Is AI Changing the Way We Use the Blockchain?
Besides the Sci-Fi dystopian stereotype portrayed by Hollywood, artificial intelligence and machine learning (AI/ML) are two advanced subjects of computer science that are changing the way humans interact with the internet, and are poised to become a significant part of 2023.
ChatGPT, by OpenAI and MidJourney, are two examples of AI/ML that have reached mainstream audiences and are changing how we look at online workflows such as SEO and digital art generation.
Like most areas of digital technology, the blockchain has considerable improvements that can be made with AI/ML because of its relationship with the internet and the vast amount of data that can be stored on-chain.
Machine learning and DeFi
DeFi is one aspect of web3 that has considerable potential when combined with AI/ML by adapting to the key information that only AI/ML can acquire. By crawling a blockchain, AI/ML can pull significant insights from the activity found on a blockchain by analyzing which liquidity pools and cryptocurrencies were most successful during specific periods in minute detail.
These insights can then be generated to create additional benefits for lenders who are adding to the liquidity pool and can even be further utilized to carry out automated credit scores that can be used to receive larger loans from DeFi protocols and enhance web3 business.
AI art and NFTs
NFTs are another area of intrigue that benefit from AI products because of the auto-generated nature of NFT artwork. While there is a community for real artists in the NFT market, it is overrun by countless derivative collections, plagiarism, and poor art.
Say what you will about these terrible collections, but they still draw an audience and are traded regularly among the most die-hard NFT enthusiasts. By taking advantage of AI-generated artwork, these degen collections have the ability to become more frequent, allowing traders more options to choose from when flipping hyped NFTs because the time to create images is significantly reduced.
As we all know by now, the NFT bubble has burst and any true utilities are a long way away from becoming a reality; as we’ve seen, the majority of NFT traders are not interested in utilities, GameFi, or any real-world products, they’re simply motivated by the release of new tokens to fuel NFT gambling mechanics.
This can create two benefits for the NFT market. First, it removes any real need to have an illustrator on the team which cuts down on overhead costs and allows the team to keep larger shares of the profits from mint and royalties because the team will only need to enter a few keywords for the AI to auto-generate appropriate artwork.
Secondly, this places a larger emphasis on NFT artwork created by real illustrators which can be valued more according to the effort, time, and skill of the artists.
AI and blockchain logistics
Apart from DeFi and NFTs, AI/ML also has a large ability to enhance logistical data used by shipping companies and businesses related to global supply chains.
By using an AI/ML machine to crawl through records of any logistical data stored on a blockchain, AI/ML can help create more efficient routes and procedures to increase profit margins for both web2 and web3 businesses that employ blockchain technology for data and record keeping purposes.
