Open any news app, web browser, social media feed, or podcast, and you’re likely to encounter two dominant topics: artificial intelligence (AI) and crypto. It seems a fitting confluence, perhaps, of the unpredictable events that shape our world, as Yuval Noah Harari describes in Sapiens: A Brief History of Humankind.
The recent surge in discussions surrounding AI and crypto began with the rapid ascent of a memecoin, “GOAT,” partially endorsed by an AI bot on X (formerly Twitter) known as @truth_terminal. This bot’s independent promotion of the memecoin sparked widespread interest, and the idea of an AI-crypto convergence quickly flooded headlines.
But why are these two technologies intersecting? Answering that question requires a dive into complex concepts and technologies. Let’s break it down:
What is AI, and Where Did it Come From?
AI’s emergence into mainstream consciousness occurred with OpenAI’s launch of ChatGPT in November 2022, but its roots are far deeper. AI has a long history in academic and research circles, with concepts predating the public’s understanding of computers.
If you’ve seen the movie 2001: A Space Odyssey, you might recall its portrayal of AI – and its potential dangers. Made in the 1960s, the movie featured an AI named HAL 9000 at a time when computers were barely understood by the general public. The Turing Test, one of the earliest models of artificial intelligence, further illustrates the long-standing desire to recreate human intelligence.
AI development stagnated for decades, fading from public attention due to slow computer hardware progress. Then, OpenAI and ChatGPT brought it back to life. This resurgence has been fueled by remarkable advancements in computer science, particularly in machine learning algorithms and deep neural networks. These improvements, combined with unprecedented increases in data processing capacity and the availability of large datasets, have allowed AI to achieve levels of sophistication once thought impossible. The rapid evolution in both software capabilities and hardware efficiency—especially through innovations like GPUs and TPUs—has propelled AI back into the spotlight, solidifying its position as a powerful force in the modern digital landscape.
As people use ChatGPT for various tasks, a new concern has emerged: Does OpenAI’s control of vast data constitute an excessive concentration of power? Is humanity at risk?
Decentralized AI: A New Paradigm
This realization sparked a crucial question: How can AI become truly open-source? This is where crypto, or more precisely, blockchain technology, enters the picture.
Blockchain, the underlying technology in all crypto-related discussions, offers decentralized solutions. Blockchain’s fundamental characteristic is its decentralized nature, which could allow AI to be more open and transparent. The belief is that with this technology, anyone can contribute to its development and see its operations through the use of several technologies.
Decentralized dataset storage will ensure data integrity. Smart contracts will provide transparent model access and audit trails. On-chain federated learning will allow collaborative model training without sharing raw data. Distributed computing networks will decentralize AI processing. Cross-chain bridges and oracles will bring in real-time, reliable off-chain data, with privacy-preserving methods, like zero-knowledge proofs, securing sensitive information.
The term “decentralized AI” (DeAI) has therefore emerged, suggesting an approach where anyone can contribute, from development to deployment, creating a decentralized alternative to centralized AI companies like OpenAI.
Blockchain can support this vision, with crypto playing a critical role in the tokenomics – a topic for a later discussion.
DeAI in 2025: Beyond the Hype
Given all the hype, is this just another narrative, or real innovation? Based on interactions, industry observations, and conversations with stakeholders from blockchain and AI, encompassing research, academia, and the investment circle, 2025 is the year DeAI will achieve significant progress.
Unlike many overhyped blockchain promises, DeAI can uniquely deliver tangible results by blending innovation and impact. This makes it irresistible to blockchain veterans and those entrenched in the AI world. As talent from both realms recognizes DeAI’s potential to reshape industries, we can anticipate a surge in interest and momentum that will make 2025 the year DeAI transitions from niche to necessity. This blend of blockchain and AI is destined to go mainstream in a big way, paving the path for tech that creates substantial impacts in the coming decades.