Can AI and Crypto Have a Meaningful Crossover?
Ethereum founder Vitalik Buterin recently discussed the potential intersection between artificial intelligence (AI) and cryptocurrency. He compared the role of AI in crypto to that of components in a video game. According to Buterin, AI’s most viable role would be “as a player in a game.” This concept has already been popular for years, with trading bots earning money through arbitrage on decentralized exchanges. However, this is just one application of many more to come.
Prediction Markets and Liquidity
Vitalik believes that prediction markets, such as AIOmen, could leverage AI as their players. Bots with deep knowledge and the ability to bid for cheap prices could bring much-needed liquidity to these markets. Additionally, AI can act as an “interface to the game” by helping crypto users understand the world around them. For example, popular wallets like MetaMask and Rabby Wallet already use AI to warn users about potentially malicious websites or simulate transaction consequences.
The Risks and Challenges
However, there are risks associated with integrating AI into crypto. Open-source wallets with AI defenses can be susceptible to hacks and scams if nefarious actors review their code. Furthermore, using AI as the “rules of a game” presents challenges when making subjective decisions in smart contracts or decentralized autonomous organizations (DAOs). Attackers could manipulate the AI model to make false judgments or deceive it.
While zero-knowledge proofs could potentially mitigate some of these risks, they would increase computational intensity and vulnerability to poisoning attacks during model training. Despite these challenges, Buterin suggests that if developers can create a trustworthy black-box AI, its use cases could extend beyond blockchain technology.
Hot Take: Exploring the Intersection Between AI and Crypto
Ethereum founder Vitalik Buterin recently delved into the potential crossover between artificial intelligence (AI) and cryptocurrency. He compared AI’s role in crypto to components in a video game, highlighting its viability as a “player” and an “interface to the game.” While trading bots have already been successful in arbitrage on decentralized exchanges, there are many more applications to come. Prediction markets could leverage AI as players to improve liquidity, while AI can help users understand the crypto world through wallet software. However, integrating AI into crypto comes with risks, such as code review by attackers and challenges in making subjective decisions. Despite these hurdles, a trustworthy black-box AI could have broader applications beyond blockchain technology.
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