In recent months, ChatGPT, an AI-powered chatbot, has gained popularity as a tool for natural language processing and generating human-like responses. Built on the GPT architecture and trained on massive amounts of data, ChatGPT has quickly become a go-to solution for businesses looking to enhance their customer service and engagement. However, the rise of ChatGPT is just one example of how artificial intelligence is transforming industries and changing the way we interact with technology. Another area of innovation is the intersection of AI and blockchain technology to enable smarter machines.
The global AI and blockchain markets are both expected to experience significant growth in the coming years, according to market research analysis. The AI market size is predicted to expand from $29.86 billion in 2020 to $299.64 billion in 2026, while the worldwide blockchain market is predicted to increase from $3 billion in 2020 to $39.7 billion in 2025.
In truth the blockchain and AI do not share much in common. They are both leading today’s innovation and technology trends but otherwise act entirely differently. The blockchain acts as secure storage and is decentralised, and is transparent and immutable. AI on the other hand, is typically centralised, fast-evolving and opaque.
It is perhaps the innate differences that can allow both technologies to complement each other. The blockchain provides the trust and accountability to AI, while AI provides the option of scalability and efficiency to the blockchain.
One such use case is data sharing. AI algorithms typically require large amounts of data to train machine learning models, the blockchain’s decentralised and tamper-proof nature can provide an added layer of security for data used in AI, ensuring the integrity of the data collected. By using a distributed, decentralized, and immutable ledger to record the data passing through a machine learning decision, businesses can create more transparent and auditable automation solutions.
Blockchain can aid in the attribution, comprehension, and justification of the actions and results produced by an AI program. Through preserving the main data pieces as transactions on a blockchain, the system can be meaningfully verified and altered if necessary. This integration of the predictive capabilities of AI with the robustness of blockchain can create safer, smarter, more transparent, and cost-effective business automation solutions.
In most cases, acquiring data for AI algorithms can be expensive and time-consuming. AI algorithms may also need to make payments in order to access certain resources or data. Stablecoins can provide a way to incentivize individuals and organisations to share data in a secure and decentralised manner.
Stablecoins are a type of cryptocurrency that are designed to maintain a stable value, typically by being pegged to a fiat currency, such as USDC which is pegged 1:1 to the U.S. dollar, as is XSGD, for the Singapore Dollar. A stable peg, combined with payment efficiency and the ability for micropayments on the blockchain make stablecoins an attractive option to reward data sharing. Through that, AI researchers and developers can gain access to a larger and more diverse set of data, leading to more accurate and robust machine learning models.
Another application of stablecoins and AI is in the facilitation of smart contracts. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. Stablecoins can be used to ensure that payments are made automatically and securely, without the need for intermediaries. By using stablecoins to execute terms and transactions of smart contracts, businesses can reduce the costs and time associated with traditional contract management, leading to more efficient and streamlined operations.
DAOs are organisations that are run by code, typically on a blockchain. DAOs can be used to govern AI systems in the future, making decisions about how they are trained and how they operate.
With companies simply repackaging and selling data for machine learning, data governance becomes an absolute necessity in ensuring motivations are shifted from central-decision making authorities to the community. Stablecoins can be used within DAOs to ensure the continuous governance and operation of the AI system. This includes incentivising participants with stablecoins for contributing data, algorithms, or other systems needed to train the AI system. Alternatively, stablecoins can also be used as an incentive for participants to vote on key decisions related to the AI system.
The intersection of stablecoins and AI has the potential to enable a wide range of new applications and use cases. By providing a secure and decentralized way to share incentives, data, execute smart contracts, participate in DeFi, and make predictions, stablecoins are enabling smarter machines that can better analyze and make use of large amounts of data. As the technology continues to evolve, we can expect to see even more innovative applications emerge, further enhancing the capabilities of AI and enabling smarter machines.
As the intersection of stablecoins and AI continues to expand, there has never been a better time to explore the possibilities of blockchain technology and decentralised finance. By leveraging stablecoins like XSGD and XIDR on the StraitsX platform, individuals and organisations can participate in a range of DeFi applications and contribute to the growth of the blockchain ecosystem.
Note: If you are a high net worth individual, or institution, you can take advantage of StraitsX’s OTC Desk feature that offers deep liquidity and OTC block trades.
StraitsX and our DeFi partners are specially catered to our Indonesian and Singaporean users with our native support of XSGD and XIDR. This allows our regional investors to trade in their home currency to minimise transaction fees and slippages, instead of, traditionally, with the US Dollar (USD) that carries conversion fees.