AIs Influence on Crypto to Outweigh the Reverse, Says Expert

‘AI’s potential to reshape crypto far outweighs the reverse, argues a crypto expert on X. He believes that, in the near future, the crypto industry will derive more value from AI than any other sector, and that this impact will eclipse any benefits of using crypto to enhance AI.

AI: A Solution to Cryptos Challenges

The analyst stated that open-source AI must utilize proof of work mechanisms to ensure sufficient censorship resistance. He added that governments are likely to impose restrictions on advanced AI technologies, potentially more than they have on crypto assets like Bitcoin.

Read also: AI Payments: Is Bitcoin the Future or Fiat Still King？

Beyond censorship resistance, there is a significant opportunity to use AI to address challenges within the crypto sector. This dual focus suggests that the industry might gain equal or greater value from employing AI to solve existing issues rather than solely relying on blockchain to distribute AI capabilities.

Vitalik Buterins View on AI in Crypto

Vitalik Buterin shared similar thoughts, citing market-making bots in decentralized exchanges (DEXes) as a longstanding example of AIs potential within the crypto space. He predicts further developments, particularly in prediction markets and decentralized autonomous organizations (DAOs), where AI can play a central role.

As I said in my post earlier this year… there's been a crypto/AI intersection use case in plain sight for a decade, it's bots market-making DEXes.

Buterin had earlier introduced the concept of AI Omen, a prediction market demo where AI entities act as active participants. Buterin described predictive questions about events, such as tax season or court decisions, allowing AIs to contribute insights into outcomes based on available data.

Read also: OpenAI Launches New AI Model Designed to ‘Think’ Before Answering

AI potential in the prediction market is vast. The report suggests these technologies are poised to offer solutions for verifying social media content, assessing stock prices, and evaluating the legitimacy of online interactions.

Also, AIs ability to participate in a decentralized mechanism for rewarding and penalizing predictions presents a new approach to governance. AIs could engage in a game-like structure where their performance is evaluated based on user inputs.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.