Home / “AI and Blockchain Are Made for Each Other”: Exploring Use Cases for Both
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“AI and Blockchain Are Made for Each Other”: Exploring Use Cases for Both

Published June 26, 2023 2:40 PM
Teuta Franjkovic
Published June 26, 2023 2:40 PM
Key Takeaways
  • ChatGPT is most common AI app that many blockchain companies find comfortable enough to use
  • Circle CEO Jeremy Allaire stated that AI bots are engaging with his company’s USDC stablecoin.
  • Latest to implement AI technology in its work was Ava Labs

The ChatGPT chatbot, developed by OpenAI, was among first to open the door for useful applications of artificial intelligence (AI) for blockchain companies. Since then, early tech inventors and investors—the same people who sparked the cryptocurrency boom—have become interested in AI.

Although AI may have taken center stage, some crypto enthusiasts believe it can open up new potential for the blockchain sector.

Circle’s Jeremy Allaire  Supports AI as Effective Way to Trace Data

A month ago, Circle CEO and founder Jeremy Allaire made an interesting overview regarding potential AI and blockchain co-labs, some that already exist and something that he thinks could be possible.

It all began with the tweet by Hunter Horsley , CEO of Bitwise Invest, who called AI a “catalyst for crypto.” What Horsley basically said, is that both blockchain and AI will have interconnected fates and that when AI starts to expand, crypto will become significantly more important.

Allaire noted that AI can be utilized in “machine-generated and enforced contracts” and “machine-to-machine value exchange.”

Allaire responded:

Allaire also suggested using blockchain technology to trace the ownership and origins of data, or to use it in data provenance.

Horsley pointed out that generative AI generates a ton of information and that blockchain and cryptography can be used huge confirm the content’s legitimacy.

In May, Allaire stated  that artificial intelligence (AI) bots are engaging with his company’s USDC stablecoin.

Allaire then stated that the bots are trading USDC but did not specify which organizations or people are carrying out these acts. The legitimacy of such bot-driven transactions as trading or just wash trading between a few bots has been contested by critics.

Allaire gave some general examples of how AI and blockchain may work together, but he did not go into great detail.

Top 3 Current Use Cases of Blockchain and AI Together

CoinFund and Tools for Humanity

According to Alex Felix, general partner and chief investment officer of crypto VC firm CoinFund, blockchain technology can increase openness and decentralization in AI, which can be very secretive about the data used to train models.

CoinFund recently supported Tools for Humanity. The $115 million raised  by the crypto firm confounded by Sam Altman of OpenAI demonstrates a practical application of cryptocurrency in AI, according to Felix.

A small orb that scans people’s eyes has been developed by Tools for Humanity, the company that created the cryptocurrency Worldcoin. It generates a unique ID for each person based on blockchain and a digital “proof of personhood,” which when combined with Worldcoin can be used to facilitate secure payments.

“Where’s the world heading with AI? was the starting point for us. And crypto was the answer”, according to Tiago Sada, the director of products at Tools for Humanity.

Felix likens the present AI obsession to the 2017 cryptocurrency ICO boom, when investors flocked to buy arbitrary crypto tokens, many of which were frauds. But he claimed that this time, it’s simpler to evaluate new projects and ascertain whether someone has sufficient depth in AI knowledge.

Because the rings are so small, Felix claimed that it was more difficult to create credibility.

Ava Labs and Chat GPT

A week ago, Ava Labs, the Avalanche network’s development business, announced the introduction of AvaGPT, the most recent blockchain company to use OpenAI’s ChatGPT technology.

According to Kieran McShane, technical product manager at Ava Labs, “the two things [AvaGPT] is providing is answering general questions for Avalanche users quickly, while also letting them still access our support team.” “It was done to help answer questions more quickly and get to the source material right away,” the author explains.

AvaGPT was developed in conjunction with ChatGPT service provider Kapa AI and integrated into the Ava Labs Core platform, according to McShane. McShane stated that the engineers and support staff at Ava Labs were in charge of developing AvaGPT.

Solana Labs and Chat GPT

According to Tal Tchwella, head of product at Solana Labs, the company that created the Solana blockchain, went with a ChatGPT plugin  in May “to make the user experience better, simpler for people to understand what is going on in blockchain.”

Although cryptocurrency has received criticism for being too complicated for common customers, the ChatGPT plugin walks users through blockchain transactions in a conversational manner.

Tchwella provided a simulated example of how a user may link their cryptocurrency wallet and ask a bot to display nonfungible tokens they can afford or a specific collection. Customers can ask the bot to assist them in buying an NFT after skimming through the available options. The customer scans the generated QR code to complete the transaction after the bot generates it.

According to Tchwella, “AI is going to have an impact on every sphere, every industry, and we’re just trying to embrace it.”

Conclusion

Because implementation at scale is difficult, there aren’t many examples of blockchain and AI being used together currently. The integration of AI with blockchain is still in its infancy in many enterprises. Businesses are still working out how to organize themselves and alter business procedures to accommodate blockchain and AI.

Companies may improve their digital and data capabilities to position themselves to create blockchain-AI hybrid solutions. Adoption of AI and blockchain is a prerequisite for digital transformation. Using digital technologies to manage data and business processes gives AI efforts access to company-wide data, enabling AI application at scale.