AI + Crypto: let’s talk about it 👀

Hey AI Puppies, 

Happy Leap Year! Did you enjoy the extra day this week? We sure did. You know what they say – an extra day in the month means an extra day to hone your AI knowledge 🤖

We’ve spent the last few months diving into practical AI tools for everyday use, but we’re going to shake things up this week with a slightly more complicated topic:

AI’s impact on cryptocurrency.

Whether you’re all in on crypto or watching from the sidelines, there’s no doubt that AI is propelling the industry forward, which means we’re even closer to the day that crypto goes mainstream.  

Get ready to unpack:

✅6 ways AI and Crypto overlap

✅Ethereum’s cofounder take on the future crypto/AI applications

✅A real-time example with Theta Coin and Lavita AI

Ready for one of our more in-depth newsletters yet? Let’s get into it 🐕

The AI/Crypto Relationship

Let’s start with an overview of the relationship between AI (Artificial Intelligence) and crypto (cryptocurrency). Per ChatGPT’s stellar guidance, there are 6 key aspects to be aware of:

🐾AI in Crypto Trading: AI and machine learning algorithms are increasingly being utilized to analyze market trends, patterns, and data to make predictions and execute trades automatically. 

🐾Blockchain Analytics: AI technologies are used to analyze transaction data and blockchain networks to detect patterns, anomalies, and potentially fraudulent activities. 

🐾Security and Fraud Detection: AI-powered systems can monitor transactions in real time, identify potential security threats, and mitigate risks like hacking, phishing attacks, and unauthorized access to crypto wallets and exchanges.

🐾Predictive Analytics: AI is employed for predictive analytics in the crypto market, helping investors and traders make informed decisions based on historical data, market trends, sentiment analysis, and forecasted price movements.

🐾Smart Contracts and Decentralized Finance (DeFi): AI-powered smart contracts and decentralized finance (DeFi) platforms enable automated and self-executing contracts without the need for intermediaries. These can facilitate lending, borrowing, trading, and asset management within decentralized crypto ecosystems.

🐾Natural Language Processing (NLP) and Sentiment Analysis: AI-powered NLP and sentiment analysis tools analyze textual data from social media, news articles, and online forums to gauge market sentiment and investor behavior in the crypto space. This helps forecast market dynamics, identify emerging trends, and make data-driven decisions.

If you’re thinking of incorporating AI into your crypto efforts, check out this list of the 10 Best AI Crypto Trading Bots, which highlights:

⭐3Commas

⭐Pionex

⭐Octobot

Some would say AI and Crypto are a match made in heaven 🤝

Take it From the Experts

This isn’t just wishful thinking. Crypto’s biggest players are making a huge comeback this year: Bitcoin just hit $64k, and Ethereum hit $3.3k 💸That’s nearly double their price since the 2022 crypto crash.

Could AI be the cause? You can’t really attribute it to AI alone, but Ethereum’s cofounder Vitalik Buterin recently posted a blog outlining why he’s so enthusiastic about combining crypto and AI 👀 

Using an extended game metaphor, we wrote:

⚫AI as a player in a game [highest viability]: AIs participating in mechanisms where the ultimate source of the incentives comes from a protocol with human inputs.

⚫AI as an interface to the game [high potential, but with risks]: AIs helping users to understand the crypto world around them, and to ensure that their behavior (ie. signed messages and transactions) matches their intentions and they do not get tricked or scammed.

⚫AI as the rules of the game [tread very carefully]: blockchains, DAOs and similar mechanisms directly calling into AIs. Think eg. "AI judges"

⚫AI as the objective of the game [longer-term but intriguing]: designing blockchains, DAOs and similar mechanisms with the goal of constructing and maintaining an AI that could be used for other purposes, using the crypto bits either to better incentivize training or to prevent the AI from leaking private data or being misused.

For visual learners, here’s a high-level summary of the complete article:

So does any of this impact the present moment? The answer is absolutely yes.

Theta Coin and Lavita AI

We’re already seeing these predictions play out between a Crypto and AI with:

💱Theta Coin, the digital cryptocurrency powering the video streaming and content delivery platform Theta Network.

And…

🩺Lavita AI, an AI-powered healthcare technology platform aiming to change how people diagnose, analyze, and treat health and genomic issues.

So how do these two overlap? In short…

🐶The Theta Network is a blockchain-based platform designed for decentralized video streaming and content delivery. It aims to address issues such as high costs, limited reach, and poor quality in traditional video streaming platforms. Theta Coin (THETA) is the native cryptocurrency of the Theta Network.

🐶Lavita operates as a subchain within the Theta Network ecosystem. It is a separate platform that utilizes the underlying technology and infrastructure provided by the Theta Network. LAVITA is the native token of the Lavita platform, which operates within the Theta subchain. 

🐶On top of the Lavita AI relationship, Theta Network also announced the upcoming launch of Theta EdgeCloud, “an ambitious endeavor to establish a global peer-to-peer cloud computing network. This initiative is poised to harness the power of user devices to scale blockchain applications to new heights.”

The result of all these AI moves? On top of opening up its video processing bandwidth to support AI efforts, THETA’s price skyrocketed over 60% this week.

The AI / Crypto future isn’t far off. At this rate, it could become reality within a few years 👏

Your Next Assignment

That was a lot to process, so we’ll give you a pass on this week’s assignment. Instead, send us a topic request! Our inbox is always open: [email protected] 📫

We’re also continuing to share our AI discoveries throughout the week, so make sure you’re following us on Facebook, Twitter, Instagram, LinkedIn, YouTube, and TikTok 📲

That’s it for this week’s newsletter! Enjoy your weekend, and we’ll be back soon with more 🐾👋🐾

Talk soon,

The AI Puppy