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Coinbase has released a research report stating that the intersection of artificial intelligence and blockchain represents a major opportunity for entrepreneurs.
In a Thursday report, the largest US-based cryptocurrency exchange highlighted the benefits of combining both techs to create new solutions for societal challenges presented by AI.
“As applications within AI and blockchain mature, the disruptions these technologies represent may lead to areas of collaboration and the emergence of new use cases for crypto to help address specific societal challenges posed by AI,” David Duong, head of research at Coinbase, said.
The report mentioned several potential use cases that combine both AI and blockchain technology.
In the first place, it said decentralized data marketplaces could help generative AI meet the demand for a verified and diverse set of data to train its models. Similarly, token-based incentive mechanisms could improve the quality of data sourced from those marketplaces.
Other use cases include providing computational power from decentralized networks that utilize graphics processing units for AI projects to train their models, improving data authenticity, and making AI algorithm’s opaque decision-making process more auditable.
Furthermore, the report claimed that the combination of AI and blockchain has the potential to address issues such as algorithmic bias and digital identity verification.
It is worth noting that blockchain technology also has the potential to address issues like disinformation risks. Blockchain and non-fungible tokens can be used to establish the provenance of images, video, music, and other media.
Moreover, blockchain can help make the decision-making processes of generative AI models more transparent, allowing users to scrutinize the logic and reliability of the AI-produced outcomes.
AI-Driven Crypto Projects Emerge amid AI Boom
Since the release of OpenAI’s ChatGPT in November last year, the AI fraze has find its way across numerous industries.
One of the industries that is rapidly embracing artificial intelligence is the cryptocurrency industry.
AI-driven crypto projects, those that incorporate AI technology into their capabilities or services offerings, are now emerging as new companies try to 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.
Notably, this still represents a very small portion of the overall crypto market value, accounting for only 0.07% of the total crypto market cap.
However, the tokens classified under the AI category by crypto data platform CoinGecko have seen large inflows since the start of the year.
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.
Likewise, the native token of SingularityNET, a decentralized artificial intelligence (AI) marketplace that leverages the power of blockchain technology to provide unrestricted access to algorithms and applications, has gained more than 374% over the past year.
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