Businesses Embrace Web3 & Blockchain: Smart Contracts Go AI

Published On: April 23, 2024607 words3 min readBy:

As we delve deeper into the era of Web3, it’s becoming clear that the true potential of blockchain extends much further than crypto-assets and NFT collectibles. The frontier of innovation is currently at the exciting crossover point of smart contracts and artificial intelligence, especially large language models (LLMs).

Smart contracts serve as the scaffolding for decentralized agreement execution. These are self-enforcing contracts written in code and executed on a blockchain, ensuring agreements are upheld without the need for intermediaries. Gone are the days of cumbersome paperwork, as the blockchain transparently and efficiently manages these processes.

However, despite their innovation, smart contracts are not without limitations. Their primary language, such as Solidity used on the Ethereum network, is rigid and does not comprehend human language with all its nuances. This means smart contracts currently require highly technical specifications and are less accessible to those without coding expertise.

The integration of LLMs with smart contracts could vastly expand their utility. Recent advances in machine learning have birthed LLMs capable of processing and producing human-like text, as evidenced by tools like ChatGPT. These models can understand and generate natural language, bridging the gap between the strictness of code and the flexibility of human communication.

By combining LLMs with smart contracts, we might soon see contracts that can interpret legal language, comprehend social norms, or even construct more user-friendly interactions. This integration could lead to a seismic shift, ushering in an era of smarter contracts that are both powerful and accessible to a broader audience.

Nonetheless, adoption comes with challenges, particularly regarding trust and reliability. Currently, when interfacing with an LLM via a Crypto app in the USA or a Crypto education platform, users rarely have insight into the inner workings of the model. Changes in the model or its training data can occur without notice, potentially shifting how the LLM interprets user input.

Consider the example of a business owner, Alice, who implements a smart contract with an LLM to facilitate refunds for event cancellations. An update to the LLM’s training could cause unforeseen interpretations of refund eligibility, resulting in customer frustration and potential financial loss for Alice.

Moreover, adversaries may exploit LLMs by submitting complex or misleading inputs to manipulate outcomes. In Alice’s case, false refund requests could trigger unlawful payouts, endangering her company’s solvency.

To mitigate these risks, a robust system of authentication is paramount. This encompasses model authentication, ensuring smart contracts always interact with the intended LLM in its correct execution environment, along with input authentication, where only verified information sources are processed by the LLM. Furthermore, user authentication mechanisms—like credentials or payment verifications—can help shield against malicious actors, thereby maintaining a fair and secure platform.

Thankfully, the Web3 ecosystem is rife with evolving solutions. Oracle services, which verify external data before granting it to a smart contract, lay the groundwork for input authentication. Likewise, advancements are being made in privacy-preserving user authentication, often critical for Download digital wallet services and other Crypto Exchange service United States providers.

As industries continue to explore how to make a Crypto Investment blockchain more AI-friendly, the ongoing symbiosis between AI and Web3 could yield groundbreaking enhancements in safety, dependability, and user experience. This technological synergy promises not only to secure AI’s use in smart contracts but also to bolster AI’s reliability with the immutable verification properties of blockchain technology.

The ongoing discourse on the blend of crypto, AI, and smart contracts heralds a future where these technologies empower one another, making the digital world safer and more efficient. As this relationship evolves, it stands to offer a mutually enriching cycle, continuously improving both the AI and Web3 domains.

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