Blockchain and AI do not mix, says Andre Cronje
The blockchain and artificial intelligence (AI) worlds have been making headlines for years, each promising to revolutionize the way we do business and interact with technology. However, these two technologies are not as complementary as one might think, according to Fantom founder Andre Cronje.
The well-known DeFi architect argues that blockchain and AI are vastly different in terms of their underlying principles, making it difficult to bring them together.
Blockchain and artificial intelligence
Cronje claims that blockchain is known for its slow speed, compared to centralized systems, but this is because it prioritizes transparency and security. Transactions are verified and recorded in a decentralized, public ledger that is immutable and resistant to tampering or manipulation.
This makes blockchain technology an ideal platform for secure transactions and handling sensitive data.
On the other hand, AI is characterized by its high speed and processing power, but this has a cost, confirms Andre Cronje. AI algorithms are often considered black boxes, meaning that the decisions they make and the data they use are not always transparent.
This can raise serious ethical questions and make it difficult to hold AI systems accountable for their actions.
Given these fundamental differences, it is unlikely that blockchain and AI will be able to co-exist in a single system anytime soon. While some projects have claimed to be “swinging” to AI, it’s likely that these are simply attempts to jump on the bandwagon and increase the price of their token, according to Cronje.
In reality, blockchain does not improve AI, and AI does not improve blockchain.
There may be a scenario in the future where blockchains are fast enough to handle the throughput required for AI applications, but even then the question remains: why? Blockchains provide no benefits to AI, and AI provides no benefits to blockchain. Cronje concluded that combining blockchain with AI is like trying to “mix oil and water.”
Chasing the trend
Other prominent industry leaders argue that AI-based tokens are the next big thing and could lead the next bull market cycle. And so far they seem to be more right than Cronje.
Altcoins such as Artificial Liquid Intelligence (ALI), Fetch.ai (FET) and Singularity Net (AGIX) have seen impressive gains of up to 220%. The crypto tokens of AI-based startups such as Image Generation AI (IMGNAI) have even more than tripled over a two-week period.
Once-popular tokens of 2018 and 2021, such as Big Data Protocol (BDP) and Measurable Data (MDT), are jumping on the bandwagon, reminding investors how to use AI technology in their blockchain applications. BDP has seen a 2100% increase in the past week, while MDT has jumped 150%.
Both protocols use their tokens to trademark data, allowing suppliers and buyers to exchange data securely and anonymously.
Despite these impressive gains, crypto majors like Bitcoin and Ethereum have paled in comparison, rising just 30% each in the past month. Nevertheless, the market capitalization of major tokens is upwards of $300 billion, meaning they require significant investment and public interest to see significant price increases.
The recent surge in AI tokens emerged after the public launch of chatbot ChatGPT and image generation software Dall-E by OpenAI in mid-2022. OpenAI recently raised $10 billion from Microsoft, valuing it at $29 billion. This institutional interest has helped create a compelling case for crypto traders to bet on AI-focused tokens as the next growth sector.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
