Source: cryptoslate
Compiled by: Blockchain Knight
According to the report (The State of Crypto Assets in 2024) released by a16z, Crypto assets play an important role in addressing the challenges posed by artificial intelligence (AI).
One of the problems facing artificial intelligence is that development is becoming increasingly expensive and centralized, and the report offers a decentralized solution centered on blockchain technology.
The report highlights that 34% of Crypto asset projects currently employ AI, a significant jump from 27% in 2023, with many of these projects focused on making AI more accessible through decentralized networks.
At the same time, the cost of developing and training advanced AI models has skyrocketed, leading to a concentration of resources in the hands of a few large technology companies. This centralization has limited innovation and the computing power needed to achieve AI breakthroughs.
However, Crypto asset projects are beginning to change this dynamic by decentralizing access to AI resources.
The report notes that projects like Gensyn are working to democratize AI computing power.
Gensyn’s decentralized network allows smaller developers and startups to access the computing resources needed to train AI models, removing the financial barriers traditionally associated with AI development.
By decentralizing AI infrastructure, these projects provide opportunities for more participants to innovate in the AI field, rather than keeping AI in the hands of a few dominant players.
In addition to decentralizing resources, blockchain technology can also increase transparency in AI processes, especially in terms of intellectual property (IP) and content verification.
Projects like Near and Story use blockchain to track and verify the provenance of digital content, ensuring creators are properly credited and compensated.
This verification system addresses a growing problem in the field of artificial intelligence, which is that training data sets often include material that creators have not authorized and compensated for.
The report also believes that the transparency of blockchain technology can help restore public confidence in the artificial intelligence industry.
Over the past five years, the U.S. public’s trust in AI companies has dropped significantly, from 50% to 35% in 2024.
Crypto asset developers are increasingly integrating artificial intelligence into their projects, with blockchain infrastructure remaining the category with the most AI adoption.
According to a16z’s Builder Energy dashboard, builders are using AI to optimize smart contracts, enhance decentralized autonomous organizations (DAOs), and improve algorithmic trading systems.
The report points out that as blockchain infrastructure continues to improve, the potential for AI-driven applications in the Crypto ecosystem is also expanding.
Significant advances in blockchain technology have significantly reduced transaction costs, making it easier to build scalable AI-driven applications.
The reduction in costs provides more opportunities for experimentation and innovation in combining AI with decentralized technologies, thereby developing new applications in areas such as identity verification, prediction markets, and content authentication.
These use cases all demonstrate the potential of AI to unlock new capabilities on blockchain platforms.
