Vitalik Buterin Advises Developers to Be Careful with AI and Crypto

Vitalik Buterin, the co-founder of Ethereum, the second-largest cryptocurrency by market capitalization, has shared his thoughts on the potential and challenges of combining crypto and artificial intelligence (AI) in a blog post published on Tuesday. Buterin, who is also a prominent figure in the blockchain and Web3 space, has categorized the possible applications of crypto and AI into four groups, and advised developers to “tread carefully” when exploring this intersection.

Buterin said that he was “warming up” to the idea of crypto and AI, as he saw some “interesting possibilities” for using AI to enhance the user experience, security, and scalability of crypto systems. However, he also warned that there were some “risks” and “difficulties” involved, especially when dealing with “high-value” and “high-risk” contexts. He said that developers should be “careful” and “informed” when adding AI to blockchains, and avoid “overhyping” or “overselling” their solutions.

Vitalik Buterin Advises Developers to Be Careful with AI and Crypto
Vitalik Buterin Advises Developers to Be Careful with AI and Crypto

Crypto and AI can be players, interfaces, enforcers, or singletons

Buterin used the analogy of a “game” to describe the different roles that crypto and AI can play in various applications. He said that the most “viable” role was that of a “player in a game”, where AI participates in mechanisms that are ultimately driven by human inputs, such as prediction markets, stablecoins, or decentralized exchanges. He said that AI could provide “micro-scale” predictions or arbitrations that would be “unfeasible” for humans, and that blockchain could provide “trust” and “incentives” for AI.

The next role was that of an “interface to the game”, where AI helps users to “understand” and “interact” with crypto systems, such as wallets, smart contracts, or oracles. He said that AI could provide “natural language” explanations, “scam detection” features, or “recommendation” systems for users, and that crypto could provide “security” and “privacy” for AI. He said that this role had “high potential”, but also “high risks”, as AI interfaces could be “error-prone”, “manipulative”, or “hacked”.

The third role was that of an “enforcer of the rules of the game”, where AI determines or influences the outcomes or governance of crypto systems, such as consensus protocols, DAOs, or social networks. He said that AI could provide “optimization”, “coordination”, or “moderation” functions for crypto systems, and that crypto could provide “transparency” and “accountability” for AI. He said that this role was “risky”, as AI enforcers could be “biased”, “corruptible”, or “adversarial”, and that open-source AI models could be “attackable”.

The fourth and final role was that of a “singleton”, where AI is the “game itself”, and crypto systems rely on a single decentralized and trusted AI for some purpose, such as knowledge generation, content creation, or AI safety. He said that AI could provide “intelligence”, “creativity”, or “alignment” for crypto systems, and that crypto could provide “decentralization”, “incentivization”, or “verification” for AI. He said that this role was the “most challenging” to get right, as it required “creating a single AI that everyone can trust and that cannot be corrupted or taken over”.

Crypto and AI need careful design and evaluation

Buterin concluded his blog post by saying that crypto and AI had “a lot of potential for synergy”, but also “a lot of potential for things to go wrong”. He said that developers should be “careful” when designing and evaluating crypto and AI applications, and consider the “trade-offs”, “assumptions”, and “failure modes” of their solutions. He also said that developers should be “honest” and “realistic” about the “capabilities”, “limitations”, and “risks” of their applications, and avoid “overhyping” or “overselling” them to the public.

Buterin said that he hoped that his blog post would “spark some discussion” and “inspire some ideas” among the crypto and AI communities, and that he looked forward to seeing more “interesting” and “useful” applications of crypto and AI in the future.

Category: Technology

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