The world is under threat of going fake. Crypto and blockchain can make it real again.
This is the conclusion of Balaji Srinivasan. Being the former CTO of Coinbase, he has a bit of knowledge when it comes to the crypt industry. He is also one of the leading advocates for the benefits of blockchain when it comes to AI.
Understanding that we are moving towards a "network state" environment, the power of blockchain is only going to expand. Anything that is on-chain is valuable to the AI models in the sense that the data is immutable. Therefore, whenever a model is obligated to pull from the blockchain, its tendency to hallucinate is reduced.
In a world where deep fakes are becoming a concern and where the "making up" of data commonplace, this could be a monumental breakthrough.
Consider the impact at a time when billions of transactions occur on-chain.
What happens when AI agents take over?
The answer to this question depends upon where one falls on the spectrum of AI projections. Those with a dystopian view might conclude it is the end of the world. On the opposite side of the argument is those who feel AI agents will be an economic boom, powering wealth generation like never seen before.
To me, the answer resides in how things are constructed.
Overall, I tend to be optimistic but that can quickly turn if a few major corporations are at the helm of everything. Here is why I think distribution and decentralization is crucial.
Blockchain is an answer in that it provide opportunity for massive value creation in a "commons" manner. Since open blockchains can be utilized by anyone, the data is "owned" by humanity. No single entity is in control of it all.
As we progress deeper into an agentic world, driven by AI, this is crucial.
Blockchain suddenly becomes a powerful force in negating the impact of Big Tech. We know how those entities are structured. Everything that is tied to their system comes under their control. All data (and activity) occurs on their servers. They have the ability to cancel, block, and remove whatever they desire.
Blockchain operates in a different manner. In fact, it is the exact opposite.
Nothing can be removed from blockchain. Once it is there, censorship resistance occurs. The data can be downloaded simply by utilizing the software.
In short, it is an answer to Big Tech.
Due to the massive compute, along with data, requirements to train large language models, we can see the monopoly is going to remain with those mammoth corporations. These companies are dropping tens of billions of dollars.
Obviously, this is out of range for the average start up.
Over the last few years, we saw the lockdown on data. Social media platforms such as Reddit started to sell their data, amassing tens of millions of dollars. For an OpenAI, this is feasible. Again, for the average project just launched, it is a no go.
Blockchain activity is crucial.
To start, it provides some of the data necessary to train smaller models. Entities can pull from the open networks, helping to close the gap with the larger competitors.
At the same time, agents that are tied to blockchains provide real time, traceable information regarding transactions. This is helpful for security, monitoring, and data extraction. If we compare this to the banking system, which is completely closed, no outside entity is able to utilize the data.
Smaller models offer the ability to specialize. We are going to see them emerge in finance, legal, healthcare, travel, and other assorted industries. At risk of sounding like a broken record, where is this data going to come from?
Each day, large corporations see the amount of information garnered exploding. Social media entities have billions of "posts" each day. Then we have the banking system, which has millions of transactions. Companies such as Visa have a treasure trove of in-house data it is not sharing.
The list just goes on and on.
Blockchain helps to counter this. Many, if not most, AI agents, should operate in the open. This will counter some of the risk associated with runaway agents. When they are behind closed walls, problems can arise.
We could be looking at the solution right in front of us.
