AI + Crypto is a nascent field, this article aims to explore from first principles and why these technologies will merge.
Introduce
On the desert planet Arrakis, “he who controls the spice controls the universe.” The medicinal aroma is so strong that one can even see into the future with high enough doses. Here on Earth, our medicine is called a computer. And the computer controller controls the galaxy.
Unlike incense, computers cannot be pulled out of the ground. It is a multidimensional resource that requires many inputs:
- Constant energy
- Modern semiconductors
- Endless data
All of these resources are in short supply. And if AI continues to grow exponentially as it is, the shortage will only get worse.
we believe the world needs more ai infrastructure–fab capacity, energy, datacenters, ETC–than people are currently planning to build.
— Sam Altman (@sama) February 7, 2024
Building massive-scale AI infrastructure, and a resilient supply chain, is crucial to economic competitiveness.
openai will try to help!
The important question is – how much is society willing to invest in pursuit of the ultimate invention? What is the value of “God machine”?
AI, at its most basic level, is driving the cost of intelligence development down to zero. And intelligence is the source of productivity and innovation. There has been huge attention to this segment, Masayoshi Son thinks the AI segment is worth $100 billion, while Sam Altman is eyeing $7 trillion. But what does this have to do with cryptocurrency?
Potential Of AI + Crypto
Today, electronic money (crypto) is a pimple in the global financial system. Crypto's $2 trillion market Capital pales in comparison to $109 trillion in global Capital and $307 trillion in global debt. So if you're looking to tap into the markets that Masayoshi and Sam Altman are discussing, cryptocurrency won't even be on your radar.
However, what makes cryptocurrencies an attractive option for raising Capital is not their current scale but their future potential. By arranging unique programs or mechanisms, cryptocurrencies can mobilize resources at an unprecedented scale. Bitcoin mining is a prime example. With a speed of 500 exahash/second, Bitcoin's computing power exceeds the combined capacity of the world's largest supercomputers. No company or country can compete with a globally distributed network.
By enhancing economics, cryptocurrencies usher in hyper-capitalism. Cryptocurrency is the final state of capitalism – where all markets are super liquidation and efficient. Just as the Internet fueled a communications boom, cryptocurrencies will fuel a financial boom.
The LLM's (Large language model) insatiable thirst for resources requires new supplies. DePIN (Decentralized Physical Infrastructure Networks) Crypto projects can help drive new supply to the market by activating hidden resources with Token based rewards. Although its story is new, DePIN is not a new concept.
In theory, AI could interact with DePIN in many ways, but we will focus on three broad groups:
- Energy
- Chips
- Data
Among them, the input for LLM – chips – is probably the most developed area of the AI x Crypto combination. The reason is simple: AI researchers can't get enough GPUs. One way to meet this huge need is to mobilize resources from the community. Enter DePIN projects like Akash, Gensyn, Io.net and others. These projects are all trying to push more chips into this depleted market.
Challenge
Although it is a potential field, challenges still lie ahead. The Token incentive model is not really commensurate with the contributions of participants, so future AI + Crypto projects need to have a more attractive incentive model to attract more participants. network building.
On the other hand, infrastructure construction and deployment takes a lot of time, making it difficult for projects that want to move into this segment to make a profit in the early stages.
Even DePIN projects receive pressure from Web2 giants such as Google, Apple, Amazon, etc. This requires Crypto projects to have truly professional products and strategies to compete and survive. in.
Summary
Either way, big change is coming, AI + Crypto will be one of the hottest topics in 2024. Along with the development of traditional physical infrastructure and blockchain technology, As new use cases emerge soon, we can expect DePIN to play an increasingly important Vai in the development of our real world.
Please continue to follow Coin Moi to be updated with the latest information about AI + Crypto trends in the near future.
The article AI + Crypto: A true merger appeared first on CoinMoi .
