Investment firm cyber.Fund, recognized for its early support of Ethereum (ETH), has allocated $100 million to projects positioned at the crossroads of blockchain technology, artificial intelligence (AI), and the Internet of Things (IoT).
Having previously invested in Cosmos, Solana, and Polkadot, cyber.Fund’s objective is to nurture the development of the “cybernetic economy,” where blockchain serves as the foundational element, as outlined in a recent press release.
The cybernetic economy, according to the firm, is characterized as an interconnected and automated economic framework that integrates blockchain, AI, and IoT. This strategic move aligns with the growing momentum of AI-based tokens in the cryptocurrency industry, fueled by the success of mainstream AI tools such as ChatGPT earlier this year.
The growing convergence of blockchain and artificial intelligence has led to predictions of an imminent bull cycle.
Konstantin Lomashuk, co-founder of cyber.Fund, stated, “The cybernetic economy represents a new era of innovation and collective growth, and we at cyber.Fund are fully prepared to be at the forefront of this transformation.”
With substantial investments directed towards projects that bridge blockchain, AI, and IoT, cyber.Fund aims to propel progress in these domains and play a pivotal role in shaping the evolution of the cybernetic economy.
AI and Crypto Represent New Opportunities
In June, Coinbase issued a research report emphasizing the substantial entrepreneurial opportunities at the intersection of artificial intelligence and blockchain.
The largest U.S.-based cryptocurrency exchange underscored the potential of leveraging both technologies to develop innovative solutions for societal challenges posed by AI. David Duong, head of research at Coinbase, stated, “As applications within AI and blockchain mature, the disruptions these technologies represent may lead to areas of collaboration and the emergence of new use cases for crypto to help address specific societal challenges posed by AI.”
The report outlined various potential use cases that leverage the synergy of AI and blockchain technology.
The Coinbase research report highlighted several use cases at the intersection of artificial intelligence and blockchain. Firstly, it emphasized the potential of decentralized data marketplaces, suggesting they could address the demand for a verified and diverse set of data needed to train generative AI models. Additionally, the report proposed that token-based incentive mechanisms within these marketplaces could enhance the quality of sourced data.
Other identified use cases included leveraging computational power from decentralized networks, particularly those utilizing graphics processing units (GPUs), to assist AI projects in training their models. The combination of blockchain technology was seen as beneficial in improving data authenticity and making the opaque decision-making processes of AI algorithms more auditable.
The Coinbase research report asserted that the integration of AI and blockchain holds promise in tackling challenges such as algorithmic bias and digital identity verification. Notably, blockchain technology was recognized for its potential in addressing risks related to disinformation. By utilizing blockchain and non-fungible tokens (NFTs), it becomes possible to establish the provenance of various forms of media, including images, videos, and music.
Furthermore, the report highlighted that blockchain can contribute to making the decision-making processes of generative AI models more transparent. This transparency enables users to scrutinize the logic and reliability behind the outcomes produced by AI, fostering a better understanding of the AI-generated results.
