues. Not to mention, the costs of using AI systems at scale are quite significant. For instance, OpenAI’s ChatGPT-4 charges $0.03 for 1,000 tokens for output and $0.06 for 1,000 tokens for output. It costs about 10 tokens per question, depending on the type of output required. So, how can blockchain help solve these issues for AI?
How AI and Blockchain Work Together to Eliminate Each Other’s Pain Points
Blockchain, using its inherent immutable chain of records, is applauded for its decentralized structure, transparency, and security, which has led to several remarkable innovations. One such innovation is Verified.me, a blockchain innovation from SecureKey Technologies and major Canadian banks that provides a user-controlled digital identity network for streamlining know-your-customer (KYC) processes.
While initially designed to help streamline banking and payment processes, this blockchain innovation has also extended to other Canadian industries, including the online casino market. In fact, the best online casinos in Canada leverage Verified.me for instant, privacy-preserving player verification, eliminating lengthy document uploads and manual checks during KYC.
Nonetheless, blockchain still struggles with efficiency and high energy use, especially when it comes to Proof of Work (PoW) systems. That’s where blockchain’s issues with scalability and adaptability stem from. But what if AI could fix that?
Experts believe that AI’s problem-solving prowess can help blockchain networks become seamlessly scalable and efficient. Other ways AI can improve blockchain include:
* Verifying off-chain data sets for more accuracy and reliability, especially in DeFi projects
* Adding more security to smart contracts, dApps, and the general blockchain network
* Analyzing former data sets to predict potential challenges in smart contract execution and energy use
On the other hand, blockchain’s immutable nature can help AI and machine learning achieve democratized access, boosting trust and transparency across AI-powered systems. Instead of AI companies developing and operating their own centralized servers, they should consider giving validators their own devices so that they can contribute computing power to the blockchain, which will directly power computations. That way, prices remain low while fostering a more ethical, safer, and flexible AI system.
A New Era of AI-Blockchain Synergy
The rise of decentralized AI systems is proof that AI and blockchain can work together. Promising a user-driven, resilient, and transparent future, these blockchain-based systems address most of the limitations inherent in centralized AI models as well as standard blockchain networks.
They combine AI’s adaptability with blockchain’s commitment to security and transparency to create an accessible, community-driven, and trustworthy environment.
The best part is that several decentralized AI projects have already started emerging. That includes:
* SingularityNET, a decentralized global marketplace for AI services
* Fetch.ai, which enables autonomous agents in energy, logistics, and finance to operate and make AI-driven decisions independently, leveraging blockchain’s decentralized nature
* Ocean Protocol, a marketplace where data owners can monetize their data without forfeiting ownership
As you can see, the convergence of AI and blockchain is no longer a concept, but a fast-growing reality. Sooner than later, we won’t have to choose between AI’s efficiency and innovation and blockchain’s privacy and ethical responsibility. Rather, we will witness a complete transformation in how we trust and engage with the digital world.
