Crypto Assets Play Crucial Role In Addressing AI Challenges, Report Finds

According to PANews, a report by a16z titled 'State of Crypto Assets 2024' highlights the significant role of crypto assets in tackling challenges posed by artificial intelligence (AI). One of the key issues AI faces is the increasing cost and centralization of development. The report suggests decentralized solutions based on blockchain technology as a remedy. Currently, 34% of crypto asset projects incorporate AI, a notable rise from 27% in 2023. Many of these projects focus on making AI more accessible through decentralized networks. The rising costs of developing and training advanced AI models have led to resource concentration among a few large tech companies, stifling innovation and limiting access to the computational power needed for AI breakthroughs. However, crypto asset projects are beginning to decentralize access to AI resources. Projects like Gensyn are working to democratize AI computing power. Gensyn's decentralized network allows smaller developers and startups to access the computational resources needed to train AI models, removing traditional financial barriers associated with AI development. By decentralizing AI infrastructure, these projects offer more participants the opportunity to innovate in the AI field, rather than leaving AI advancements in the hands of a few dominant players. In addition to decentralizing resources, blockchain technology can enhance the transparency of AI processes, particularly in intellectual property (IP) and content verification. Projects like Near and Story use blockchain to track and verify the origins of digital content, ensuring creators receive proper credit and compensation. This verification system addresses a growing issue in the AI field, where training datasets often include materials from creators without authorization or compensation. The report also suggests that the transparency provided by blockchain technology can help restore public trust in the AI industry. Over the past five years, public trust in AI companies in the United States has significantly declined, from 50% to 35% in 2024. Crypto asset developers are increasingly integrating AI into their projects, with blockchain infrastructure remaining the category with the highest AI adoption. According to a16z's Builder Energy dashboard, developers are using AI to optimize smart contracts, enhance decentralized autonomous organizations (DAOs), and improve algorithmic trading systems. The report notes that as blockchain infrastructure continues to advance, the potential for AI-driven applications within the crypto ecosystem is expanding. Significant advancements in blockchain technology have greatly reduced transaction costs, making it easier to build scalable AI-driven applications. The cost reduction provides more opportunities for experimentation and innovation in combining AI with decentralized technology, leading to new applications in identity verification, prediction markets, and content authentication. These use cases demonstrate the potential for AI to unlock new functionalities on blockchain platforms.