Blockchain and AI: A Powerful Combination for Web3
A new report from TenSquared Capital explores the potential of combining artificial intelligence (AI) with Web3 to enhance speed, efficiency, and functionality in the crypto industry. By leveraging AI tools like ChatGPT and Github Co-Pilot, developers can simplify code writing and work on different blockchains without being experts in specific programming languages. AI can also improve blockchain infrastructure by creating smart contracts and consensus protocols that make real-time decisions based on on-chain data. Furthermore, AI can boost Web3 security through AI-based detection systems, making smart contract decisions more accurate and efficient. Additionally, AI has the potential to reshape decentralized finance (DeFi) by using historical lending data to create credit scores and improve loan decisions.
Enhancing Web3 Security with AI
Researchers and startups are already exploring AI-based consensus methods to enhance the security and scalability of blockchains. For example, Velas is developing an AI Delegated Proof-of-Stake system, while Inery is working on validating blocks more efficiently based on uptime. AI also plays a crucial role in strengthening Web3 security by defending against cyberattacks and bolstering blockchain defenses. This is significant because security remains a major concern for users entering the crypto space.
AI’s Impact on Credit Scoring and Interactive Gaming
AI has the potential to reshape decentralized finance (DeFi) by using historical lending data to create credit scores and improve loan decisions. Trading bots and predictive analytics powered by AI can enhance traders’ decision-making processes and help them profit from market trends. In the gaming industry, generative AI can personalize gaming stories and characters, making games more immersive. Additionally, AI can enhance NFT platforms and Web3 social networks by delivering personalized content and relevant product recommendations to users.
Hot Take: The Challenges of Integrating AI and Crypto
While the combination of AI and Web3 holds great promise, Ethereum co-founder Vitalik Buterin warns that the biggest challenge lies in creating a single, decentralized AI that can be trusted by other applications. This issue remains to be resolved as the integration of AI and crypto progresses.
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