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Once thought of as distinct trends in technology—artificial intelligence and blockchain—are rapidly converging. These diverse sub-sectors include everything from decentralized energy and decentralized physical infrastructure networks to model fine-tuning and computation infrastructure.

AI and Blockchain: Not Just Buzzwords

Some skeptics might balk at startups that advertise their use of AI and blockchain, believing that they are simply trying to ride the hype of both. However, the intersection of AI and blockchain is not mere marketing hype. AI and blockchain are uniquely complementary, enabling solutions far greater than the sum of their parts.

Blockchain Fixes the Privacy Concerns of AI

Consider how much data you input into AI tools like ChatGPT daily. Multiply that by all the daily active users, along with developers ingesting terabytes of data for model training. The world is entrusting a staggering amount of data to AI, making it a major target for data breaches.

One of the key tenets of blockchain is privacy. Through decentralization, users are spared the public scrutiny that often accompanies centralized systems. Blockchain technologies like ZKML, OPML, and TEEML enhance privacy, improving both data and model privacy. By strengthening AI security, blockchain reduces the threat of data breaches and fosters user trust.

Blockchain Makes AI Sustainable

The rise of generative AI (genAI) requires vast computational power, straining global energy resources. As AI adoption increases, so will these energy demands, posing an ethical dilemma for companies.

Blockchain can address these demands through decentralized energy, which produces and distributes energy locally, making it more sustainable and efficient than centralized grids. With blockchain, companies can achieve both efficiency and environmental responsibility.

Blockchain May Democratize AI

Critics argue that AI’s greatest benefits will be concentrated in the hands of a few, like model developers and large tech giants with the most data. Blockchain offers a solution by enabling easier information sharing through its public ledger.

Companies like Carv, a modular data layer, empower gaming and AI companies to better own, control, and monetize their data. Blockchain-powered solutions like Carv promote inclusion, extending AI benefits to individuals and organizations otherwise left out of this technological revolution.

Tackling the World’s Biggest Problems

Blockchain was once criticized as a solution in search of a problem. With the rise of AI, blockchain will no longer be a niche technology. Addressing AI’s challenges—security risks, energy demands, and potential unfairness—blockchain offers competitive advantages in the marketplace.

Businesses can tackle significant global issues while ensuring data and model privacy. They can improve sustainability through decentralized energy and promote a more equitable distribution of AI’s transformative power. This imperative is crucial for unlocking AI’s full potential.

“Blockchain and AI together can address some of the most pressing challenges of our time, making technology more secure, sustainable, and inclusive.”

Jeffrey Hu is the head of investment research at HashKey Capital, where he monitors industry trends and data. He is also a regular contributor to the Bitcoin Optech newsletter, making Bitcoin’s key developments more accessible to the Chinese-speaking community.

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