In every industry, it seems like everyone is talking about artificial intelligence. Even companies that aren't technologically advanced are struggling to figure out how AI works and what it might do for them. Given the impact AI is predicted to have, it is not surprising that blockchain protocols, part of a decidedly technologically advanced industry, are exploring what role AI could play for them.
From data analysis to improving scalability to fostering interoperability, AI could prove to be a powerful tool in the arsenal of blockchain protocols. Still, it is essential to carefully review not only all potential benefits, but also potential complications. Next, 12 members of Cointelegraph Circle of Innovation discuss some of the things blockchain protocols need to consider as they begin to explore AI.
The preservation of privacy and data security.
As AI relies on vast amounts of data for training and decision making, protocols must prioritize strong encryption, anonymization techniques, and secure data handling practices. In addition, the implementation of privacy-enhancing technologies, such as federated learning or differential privacy, can mitigate the risk of exposing sensitive information. – rj phillips, Zoom
The team behind an AI product
Carefully consider the team behind each product. While many AI developers promise great results, you should always be sure to research their historical performance to determine if the projected results are truly realistic. In general, protocols should look for companies with a consistent track record of delivering quality products on time and on budget. – Wolfgang Ruckerl, ENT Technologies AG
Maintain and/or improve decentralization
Protocols should prioritize the design of AI solutions that maintain or enhance decentralization, possibly through the use of distributed AI models or decentralized decision-making algorithms. Additionally, protocols must consider potential risks linked to AI, such as bias and security vulnerabilities. – tammy paola, zero capitalization
The ethical use of AI
Ethical frameworks and guidelines should be put in place to address issues of bias, impartiality, and responsible use of data. The user experience of the protocols must also be seamless and straightforward so that AI-enabled blockchain solutions are easy to use and understand. Protocols can produce technically sound, ethically sound, and user-focused solutions. – Myrtle Anne Ramos, lock tides
Balancing privacy and power
Dance with the two titans! As you introduce AI into the blockchain realm, remember that it is a dance between privacy and power. AI craves data, but blockchain stands for privacy. Getting the balance right is key: harnessing the power of AI without compromising the privacy sanctity of the blockchain. It's a delicate dance, but when done right, it can transform blockchain ballet! – Erki Koldits, OÜ Popspot
If you can offer real added value
Many of the so-called "AI tokens" at the moment are only being traded in hype, riding the marketing wave. But once the market realizes that, it will just scrap those protocols. Never try to market your protocol as something it is not. If you can't provide real AI value-add, but you're just copying some code from ChatGPT or other sources, don't. – Zain Jaffer, zain companies
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How (or if) AI contributes to your mission and vision
AI can easily be a game changer for many companies and technology protocols. The key to success is making sure your angle, initiative, or AI element contributes to your original mission and vision. If it helps you improve or reach it sooner, it's clearly a potential strategic pillar of your roadmap. If not, leave it out completely and don't get distracted! – German Ramirez, THE HOUSE OF RELEVANCE AG
The mutability of AI
By design, the AI is not fixed. You can give two different responses to the same input at two different times, depending on your experience. The role of a blockchain protocol is to be verifiably consistent over time. There is a fundamental tension; the addition of AI could break the value of a blockchain protocol. Using AI to learn how to write new smart contracts is a different story: Yeah It doesn't touch the protocol. – stephanie so, Addicted
The growing need for penetration testing
As the capabilities of large language models expand, it will become increasingly crucial to perform periodic (eventually perpetual) penetration testing. Additionally, there will need to be several extensive code audits performed by reputable vendors prior to launch. – Timothy Enneking, digital capital management
Projects rushing to market
When a topic captures the popular imagination, companies will accelerate solutions to meet the growing demand. However, this can also lead to dilution in general services, as underdeveloped products hit the market with the sole aim of capitalizing on the craze. To protect participants, crypto leaders must examine the competence and effectiveness of all projects before granting access to the network. – Oleksandr Lutskevych, CEX.IO
The variety of use cases
Protocols can unlock an exciting new set of use cases with AI. For example, DeFi and trading protocols could quickly identify arbitrage opportunities using AI. Governance protocols could predict voting results or identify anomalies in transaction behavior. Data protocols could tag AI data and make AI output transparent, decentralized, and censorship-resistant. The opportunities are endless. – Shiv Madan, moon walk
The fact that AI is not going away
Blockchain protocols should prepare for AI to become a permanent fixture rather than a short-term craze. Therefore, protocols need to treat AI with the enormity it deserves. Companies must choose and implement AI solutions carefully to avoid embarrassing performance and scalability issues later. – Sheraz Ahmed, STORM Partners
This article was published via the Cointelegraph Innovation Circle, a vetted organization of top executives and industry experts in blockchain technology who are building the future through the power of connections, collaboration, and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
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