The hype around artificial intelligence (AI) continues and is now spreading to the world of cryptos. Some tokens dedicated to this promising technology are recording stratospheric performance. However, a report from Coinbase cools the enthusiasm. He highlights the many challenges to be met to ensure the sustainability of this emerging ecosystem. Perhaps the time has come to separate the wheat from the chaff.
A speculative bubble fueled by the ambient buzz on AI?
According to David Han, research analyst at Coinbase, the recent surge in AI crypto may just be a flash in the pan. Indeed, these meteoric rises would be fueled more by the general excitement around AI than by solid fundamentals. “The growing popularity of generative AI has boosted niche crypto sub-ecosystems,” acknowledges Han. However, he adds that rapid changes in AI make us cautious about the long-term sustainability of most tokens.
The Gordian knot of decentralization crypto
At the heart of Coinbase’s fears lies the difficult reconciliation between the decentralizing philosophy of cryptos and the still very centralized functioning of current AI. While crypto projects often aim for decentralization, the current AI offering relies heavily on centralized components, underlines the report. Furthermore, Han laments that too few of these AI tokens have managed to attract significant investments. Which hinders their development. Two major obstacles to be removed in order to hope to see the emergence of a true decentralized and sustainable ecosystem of AI applications on blockchain.
Avenues to explore, but nothing is guaranteed
Despite this mixed observation, Coinbase does not completely rule out the prospect of sustainable crypto AI. Two areas are therefore considered promising! The exploitation of blockchain data to power AI, and the progressive decentralization of the underlying infrastructure which is now centralized. Still, according to Han, a future of decentralized AI, as currently envisioned by many in the crypto industry, is not guaranteed. A warning against any excess optimism, while AI itself remains a largely emerging technology with still unclear contours.
Ultimately, Coinbase’s report urges caution. He points out that the path to a viable ecosystem of decentralized AI applications on blockchain will be long and fraught with pitfalls. If the prospects remain exciting, it will first be necessary to resolve the inherent contradictions between AI and decentralization. Separating powerful hype from real potential will also be crucial to avoiding another devastating speculative bubble. Crypto associated with AI will therefore have to quickly prove its ability to go beyond the simple ambient buzz. And perhaps one day, it will represent a real lasting disruption.
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