Ethereum as a Settlement Layer for AI

Ethereum as a Settlement Layer for AI

Vitalik Buterin, one of the co-founders of Ethereum, recently proposed a new concept of using the platform as a settlement layer for artificial intelligence (AI). Instead of directly integrating machine learning models into the blockchain, he discusses the necessity of applying Ethereum for confidential computations when utilizing AI and APIs.

Details of the Proposal

Together with Davide Crapis, Buterin published research on Ethereum Research, arguing that the main value is not in placing large language models (LLM) on the blockchain, but in ensuring the privacy and security of transactions related to such models.

Technological Context

Ethereum is already one of the leading platforms for decentralized applications. It provides extensive capabilities for creating secure and verifiable contracts. Using Ethereum as a settlement layer for AI could significantly increase its demand due to the growing interest in secure data solutions.

Opportunities and Challenges

Despite the proposals to use Ethereum as a settlement layer, there are potential risks associated with leaks and vulnerabilities in smart contracts. The main challenge is to ensure complete data confidentiality and protection. Yes, blockchain is transparent, but this means any implementation errors or leaks could have significant consequences.

Market Impact

If Buterin’s proposal is realized, it would open new paths for blockchain and AI integration. Given how important data and privacy are in modern technologies, Ethereum could become a key player in this field. This could also lead to increased demand for networks and protocols that ensure secure data exchange.

Conclusion

Ethereum is being considered as a promising technology for the development of blockchain applications in the AI field:

• Strengths: Ability to ensure security and privacy.
• Risk: Possible leaks and implementation errors could damage trust.
• Opportunity: Integration with new technological solutions and attraction of investors.
• Threat: Competition from other blockchain platforms or confidential computing technologies.

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