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How Does AI Influence the Blockchain Industry

May 31, 2023

A recent ChatGPT merge made all to reopen artificial intelligence (AI). However, it was founded in 1956, and Google, Meta, Netflix, YouTube, and other platforms have already used it for search, recommendations, and smart feeds for years as well as the blockchain industry uses it for security features. AI changes the blockchain industry and helps it to implement ideas of the full-scale metaverse, set up emotionless trading, provide 24/7 support, and many other benefits described in the text.

How Does AI Influence Blockchain, Metaverse and NFT Art

What Is AI and How Does It Work?

AI is a machine, computer, or software solving tasks as a human. To solve the tasks, an AI relies on data its developer provides to learn and then delivers outputs related to the problem. In simple terms, AI uses previous examples and experiences to find the most effective solution without any emotional bias. AI can perform complex tasks beyond human capabilities because it constantly learns and evolves.

The main issue of AI is the mentioned input, as the approach to its creation affects the quality of the database and outputs, meaning AI can provide false information. Apart from incorrect information, one of the major issues with AI is its tendency to exhibit low diversity and discrimination when responding, as it often learns from narrow-minded examples that only represent certain social groups.

It is ideal for AI to adhere to basic principles.

  1. Ethics and responsibility
  2. Transparency
  3. Fairness and avoidance of bias
  4. Privacy and security
  5. Robustness and reliability
  6. Human-centered design
  7. Collaboration and governance.

AI use cases are comprehensive and in the process of exploration.

AI, Data and Blockchain

Platforms such as YouTube, Meta, and Twitter, which fall under Web2, are believed to have an unfair economy. This is because users and creators provide valuable data and engagement, which helps these platforms earn money. However, the platforms often complicate the experiences of these users and creators by frequently changing algorithms and rules.

The response appeared with Web3 platforms empowering users and creators to be the only owners of their content and data and developing the so-called creator economy. But besides creators, there are content consumers as well, and corporations collect their data to promote and reach new customers and maximize their consumption. A new type of relationship between users and corporations has emerged, where users have the opportunity to earn money by sharing their personal data. Blockchain stands as transparent and reliable data storage, ensuring third parties can't use it, and AI helps to collect and process data.

The Romanian government is testing an AI-based chatbot to collect citizens' complaints and create data-driven policies to serve people better. The bot was launched from scratch, meaning it was learning from people's requests. In the future, project developers plan to link AI with blockchain to provide a trustworthy environment and implement a proof-of-human concept ensuring a human is behind every AI decision.

AI and Decentralization

Decentralization is the blockchain concept's fundamental principle. Users interact directly with no middlemen and access free Web3 internet, promising users ownership over their assets and personal data.

However, the supply chain needs management, and with humans involved, it takes time and energy usage. AI can replace third parties to automatize transactions, validation and other processes and speed up operations which is crucial for the blockchain industry.

AI and Security

Blockchain cyber security companies use AI and machine learning to detect and prevent illicit transactions and actions. The companies operate the history of previous situations and learn AI to define suspicious activity in real-time. Thus, it helps to reduce the number of thefts and protect crypto users and their funds.

The bad news is that fraudsters use AI as well. Phishing is one of the most common ways that fraudsters trick people into giving them access to their accounts and private keys. This can happen when a user opens an email, clicks on a link, or installs software, all while connected to the internet. Phishing emails are often crafted by people lacking English skills as they are not natives. The main way to detect a phishing email is to check it for misspellings. However, AI-generated emails have no mistakes as AI operates with language models and can respond in any language, so such emails have higher rates of being opened.

AI and Metaverse

Metaverse is a virtual space for people to learn, work, play, communicate and connect by using virtual reality (VR) tools and representing themselves through avatars.

AI improves the experience of metaverse users by extending the potential of an environment, characters, and gameplay.

Just as ChatGPT generates texts and responds to requests, metaverse AI can create surroundings according to users' demands making it more user-oriented. Users can define what landscape they want to interact with.

AI's continuous learning capabilities can enhance game characters, making them more intricate and formidable within the game, thus, elevating the overall gaming experience to a more lifelike level.

Previously, we told about an example of using metaverse by Seoul municipality to provide citizens with virtual access to municipal services. Such access is unlimited with AI since language models can respond and help to solve problems 24/7. Moreover, combining AI and metaverse provides inclusivity. It allows groups of people with special needs to be involved in social life like any other.

AI and NFT Art

In 2021 NFTs became hype and generated significant profits. People are still arguing why to classify silly pictures as art and spend over $1 million for an ape image.

The use of AI to create NFT art has sparked further debate on the value of such art, as it replaces human-crafted pieces with computer-generated ones. Some argue that art must be made by individuals with specialized knowledge and skill, evoking emotions and ideas in viewers. Therefore, computer-generated images and human-made gifs featuring cats are deemed valueless in art.

Some people believe that AI outputs are solely determined by input requests and pre-existing human knowledge, meaning humans are always responsible for AI decisions. It is just a tool helping to acquire new options, but you can only do something with AI if you are creative and talented enough.

Meanwhile, many AI-created NFT collections have already appeared and are sold on OpenSea, the most popular NFT marketplace. The infrastructure of AI-based NFT generators merges, and content creators have even more possibilities to craft and earn.

AI extension will help human-based art to be more valued in the future.

In conclusion

Ai became another hype, but compared to other hot topics, it will take a markable place in humans' lives combined with blockchain technologies and new visions on economy, work, study, games, and communication.

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