How will AI and Blockchain Work Together?

Bitpush News
4 min readMay 9, 2023

Since the release of OpenAI’s ChatGPT late last year, the entire world has been hyper-fixated on artificial intelligence and its incredible abilities, both now and in the future. Our current era feels like an artificial intelligence renaissance, and the pace at which new technologies are being introduced is ever-increasing. Even though it may seem like there is little overlap between blockchain and AI, there are several ways that the two technologies could interact, and some chains like Avalanche are leading the charge.

Artificial Intelligence platforms primarily function thanks to massive training sets of data, which allow their neural networks to predict and create text and images with impressive accuracy. Blockchain technology allows for the storage of data and execution of smart contracts in a decentralized, trustless, permissionless, and immutable fashion. These two technologies can be combined in several ways to improve efficiency, increase reliability, and accelerate adoption of new tools.

One example of this intersection is the guarantees blockchain could provide about an AI model. We have no idea what data OpenAI’s models are trained on, nor are we guaranteed that they are utilizing the technology they say. AI models, or at the very least cryptographic data proofs, could be published on-chain to guarantee their legitimacy and reliability. For example, startup Modulus Labs created the Leela vs The World project, in which the open-source chess bot Leela’s moves are published to Arbitrum, and anyone can play against and bet on the bot with the assurance that they know the parameters of what they are betting on. This use of blockchain ensures that artificial intelligence is more transparent than it is and would make millions of users feel more comfortable when relying on it for critical work.

Artificial Intelligence could also automate blockchain-based activities like DeFi or trading. Since blockchains like Ethereum are essentially programmable internet money, AI could interact with the chain to automatically execute transactions on a user’s behalf, which is more secure and efficient than manual execution. It would also allow for much more complex decentralized financial activities, since automated, recurring, and trigger-based transactions could be easily completed. Together, AI and DeFi could create an autonomous financial system accessible to anyone anywhere.

Ethereum, the oldest smart contract platform, has a publicly available transaction history from 2014. Hundreds of thousands, if not millions, of transactions are simply too daunting for manual analysis, but AI could easily find trends in the data and expose new business opportunities for the industry. Additionally, AI could help with accounting and auditing, a massive problem for government regulation of cryptocurrencies.

On May 4th, smart contract and interoperability protocol Avalanche introduced the idea of Coin Operated Agents at their annual Avalanche Summit. They plan to release an LLM subnet, allowing for creating smart contracts and transactions entirely within traditional languages like English. Not only would this reduce exploits and the need for smart contract auditing, but it could also bring blockchain to the masses through its simple-to-use interface. Introducing large language models into blockchain transactions could revolutionize how we interact with blockchain and usher in the era of mass adoption of these tools.

Blockchain and AI are incredibly promising and exciting technologies that have captivated the public’s interest. Together, they could solve some of each other’s biggest problems and complement each other to create a more efficient, productive, and internet-based society.

By Lincoln Murr



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