Initially, AI and cryptocurrency seem like entirely different technologies with nothing in common. However, Bitcoin Paper Wallet has been intrigued by how the two industries are combining in unexpected ways.
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One way that AI and crypto are coming together is through hardware. Many crypto mining rigs are no longer being used due to lower crypto prices and changes in mining methods. However, these expensive rigs can be repurposed to train AI. The graphics processing units (GPUs) that are powerful enough to train and run AI models are currently in short supply. The GPUs used for crypto mining can also cope with the computational workload needed to run AI systems. Companies that used to sell mining rigs are now reworking them to provide a cheaper option for those needing AI infrastructure.
AI is also helping the crypto industry. The most noticeable result of AI’s involvement with crypto is the new token subset of AI crypto coins that use the technology in their operations.
“The hope is that AI can be used to streamline how users access cryptocurrencies,” the experts at Bitcoin Paper Wallet say. “If AI could automate the background operations of crypto protocols then users would have a simple, swift experience instead of the current complicated and slow transaction processes.”
Some investors are also using AI to guide funding decisions. The technology is used to filter through the thousands of funding applications to produce a shortlist of viable investments.
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In return, blockchain technology could help AI with its authenticity problems. In a report by cryptocurrency exchange Coinbase, David Duong, the head of institutional research, wrote: “Blockchain technology could also be used to address problems like verifying the authenticity of online content by capturing the lifecycle of content creation in order to distinguish the photos, music, videos and text generated by AI from the media generated by humans. Taking this a step further, blockchains could be used to create an auditable track record of the decision-making processes used by AI algorithms themselves,
The report concluded by saying, “We think the intersection of AI and crypto represents an important opportunity for entrepreneurs.” As the technologies of AI and cryptocurrencies continue to converge and combine there are many exciting possibilities for the future.
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