Crypto Trends 2024 Report: AI and Crypto Synergy

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Imagine a world overflowing with digital creations, where texts, videos and photos can be easily manipulated by AI. In this digital deluge, trust and authenticity become crucial. This is where crypto steps in as a game-changer.

Think of it as a digital time machine, timestamping and verifying the origin of data, be it AI-generated or human-made. Without crypto, discerning a genuine image from a deepfake, or pinpointing its source, becomes a battle against sophisticated forgeries.

But some argue that AI, like the rise of mobile phones before it, poses a threat to crypto’s relevance. This couldn’t be further from the truth. AI, instead of jeopardizing crypto, amplifies its need.

Just like people debate the societal impact of smartphones, the synergy between AI and crypto is undeniable. AI thrives on two things: data and computing power. And what offers unparalleled security and verifiable scarcity in the digital realm? Blockchain.

Bitcoin is the ideal machine currency. While naysayers point to its limitations in micropayments and smart contracts, they miss the bigger picture. Bitcoin, by design, preserves purchasing power — a crucial feature for efficient AI transactions.

However, the conversation doesn’t end there. Some argue that AI might bypass established currencies like Bitcoin altogether, opting for more efficient blockchains with lower fees and faster transaction times. Additionally, the possibility of AI directly utilizing gas tokens for specific computations is on the table.

This is where the discussion gets interesting. While the nuances of AI integration with crypto remain to be explored, one thing is clear: cryptocurrency is not facing an existential threat from AI, but rather a powerful new ally. As the digital landscape evolves, this partnership holds the potential to revolutionize the way we interact with and verify information in the AI era but we need robust crypto ecosystems to support the future of AI.

At present, the tracks that various institutions are more optimistic about are:

• Direct applications of AI in crypto
• Innovative applications of AI and encryption technology
• Encryption + artificial intelligence = explosive combination
• Decentralized AI

CRYPTOGRAPHIC IMAGE VERIFICATION

Existing cameras digitally sign photos, but these signatures often break when the images are edited (cropped, rotated, compressed). While the edits don’t impact the real-world picture, they alter the data, rendering the signature useless.

However, a promising solution is emerging. Building on research launched in 2016 by a Boston University group, Web3 technology aims to harness cryptography to ensure the authenticity of online videos and images. This is crucial, as deepfakes and generative AI tools increasingly threaten the integrity of visual content online. This Web3 technology will ultimately become game-changing in an online world where the authenticity of images and videos is being compromised by generative AI tools and deepfakes.

PhotoProof is based on Proof-CarryingData (PCD), a cryptographic primitives for secure execution of distributed computations. It can be configured, according to application requirements, to allow any permissible set of (efficiently computable) transformations. Starting with a signed image, PhotoProof scheme attaches, to each legitimately derived image, succinct proof computational integrity attesting that the transformation was permissible. Anyone can verify these proofs, and generate updated proofs when applying further permissible transformations. Moreover, the proofs are zero knowledge so that, for example, an authenticated cropped image reveals nothing about the cropped-out regions.

Digital signature is dependent on the information signed, and thus its fundamental advantage over the handwritten signatures is the ability to detect the slightest changes in the information signed, invisible to the human eye.

AI IN WEB3

The collaboration of Web3 and AI is gaining traction, infusing dApps with intelligent features. From smarter smart contracts and self-governing DAOs to enhanced DeFi protocols and personalized experiences, the synergy between these two titans of technology is undeniable. As they converge, we can expect dApps to evolve into intelligent, intuitive, and adaptable entities, ushering in a new era of user-centric experiences.

AI’s role in Web3 extends beyond mere integration. It empowers developers to craft innovative solutions across the spectrum, from revolutionizing GameFi to transforming social media landscapes. This powerful alliance is poised to redefine the future of dApps and the very fabric of the Web3 ecosystem.

The use of AI is a new stage in the development of Web3 applications. The combination of these technologies will improve such traditional fields of activity as medicine, real estate and commerce. In turn, blockchain will enable a more decentralized and confidential data storage environment.

The main ways in which AI can be used in Web3 application development:

• Analyzing and securing smart contracts
• Applications in decentralized finance
• Decentralized oracles
• Tokenomics and economic models

You can get full report here.