AI must have a prominent place in the crypto user experience — Nansen CEO

As the crypto industry attracts more users, developers are laser-focused on improving the user experience, a major pain point for most new users. Artificial intelligence has often been seen as a technology that could improve how people use and interact with crypto. In the last episode of Hasting it out, the integration of AI with crypto is discussed in detail.

Cointelegraph’s Elisha Owusu Akyaw (GhCryptoGuy) interviewed Nansen CEO Alex Svanevik about the importance of on-chain data and the use of artificial intelligence in crypto in episode 8 of Hasting it out.

The narrative that artificial intelligence is taking over has intensified with the popularity of OpenAI and applications such as ChatGPT. The trend has also extended to the crypto industry, which has witnessed a rise in the price of tokens linked to AI-related crypto projects. Svanevik is confident that AI will be integrated into cryptocurrency applications in a way that will significantly improve the user experience.

He explained that similar to Bing integration of ChatGPT, more crypto-based data platforms will use AI to help users find information more easily. According to the Nansen boss, most of the results that platforms show users currently require considerable work, which can be changed to human-readable content with artificial intelligence.

After several cryptocurrency platforms went bankrupt in 2022, institutions adopted a new standard called “proof of reserve” to provide transparency for end users, which has sparked debates. Svanevik believes proof of reserves, or reserve transparency, is useful. However, he does not think it is enough unless they also show what he calls “proof of solvency”, which can be done through a combination of proof of reserves and proof of liabilities.

Svanevik nevertheless argued that the popular conclusion on Twitter that proof of reserves is useless because one cannot confirm solvency is wrong, as many of last year’s collapses could have been avoided if users had more information about how the exchanges and lending platforms managed. deposit through chain data. Moreover, he added, regulators would be more effective if they paid close attention to data on the chain.

Related: Bitcoin Lawyer Najah Roberts Explains Why BTC Is a Tool for Empowerment

Regarding the outlook for 2023, Svanevik mentioned that despite an increase in volumes in sectors such as non-fungible tokens (NFTs) between December 2022 and early 2023, the new year will be challenging for many crypto startups that have raised money recently and starting to run out of capital.

In this episode, the two also discussed:

• Data on the trajectory of the NFT market in 2023
• Ethereum layer-2 competition
• Web3 games
• The popularity of chain data in the crypto industry

Listen to the full episode on Spotify, Apple Podcasts, Google Podcasts or TuneIn to get all the insights on crypto and AI. You can also check out Cointelegraph’s catalog of shows on the new Cointelegraph Podcasts page.