In a recent blog post, Ethereum founder Vitalik Buterin delves into the intricate relationship between artificial intelligence (AI) and the cryptocurrency space, drawing parallels to a video game.
Buterin suggests that the most practical role for AI in the crypto realm is akin to a “player in a game.” He points to existing instances, such as trading bots engaged in arbitrage on decentralized exchanges (DEXs), as exemplars of this application.
Expanding his vision, Buterin envisions diverse roles for AI within crypto, encompassing its utilization in prediction markets and as an interface to demystify the complexities of the crypto world for users. Prediction markets, he argues, could leverage AI’s extensive knowledge base and willingness to bid on undervalued assets, potentially addressing liquidity challenges that these markets have faced.
AI’s role as an interface becomes evident in popular crypto wallets like MetaMask and Rabby wallet, where it warns users about malicious websites and simulates transaction consequences, acting as a safeguard against scams.
Acknowledging the associated risks, particularly in open-source crypto wallets, Buterin emphasizes the need to address potential vulnerabilities where malicious actors might exploit the code to undermine the AI defenses. Despite these challenges, he remains optimistic about AI’s transformative potential in the crypto industry. Buterin encourages developers to explore constructive use cases for AI across various crypto domains, aiming to identify applications that can genuinely scale effectively.
