Blockchain Meets AI: Ethereum’s Early Investors Dive into New Era

Last updated: December 14, 2023 20:48 EST
. 2 min read

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Investment firm cyber.Fund, known for its early support of Ethereum (ETH), has committed $100 million to projects at the intersection of blockchain technology, artificial intelligence (AI), and the Internet of Things (IoT).

With previous investments in Cosmos, Solana, and Polkadot, cyber.Fund aims to foster the growth of the “cybernetic economy,” where blockchain serves as the foundation, according to a recent press release.

The firm defines the cybernetic economy as an interconnected and automated economic framework that converges blockchain, AI, and IoT.

The move comes as AI-based tokens gained traction within the cryptocurrency industry, buoyed by the success of mainstream AI tools like ChatGPT earlier this year.

The increasing convergence between blockchain and artificial intelligence has sparked predictions of a potential bull cycle in the near future.

“The cybernetic economy represents a new era of innovation and collective growth, and we at cyber.Fund are fully prepared to be at the forefront of this transformation,” Konstantin Lomashuk, co-founder of cyber.Fund, said.

By channeling significant investment into projects at the intersection of blockchain, AI, and IoT, cyber.Fund aims to drive advancements in these fields and shape the evolution of the cybernetic economy.

AI and Crypto Represent New Opportunities

Back in June, Coinbase released a research report stating that the intersection of artificial intelligence and blockchain represents a major opportunity for entrepreneurs.

At the time, the largest US-based cryptocurrency exchange highlighted the benefits of combining both techs to create new solutions for societal challenges presented by AI.

“As applications within AI and blockchain mature, the disruptions these technologies represent may lead to areas of collaboration and the emergence of new use cases for crypto to help address specific societal challenges posed by AI,” David Duong, head of research at Coinbase, said.

The report mentioned several potential use cases that combine both AI and blockchain technology.

In the first place, it said decentralized data marketplaces could help generative AI meet the demand for a verified and diverse set of data to train its models.

Similarly, token-based incentive mechanisms could improve the quality of data sourced from those marketplaces.

Other use cases include providing computational power from decentralized networks that utilize graphics processing units for AI projects to train their models, improving data authenticity, and making AI algorithm’s opaque decision-making process more auditable.

Furthermore, the report claimed that the combination of AI and blockchain has the potential to address issues such as algorithmic bias and digital identity verification.

It is worth noting that blockchain technology also has the potential to address issues like disinformation risks. Blockchain and non-fungible tokens can be used to establish the provenance of images, video, music, and other media.

Moreover, blockchain can help make the decision-making processes of generative AI models more transparent, allowing users to scrutinize the logic and reliability of the AI-produced outcomes.