As the crypto industry attracts more users, developers are concentrating on improving the user experience, a major pain point for most new users. Artificial intelligence has often been seen as a technology that could improve the way people use and interact with cryptocurrencies. In the last episode of doing it, AI integration with crypto is widely discussed.
Cointelegraph’s Elisha Owusu Akyaw (GhCryptoGuy) interviewed Nansen CEO Alex Svanevik about the importance of on-chain data and the use of AI in crypto on Episode 8 of hacking it out.
The narrative that artificial intelligence is taking over has intensified with the popularity of OpenAI and apps like ChatGPT. The trend has also spread to the crypto industry, which has witnessed rising token prices associated with AI-related crypto projects. Svanevik is confident that AI will be integrated into cryptocurrency applications in a way that will significantly improve the user experience.
He explained that similar to Bing integrating ChatGPT, various on-chain crypto data platforms will use AI to help users find information more easily. According to the Nansen CEO, most of the results that platforms currently show users require substantial work, which can be changed into human-readable content with artificial intelligence.
After several cryptocurrency platforms went bankrupt in 2022, institutions adopted a new standard called “proof of reservation” to provide transparency to its end users, which has generated debates. Svanevik believes that proof of reserves, or transparency of reserves, is useful. However, he doesn’t think it’s enough unless they also show what he calls “proof of solvency”, which can be done through a combination of proof of reserves and proof of liabilities.
However, Svanevik argued that the popular conclusion on Twitter that the test of reserves is useless because solvency cannot be confirmed to be wrong, since many of last year’s collapses could have been avoided if users had more information about how stock exchanges and lending platforms were managed. deposits through on-chain data. Furthermore, she added that regulators would be more efficient if they took a close look at on-chain data.
Related: Bitcoin Advocate Najah Roberts Explains Why BTC Is A Tool For Empowerment
On the outlook for 2023, Svanevik mentioned that despite an increase in volumes in sectors such as non-fungible tokens (NFTs) between December 2022 and early 2023, the new year would be challenging for many cryptocurrency startups that They recently raised money and are starting to run out of capital.
In this episode, the two also discussed:
- Data on the trajectory of the NFT market in 2023
- Ethereum Layer 2 Competition
- web3 games
- The popularity of on-chain data in the crypto industry
Listen to the full episode at Spotify, Apple Podcasts, Google Podcastseither Tune in for all the information about cryptography and AI. You can also check out Cointelegraph’s catalog of shows on the new Cointelegraph Podcasts page.
