The world of technology is ever-evolving, and the latest intersection to make waves is that of artificial intelligence (AI) and blockchain. A recent report by Coinbase, the largest US-based cryptocurrency exchange, suggests that this convergence represents a significant opportunity for entrepreneurs and innovators.
The Power of Convergence
According to David Duong, head of research at Coinbase, the maturation of AI and blockchain applications could lead to new areas of collaboration and the emergence of innovative use cases for crypto. This could help address specific societal challenges posed by AI.
Decentralized data marketplaces, for instance, could help generative AI meet the demand for a verified and diverse set of data to train its models. Token-based incentive mechanisms could improve the quality of data sourced from these marketplaces.
Blockchain and AI: A Match Made in Tech Heaven
Blockchain technology has the potential to address issues such as algorithmic bias and digital identity verification. It can also mitigate disinformation risks. Non-fungible tokens (NFTs), for example, can establish the provenance of images, videos, music, and other media. Moreover, blockchain can enhance the transparency of generative AI models’ decision-making processes, allowing users to scrutinize the logic and reliability of AI-produced outcomes.
The Rise of AI-Driven Crypto Projects
The cryptocurrency industry is rapidly embracing AI. AI-driven crypto projects, those incorporating AI technology into their capabilities or service offerings, are emerging as new companies leverage their AI expertise to create new opportunities in the crypto space.
According to Messari, there is currently a market cap of around $772 million for crypto projects directly involved in AI. This represents a small portion of the overall crypto market value, accounting for only 0.07% of the total crypto market cap. However, tokens classified under the AI category by crypto data platform CoinGecko have seen large inflows since the start of the year.
A Look at the Numbers
For instance, RNDR, the utility token of The Render Network, a provider of decentralized GPU-based rendering solutions, is up more than 262% over the past year. Similarly, the native token of SingularityNET, a decentralized AI marketplace leveraging the power of blockchain technology to provide unrestricted access to algorithms and applications, has gained more than 374% over the past year. The convergence of AI and blockchain is more than just a trend; it’s a major opportunity for entrepreneurs and innovators. As these technologies continue to mature and intersect, we can expect to see even more groundbreaking solutions and applications in the near future.
