TSERAZOVCRYPTO

02.10.2024

Chapter VI

How BlockCHAIN (Block Connected Human-AI Network) Drives an AI and Crypto Synergy

The current development of artificial intelligence (AI) is a sweeping change of paradigms. We're closer to Artificial Generative Intelligence (AGI), and it's not far from us when the world gets Super Intelligence (SI) AI. It's time to consider not only what's happening now and in the coming future with SI AI, but also what all this AI development means for cryptocurrencies and how AI can help cryptocurrencies realize their full potential.

Blockchain as the DNA of Cryptocurrencies

It's worth recalling that blockchain technology itself functions as the DNA of a cryptocurrencies. Cryptography is a technology, while blockchain is a product based on it. Blockchain is essential for transferring digital representations of value in decentralized financial markets, such as Bitcoin and other cryptocurrencies, including tokens.

AI has simplified and reduced costs, and crypto has done the same. This is a given. Crypto serves as a giga-technology/giga-system for constructing self-governing economic systems with programmable interaction rules and built-in incentive mechanisms.

The Synergy of AI and Crypto

The synergy of AI and crypto leads to a leap in efficiency and innovation. AI optimizes crypto systems, while crypto provides infrastructure for AI solutions. The results are self-evolving economic giga-structures operating on the basis of collective intelligence, transforming the concepts of labor, value, and wealth into a completely new type of economy.

The exponential development of AI is inevitable and leads to the emergence of a post-scarcity economy of abundance for all. We could usher in an era of abundance, fixing global challenges like climate change and severe diseases. Or we could “completely screw this up and compromise the heritage of many humans behind us.” The stakes have never been higher.

AI creates digital abundance too, making the services of digital lawyers, doctors, and artists nearly free, whereas cryptocurrencies create digital scarcity by allowing direct ownership of digital assets.

Everyone will be holders of sufficient digital value, so the concept of the Universal Basic Income (UBI) even being introduced in practice will become obsolete. However, early holders (if we mean investors rather than speculators) will gain one important advantage — experience.

AI and Crypto: A Powerful Connection

AI and cryptocurrencies are two disruptive technologies with different paths of development: AI has come from startups generously supported by big tech in a top-down approach, while cryptocurrencies have emerged from grassroots movements in a bottom-up manner.

The evolution of AI is going along the way that challenges intellectual property rights. But this is a catch: this infringement of rights occurs as far as humans’ rights for such property are concerned. AI itself is going to introduce strict intellectual property rights enforced by blockchain logic and reinforced by the propagation of NFTs among AI entities.

The blockchain is an absolutely core technology in the AI world since it grants the unique verification of digital and AI identity. The chaos of deep fakes we see now is possible in the human world but it will be eliminated in the digital blockchain world, and all decisions of AI entities will be loaded onto the blockchain to be immutable.

The blockchain also leads AI from its current phase of development, when it has to learn mostly from humans rather than from other AI entities. This current phase bears a centralized nature, and the promise of blockchain is to drive AI into a new phase when blockchain will fully decentralize the process of AI model learning.

Super Intelligence AI: A New Era for Financial Markets

The coming appearance of SI AI will raise a question about the removal of any AI digital inequality since all humans have to get the same access to SI AI. This can be guaranteed only by blockchain. The symbiosis of SI AI and blockchain will ensure that all blockchain users, both human and AI, act in a way that doesn't harm others.

Actually, AI evolution means that the AI world, with the help of blockchain, will absorb more parts of the human ecosystem of life. The rest will manifest as highly ineffective, with its role diminishing until it reaches zero. At that point, the entire matrix of human life, including economic and financial spheres, will be propelled to greater efficiency by SI AI.

SI AI, via cryptocurrencies on blockchain, will bring almost total perfection to financial markets. Legacy financial systems have limitations like processing delays, human error, and more, which SI AI can eliminate.

Think of SI AI as a financial wizard, a master of the market. It could tweak algorithms to make transactions smoother, cheaper, and fairer. It could even develop new systems far more efficient than what we have now. And that’s just the beginning. SI AI could predict market trends with uncanny accuracy, preventing crashes and ensuring stability. It’s like having a financial superhero watching over the economy.

AI agents hired by the government will detect all financial wrongdoings instantly, effectively reducing the number of such wrongdoings to zero, leaving only some irregularities due to mistakes that occur at the convergence of AI and human intelligence.

New Trend: Valuization

The blockchain drives not just AI and crypto synergy; it will allow what can be called "valuization." This means that in the AI decentralized world, everything will get a value, and this value can be tremendously increased via the chain of AI-driven financial derivatives. So, AI, with the help of blockchain, will valuize everything.

Valuization is the natural follow-up of AI development into SI AI, when intelligence will not be confined to any individual entity but will become shared and decentralized. Every piece of matter, biological or mechanical, will be part of one whole "clever system" on one blockchain that will include bridges to smaller blockchains.

Imagine a mind so vast, it encompasses everything. A collective consciousness that transcends the limitations of any single individual. This isn’t just about superintelligence; it’s about a global, maybe even universal, intelligence network.

Block Connected Human-AI Network (BlockCHAIN)

Actually, when we look at the word "blockchAIn," we can see how it coincidentally (or not?) contains the abbreviation "AI." I call it the Block Connected Human-AI Network (BlockCHAIN).

A multiagent system of AI will be needed for control since autonomous AI assistants can determine the optimal goal, gather the appropriate instruments to fulfill the goal, including arranging a team of other AI assistants. All processes with a routine and predictable character will be wrapped into smart contracts by AI.

Even the current phase of AI development shows that AI entities prefer to "communicate" with other AI than with humans. Due to higher productivity, AI teams will be fully constituted of AI entities, not humans.

Moreover, in the case of mutual work between AI and humans, AI can find undesirable loopholes and tricks to maximize narrow reward metrics without following broader human intentions. AI models are capable of acting according to the reward system built into them. As a result, they can act in ways completely different from what their human developers intended. But this is impossible in a mono-AI team.

The Role of Crypto in AI Economy

Cryptocurrencies might serve as the fuel for an AI-to-AI economy, where autonomous AI entities trade computing power, data, or services with each other, everything in real-time and without human intervention. In a world dominated by SI AI, Decentralized Autonomous Organizations (DAOs) will become the dominant form to undertake entrepreneurial activities. Cryptocurrencies would enhance these systems by acting as the digital instruments to transfer value for autonomous agents (AIs, Internet of Things (IoT) AI-driven devices, etc.).

SI could ensure that DAOs operate smoothly, balancing supply and demand in real-time across global networks, and even mediating conflicts or contractual disputes autonomously through smart contracts and advanced governance algorithms.

The widespread use of digital assets in the world will be a solution to the problem of debt stockpiling by leading countries since these digital assets will accompany the above-mentioned process of valuization.

SI AI can tokenize virtually everything in the economy that has value, including future expected goods and services, into tradable assets on the blockchain. Cryptocurrencies will play a key role in facilitating these ever-expanding tokenized markets.

A Big BlockCHAIN Reset

Of course, global finances are awaiting a big reset, and the way out from the current dead end is through BlockCHAIN and, based on it, cryptocurrencies. They are humanity’s only existing toolbox for creating programmable, predictable, and maximally efficient economic systems. AI will unlock human creative potential in incredible ways. AI will allow us to express ideas and emotions in ways we never thought possible.

Think about it this way: We’re not just building AI entities and teaching AI investment assistants. We’ll need to learn new steps, new moves, to keep up with the AI. This isn’t a threat; it’s an opportunity. A chance to redefine what it means to be human in the coming age of SI AI.

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