Artificial Intelligence to Transform Blockchain Usage – Nansen
As the crypto market faces declining prices and the global interest rates rise, investors are increasingly turning their focus to artificial intelligence (AI).
Nansen, a prominent analytics firm in the blockchain sector, has projected a future where AI agents will become the dominant users on the blockchain.
This shift, expected as early as 2024, suggests a significant transformation in how blockchain ecosystems operate, with AI contributing to enhanced security and efficiency.
Nansen’s analysis points towards a merging of AI and blockchain technologies, indicating a new direction for the future of digital assets and their underlying infrastructure.
AI’s Rising Influence in Blockchain Predicted by Nansen for 2024
Nansen’s latest forecast for 2024 marks a turning point in technological advancement, positioning artificial intelligence (AI) as a key driver in the blockchain sector.
Despite some uncertainties in fully integrating AI with blockchain technologies, the analytics firm identifies emerging use cases that demonstrate AI’s potential.
AI agents are increasingly seen as crucial components in the blockchain ecosystem due to their ability to manage transactions, securely hold assets, and facilitate value exchanges for users.
Nansen’s analysis predicts that AI agents will soon become a primary user group within the blockchain environment, revolutionizing how transactions and interactions are conducted.
Importance of Verification and Cryptography in AI-Blockchain Integration
The report underscores the significance of verification and risk management, particularly through cryptographic methods, in differentiating human from AI activities on the blockchain.
While AI has specific applications in blockchain, identifying verification through cryptographic means is essential. These include cryptographic proof through digital signatures, the use of InterPlanetary File System (IPFS) & Merkle Trees, and zkML (zero-knowledge machine learning).
However, challenges remain in the intersection of AI and blockchain. A Nansen analyst pointed out the possibility of AI optimizing cryptographic models off-chain.
They posed a critical question: “If AI cryptographic models become efficient enough in the future, could AI potentially manipulate zero-knowledge proofs or other similar cryptographic solutions?” This query highlights the ongoing need to address and overcome potential limitations as AI continues to integrate more deeply into the blockchain framework.
Token-Based Rewards: Key to AI Integration in Blockchain
Nansen highlights the importance of token-based incentives for AI models within the blockchain ecosystem. These incentives are crucial for enabling AI agents and models to function autonomously. By offering tokens as rewards, AI entities can be motivated to achieve optimal performance and contribute effectively to the blockchain network.
Rising Traction of AI-Related Tokens in Crypto Market
In the crypto sector, tokens associated with AI projects like Bittensor (TAO) and Autonolas (OLAS), as well as others linked to AI technologies, are expected to continue their upward trajectory.
Despite the bearish market conditions that began in early 2023, these AI project tokens have shown resilience and growth, indicating a strong belief in the potential of AI and blockchain convergence. High-cap AI coins, such as FET and AGIX, remain prominent in the market, underscoring their significance in the AI-blockchain space.
While the current emphasis in the AI and blockchain field is on developing and expanding infrastructure, Nansen anticipates a shift towards more consumer-centric applications. These applications are expected to utilize the existing technological infrastructure to offer innovative solutions to end-users.
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