Vitalik Buterin exposes 4 ways in which AI could work in synergy with blockchain

In a blog article aimed at exploring the links between artificial intelligence (AI) and blockchain, Vitalik Buterin proposes 4 examples of applications linking the 2 technologies. He explains how the decentralization of the blockchain can counter the opacity of AI and how these 2 domains can collaborate effectively.

Vitalik Buterin’s reflections on AI and blockchain

In a blog article published on Tuesday, January 30, 2024, Vitalik Buterin provides answers to questions about the potential use of artificial intelligence (AI) in blockchain.

Vitalik emphasizes that AI and cryptocurrencies, the two main technological trends of the last 10 years, must be connected in one way or another. He adds:

“It is easy to find synergies at a superficial level: the decentralization of cryptocurrencies can balance the centralization of AI, AI is opaque and cryptocurrencies bring transparency, AI needs data and blockchains are efficient for storing and tracking data.”

Vitalik Buterin mentions that, thanks to recent innovations in the world of cryptocurrencies such as zero-knowledge proof (ZKP), some AI applications could be relevant on the blockchain. Here are the 4 examples he puts forward:

– An AI active on protocols, capable of adopting optimized trading strategies, arbitration, and maximizing the value extracted by validators (MEV);
– An AI acting as an assistant, ensuring that users do not sign fraudulent transactions;
– An AI acting as an impartial judge in the governance of a protocol and DAO;
– An AI specifically designed to operate on a blockchain.

Further in his publication, Vitalik details these 4 examples which, according to him, would link blockchain and artificial intelligence.

The 4 applications of AI envisaged by Vitalik

AI as a trading robot

The use of robots to optimize investment strategies has been a common practice for several years. The integration of AI could make these strategies more efficient and profitable.

Vitalik Buterin points out that AIs, “capable of working for $1 per hour” and equipped with more knowledge than an encyclopedia, could adopt intelligent strategies without being influenced by the fear of missing out on an opportunity (FOMO).

AI as an assistant

The integration of an AI specialized in decentralized tools and protocols could significantly improve the user experience. These AIs would be able to assist both beginners and experienced users in identifying risks, answering questions, and providing advice to optimize actions taken on the blockchain.

AI to participate in the governance of a DAO

Vitalik Buterin addresses an idea frequently mentioned in the field of cryptocurrencies: integrating AI into the governance of a protocol or DAO to play the role of an impartial judge. Although this idea is promising, he acknowledges that it is technically complex to implement and could create an overload of the blockchain as well as new vulnerabilities.

Decentralized AI through blockchains

According to Vitalik, AIs could benefit from the decentralization and transparency of blockchains, which opposes the AI managed by centralized entities that he describes as “black boxes”. According to him, a transparent and decentralized artificial intelligence would be more reliable.

Source: Vitalik Buterin’s website

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