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Coinbase Global has said that the intersection of artificial intelligence (AI) and cryptocurrency represents a significant opportunity for entrepreneurs, including helping prevent some of the excesses cited by critics of the technology. The total market capitalization of crypto projects directly involved in AI is around 0.07% of the total crypto market capitalization, according to research firm Messari cited by Coinbase. However, tokens classified in the AI โโcategory by crypto data platform CoinGecko have seen large inflows this year. Potential use cases combining both technologies include decentralized data marketplaces to help generative AI meet their demand for verified and diverse data, and token-based incentive mechanisms to improve data quality.
Following a recent report by Coinbase Global Inc., the intersection of artificial intelligence (AI) and cryptocurrency represents a significant opportunity for entrepreneurs. The report suggests that the collaboration of these two technologies could help prevent some of the excesses cited by critics of the technology.
David Duong, Coinbase's head of research, stated in the report that "as applications within AI and blockchain mature, the disruptions these technologies represent may lead to areas of collaboration and the emergence of new cases of use of cryptocurrencies to help address the specific societal challenges posed." by AIโ.
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However, the report highlights that crypto projects that are directly developing AI models on the blockchain, applying AI to decentralized applications, or solving AI-related problems are still low. The total market capitalization of crypto projects that are directly involved in AI is around 0.07% of the total crypto market capitalization at $772 million, citing data from research firm Messari. Most crypto assets are for Bitcoin, smart contract platforms, and stablecoins.
Despite this, tokens classified in the AI โโcategory by crypto data platform CoinGecko have seen huge flows this year as ChatGPT became one of the fastest apps and its proprietary OpenAI attracted billions of followers. investment dollars.
Duong listed a range of possible use cases that combine both technologies. For example, decentralized data marts can help generative AI meet its demand for diverse and verified data sets to train its model. A token-based incentive mechanism could improve the data quality of those markets.
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Another use case includes providing computational power of decentralized networks using graphics processing units for AI projects to train their models. This could improve the authenticity of the data and make the AI โโalgorithm's opaque decision-making process more auditable, according to the report.
The report suggests that disruptions caused by AI and blockchain technologies may lead to areas of collaboration and the emergence of new use cases for cryptocurrencies. The report also highlights that the combination of these two technologies can help address the specific societal challenges posed by AI.
While the market capitalization of crypto projects that are directly involved in AI is still low, the report suggests that the potential for collaboration between AI and crypto is huge. As applications within AI and blockchain mature, entrepreneurs are likely to find new and innovative ways to leverage these technologies to address specific societal challenges.
