Decentralized Artificial Intelligence set to experience a breakthrough akin to Bitcoin's 2008 surge, according to a Cryptocurrency Venture Capitalist.
In a recent summit on Decentralization and AI, panelists Franklin Bi, Haseeb Qureshi, and Avichal Garg discussed the potential of decentralized AI and the catalyst events that could drive its growth and popularity.
Haseeb Qureshi, managing partner at Dragonfly, raised an intriguing point, stating that "Your data is worthless." This comment was made in the context of decentralized AI, where the best models will likely pay an expensive price for carefully selected information by top minds on the planet.
However, Qureshi also emphasized that cryptocurrency provides "censorship resistance" in exchange for paying the decentralization tax. This raises the question of what people are getting "in exchange for paying this tax." The decentralized AI community needs to find the answer to this question to ensure trust and adoption.
Avichal Garg, co-founder of Electric Capital, believes that a similar catalyst event is likely for decentralized AI, much like the 2008 financial crisis and the creation of Bitcoin. Garg believes that we are currently in a period similar to 2006, before the creation of Bitcoin, and that a significant opportunity lies ahead for those who acquire a deep understanding of decentralized AI.
One of the potential catalyst events for the growth and popularity of decentralized AI includes the demonstration of clear economic utility in decentralized AI marketplaces. Bittensor, for example, offers a tradable AI model marketplace with internal economies of reward and specialization, creating a new paradigm for AI as an economic good on-chain.
High-profile industry conferences promoting decentralized AI collaboration and federated learning are also expected to play a crucial role. Events such as the NVIDIA FLARE Day and the Cardano Summit promote developer engagement, policy shaping, and real-world applications of federated and decentralized AI.
Regulatory advances enabling innovation-friendly decentralized AI environments are another key factor. Blockchain foundations engaging with European and UK regulators on proportionate policies that support decentralized infrastructures are essential for more robust and compliant AI decentralization.
Cross-sector adoption success stories, especially in biotech and finance, are also expected to drive interest in decentralized AI approaches. Companies like Roivant Sciences, which blend AI-driven R&D and modular innovation models, demonstrate real-world AI impact that can accelerate interest in decentralized AI approaches.
In summary, the key catalyst events for decentralized AI's popular breakthrough are demonstration of clear economic utility in decentralized AI marketplaces, high-profile industry conferences promoting decentralized AI collaboration and federated learning, regulatory advances enabling innovation-friendly decentralized AI environments, cross-sector adoption success stories, and community and developer ecosystem growth supported by accelerator programs and tokenized incentives.
These combined factors could drive a surge in interest and adoption of decentralized AI frameworks by showcasing trustworthiness, autonomy, and economic benefit at scale. However, the answer for the decentralized AI community has not been discovered yet, and the question was raised about what would happen in a world where all governments want to control AI, urging people to consider what is "actually meaningful" to avoid a dystopian future.
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(As of the time of writing, Bitcoin (BTC) is currently trading at $119,701 with a 24h volatility of 2.7% and a market cap of $2.38 T.)
In light of the potential benefits that decentralized AI marketplaces could offer, it's worth considering the role of artificial intelligence in this sector. As Avichal Garg, co-founder of Electric Capital, posits, there might be a significant opportunity for those who delve deeply into decentralized AI, similar to the pre-Bitcoin era of 2006. Furthermore, the integration of technology and finance through the use of cryptocurrency could provide the necessary "censorship resistance" that the decentralized AI community needs to foster trust and adoption.
