The problems with artificial intelligence, today, include centralization to public trust loss and even some intellectual property protection problems. According to the report by a16z’s “State of Crypto 2024,” most of these problems would be solved by blockchain technology as well. According to the report, decentralized infrastructures can help solve at least some of AI’s most severe problems.
The crypto industry is increasingly playing its part in overcoming certain obstacles linked with AI development. By 2024, 34% of crypto projects have included AI, up from 27% in 2023. Many of these projects are focused on bringing AI to more people through decentralized networks- an important step in any effort to ensure that AI’s benefits cut across a broader spectrum of innovators.
The Problem of Artificial Intelligence Centralization
The greatest challenge that Artificial Intelligence faces today is centralization. Development and training have become so cost-intensive that only giant players in the tech field can now afford the resources needed for anything of the value. Consolidation stymies innovation and restricts access to the computational power required for breakthroughs. Blockchain technology offers a decentralized alternative. For example, there is Gensyn-a project that aims to democratize access to AI computing power.
Blockchain can deconcentrate access to AI through decentralised infrastructure. It allows emerging sectors and even the biggest regions to contribute to AI’s developing processes. Thus, in the end, there can be an ultimate breaking of monopolization. Now, AI is mainly developing within the hands of large companies that have superior computational power. Gensyn’s decentralized network allows smaller developers and startups to use computing resources to train AI models. Reduced financial barriers by Gensyn allow more participants to contribute innovation within the AI space, so the said industry is not dominated by a few major players.
Addressing IP and Content Verification
Apart from decentralization, blockchain technology offers essential tools for making Artificial Intelligence more transparent when it comes to addressing intellectual property and content verification issues. Most AI systems depend on large datasets for training, but these datasets consist largely of uncredited material originating from content creators. This has serious ethical implications about compensation and acclaim to the originators of the data. Blockchain can help track and verify the original origins of digital content while assuring proper due credit and adequate compensation.
Projects like Near and Story are something more: they use blockchain to establish a provenance for digital artefacts. The very mechanism of verification eliminates one of the most flagrant issues that AI is facing today: creators’ work is being used without permission in training datasets. Public confidence in AI has plummeted significantly in the last couple of years. The report by a16z shows that Americans have fallen from trusting AI companies at 50% in 2015 to 35% in the present day.
Blockchain, due to its transparency, could be the answer to that by making AI more accountable. Transparency is one of the most fundamental properties of blockchain technology. Thus, people and all the stakeholders can track what AI algorithms work about and verify the integrity of the data being used; in that light, people may regain their confidence in society’s use of Artificial Intelligence if they know what functions of AI are.
Growing Adoption of AI in Crypto
Crypto developers are increasingly developing blockchain infrastructure using artificial intelligence. In its a16z Builder Energy dashboard, AI optimizes smart contracts, improves DAOs, and fine-tunes algorithmic trading systems. As blockchain technology evolves, AI is continually playing an integral part in crypto projects, making new applications based on identity verification, prediction markets, and content authentication.
Huge reductions in transaction costs characterize blockchain systems, and this is also one of the key factors that will lead to innovation at the intersection of Artificial Intelligence and blockchain. This has made it easier to experiment with combinations of AI and decentralized technology because the reduction in these costs allows developers to experiment with innovative, scalable AI-powered applications. They could utilize the former to automate complicated tasks, or they might authenticate a digital identity in a decentralized method.
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