The Blockchain and artificial intelligence (AI) worlds have been making headlines for years, each promising to revolutionize the way we do business and interact with technology. However, these two technologies are not as complementary as one might think, according to Fantom founder Andre Cronje.
The well-know DeFi architect maintains that blockchain and AI are vastly different in terms of their underlying principles, making it difficult to bring them together.
Blockchain and Artificial Intelligence
Cronje maintains that blockchain is known for its slow speed, relative to centralized systems, but this is because it prioritizes transparency and security. Transactions are verified and recorded in a decentralized, public ledger that is immutable and resistant to tampering or manipulation.
This makes blockchain technology an ideal platform for secure transactions and the management of sensitive data.
On the other hand, AI is characterized by its high speed and processing power, but this comes at a cost, affirms Andre Cronje. AI algorithms are often considered black boxes, meaning that the decisions they make and the data they use are not always transparent.
This can raise serious ethical questions and make it difficult to hold AI systems accountable for their actions.
Given these fundamental differences, it’s unlikely that blockchain and AI will be able to coexist in a single system anytime soon. While some projects have claimed to be “pivoting” to AI, it’s likely that these are simply attempts to jump on the bandwagon and drive up the price of their token, according to Cronje.
In reality, blockchain does not improve AI, and AI does not improve blockchain.
There may be a scenario in the future where blockchains are fast enough to handle the throughput required for AI applications, but even then, the question remains: why? Blockchains do not provide any benefits to AI, and AI does not provide any benefits to blockchain. Cronje concluded that combining blockchain with AI is like trying to “mix oil and water.”
Chasing the Trend
Other prominent industry leaders claim that AI-based tokens are the next big thing and may lead the next bull market cycle. And so far, they seem to be more right than Cronje.
Altcoins such as Artificial Liquid Intelligence (ALI), Fetch.ai (FET), and Singularity Net (AGIX) have seen impressive gains of up to 220%. The crypto tokens of AI-based start-ups like Image Generation AI (IMGNAI) have even more than tripled over a two-week period.
One-time popular tokens from 2018 and 2021, such as Big Data Protocol (BDP) and Measurable Data (MDT), are jumping on the bandwagon, reminding investors of how they utilize AI technology in their blockchain applications. BDP has seen a surge of 2,100% in the past week, while MDT has jumped 150%.
Both protocols use their tokens to commoditize data, enabling providers and buyers to exchange data securely and anonymously.
Despite these impressive gains, crypto majors like Bitcoin and Ethereum have paled in comparison, rising only 30% each in the past month. Nevertheless, the market capitalization of major tokens is upwards of $300 billion, meaning they require significant amounts of investment and public interest to see significant price surges.
The recent surge in AI tokens emerged after the public launch of chatbot ChatGPT and image-generation software Dall-E by OpenAI in mid-2022. OpenAI recently raised $10 billion from Microsoft, at a valuation of $29 billion. This institutional interest has helped create a compelling argument for crypto traders to bet on AI-focused tokens as the next growth sector.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.