Is AI x Blockchain Just Buzzwords?
It's hardly necessary to mention that AI has become the buzzword of the era, particularly with NVIDIA setting new records on American stock markets, which has significantly increased interest in this field.
Naturally, one cannot overlook the synergy between AI and Blockchain in this context. Moreover, a MarketsandMarkets report projects that by the end of 2025, the AI x Blockchain market is expected to reach levels around $800 million.
Several fundamental reasons underlie this forecast, with the potential applications of this combination being a wholly experimental arena. Every day brings announcements of new projects exploring new domains. Therefore, the best approach to grasp this area might be to understand what these projects are focusing on. Let's examine both the reasons and the projects in detail.
Exploring the Synergy Between AI and Blockchain
The fusion of AI and Blockchain might appear at first as a trendy juxtaposition of the digital age's hottest topics. However, a deeper look reveals a strategic partnership addressing some of the most persistent challenges in technology. Blockchain, known for its prowess in ensuring data protection, establishing ownership, and facilitating peer-to-peer transactions, intersects with AI at a critical juncture. AI, with its insatiable appetite for large datasets, often grapples with issues of access and ethical use, compounded by concerns over security and rights management.
Herein lies the genius of marrying AI with Blockchain technology. Blockchain offers a robust framework for securing data ownership and permissions through transparent and enforceable smart contracts. This synergy not only ensures the safekeeping of data but also empowers AI to leverage vast datasets without overstepping privacy boundaries.
Imagine a scenario where sensitive data segments are utilized efficiently, maintaining anonymity and integrity—for instance, utilizing specific data without disclosing identifiable details akin to safeguarding an individual's privacy like that of someone named Bob.
This collaboration doesn't merely throw two cutting-edge technologies together but thoughtfully addresses their inherent challenges, creating a symbiotic relationship that enhances both data security and the ethical use of AI.
To summarize, a few benefits of using Blockchain and AI together include:
Secure Data Management
Enhanced Data Accessibility
Full Ownership of Data
Instead of elaborating further, let's see what projects working on AI x Blockchain are up to.
Bittensor
Bittensor is a decentralized network designed to connect machine learning models, not just computers or servers. Picture it as a global brain where each 'neuron' is a machine learning model owned by different people worldwide. These models collaborate to process information and provide intelligent responses, similar to neurons in the human brain working together to help you think and make decisions. Bittensor leverages a unique blockchain architecture to facilitate a decentralized machine learning protocol, built using the Substrate framework—a technology also used by Polkadot, developed by Parity Technologies. This framework allows for the creation of highly customizable blockchains that can easily connect with Polkadot’s network.
Render Network
Render Network enables individuals to contribute unused GPU power for rendering motion graphics and visual effects, rewarding contributors with Render tokens (RNDR), the network’s native utility token. This creates a peer-to-peer network for tapping into underutilized computational power, simplifying the process of rendering and streaming 3D environments and other visual effects. It's a crucial component for the development of digital products and services in the metaverse.
The Graph
The Graph is a decentralized protocol for indexing and querying blockchain data, facilitating applications such as dapp frontends, dashboards, and data analytics. AI plays a significant role in The Graph, especially in deploying tools for automated decision-making and lowering barriers to access web3 data. Decentralized protocols like The Graph use incentive mechanisms to encourage optimal and honest behavior among participants. Semiotic Labs has developed AI tools, including AutoAgora and the Allocation Optimizer, to simplify decision-making and improve protocol performance and revenue for participants.
Fetch.ai
Fetch.ai aims to decentralize and automate web transactions. For instance, instead of manually searching and booking flights, Fetch.ai uses 'digital twins'—automated bots representing users—to negotiate deals with airlines and ticket providers based on user-defined parameters. This AI-driven approach enables personalized and efficient transactions without the need for direct human intervention.
We've highlighted three standout projects, but there are many more, such as SingularityNET, Akash Network, Oasis Network, and Ocean Protocol, engaging in AI-related endeavors. It's important to note that while all these projects operate in different or similar verticals, the areas they explore are quite new. The best products from AI and Blockchain integration might not even be on the market yet. Therefore, staying updated on what's currently available and how these technologies benefit from AI and Blockchain is beneficial. The discussions around this space have significantly increased compared to three years ago.
The graph above shows the trending increase in "ai blockchain" searches on Google, indicating rapid progress in this field.
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