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Features<\/span><\/p>\nBitcoin: A Peer To Peer Online Poker Payment System by Satoshi Nakamoto<\/p>\n<\/p><\/div>\n
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Features<\/span><\/p>\nPlay2Earn: How Blockchain Can Power a Paradigm Shift in Building Game Economies<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n
An emerging blockchain based AI marketplace that Spencer is super excited about is tokenizing and trading AI models. Framework has invested in the Super Smash Brothers-like fighting game AI Arena, where users train AI models that battle each other. The models are tokenized as nonfungible tokens and can be bought, sold or rented. \u201cI think that\u2019s really cool,\u201d he says. \u201cIt\u2019s interesting having the crypto native monetization, but also ownership of these models.\u201d<\/p>\n
\n\u201cI think one day, probably some of the most valuable models \u2014 some of the most valuable assets on-chain \u2014 will be tokenized AI models. That\u2019s my theory, at least.\u201d<\/p>\n<\/blockquote>\n
Don\u2019t believe the hype:<\/strong> You can currently source components, data and compute via traditional Web2 marketplaces.<\/p>\nBonus use case: Financial analysis<\/strong><\/h2>\nAnyone who has tried to interpret the ocean of data produced by on-chain financial transactions knows that although it\u2019s one thing to have an immutable and transparent record, it\u2019s quite another to be able to analyze and understand it.<\/p>\n
AI analytics tools are perfectly suited to summarizing and interpreting patterns, trends and anomalies in the data, and they can potentially suggest strategies and insights for market participants.<\/p>\n
For example, Mastercard\u2019s CipherTrace Armada platform recently partnered with AI firm Feedzai to use the technology to analyze, detect and block fraudulent or money laundering-related crypto transactions across 6,000 exchanges.<\/p>\n
Elsewhere, GNY.io\u2019s machine learning tool attempts to forecast volatility of the top 12 cryptocurrencies and its Range Report uses ChatGPT-4 to analyse trends and buy\/sell signals.<\/p>\nBridgewater is launching an AI driven fund. (Bridgewater)<\/figcaption><\/figure>\nBut can AI help with traditional markets, too? That\u2019s the hope of Bridgewater, which will launch a fund next year from its new Artificial Investment Associate (AIA) Lab that aims to analyse patterns in financial markets so it can make predictions for investors to capitalize on. <\/p>\n
Previous attempts to do this have produced lacklustre results \u2014 with a Eurekahedge index of a dozen AI driven funds underperforming the its broader hedge fund index by around 14 percentage points in the five years until 2022.<\/p>\n
This is mainly due to the issues involved with feeding in the large amounts of accurate information required. <\/p>\n
Ralf Kubli, a board member with the Casper Association, believes AI can revolutionize traditional finance \u2014 but only if it combines blockchain records with rigorous standards to ensure the information fed to the models is comprehensive and accurate.\u00a0<\/p>\n
For years, he\u2019s been advocating for the finance industry to adopt the Algorithmic Contract Types Universal Standards, or ACTUS, created in the wake of the Global Financial Crisis, which was partly caused by complicated derivatives where no one understood the liabilities or cash flows involved. He believes on-chain standardized data will be essential to ensure trust and transparency in model outputs.<\/p>\n
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Read also<\/p>\n
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Features<\/span><\/p>\nBitcoin 2022 \u2014 Will the real maximalists please stand up?<\/p>\n<\/p><\/div>\n
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Features<\/span><\/p>\nCrypto Is Alive and Well, Though Skeptics Say It\u2019s \u2018Not Money\u2019<\/p>\n<\/p><\/div>\n<\/div>\n<\/div>\n
\u201cFundamentally, we believe that without blockchain, AI will be quite lost,\u201d he tells Magazine. \u201cImagine you\u2019re going to invest in an AI company, and you\u2019re updated every three months about the progress of their LLMs, right? If you cannot verify what they fed into the model, you have no way of knowing whether they are making any progress.\u201d<\/p>\n
He explains blockchain guards against companies fudging their results, \u201cand the past would indicate that [\u2026] there\u2019s so much money, they will fudge about what\u2019s going on.\u201d<\/p>\n
\n\u201cAI, without this assurance layer of the blockchain \u2014 what happened, when, where, what was used \u2014 I think will not be effective going forward.\u201d<\/p>\n<\/blockquote>\n
He says that combining the two will give rise to new predictive abilities.<\/p>\n
\u201cThe hope for AI for me going forward is that the prediction models become much more powerful and behavior can be much better predicted,\u201d he says, pointing to credit scores as an example.<\/p>\n
\u201cAI used in the right way could potentially lead to much more powerful prediction models, which would mean that certain people who currently cannot get credit \u2014 but would be creditworthy \u2014 can obtain credit. That\u2019s something I\u2019m very passionate about.\u201d<\/p>\n
Don\u2019t believe the hype: <\/strong>AI\u2019s predictive abilities have been shown to be poor at best so far, and trusted and reliable data that\u2019s not recorded on blockchain can be useful input for AI analysis.<\/p>\nAlso read:<\/strong><\/p>\nReal AI use cases in crypto, No. 1: The best money for AI is crypto<\/em><\/strong><\/p>\nReal AI use cases in crypto, No. 2: AIs can run DAOs<\/em><\/strong><\/p>\nReal AI use cases in crypto, No. 3: Smart contract audits & cybersecurity<\/em><\/strong><\/p>\nReal AI & crypto use cases, No. 4: Fighting AI fakes with blockchain<\/em><\/strong><\/p>\n\n
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Andrew Fenton<\/h2>\n Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.<\/p>\n
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