Blockchains are here heavily already today. Basically everything will in blockchains in the future. Cryptos, NFTs, Media, Healthcare, Insurances, Agreements, Real Estate, Art, Gold, Accountings, you name it.
Would you have any good examples of already existing blockchain use cases or just currently being implemented?
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U.S. Financial Regulators’ Annual Report Warns of AI Risks
A panel of regulators warned on Dec 14 that the rapid adoption of artificial intelligence (AI) could create new risks for the United States' financial system if the technology is not adequately supervised.
The Financial Stability Oversight Council, comprised of top financial regulators and chaired by Treasury Secretary Janet Yellen, flagged the risks posed by AI for the first time in its annual financial stability report.
Though the team acknowledged AI’s potential to drive innovation and efficiency in financial institutions, they stressed the need for companies and regulators to remain vigilant due to the swift technological advancements.
In its annual report, the group emphasized that AI carries specific risks, such as cybersecurity and model risks. It suggested that companies and regulators enhance their knowledge and capabilities to monitor AI innovation and usage and identify emerging risks.
According to the report, specific AI tools are highly technical and complex, posing challenges for institutions to explain or monitor them effectively. The report warns that companies and regulators may overlook biased or inaccurate results without a comprehensive understanding.
The report also highlighted that AI tools increasingly depend on extensive external data sets and third-party vendors, bringing forth privacy and cybersecurity concerns.
Certain regulators, including the Securities and Exchange Commission (part of the panel), examined firms’ AI usage. Simultaneously, the White House has issued an executive order to address and reduce AI risks.
Related: Is OpenAI about to drop a new ChatGPT upgrade? Sam Altman says ‘nah’
Pope Francis, in a letter on Dec. 8, expressed concerns about the potential threats of AI to humanity. He advocates for an international treaty to ethically regulate AI development, cautioning against the risk of a “technological dictatorship” without proper controls.
Tech figures like Elon Musk and Steve Wozniak have voiced concerns about the swift progress of AI. Over 2,600 tech leaders and researchers, including Musk and Wozniak, signed a petition in March 2023, urging a “pause” in AI development. They emphasized the potential “profound risks to society and humanity” posed by AI advancements surpassing GPT-4.
Magazine: Real AI use cases in crypto: Crypto-based AI markets, and AI financial analysis
Cardano Founder Warns of Emerging Tech Risk to Crypto Investors
Charles Hoskinson, the renowned mathematician, crypto billionaire, and creator of IOG and the Cardano blockchain, has issued a stark warning to the entire cryptocurrency industry.
In a recent social media post on the X platform (formerly Twitter), he highlighted a new and potentially devastating threat posed by rapid technological advancements.
According to Hoskinson, these developments could lead to unwary cryptocurrency holders falling victim to scams and losing their assets.
Cardano founder warns of growing AI scams targeting crypto investors
The crux of Hoskinson’s warning revolves around the growing sophistication of generative artificial intelligence (AI) technology.
A recent tweet by an X user showcased a deepfake video generated entirely by AI, featuring Charles Hoskinson himself. In the video, the fake Hoskinson discusses a bogus ADA giveaway, closely mimicking the real Charles Hoskinson’s manner of speech.
The user’s tweet commented, “That sounds exactly like @IOHK_Charles albeit a bit choppy,” and raised concerns that many Cardano users could soon fall prey to these YouTube-based scammers who are leveraging AI to create convincing impersonations.
Charles Hoskinson responded by acknowledging that he had anticipated the emergence of generative AI-based scam videos targeting the cryptocurrency space. He further warned that within one or two years, these deepfake videos would become significantly more convincing, making it nearly impossible for individuals to distinguish between reality and AI-generated fiction.
Community concerns and authentication
Members of the Cardano community who commented on the issue expressed their apprehensions about the increasing use of AI-generated videos in the future. Some individuals admitted to feeling uneasy about the potential consequences of AI advancements on online authenticity.
Many emphasized the necessity for robust authentication methods to differentiate between genuine individuals and their AI-generated duplicates on the internet.
As the cryptocurrency industry continues to evolve, so do the methods employed by malicious actors seeking to defraud unsuspecting investors. Generative AI, capable of creating convincing deepfake videos, represents a significant advancement in the arsenal of scammers.
With the ability to replicate the voices and appearances of prominent figures in the crypto space, fraudsters can easily deceive users into relinquishing their valuable assets.
Hoskinson’s ominous prediction
Charles Hoskinson’s warning is not to be taken lightly. As the co-founder of Ethereum and the mastermind behind Cardano, his insights carry considerable weight within the cryptocurrency community.
His prediction that AI-generated scam videos will become increasingly indistinguishable from reality is a chilling forecast. If realized, this scenario could spell disaster for investors who may unwittingly fall victim to these highly sophisticated impersonation schemes.
Protecting the crypto community
In the face of this emerging threat, it becomes imperative for cryptocurrency enthusiasts and investors to take precautionary measures. While the technology behind generative AI is advancing rapidly, there are steps that can be taken to mitigate the risk:
Stay Informed: Awareness is the first line of defense. Cryptocurrency users must remain vigilant and informed about the latest scams and threats.
Authentication Methods: As mentioned by Charles Hoskinson and echoed by the Cardano community, the implementation of robust authentication methods can help distinguish between genuine content and AI-generated impersonations.
Verifying Sources: Always verify the legitimacy of cryptocurrency giveaways or investment opportunities. Trustworthy projects and individuals will typically have verified accounts and official channels.
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