As Artificial Intelligence (AI) continues its rapid growth, attempts to integrate it within the blockchain industry are also on the rise. This trend is driven by the potential to harness blockchain’s decentralized nature with AI’s data analytics capabilities to create robust ecosystems. The surge in AI-related token market capitalization is evidence of this movement.
According to cryptocurrency market data platform CoinGecko, the market cap of AI-related tokens rose by 39% over the past week, reaching approximately $31 billion. In comparison, meme coins saw a 14% increase in the same period, highlighting the greater momentum of AI tokens.
# ChatGPT Emergence Spurs Blockchain Adoption
Since the emergence of ChatGPT in 2022, the AI sector has grown significantly, a trend reflected in the increased frequency of AI-related discussions. Disseminated on July 11, the report “Intelligent DeFi: The Blueprint of DeFi Redesign by AI” by Dispread indicates that the release of the text-to-image AI model DALL-E 2 has led to an eightfold increase in AI keyword mentions on domestic crypto Telegram channels.
Building on ChatGPT’s success, numerous LLM-based AI services have flooded the market. Blockchain projects have also eagerly started incorporating AI. Voices within the industry are advocating for blockchain’s use to address the centralization of data, particularly among tech giants like Microsoft and Google. As of last year, the top five companies controlled 73% of the global AI market, with Google and Microsoft holding 21% and 19%, respectively, intensifying concerns over data centralization.
Ethereum co-founder Vitalik Buterin stated in his blog, “Centralized AI systems can lead to privacy and monopoly issues,” emphasizing the need for blockchain technology in AI development to ensure decentralization, transparency, and user empowerment. He suggested using blockchain to decentralize the storage and processing of AI training data to prevent data monopolies.
# AI Integration in DeFi
The anticipation of synergies between AI and blockchain is fostering a surge of AI integration in the decentralized finance (DeFi) market. This trend is exemplified by projects like IoNet and Akash Network, which aim to reduce AI model training costs by decentralizing GPU power. Another initiative, BitTensor (TAO), uses blockchain technology to facilitate contributions from multiple participants in AI training, thereby addressing AI bias.
Minseung Kim, head of Korbit Research Center, noted, “Several crypto projects are now attempting to decentralize the computational resources needed for AI model training, providing an alternative to reliance on specific infrastructure providers.”
In its report, Dispread highlighted ongoing attempts to tackle current AI industry challenges using blockchain infrastructure. Such efforts could not only provide a more stable infrastructure for the AI sector but also expand the application of blockchain technology.
However, Dispread cautioned that current blockchain infrastructure is not yet capable of keeping up with AI’s fast data processing speeds and that the transparency of blockchain could expose AI model data to hacking or attacks. The report suggested that solutions such as zero-knowledge proofs (zk) and machine learning (ML) are needed to address these vulnerabilities.
