The Genuine Use Cases for AI in Crypto and Blockchain

The Genuine Use Cases for AI in Crypto and Blockchain

In the world of blockchain and cryptocurrency, there is no shortage of hype. With so many coins trading off the hype and promises of artificial intelligence (AI), it can be difficult to separate the genuine projects from the scams. However, there are indeed some legitimate use cases for AI in this space. Magazine spoke with industry experts to explore these authentic applications of AI in crypto and blockchain. Let’s dive in and discover the real potential of AI in this domain.

Although DAOs are a promising concept, they are currently not fully autonomous. As Vance Spencer, the founder of Framework Ventures, points out, there are still people involved in the decision-making processes. In order to truly achieve autonomous organizations, AI may be the missing link. According to Spencer, leveraging AI is essential for the DAO concept to work effectively. However, Rune Christensen, the founder of MakerDAO, cautions that the technology is still immature for complete automation. AIs currently produce unreliable output, ranging from 3% to 27% hallucinations. Therefore, while AI can’t yet enforce governance rules or run a DAO entirely, it can play a crucial role in replacing mundane tasks.

One of the major challenges with DAOs is effective communication and coordination among dispersed members. Illia Polushkin, the founder of Near, explains that AI can excel in monitoring and summarizing what is happening within the organization, making it easier for everyone to stay informed. Polushkin suggests that AI can function as a manager, capable of scaling up to work with thousands of people, managing logistics, and coordinating tasks. While the broader direction of the DAO can still be determined by the community, AI can handle the day-to-day management, providing valuable insights and context.

The Near Foundation plans to experiment with AI to handle smaller tasks before gradually taking on more complex responsibilities. Polushkin envisions a future where AI replaces human coordinators, allowing them to focus on generating ideas rather than managing functions. Similarly, MakerDAO is developing Governance Artificial Intelligence Tools (GAITs) to serve as guides for the entire project. Their dataset, known as “Atlas,” will provide a global overview of the project, facilitating collaboration among diverse community members. GAITs will help identify suitable projects and proposals, ensuring alignment with the DAO’s goals and budget. Real-time translation capabilities further enhance communication within a global community.

While AI is already proving to be a valuable tool for DAOs, it is crucial to acknowledge the technology’s limitations. Full-blown AI-assisted governance is not yet mature enough to be implemented in DAOs. The current generation of AI models still produce unreliable outputs, making them unsuitable for complete decision-making authority. Trusting AI with the keys to a DAO’s treasury without strict guidelines and spending caps would be risky. However, as the technology continues to evolve, there is great potential for AI to revolutionize DAO governance.

AI holds promise as a transformative force in the world of blockchain and cryptocurrency. While many coins may trade off the hype, genuine use cases for AI in crypto and blockchain do exist. Despite the limitations and immaturity of the current technology, AI can improve communication, coordination, and decision-making within DAOs. By leveraging AI’s strengths, such as monitoring, summarizing, and organizing vast amounts of data, DAOs can become more efficient and effective. As the technology progresses, the dream of truly autonomous organizations governed by AI may become a reality, reshaping the future of blockchain and crypto.

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