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The previously separate domains of technology—artificial intelligence and blockchain—are now rapidly merging. These varied sub-sectors encompass everything from decentralized energy solutions and physical infrastructure networks to fine-tuning models and computational frameworks.
Some skeptics may hesitate regarding startups that tout their use of AI and blockchain—the two most prominent buzzwords in the business landscape today— suspecting they are merely attempting to capitalize on both trends. After all, if certain companies are already engaging in AI washing, why not extend that to include blockchain as well?
However, the convergence of AI and blockchain is genuine and not just commercial exaggeration. As I discussed in the H1 2024 report published by HashKey Capital, AI and blockchain complement each other in ways that create solutions significantly greater than their independent contributions.
Blockchain addresses AI’s privacy issues
Consider the vast amount of data you enter into ChatGPT and similar platforms every day. Now consider that multiplied across all daily active users, along with the large language model developers processing terabytes of data for model training. Essentially, the world is placing an enormous trust in AI regarding the handling of sensitive information.
This reliance on Generative AI creates a significant vulnerability to data breaches. For example, hackers might exploit enterprises by threatening to publish employees’ Generative AI logs, similar to strategies they employ in ransomware threats involving private data leaks. These logs are particularly sensitive given the extensive and confidential nature of the information we submit in our queries.
Fortunately, a core principle of blockchain technology is privacy: Through its decentralized structure, users can avoid the public scrutiny that often accompanies centralized systems, which typically involve oversight from intermediaries and large organizations.
In this context, blockchain has developed various technologies aimed at enhancing privacy, such as ZKML, OPML, and TEEML. While each has its own set of trade-offs, their implementation has the potential to significantly improve both data security and model confidentiality. By bolstering security measures around AI, blockchain mitigates the risk of data breaches and cultivates an essential trust among users.
Blockchain promotes eco-friendly AI
The emergence of Generative AI necessitates vast computational resources, placing a strain on global energy supplies. As the adoption of AI increases and its applications diversify, particularly with advancements in multimodal capabilities, these demands will grow exponentially.
This scenario presents an ethical dilemma for companies: While they desire the enhanced productivity and efficiency offered by AI, they may reconsider its use if it jeopardizes environmental sustainability. This concern is not merely ethical; it is also a business imperative, as 77% of consumers favor supporting businesses that demonstrate environmental and social responsibility.
Blockchain can tackle the considerable energy requirements of Generative AI through decentralized energy strategies that aim to intelligently produce and distribute energy on a local level, offering a more sustainable and efficient alternative to centralized grids. With blockchain technology, companies need not sacrifice efficiency for environmental responsibility; they can strive toward an innovative future while being mindful of sustainability.
Blockchain may democratize AI
A common critique of AI is that its greatest advantages will be hoarded by a select few. The small number of entities that stand to benefit the most from AI includes model developers like OpenAI and Anthropic, as well as major tech corporations such as Meta, Amazon, Google, and Apple, which possess the largest datasets.
Critics argue that AI will disproportionately enrich these stakeholders, with developers profiting from their models created from publicly sourced datasets, while tech giants leverage their extensive consumer data to create highly profitable AI applications.
This scenario is far from ideal; AI should not resemble precious resources like gold or oil, where only an elite group reaps the primary rewards. Fortunately, blockchain may offer a viable solution. As a public ledger, blockchain enables organizations to share information more effectively, including the data and models pivotal to AI development.
Some businesses have already seized this opportunity for information-sharing enabled by blockchain technology. One example is Carv, a modular data layer designed to help gaming and AI firms better own, manage, and monetize their data. Blockchain-based solutions like Carv can foster inclusivity, extending the benefits of AI to individuals and organizations that might otherwise miss out on this transformative revolution.
Resolving the world’s major challenges
Blockchain, once labeled as a solution searching for a problem, is now positioned at the forefront of technological advancement with the rise of AI. By addressing critical challenges associated with AI—such as security risks, energy consumption, and inequities—companies that embrace both technologies will gain a competitive edge, benefitting society as a whole.
Businesses will be better equipped to confront some of the world’s most pressing issues while ensuring the privacy of data and models. Despite the computational demands involved, they can enhance sustainability through decentralized energy initiatives. Above all, facilitating information-sharing via blockchain can broaden access to these technologies, promoting a more equitable distribution of AI’s transformative capabilities. This imperative is vital for unlocking the full potential of AI, which is a goal we must all prioritize.
