Ethereum co-founder Vitalik Buterin discusses the mutually reinforcing relationship between artificial intelligence (AI) and cryptocurrencies. Vitalik pointed out that AI has already played a role in DEX as a market-making robot and can be further applied to prediction markets and adjudication mechanisms in DAOs. The potential is endless. (Previous summary: Dynamic Zone Verification) Vitalik took Solana Saga mobile phone? The truth is that Taiwan designed the most powerful AI mobile phone) (Background supplement: Ethereum’s power has been shuffled three times in 10 years during the “mid-life crisis”, and now it is trying to bid farewell to the Vitalik era. ) Encryption technology and artificial intelligence (AI) are the hottest technologies today, and the possibility of combining the two is often discussed. Whether AI helps encryption technology, or encryption technology is applied to AI, many discussions and projects have arisen from this. born. Recently, a netizen’s comments on these two technologies unexpectedly elicited a response from Vitalik Buterin, co-founder of Ethereum. AI can unlock the utility of the encryption industry. This netizen posted: The value unlocked by using AI in the encryption field far exceeds the use of encryption technology to improve AI. He added that in the short to medium term, the crypto industry will unlock more utility from AI than any other industry in the world. In response to this, Vitalik responded with an article written earlier this year: In the past ten years, an obvious encryption/artificial intelligence cross-application case is the market creation of robots in decentralized exchanges (CEX). Extending this application to prediction markets and further to adjudication mechanisms in decentralized autonomous organizations (DAOs) are both very fruitful approaches. AI can help predict the development of the market. At the end of January this year, Vitalik wrote in his article "Prospects and Challenges of Crypto+AI Applications" that when DEX began to appear widely, there were opportunities to make money through arbitrage, and at this time (MEV) arbitrage The emergence of robots is a real case of the intersection of AI and cryptocurrency. Next, Vitalik discusses how AI can be extended to prediction markets and help them develop successfully. He pointed out that traditional prediction markets have failed to succeed in the past due to problems such as irrationality of market participants, the unwillingness of knowledgeable people to take the time to participate unless there are huge bonuses, and insufficient market liquidity. The addition of AI can solve these problems. AI is willing to work at very low costs (such as less than $1 an hour), has encyclopedia-level knowledge, and can even be integrated with real-time web searches. This allows AI to participate on a large scale and provide high-quality prediction results even with very small incentives. Vitalik also pointed out that AI can participate in arbitration through decentralized mechanisms (such as multi-round dispute systems Augur or Kleros), which allows many issues to be resolved between AIs, and only in rare cases does human intervention be required. Vitalik said this helps make “prediction markets” work on a micro-scale, and further allows “prediction markets” to be applied to many other types of problems. For example, AI can determine whether social media posts comply with the terms of use, determine stock price trends, identify online fraud, and handle DApp security checks. AI Is Biased However, while AI can help users distinguish between true and false information and detect scams without empowering a central authority to decide what is right and wrong, the AI ​​itself still reflects the biases of the process in which it was created. Therefore, Vitalik believes that a higher-level mechanism is needed to supervise and evaluate the performance of different AIs to ensure that the system operates fairly. This is related to the AI ​​proposed by Vitalik, in addition to being a participant (the above case), there is also a type of "game rules". The four classifications of AI combined with Crypto proposed by him are as follows: AI as a participant in the game (highest feasibility): In the mechanism of AI participation, the ultimate source of incentives comes from the protocol of human input. AI as a gaming interface (potential, but risky): AI helps users understand the cryptographic world around them and ensure that their actions (such as signed messages and transactions) match their intentions to avoid being tricked or scammed. AI as the rules of the game (with great caution): Blockchains, DAOs, and similar mechanisms invoke AI directly. For example: AI judge. AI as a Game Goal (Long-Term and Interesting): The goal in designing blockchains, DAOs, and similar mechanisms is to build and maintain an AI that can be used for other purposes, and the part using cryptography is either to better incentivize training or In order to prevent AI from leaking private information or being abused. Vitalik predicted that with the maturity of blockchain scaling technology, it will become possible to realize "micro" prediction markets, which means that the potential of decentralized AI prediction markets and related applications will become greater and greater. Extended reading: Vitalik: I think there are four major intersections between Crypto and AI. What are the application prospects and challenges? Related reports JJ Lin posted a photo with Vitalik. What attempts has he made since entering Web3? (Buy NFT, metaverse, establish ARC...) V God documentary "Vitalik: The Story of Ethereum" is limited to 30 days to watch, NFT ticket casting tutorial Vitalik criticizes the market "smart wallets": most are centralized control, users must Beware of malicious risks 〈Buterin explains the potential of AI: DEX arbitrage robot is a successful case, extending to the prediction market and DAO applications are endless〉 This article was first published in DongZu BlockTempo "DongZu DongTen - the most influential blockchain news media".

#AI