As Web3 technology gains traction in the gaming world, industry leaders discuss the hurdles and opportunities for mass adoption, predicting a significant increase in players within the next two years.
Saudi Arabia is working hard to grow its economy in new ways, so it’s not just relying on oil money.
The country is diving into the world of new tech like blockchain and artificial intelligence, and they’re also getting into the video game market.
Although Saudi Arabia isn’t yet a big name in video games or AI on a global scale, people who know a lot about this stuff think the country’s efforts could have a big impact down the line. Yat Siu, the co-founder of Animoca Brands, said that Saudi Arabia is really interested in this next wave of the internet, known as Web3.
Saudi Arabia pays to become a Web3 game developer
Saudi Arabia is teaming up with companies like The Sandbox and Animoca to explore the next phase of the internet.
Yat Siu, an executive in the industry, believes Saudi Arabia gets that the future of gaming will be tied to blockchain, where players actually own the items in the game.
Saudi Arabia is a big player in the Middle East’s growing video game market, thanks to its young people who are really into tech.
A report from Boston Consulting Group says that Saudi Arabia makes up almost half of the gaming market in the region and is worth over $1.8 billion.
In 2017, Saudi Arabia set up the Saudi Esports Federation to help grow and manage its video gaming scene. According to a Bloomberg report in April, the country invested a whopping $38 billion through its Public Investment Fund to become a big name in global gaming.
Yat Siu says that while the Saudi government understands the big picture of Web3 and how it could work with esports, there’s still some confusion. This is mainly because the country hasn’t set clear rules about things like cryptocurrency and other digital assets yet.
He also points out that other places, like Hong Kong, Japan, and the United Arab Emirates, are ahead in this area. They have clearer rules about what you can do with cryptocurrencies and Web3, making it easier to plan out a strategy.
It’s still unclear what Saudi Arabia’s plans for Web3 gaming will turn out to be, but according to Yat Siu, the country is studying other markets to figure things out. He feels that Saudi Arabia’s eagerness to be at the forefront of new technology is something special.
The incoming Web3 adoption
While some traditional gamers and developers are sceptical, games developers believe that for anyone to really get into Web3, whether in gaming or another area, they need a good understanding of finance.
At this stage, just having a bank account isn’t enough; you need a higher level of financial know-how to be a true Web3 user.
Getting people to use Web3 isn’t just about giving them a digital wallet; that’s actually the easy part.
The real challenge is making them understand that they now own something valuable, like a digital asset, and that it can do different things and has its own kind of value that needs to be maintained.
A spokesperson from FootballCoin, an independent blockchain game, says that Web3 games also allow people to be part of an ecosystem. In this way, individuals are more than simply players of the game and, basically, become a partner in the game.
Footballcoin is a Web3 game which empowers people to buy and sell digital assets. But in the end, Web3 should make the gaming experience better, not just be a way for people to make money.
While multiple Ethereum staking services are pledging to limit their market share to 22%, Lido Finance takes a different path, sparking debates on centralisation and community values.
The top five companies that offer ether staking pools for individuals have stated that they won’t control more than 22% of all ETH currently staked.
This is a way to make sure that no single company has too much power over the Ethereum network, keeping it open and fair for everyone.
Companies like Rocket Pool, StakeWise, Stader Labs, and Diva Staking are either already following this rule or planning to do so, says Superphiz, a key Ethereum developer.
Puffer Finance, another such company, has also said they’ll stick to this limit.
Lido doesn’t obey the 22% of ether staked limit
Why 22%?
Superphiz explains that to make any big changes to the Ethereum network, 66% of the participants have to agree.
By setting a limit of 22%, it ensures that at least four big companies would have to work together to push through any major updates. This makes the network safer and more secure.
When talking about blockchain transactions, the finality of a transaction is the moment when transactions are locked in place and can’t be changed.
Superphiz, a leading Ethereum developer, brought up an important question last May:
Would a company that helps people stake Ethereum be willing to put the network’s well-being over its own profits?
Lido voted by a 99.81% majority not to self-limit. They have expressed an intention to control the majority of validators on the beacon chain.https://t.co/T16rTdM3gm
Interestingly, Lido Finance, the biggest company of this kind, decided not to follow the 22% self-limit rule. Almost all of their members (99.81%, to be exact) voted against it back in June.
Superphiz mentioned in a post at the end of August that Lido aims to control most of the deciding power in the Ethereum network.
To give you an idea of how big Lido is, they control 32.4% of all Ethereum that’s currently being staked.
That’s a big deal, especially when you consider that the next largest, Coinbase, only has an 8.7% share, according to data from Dune Analytics.
Well, the Ethereum community has different opinions on that.
One expert named Mippo commented at the end of August that the 22% self-limit rule isn’t really about staying true to Ethereum’s ideals, which are about open access and innovation for everyone.
Mippo thinks that those advocating for the self-limit would probably not stick to it if they were in the dominant position like Lido Finance. In his view, everyone is just acting in their own best interest.
Yeah because they have way less market share than that now… easy to chirp from the cheap seats.
This has nothing to do with “Ethereum alignment.” None of these teams would self limit were they in Lido’s place.
Everyone is doing the economically selfish and rational thing…
Another person argued that user-friendly services shouldn’t be criticised as greedy.
On the flip side, some people are really concerned that a few big companies could end up controlling too much of the Ethereum network. They see Lido’s large market share as a problem, even calling it “selfish and disgusting.”
Honestly really disgusting and selfish
Centralization will lead to greater problems, this is a full 3 steps backward for ethereum
Lido: "We thought real hard about this for 0.2 seconds and decided it is definitely worth risking sending the entire network to zero for a fraction of a percent more yield"
Lido ticks all the boxes when it comes to staking services.
They support multiple types of digital money and make it super easy for anyone to use their platform.
Their fees are fair, and they even offer nice rewards if you refer people to their service. On top of that, they make a lot of different cryptocurrencies more available for trading and are backed by some big names in the decentralised finance world.
What’s cool is that when you stake your digital tokens with Lido, you get back tokens that are tied to the value of what you staked. You can then use these for more ways to earn money in the DeFi world.
Lido has become a top pick for people looking to stake their digital assets thanks to some standout features.
First off, staking is a breeze; you can earn daily rewards by simply staking your tokens, and there’s no minimum amount you need to start.
Want to make even more from your tokens?
Lido allows you to use them for things like loans, yield farming, and other money-making activities. This can give your earnings a nice boost.
They also have their own digital token, called LDO, that you can trade on popular exchanges like SushiSwap, Uniswap, and many more.
When it comes to security, you can rest assured. Lido’s smart contracts have been thoroughly checked by reputable firms like Quantstamp and Sigma Prime.
Although Lido doesn’t offer its own wallet, you can still use popular ones like TrustWallet and MetaMask to manage your assets.
Web3 games are still emerging. In the booming play-to-earn gaming arena, not all Web3 games and projects are created equal. Let’s delve into the complexities of Web3 gaming, exploring the issues that have hindered growth and how pioneering projects like FootballCoin have managed to innovate and thrive.
The world of play-to-earn games is more than just a way to pass the time. Players are looking for an interesting digital environment, and a huge added bonus is the ability to earn tokens or some sort of real-world benefit while getting involved in this Web3 world.
The play-to-earn games craze started in 2021. During that time, Web3 was going through big changes.
One of the highlights was a game called Axie Infinity, which allowed players in developing countries like Ghana and the Philippines to make a lot more than the minimum wage.
However, a serious issue with a token bridge and a drop in market interest caused the earnings from these games to decrease significantly.
Why most P2E games aren’t scaling?
When you take a broader look, only a few projects in the play-to-earn game world have managed to grow steadily.
This seems to be because of some basic problems with the way play-to-earn works.
To start playing, people might need to spend hundreds of dollars to buy the NFTs necessary to participate.
Even those who are willing to pay that much might be let down by the games themselves, which can have poor graphics and no real storyline.
But the issues don’t stop there.
Many Web3 games that make money through selling NFTs are still in the early stages of being made.
If the game’s developers don’t add new features quickly enough, players can become frustrated.
There can also be a need to keep coming up with new collectable items all the time to make sure there’s always money coming in.
The biggest problem, as seen with the game Axie Infinity, is related to the rewards given to players.
According to a research report by CoinGecko, For every Axie Infinity player, there are 2,155 Roblox players. While there may be many issues with the game itself, this is a clear indication that the world of Web3 games is still considered an emerging technology.
Giving away lots of tokens to attract new players might sound like a good idea, but it can actually be very harmful to the value of that digital currency.
Since the prices of digital assets change a lot and are affected by supply and demand, increasing the total number of tokens available can reduce their value.
This can lead to some pretty nasty results. Gamers who get tokens as rewards might not keep them unless there’s a really good reason to, which can put more pressure on selling and lower prices even more.
This can start a harmful cycle where the value of the digital asset keeps dropping. If the value falls by a large percentage, everyday players might stop playing, and when the community gets smaller, the entire project can fail.
Let’s look at what makes a game a Web3 experience
First of all, all Web3 are blockchain-based.
It’s not only the economy part of the project that is based on blockchain because everyone can do that.
You can recognise a Web3 project by asking yourself these questions:
Is blockchain technology used in this project?
Are there automated actions that happen when certain conditions are met?
Is it decentralised?
Can I buy or sell my digital assets?
Do I have the private keys of my wallet?
If the answer is “Yes” to all of these, then you are indeed looking at a Web3 project, and in this particular case, a Web3 game.
How to choose a good Web3 game
The first step towards a better change or choosing to spend your time and invest in a reliable Web3 game is recognising the main risks in the Web3 world today.
The success or failure of play-to-earn projects right now depends on either attracting new users or being able to keep giving rewards to current ones. Neither of these approaches is likely to work for a long time.
There’s often a lot of excitement at first, but without interesting stories or engaging gameplay to keep players interested, that excitement fades quickly.
A high-quality gaming experience might make players less concerned about earning and more focused on playing.
However, when neither earnings nor engaging play are present, players tend to lose interest and leave.
Projects are constantly trying to find a balance between drawing in new players and keeping the current ones satisfied, and it’s a struggle.
The Web3 game of the future
Even though there are big challenges facing this still-young field, Web3 gaming has the chance to be more than just a passing trend that’s not sustainable. And this has already been proven by reputable Web3 games.
FootballCoin emerged as an innovative concept in the world of gaming when it was launched in 2017.
Not just a game, it symbolises a vision to integrate the world of football fans with the burgeoning sphere of cryptocurrencies and blockchain technology.
What makes FootballCoin stand out is its holistic approach to creating a world-class gaming experience.
The developers didn’t merely focus on providing a fun experience; they also enabled players to win real prizes.
Through this game, participants can engage in football manager-type contests and fantasy sports, appreciating the tangible benefits of blockchain technology.
FootballCoin’s economy is another unique aspect.
The game has introduced two major types of player cards – free and collectable. In the Web3 world, these collectables are known as NFT trading cards or sports cards.
These trading cards, ranked based on the player’s real-world value, notoriety, and achievements, bring an additional layer of complexity and engagement to the game.
In a market where partnerships and collaboration often dictate success, FootballCoin’s affiliations with reputable companies like Sportradar, Perform, Omnisport, and BoostIT stand as a testament to its credibility.
Its cryptocurrency, XFC, has also gained respect, being listed on well-known exchanges such as Coindeal, Livecoin, InstaSwap, and Exrates.
From the perspective of a technology enthusiast, the game represents a project that respects core Bitcoin philosophies.
For gamers, it’s a gateway to a top-level gaming network where they can win real cryptocurrency rewards.
In a landscape filled with fleeting trends and unsustainable models, FootballCoin shines as a durable Web3 project that has withstood the test of time.
It continues to innovate and grow, carving a niche that bridges the gap between the crypto sphere and the passionate world of football fans.
Its continuous delivery on promises, alignment with both gaming and tech values, and innovative integration of blockchain technology make FootballCoin an exemplary model in the industry.
After PayPal’s recent introduction of PYUSD, the market examines the prospective use cases and benefits of this new stablecoin, especially within the U.S., highlighting its potential utility within the existing financial framework.
PayPal, a leading global payments company, is making its debut in the crypto realm with a U.S. dollar-backed stablecoin named PayPal USD (PYUSD). The announcement came on August 7, 2023.
What is PYUSD?
According to PayPal’s official statement, this new crypto called PYUSD is 100% backed by USD:
“PayPal USD is designed to contribute to the opportunity stablecoins offer for payments and is 100% backed by U.S. dollar deposits, short-term U.S. Treasuries, and similar cash equivalents. PayPal USD is redeemable 1:1 for U.S. dollars and is issued by Paxos Trust Company. “
The PYUSD stablecoin, built on the Ethereum platform, will soon roll out to American PayPal customers.
This is the first instance of a premier financial service launching its own stablecoin.
With PYUSD, users have the option to transfer between PayPal and approved external crypto wallets, employ the coin for various transactions, or exchange it with other cryptocurrencies supported on PayPal, like bitcoin (BTC) and ether (ETH).
PayPal emphasized that their stablecoin is poised for adoption by an expansive and evolving network of external developers, digital wallets, and web3 platforms and is also primed for easy integration by crypto trading platforms.
Paxos Trust, a crypto financial services firm located in New York, will oversee the issuance of PYUSD.
The coin is underpinned by U.S. dollar reserves, short-term government securities, and other cash-like assets. Moreover, users can redeem it for U.S. dollars or trade it for other digital currencies available on PayPal’s platform.
At the time of the launch, PayPal’s CEO Dan Schulman remarked, “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
It is expected that PYUSD to be available later on the Venmo app as well.
How will the PYUSD be monitored?
PayPal’s PYUSD stablecoin reserves will be monitored and verified through a multi-step process to ensure transparency and trustworthiness:
Monthly Reserve Report
Starting from September 2023, Paxos, the firm in charge of issuing PYUSD, will release a public monthly Reserve Report for PayPal USD. This report will detail the specific assets that make up the reserves backing the stablecoin.
Third-party Attestation
In addition to the monthly report, Paxos will also release a public third-party attestation on the value of the PayPal USD reserve assets. This is to double-check and confirm the validity of the reserves.
Independent Accounting Firm
The attestation process will be carried out by an external, independent accounting firm. This ensures that there’s no conflict of interest and that the process is free from potential biases.
Adherence to Established Standards
The attestation will comply with standards set by the American Institute of Certified Public Accountants (AICPA). This means the audit will follow rigorous professional guidelines, ensuring the accuracy and reliability of the information.
PYUSD is a stable issued by a regulated company
PYUSD, launched by fintech leader PayPal, is distinct from other stablecoins due to its robust regulatory framework. PayPal’s PYUSD stands out in the stablecoin landscape due to its unique position of being backed by a trust company that is stringently regulated by the NYDFS.
This sets it apart from major stablecoins like USDT and USDC.
Here’s how PYUSD is regulated:
Issued by a regulated entity
Paxos Trust, the company behind the issuance of PYUSD, operates as a trust company. This status subjects them to direct oversight by a regulatory authority.
Regulatory oversight by NYDFS
Paxos is regulated by the New York Department of Financial Services (NYDFS). This means that the entire process of issuing PYUSD, including the management of its reserves, is under the constant supervision of NYDFS.
Protection by regulator
Walter Hessert, the head of strategy at Paxos Trust, highlighted the importance of having a prudential regulator. With such oversight, every activity linked to PYUSD’s issuance is monitored. For token holders, regardless of their location worldwide, this ensures that they benefit from the protection and guidelines established by New York’s regulatory framework.
Bankruptcy safeguard
One of the significant rules established by the NYDFS concerning PYUSD is the protection against bankruptcy risk. Should Paxos face bankruptcy, the assets of PYUSD token holders are safeguarded. The NYDFS would intervene, ensuring that PYUSD is excluded from the bankruptcy process. Consequently, token holders would not become involuntary creditors during a bankruptcy, and their funds would be promptly returned.
Clear differentiation from other stablecoins
Both USDT (issued by Tether) and USDC (jointly issued by Circle and Coinbase) dominate the stablecoin market. However, as Hessert pointed out, both these coins are unregulated, albeit transparent in their operations. In contrast, PYUSD’s regulatory structure offers an additional layer of security and trust for its users.
Why did PayPal decide to issue a stablecoin?
PayPal’s decision to issue the PYUSD stablecoin is emblematic of its substantial influence and strategic positioning in the financial sector.
While there’s undeniable regulatory uncertainty surrounding cryptocurrencies in the U.S., PayPal’s stature enables it to not only navigate but also potentially influence these regulatory decisions.
Companies like Coinbase and Circle may have paved the way in the crypto regulation space, but major entities like PayPal are sending a clear message: they can effectively handle and even counteract regulatory pressures.
At its core, PayPal’s move is driven by the prospect of profitability. The issuance of PYUSD isn’t a minor endeavor, requiring collaboration across several of PayPal’s departments, from compliance to communications.
However, this decision wasn’t born out of altruism. Instead, it’s a calculated business move, made in response to a rapidly evolving digital financial landscape, reinforcing PayPal’s dominant position and highlighting its confidence in seizing new lucrative opportunities.
What’s the use case for PYUSD?
The use case for PYUSD appears to be in its infancy, and its exact utility for the average consumer remains somewhat ambiguous.
Introduced via Venmo, PYUSD essentially provides another avenue for banked Americans to transact using a digital representation of the U.S. dollar, aligning with how most PayPal products have functioned since the company’s inception.
However, one distinct feature is that PYUSD can potentially be sent outside of PayPal’s proprietary ecosystem using the Ethereum network.
This capability hints at a use case where individuals barred from Venmo or PayPal could potentially transfer their funds via an Ethereum-based PYUSD withdrawal.
Yet, this use case might be limited, given the centralized nature of the stablecoin.
In essence, while the stablecoin could offer a mechanism to navigate around restrictive banking scenarios, its primary use cases might lean more towards backend financial operations that institutions can leverage, rather than direct consumer applications.
NYU law professors Richard Epstein and Max Raskin published a paper to explain the potential hazards of central bank digital currencies, highlighting the risk of overstepping governmental boundaries and the importance of maintaining the ‘separation of money and state’.
Central banks worldwide are swiftly progressing with their explorations in creating digital currencies.
Numerous examples, such as the recent announcement of a successful prototype by the New York Federal Reserve or the Bank of England’s achievement in the subsequent phase of its digital pound trial, indicate that over 130 nations globally are considering the idea of central bank digital currencies (CBDCs).
The reasoning behind this is twofold.
Firstly, central banks can position themselves as protectors of consumers and innovators in cost-saving technologies by eliminating the role of private banking intermediaries.
Secondly, they can acquire an additional mechanism for policymaking.
However, the proposition of excluding these intermediaries raises an important question of who would be responsible for the other end of the financial transactions.
The inevitable answer is a far-reaching and intrusive government capable of monitoring every single expenditure.
Digital cash?
Max Raskin, an adjunct professor of law at New York University and a fellow at the school’s Institute for Judicial Administration, and Richard Epstein, a law professor at New York University, a senior fellow at the Hoover Institution, and a senior lecturer at the University of Chicago, are exploring this topic in a paper called “A Wall of Separation Between Money and State: Policy and Philosophy for the Era of Cryptocurrency,“ published in The Brown Journal of World Affairs.
Their argument suggests that a central bank, for instance, the Bank of England, would issue a “digital pound,” which would be a direct claim on the central bank, much like current cash is.
This process would involve creating the necessary infrastructure for individuals to store digital pounds in digital wallets and facilitate interactions with retailers and other users.
Contrasting current practices where central banks such as the Federal Reserve and the Bank of England do not offer accounts to direct depositors, the proposed model would eliminate the costly private banking system that presently stands between the central bank and the accounts held by businesses and individuals.
At a glance, it seems that CBDCs might cut unnecessary costs.
However, these apparent efficiency benefits can be deceptive and hazardous.
Intermediaries function in thousands of markets, with representatives, aggregators, and monitors in almost every significant business line. These participants can’t be easily deemed obsolete.
Intermediaries often provide value as they are motivated to offer more than the bare minimum to stand out – such as new banking products and services.
The variety of services banks can offer due to competitive pressures that ultimately benefit consumers. Restricting these forces can hamper the market economy.
CBDC implementation can be risky
The implementation of CBDCs is not without risks.
The idea of providing extensive power and confidential information to a faceless government entity can be alarming. The system can use that data against you in numerous ways.
By removing the private banking intermediaries, CBDCs would eliminate a crucial barrier that currently safeguards individuals and firms from government intrusion and overstepping.
The use of cash and bearer instruments is currently untraceable by the central government.
However, the use of digital cash would be.
It’s clear that even those who decide to stick with private bankers will still be scrutinised by the state, which holds control over all transactions.
Moreover, these digital funds would empower central banks to direct personal loans and mortgages to specific private parties with minor competition, raising concerns around state industrial policies. It’s not hard to imagine potential nightmare scenarios, yet they are difficult to avert.
The question remains: can we trust thousands of new banker-bureaucrats to perform any better?
Can we trust banks?
The Bank of England, in its digital pound argument, emphasised the British government’s commitment to fighting climate change, stating that the digital pound would be designed with this objective in mind.
Why should a topic as intricate and contentious as climate change be regulated through the financial system?
Similarly, U.S. financial regulators have started to wade into political issues like climate change.
If such explicit political objectives are considered, it is not a stretch to imagine a government-run bank using its powers to favour certain energy producers and punish others through their bank accounts.
The power to impact credits and debits must be a feature of the central banks’ proposed code, which introduces a covert system of industrial policy.
If CBDCs become a reality, officially favoured energy sources like solar and wind power could witness their bank accounts receiving subsidies without the need to attract private investors or undergo the scrutiny of the private banking system.
Bank accounts could become vulnerable to political manipulations, bureaucracies, or even disenfranchisement overnight with limited recourse.
Furthermore, these CBDC initiatives in the U.S. were originally proposed in the context of directly providing pandemic stimulus to the economy. However, the evidence is overwhelming that this hasty system of government payments was incredibly wasteful.
Moreover, central banks could implement countercyclical monetary policies, such as providing cash boosts to individuals in specific regions or sectors, which again becomes a political football.
Money and new technologies
We should undoubtedly strive to leverage new technologies, but only when implemented correctly. According to the paper in the Brown Journal of World Affairs, “Money should be a neutral unit of measurement, like inches or kilograms.”
This concept, referred to as the “separation of money and state,” aims to stabilise all currencies over time, minimising the need for private parties to design complex and costly mechanisms like adjustable-rate mortgages to handle financial instability.
For instance, Bitcoin has a predetermined supply of no more than 21 million units, not governed by any individual institution but rather by the network’s consensus mechanism.
This feature provides a robust defence against value dilution that no government-centric system could hope to match.
This fixed system could offer additional institutional support for developing countries seeking modernisation.
Countries with a history of mismanaging their monetary systems could benefit from the discipline that comes with certain forms of digital currency.
For instance, a central bank like Zimbabwe‘s or Argentina’s, plagued with mismanagement, could adopt an innovative form of dollarisation using Bitcoin or another form of programmed cryptocurrency.
As the dawn of the new digital age ushers in, the synergy of blockchain and artificial intelligence (AI) is transforming multiple industries. These cutting-edge technologies are not just trending buzzwords, but robust tools that promise to revolutionize business operations, data security, and decision-making processes.
Blockchain and AI in financial services
Blockchain and Artificial Intelligence (AI) are combining to revolutionize the financial industry. Financial institutions handle massive amounts of data, and AI and blockchain can manage this data more efficiently.
By automating processes and examining data on the blockchain, these institutions can improve risk management and compliance. For example, AI algorithms can sift through financial data on the blockchain to detect potential fraud and money laundering. Here, blockchain technology guarantees that the data is safe and unalterable.
Take FactSet, a global provider of financial data and analysis software, for instance. They’re using AI and blockchain to enhance their risk management and compliance processes. AI algorithms are used to scrutinize the company’s financial data housed on a blockchain to identify potential fraud and other irregularities. At the same time, the company’s blockchain technology safeguards the algorithms and data.
Blockchain and AI in supply chains
Beyond finance, AI and blockchain have other valuable uses. In the transport sector and other industries, AI can boost the efficiency and transparency of supply chains.
AI algorithms can analyze data on the blockchain to identify supply chain inefficiencies, helping companies optimize their operations. Simultaneously, blockchain technology ensures the transparency and traceability of products in the supply chain by maintaining records of logistics documents and ensuring visibility of goods’ locations.
Blockchain and AI in healthcare
In healthcare, AI and blockchain can bring significant improvements. AI, by analyzing medical data on the blockchain, can help identify patterns in patient data, aiding doctors in making accurate diagnoses and treatments. The blockchain technology can be used to safeguard patient data, an essential requirement in healthcare.
Blockchain and AI in life sciences
Blockchain and AI are joining forces in the life sciences field, particularly in the pharmaceutical industry, to significantly enhance operations. They offer much-needed transparency and tracking abilities for the drug supply chain while significantly boosting the success rate of clinical trials.
By combining AI’s advanced data analysis capabilities with blockchain’s decentralized structure, these technologies bring about increased integrity and transparency to clinical trial data. They facilitate better patient tracking and consent management, along with automating the process of trial participation and data collection. In simple terms, AI digs deep into data to uncover valuable insights, while blockchain ensures that this data is securely stored and transparently managed, boosting the overall effectiveness of clinical trials.
Blockchain and AI in security and verification
Blockchain acts as a robust protective layer for AI systems with its encryption-backed, decentralized structure. This allows AI developers to set specific access parameters for AI, enforced by private keys and tamper-proof infrastructure like blockchains and smart contracts. Unlike centralized systems vulnerable to a single point of failure, a decentralized blockchain system is spread across multiple nodes and keys, making it harder for a single attacker to compromise the system.
This synergy between AI’s utility and blockchain’s security reduces attack possibilities, enhancing the safety of AI applications. It empowers organizations to harness AI’s full potential while maintaining high security standards supported by cryptographic assurances.
Blockchain also plays a vital role in verifying the authenticity of different media types, an aspect particularly crucial with the rise of deep learning models that can generate images and media from text prompts. These models, while promoting productivity and creativity, could be misused to spread misinformation or create deceptive synthetic media.
Blockchain technology, backed by cryptography and encryption, can validate the authenticity of a piece of content by verifying its origin and any alterations. Cryptographic watermarking, for example, can ensure tamper-proof timestamping.
In a future where distinguishing between AI- and human-generated content is crucial for societal stability, blockchain could facilitate the creation of decentralized platforms for content verification and distribution. It ensures that the spread media is unaltered, authentic, and has a transparent, verifiable history.
Non-fungible tokens (NFTs), unique digital assets on the blockchain, can also help verify the authenticity and provenance of digital content. NFTs can represent ownership and verify the origins of various media forms. When content is minted as an NFT, its origin, ownership history, and modifications become transparent and easily verifiable. This adoption can enhance online content accountability, helping differentiate between genuine and tampered content.
AI in cryptocurrency
AI (artificial intelligence) plays a significant role in the world of cryptocurrencies by aiding in market analysis, enhancing monetization insights, automating trading strategies, and predicting market trends.
Firstly, AI uses sentiment analysis to gauge public feelings towards specific cryptocurrencies. Using natural language processing, AI can sift through large volumes of data from the internet and blockchain, and analyze the sentiment—negative, neutral, or positive—quickly. This can help predict potential price changes, offering valuable insights for investors.
Secondly, AI can provide more profound insights into cryptocurrency monetization. Given the vast amount of unstructured data online, AI assists data scientists in producing clean, relevant data for traders, making it easier to spot valuable investment opportunities.
AI also plays a role in fully automated trading strategies for cryptocurrencies. High-frequency trading, in which a computer executes numerous orders in fractions of a second, often relies on AI to mimic human intelligence. This speedier trade execution gives investors an edge over slower competitors.
Lastly, AI aids in accurately predicting cryptocurrency market trends. With the increasing number of investment options, AI is becoming an essential tool in the financial industry.
Large financial firms already use AI in their workflows to discover new investment opportunities and buy/sell signals, with smaller businesses following suit. Combined with blockchain, AI becomes an even more powerful tool for predicting market trends.
How can blockchain improve AI?
Blockchain technology can significantly enhance AI in several ways. Firstly, by boosting trust. Blockchain’s permanent, transparent records can help explain how AI algorithms work and reveal the source of their data, enhancing people’s confidence in AI’s data integrity and recommendations.
Secondly, blockchain’s decentralized data storage can increase data security and integrity. It acts as an audit trail, allowing users to understand how their data is used. If AI models are stored on blockchains, their decisions become more accountable and transparent.
Thirdly, blockchain can help AI expand by providing access to both internal and external data. This enables more actionable insights, better data management, and shared models, potentially creating a more trustworthy and transparent data market.
Fourthly, the fusion of AI and blockchain can automate multiparty business processes, reducing the need for human intervention. Blockchain technology can eliminate unnecessary third parties from transactions, accelerating their speed and efficiency. This reduces transaction friction and enables individuals to own their data, while blockchain secures the transaction process.
Lastly, blockchain can assist with AI’s high computational power demands. As a distributed ledger technology, it can utilize the computing power of multiple machines, an asset that centralized data servers may struggle to provide. In essence, integrating blockchain with AI can lead to more trustworthy, transparent, efficient, and powerful AI systems.
According to this report from Fortune Business Insights, the blockchain and AI market is expected to grow to over $973.6 million in 2027, “at a CAGR of 23.6% in the 2020-2027 period.”
Companies using AI and blockchain
CertiK. Provides tools powered by AI and formal verification to secure blockchain, smart contracts, and Web3 applications. With its product suite, CertiK technology helps identify security risks, monitor data insights, and visualize where crypto funds are going.
Core Scientific. Integrates personalized blockchain and AI infrastructure with current business networks, upgrading a business’ physical infrastructure, servers, and software in the process. The facilities are designed for long-term digital asset mining and to maximize hashrate, always running at optimal efficiency to reduce energy and time consumption.
Token Metrics. A tool that uses AI to analyze cryptocurrency trends for personal investment purposes. The technology scans the data of over 6,000 crypto and NFT projects and extracts market insights to help users make investment decisions.
AI BlockChain. Hosts a digital asset cloud platform built on blockchain and AI. The company applies artificially intelligent agents to its blockchain to detect changes and ensure platforms are secure.
Bext360. Uses AI and blockchain to boost supply chain transparency and efficiency in the coffee, timber, seafood, and mineral industries. The AI analyzes crops and predicts growing patterns, while blockchain ensures the recording of a product’s supply chain from seed to finished product.
Blackbird.AI. Uses its blockchain and artificial intelligence to gauge the credibility of news content in the communications and information industries.
BurstIQ. The LifeGraph platform combines AI and blockchain technology to provide enhanced ownership and management over patient data.
Chainhaus. A blockchain and AI advisory, education, and software development firm. The company provides a variety of end-to-end solutions for everything from teaching and app development to research and capital raising.
Cyware. Incorporates AI and blockchain-based tools into its cybersecurity and threat intelligence solutions.
Dobby. A home services platform for homeowners seeking assistance with maintenance or repair projects. The AI-based application operates on blockchain technology to exchange data quickly and reduce any financial loss.
Figure. Uses blockchain and artificial intelligence to streamline the home loan process. The platform offers home equity line of credit loan options, investment marketplaces and its own digital money app called Figure Pay.
Gainfy. A healthcare platform that employs blockchain, AI and IoT devices to improve the industry experience.
Hannah Systems. Brings AI and blockchain to autonomous vehicles with its portfolio, including an AI-powered data exchange platform, a real-time mapping tool, an insights dashboard, and blockchain.
Hashed Health. A venture studio based on blockchain that elevates startups in the healthcare industry.
Home Lending Pal. An application for home mortgage advising, comparison, and more. The AI-based platform allows users to view local homes, calculate personal budgeting, and choose their preferred home lender based on related mortgage rates.
Imaginovation. Builds and hosts customer-centric applications for clients in need. Utilizing solutions from blockchain, AI, IoT, AR, and VR, applications can be created for purposes ranging from manufacturing to entertainment.
MOBS. A blockchain-based video marketplace for the selling and buying of smartphone videos. The blockchain creates a smart contract that directly allocates money to the content creator based on engagement rates and views.
NetObjex. Merges blockchain and AI to host its NFT marketplace platform, where users can create their own marketplaces and digital wallets as well as host metaverse events.
Neureal. A prediction engine that combines AI, blockchain, and cloud technologies to predict everything from the stock market to Google searches.
Numerai. A decentralized hedge fund at which data scientists from all over the world are constantly working on AI problems.
Stowk. A blockchain-based platform that features AI tools for almost every part of a business’s operations, streamlining everything in supply chain management from data access and IT governance to procurement.
Verisart. Uses artificial intelligence and blockchain to help create and certify NFT work in real-time.
Vytalyx. A healthtech company using AI to give healthcare professionals blockchain-based access to medical intelligence and insights.
WealthBlock. An automated marketing and messaging SaaS platform for businesses raising capital. Blockchain powers the company’s investor referral and suitability checking process.
WorkDone. Helps businesses automate daily processes and discover insights to retain employees. The company specializes in machine learning and blockchain to seek out resource bottlenecks, analyze best management practices, and continually maintain service compliance.
