Binance supports ChatGPT to improve crypto education, adoption

Binance sees great potential for using AI in the crypto industry as it shared its views on the current flavor of the month, ChatGPT.

In a recent blog post, Binance outlined the importance of AI technology in optimizing crypto in the coming years.

Binance CEO Changpeng Zhao (CZ) has previously confirmed that it is leveraging AI in risk management and customer service departments. However, the crypto behemoth is now advocating the importance of integrating AI into other areas of the crypto industry, including trading bots, terminals, smart contracts, analyzing market trends and improving security.

AI in crypto education

Still, it’s the educational aspect of ChatGPT that Binance believes could accelerate crypto adoption immediately.

Unlike typical chatbots, ChatGPT can communicate in a much more advanced way, allowing users to get clarification on specific terms given in response to a question.

“In crypto adoption, the biggest advantage is how it can be used to answer questions about how to use crypto and the technology behind it….ChatGPT has the advantage of being able to help clarify concepts in an interactive and conversational way.”

When used to educate users about complex terms like ZK-SNARKS or Account Abstraction, ChatGPT excels in helping to clarify all aspects of the answers. For example, if the answer contains other words that the user is not familiar with, they can ask follow-up questions to make sure they have understood the whole concept.

However, when you use Google Search to research a topic, the user is often forced to read through unnecessary content to get to the necessary parts.

With ChatGPT, users can learn at their own pace and keep asking more questions until they are completely satisfied that the concept is understood.

Furthermore, Binance sees the business benefit of AI technology by reducing costs associated with customer support, “thereby freeing up employees to focus on more complex tasks.”

AI limitations

Binance sees this educational method as superior to its own Binance Academy, a resource of common crypto concepts and terminology. However, it notes the potential limitations of ChatGPT, as “users should be aware that there are a number of drawbacks.” In addition, Binance believes it is important not to become complacent or “turn off critical thinking” when using ChatGPT, as it “lacks basic common sense.”

“The language model simply produces output based on probability distributions derived from the training and data.”

ChatGPT only has access to data from before 2021 and thus cannot help with new events and innovations within the crypto space. However, it is important to understand and accept this when using a language model such as ChatGPT for research and educational purposes.

Beyond education

In addition to optimizing and enhancing the learning experience, Binance sees tools like ChatGPT as an integral part of those actively building in the crypto space.

“ChatGPT’s versatility has seen more advanced users leverage its capabilities to help code trading bots, trading terminals and even assist with smart contracts.”

Binance sees ChatGPT as supporting “more advanced users” in tasks such as debugging code, improving creativity, and helping with smart contract development.

Given that some key smart contracts, such as those used in liquidity pools and bridges, cannot be upgraded, there is a critical need for code to be completely bug-free before it goes into development. Using an AI model like ChatGPT to check smart contracts for errors may become common to avoid future hacks and exploits.

Binance further echoed a UBS analyst’s statement to solidify its position on the impact of ChatGPT, “In 20 years of the internet space, we can’t remember a faster ramp in a consumer internet app.”