Cash News
Blockchain technology could be the key to democratizing AI development, according to a recent report titled “State of Crypto 2024” by leading venture capital firm a16z. The analysis shows that crypto projects with AI functionality have grown from 27% in 2023 to 34% in 2024.
Meanwhile, as the cost of developing artificial intelligence rises and may even consolidate power among the few big tech companies, the crypto industry is stepping up with innovation. The report evidenced how blockchain technology is tearing down traditional barriers to AI development, opening it to a wider swath of developers and innovators.
The most noteworthy example is the Gensyn project, which is revolutionizing access to AI computing power via its decentralized network. For example, by providing smaller developers and startups access to various important computing resources, Gensyn has helped even the playing field in AI development—a field traditionally dominated by well-funded tech giants.
The report also highlights how, besides the resource allocation perspective, blockchain technology is solving some of the fundamental challenges in AI development. For instance, content verification and intellectual property rights are being handled in projects like Near and Story by using blockchain to provide a transparent system for tracking and crediting digital content creators. This development is timely, considering increasing concerns over uncredited and uncompensated use of creative works in AI training datasets.
Public trust in companies building and providing AI services in the U.S. has plunged from 50% to 35% over the last five years. Blockchain’s inherent transparency can help regain that trust, permitting verifiable records around the development and training of AI.