Ethereum founder Vitalik Buterin delved into the potential relationship between artificial intelligence (AI) and cryptocurrency in a recent blog post.
Ethereum founder Vitalik Buterin delved into the potential relationship between artificial intelligence (AI) and cryptocurrency in a recent blog post, comparing AI's role within crypto to a video game. Buterin argues that the most viable role for AI in crypto is "as a player in a game." He highlights existing applications such as trading bots that use arbitrage to earn money on blockchain-based decentralized exchanges (DEXs) as examples of this use case.
However, Buterin envisions a broader range of applications for AI in crypto, including its use in prediction markets and as an interface to help users understand the crypto world. Prediction markets could benefit from AI's deep knowledge base and willingness to bid for cheap assets that others overlook. This could provide the liquidity that prediction markets have lacked until now.
AI can also serve as an interface to the crypto world, helping users understand the complexities of the ecosystem. Popular crypto wallets like MetaMask and Rabby wallet already use AI to warn users about malicious websites and simulate the consequences of transactions, helping to protect users from scams.
However, Buterin acknowledges the risks associated with integrating AI into open-source crypto wallets. Nefarious actors could review the code and launch attacks or scams that bypass the wallet's AI defenses. Despite these challenges, Buterin believes that AI has the potential to revolutionize the crypto industry. He encourages developers to explore constructive use cases of AI in various areas of crypto to determine which applications are truly viable at scale.
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