Vitalik Buterin outlines 4 ways AI could work synergistically with blockchain

In a blog article designed to explore the links between artificial intelligence (AI) and blockchain, Vitalik Buterin offers 4 example applications that connect the 2 technologies. He explains how blockchain decentralization can counter the opacity of AI and how these two areas can collaborate effectively.

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Vitalike Buterin’s thoughts on AI and blockchain

In a blog post published on Tuesday, January 30, 2024, Vitalik Buterin provides answers to questions asked about the potential use of artificial intelligence (AI) in blockchain.

Vitalik highlights that AI and cryptocurrencies, constituting the 2 main technological trends of the last 10 years, must be connected somehow. He adds:

“It’s easy to find synergies on a superficial level: the decentralization of cryptocurrencies can balance the centralization of AI, AI is opaque and cryptocurrencies provide transparency, AI needs data, and blockchains are effective at storing and tracking data. »

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Vitalik Buterin mentions that thanks to recent innovations in the world of cryptocurrencies, such as zero-knowledge proofs (ZKP), certain AI applications may be relevant on blockchain. Here are the 4 examples he gives:

  • An active AI in protocolscapable of adopting optimized trading, arbitrage and maximizing the value extracted by validators (MEV) ;
  • An AI acting as an assistantensuring that users do not sign fraudulent transactions;
  • An AI acting as an impartial judge in the governance of a protocol and DAOs;
  • An AI specifically designed to run on a blockchain.

Later in his publication, Vitalik details these 4 examples that, according to him, would make it possible to link blockchain and artificial intelligence.

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The 4 AI applications predicted by Vitalik

AI as a trading robot

Using robots to optimize investment strategies has been a common practice for several years. AI integration could make these strategies more effective and profitable.

Vitalik Buterin emphasizes that AI, “able to work for 1 dollar an hour (sic)” and equipped with more knowledge than an encyclopedia, could adopt smart strategies without being influenced by the fear of missing an opportunity (FOMO).

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AI as an assistant

Integrating specialized AI into decentralized tools and protocols could significantly improve user experience.

These AIs would be able to help beginners and experienced users by identifying risksanswering questions and also providing advice to optimize actions taken on the blockchain.

AI could direct users to trusted platforms, warn of dangers, or even perform an exchange based on a written or oral request.

AI will participate in the governance of a DAO

Vitalik Buterin addresses an idea often mentioned in the cryptocurrency field: integrate an AI into the governance of a protocol or DAO to play the role of an impartial judge.

Although this idea is promising, it recognizes that it is technically complex to implement and can create blockchain overhead as well as new vulnerabilities.

Decentralized AI thanks to blockchains

According to Vitalik, AI could benefit from the decentralization and transparency of blockchainswhich is opposed to artificial intelligence managed by centralized entities that it describes as “black boxes”. According to him, transparent and decentralized artificial intelligence would be more reliable.

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Source: Vitalik Buterin’s website

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