According to a16z’s “State of Crypto 2024” report, the cryptocurrency industry is playing a key role in addressing the growing challenges in artificial intelligence (AI).
As AI development becomes increasingly expensive and centralized, the report highlights how blockchain technology offers a decentralized solution that has the potential to make AI more accessible and fair. Masu.
The report found that 34% of cryptocurrency projects now incorporate AI, up significantly from 27% in 2023, with many focused on making AI more accessible through decentralized networks. I emphasized that
Challenge to unify AI
The cost of developing and training advanced AI models has skyrocketed, concentrating resources in the hands of a few large technology companies, the report said.
This centralization limits innovation and limits access to the computational power needed for breakthrough advances in AI. But crypto projects are starting to change this dynamic by decentralizing access to AI resources.
The report points to projects like Gensyn that are working to democratize AI's computational power. Gensyn's decentralized network gives small developers and startups access to the computing resources needed to train AI models, removing the financial barriers traditionally associated with AI development.
By decentralizing AI infrastructure, these projects give more participants the opportunity to innovate in the AI field, rather than leaving it in the hands of a few dominant players.
tackle more problems
Blockchain technology not only decentralizes resources but also increases the transparency of AI processes, especially regarding intellectual property (IP) and content verification.
Projects like Near and Story use blockchain to track and verify the origin of digital content, ensuring creators are properly credited and compensated. This validation system addresses a growing concern in AI that training datasets often contain material that is not credited or compensated by the creator.
The report also argued that blockchain technology's transparency could help restore public trust in the AI field. Public trust in AI companies in the United States has fallen significantly over the past five years, from 50% to 35% in 2024.
Expansion of adoption
Cryptocurrency developers are increasingly integrating AI into their projects, and blockchain infrastructure continues to be a top category for AI deployments.
According to a16z's Builder Energy dashboard, builders are using AI to optimize smart contracts, power decentralized autonomous organizations (DAOs), and improve algorithmic trading systems.
The report notes that as blockchain infrastructure continues to improve, the potential for AI-driven applications within the crypto ecosystem is expanding. Significant advances in blockchain technology have significantly reduced transaction costs and made it easier to build scalable AI-powered applications.
This cost reduction will enable further experimentation and innovation in combining AI and decentralized technologies, leading to the development of new applications in areas such as identity verification, predictive markets, and content authentication. These use cases represent the potential for AI to unlock new capabilities on blockchain platforms.
