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Home » Crypto AI race intensifies prompting blockchain developers caution against centralization risks
AI

Crypto AI race intensifies prompting blockchain developers caution against centralization risks

2024-06-24No Comments2 Mins Read
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Crypto AI race intensifies prompting blockchain developers caution against centralization risks
Crypto AI race intensifies prompting blockchain developers caution against centralization risks
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Many blockchain innovators viewed the announcement of a $7.5 billion token merger, uniting fetch.ai (FET), AGIX, and Ocean Protocol (OCEAN) under the banner of the Artificial Superintelligence Alliance (ASI), as a significant step toward deeper integration between crypto and AI sectors.

While some celebrated this merger as a breakthrough for reducing barriers and enhancing synergies, others cautioned against potential centralization risks. Julian Peh, CEO of Web3 AI infrastructure firm Kip Protocol, highlighted concerns over the emergence of monopolies in AI over recent years.

“We’ve witnessed monopolies forming in AI, with entities like OpenAI training massive models on our collective data and exerting significant influence over regulatory processes,” Peh remarked. He continued, expressing apprehension about the implications: “If this trend persists, we risk losing ownership and becoming mere consumers in an AI-driven future. It’s ironic that these colossal models are trained using our data in the first place.”

Peh emphasized the importance of reclaiming ownership rights, underscoring that Kip Protocol was established to empower blockchain developers by providing decentralized AI (deAI) infrastructure tools. For Peh and his team, a fair and competitive AI ecosystem entails separating ownership of models, applications, and datasets among different entities, fostering a platform where developers can collaborate and share resources freely.

When asked about revenue-sharing mechanisms within Kip Protocol, Peh explained: “Developers determine the price-per-query for their AI assets—be it models, apps, or datasets—upon deployment, recorded in token metadata. Users then pay the aggregated price-per-query for all components involved. This mechanism ensures automatic distribution of earnings among contributors through Kip Protocol contracts.”

Peh elaborated on the flexibility of this approach: “It allows everyone to set their own prices, governed by market dynamics. For instance, if a dataset is rare and high-quality, setting a higher price might attract customers. Conversely, competition might drive adjustments if a better dataset enters the market at a lower cost.”

Humayun Sheikh, chairman of the Artificial Superintelligence Alliance and CEO of Fetch.ai, echoed optimism about the $7.5 billion merger, emphasizing its readiness to generate revenue through the imminent launch of an agentic network. “In the short term, our focus will be on deploying a range of commercial products to animate AI applications,” Sheikh affirmed.

For more insights on AI, including explanations on black-box AI and its operational principles, visit related articles on Cointelegraph.

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