The largest crypto exchange in the US has issued a warning regarding the artificial intelligence narrative in the digital asset space.
It’s a new year. report Title “Crypto’s AI Mirage,” David Han, a Coinbase analyst, said that AI-focused cryptos are likely to be in an unsustainable hype due to the excitement surrounding AI industry.
“Our contrarian view is that the value potential for many AI tokens may be overstated as a result of broad attention on the AI industry, and that many AI tokens may lack sustainable demand side drivers in the short to medium term.”
AI-focused altcoins can be a good alternative to Bitcoin. “decentralized” Han, who is a proponent of blockchain technology, says that decentralization alone won’t be enough to compete with existing AI solutions, either from a business or regulatory perspective, in traditional, centralized sectors.
Han notes that centralized project also tend to have a more rapid and concise development process.
“Crypto’s role in AI does not exist in a vacuum – any decentralized platform is competing against existing centralized alternatives and must be analyzed in the context of broader business and regulatory requirements. Thus, supplanting centralized providers purely for the sake of ‘decentralization’ is
In our opinion, this is not enough to encourage meaningful adoption. Since a few short years, generative AI has been around. It retains a degree of decentralization thanks to openness and competition in the market. source software.
This report is replete with references to the fact that, although crypto-based solutions are often technically possible, they still require a great deal of effort. work in order to reach feature parity with more centralized platforms – and said platforms are not going to remain stagnant in the interim. Due to the use of consensus mechanisms, centralized development often moves faster than decentralized. This is a challenge in a rapidly evolving field like AI.”
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