The recent Coinbase State of Crypto Summit, which took place last Thursday, sparked some intriguing debates among participants.
The future of crypto/blockchain technologies and AI was among the largest and potentially most controversial issues. Specifically, venture capitalists and AI experts expressed their opinions on the matter, with some predicting that the two will soon be inseparable.
The future of artificial intelligence is dependent on cryptocurrencies.
With the recent filing of litigation against Binance and Coinbase by the US SEC, the future of the cryptocurrency industry — at least in the United States — is uncertain. The increasing regulatory pressure on digital assets has impacted their price performance.
Despite the fact that cryptocurrency is still a hot topic with a lot of money involved, it has recently been dethroned by artificial intelligence as the most discussed emergent technology. During last week’s Coinbase Summit, a panel of AI experts discussed the similarities and distinctions between cryptocurrencies and AI and how investors, developers, and users could profit from both.
The users are the sole proprietors and managers of their assets is a central tenet of the cryptocurrency industry. Moreover, crypto and blockchain offer the same protections for user data, identity, and other aspects. This approach opposes what contemporary social media platforms like Facebook and Instagram have chosen.
These companies utilize their users’ data in various ways, some of which the users disagree with. Meanwhile, banks control the money and are free to block it if they suspect anything unusual. The crypto industry opposes this level of control because it believes users should own their funds and data. However, data ownership applies not only to Web3 but also to AI, according to Fred Wilson of Union Square Ventures.
He argued that consumers of AI-powered tools would desire control over their data in the future. They will also determine which models can or cannot self-train using their (the users’) data. Wilson said, Users will require control over their data and how it is shared across assets.
AI and cryptography complement one another. Many concur with Wilson, noting that AI could provide the blockchain industry with additional opportunities. Adam Struck, the proprietor and managing partner of Struck Crypto, declared,
Artificial intelligence may catalyze a return to the blockchain. Since the ChatGPT program was released, his company has immersed itself in AI.
CoinFund recently backed Tools for Humanity, a cryptocurrency venture co-founded by OpenAI’s Sam Altman. The startup raised $115 million and revealed crypto’s actual applications in AI.
Alex Felix, chief investment officer at CoinFund, asserts that blockchain can increase AI’s transparency and decentralization. Tools of Humanity attracted investment due to its Worldcoin digital currency. The project developed a small orb that examines users’ eyeballs to generate a unique identifier, granting them “proof of personhood.”
This can be used in conjunction with Worldcoin to facilitate secure payments. The director of products at Tools for Humanity, Tiago Sada, stated, “For us, the question was where is the world headed with AI? And the solution was cryptography.”