Hearing these buzzwords together in a title, feels intimidating but exciting at the same time. Are these fields even related, neutral or complete opposites to each other. There is no easy answer to that question, but we will try to give you a great overview of the interplay between crypto and artificial intelligence. 

Before we actually get into the nitty gritty of this topic, we need to explain what we mean by crypto and artificial intelligence, and why they are important. 

Let’s reverse the order and start with artificial intelligence first. In the 2010s multiple famous essays on the topic of “Software eating the world” were published. In 2023, Balaji Srinivasan tweeted, that “software was eating the world, and now AI has eaten software”. AI helps us to leverage software in ways not possible before. ChatGPT can write you 20 essays for you in seconds, Midjourney gives you the superpowers of a digital artist, Github Codepilot creates thousands of lines of code for you. AI increases productivity 100x, small teams are now able to compete with huge companies with the assistance of AI. In a broader sense and for the sake of this article AI is sort of full automation – it is abundance of everything you need in an online world. 

Now what about crypto? Crypto is sort of the mechanism that will enable us to solve the principal-agent problem and hopefully create an even playing field for the world. Crypto is banking the unbanked, unleashing the full power of the biggest economy of the world: the internet. Before, everyone came online with a phone, now everyone will be able to receive their share in terms of payment with crypto.

Moreover, it will allow us to align incentives throughout the internet by giving people equity in the projects. Finally, Cryptography is sort of the opposing part to AI. AI can’t fake digital signatures. In a broader sense and for the sake of this article Crypto is sort of the gatekeeper to automation – it is scarcity in an online world. 

Small Teams, Big Impact

Tiny squads can now stand firm against massive firms in our modern tech era, thanks to the trio of AI, Crypto algorithms, and Social Networks. These astounding tools empower small-sized groups to sync their goals, ignite societal change online (with AI generated content publishing) and produce astonishing worth (with their token). For instance, a small team can leverage AI to automate processes, improve efficiency, and deliver personalized experiences.

They can use crypto to create their own coin, raising millions in value and fostering a sense of community among their users. More so, virtual communities offer a stage for these compact crews to broadcast their philosophies, captivate their users, and catalyze universal waves of change. This interactive progression has flattened playing fields where david-esque units can now grapple with goliath-sized enterprises confidently: matching or possibly surpassing the performance metrics of larger entities.

Crypto as a Safeguard

A potential threat however might be that AI can fake a lot of content and influence through a false narrative. As in the case where an AI-generated image of the white house being on fire, crashed the stock market for a short second. It will be almost impossible to keep up with the amount of content. By result, the value of authenticity and privacy becomes paramount. 

Crypto could be the safeguard against these drawbacks of content explosion. It allows for the creation of gate-kept communities, mitigating the so-called “network defect” that occurs when a network’s size decreases its value. For example, when there is too much spammy content or too much information flow, that it becomes unusable.

Crypto also offers a secure and transparent method of exchanging value, which further increases the integrity of these communities. The cryptography protected entrance sort of is also a quality control and helps to maintain the content quality and interaction level within the network, ensuring that its worth is not diminished.

Crypto and Authenticity

When we come to the point where AI can convincingly mimic human behavior and generate realistic content – we will need new methods for distinguishment. Proving authenticity will become a significant challenge. Crypto can address this issue through the use of digital signatures. These signatures, which are unique to each user and transaction, cannot be faked by AI. They provide a reliable way of verifying the authenticity of transactions and content, ensuring trust and integrity in the digital space.

AI and the Pseudonymous Economy

AI is enabling the rise of a pseudonymous economy. The pseudonymous economy is an economy where we mostly interact preserving our real identity. Smart-contracts will ensure the completion of the agreement and people will be able to choose how they want to present themselves online. With AI filters, people can alter their appearance and voice, creating digital personas that can interact in the online world. Crypto complements this by providing a digitally-native currency that these personas can use for transactions. 

AI Trading Cryptocurrency

As we already know, AI’s capacity to process vast amounts of information far surpasses human capabilities. Finance companies have especially made use of that, by decreasing their amount of human traders and implementing machines for trading. Through machine learning algorithms, AI can analyze market trends, historical data, candlestick pattern entries and real-time transactions. This allows for the automation of trading strategies, where AI can buy and sell cryptocurrencies at optimal times to maximize profits.

Moreover, AI can operate 24/7, ensuring that no trading opportunity is missed. This level of efficiency and accuracy is unattainable for human traders, who are limited by time and cognitive constraints. By delegating trading tasks to AI, individuals can earn money passively, while also minimizing the risks associated with human error.

This concept aligns with the broader trend of automation and robotics in various sectors. Just as robots and drones are transforming industries by performing tasks more efficiently and accurately than humans, AI is revolutionizing cryptocurrency trading. 

Final Words

In conclusion, the intersection of AI, Crypto is reshaping our world in profound ways. Small teams are now empowered to challenge large corporations, creating value and driving social movements with the help of these transformative technologies.

Crypto safeguards the authenticity and integrity of our digital interactions, even as AI generates an ever-increasing amount of content. The rise of the pseudonymous economy allows individuals to craft their digital personas and engage in a new form of economic activity, facilitated by AI and crypto. 

This article was provided by Esin Syonmez