AI and Crypto trading Join Forces to Revitalize the Decentralized Internet

The early days of the internet were an optimistic time. The idea of democratized communication platforms, online publication and e-commerce seemingly promised a world free of centralized control. However, the technological and physical challenges of building out the internet tended to reward a few large players.

The concept of a cryptography-driven decentralized internet

The idea of a cryptography-powered decentralized internet has rekindled the early aspirations for what the internet could become. While crypto trading brings security, decentralization, and immutability, it faces challenges in managing the vast amounts of data present online today. AI, particularly large language models, offers a way forward, where the strengths of both crypto and AI can combine to create something transformative. Researchers at S&P Global recently explored this potential in their report, “Crypto and AI: Shaping the Future of the Internet.”

The team outlined three possible scenarios for how AI and crypto might shape the future internet. In the first scenario, incremental advancements in both technologies provide some benefits of a decentralized internet, though efficiency improvements remain modest. The second scenario envisions an AI arms race among major tech companies, exacerbating centralization and reducing transparency and accountability. The third scenario envisions a fully decentralized internet driven by the fusion of crypto and AI.

Across these scenarios, the researchers highlighted various use cases that could be transformed, including cybersecurity, financial markets, computational resources, the Internet of Things, smart device networks, and supply chains. A key enabler in each case is crypto’s ability to process data through "oracles"—information bridges that connect with external systems, enabling AI to analyze vast datasets. Other critical developments include decentralized physical infrastructure networks, which allow peer-to-peer exchanges of resources like storage and processing power, incentivizing participation through crypto token rewards.

Crypto and AI applications have big impact on the internet

Skeptics have heard similar promises before. The tech hype cycle often moves from inflated expectations to disillusionment. However, the research team believes that global crypto and AI applications will emerge to impact various sectors and use cases, with the outcomes depending on which of the different scenarios unfolds.

The convergence of cryptocurrency and artificial intelligence (AI) is poised to have a significant impact on the future of the internet. Crypto’s core features—security, decentralization, and immutability—offer a new foundation for data exchange and governance. However, its ability to handle large-scale data remains limited. AI, particularly through advanced models, fills this gap by enabling the analysis and processing of vast datasets. Together, they create the possibility of a decentralized internet that is more secure, transparent, and efficient. Oracles, information bridges between blockchain and external systems, allow AI to access and process real-world data, making this synergy even more powerful.

This fusion could transform industries such as cybersecurity, finance, and the Internet of Things (IoT). Decentralized infrastructure networks powered by crypto would enable peer-to-peer exchanges of resources like storage and computing power, with participants earning crypto tokens as rewards. This decentralized approach could challenge current centralized models of data control, potentially offering a more equitable internet. While some remain skeptical given the history of tech hype cycles, the combination of AI and crypto promises to unlock new possibilities across various sectors, reshaping how data is managed, shared, and secured online.

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