According to Nansen CEO, artificial intelligence (AI) will feature prominently in the crypto user experience. The CEO shared his views on the future of the altcoin industry, which has become the trend of recent times.
“This will play an important role in the future of the altcoin industry”
Nansen CEO Alex Svanevik tells Hashing It Out that he believes artificial intelligence will play an important role in the future of the crypto industry. As the crypto industry is attracting more users, developers are focusing on improving the user experience, which is a major annoyance for most new users. Artificial Intelligence has often been seen as a technology that can improve the way people use and interact with crypto. In the latest episode of Hashing It Out, the integration of AI with crypto was discussed at length.
Elisha Owusu Akyaw interviewed Nansen CEO Alex Svanevik in Episode 8 of Hashing It Out about the importance of on-chain data and the use of artificial intelligence in crypto. As you follow on Kriptokoin.com, the narrative that artificial intelligence has taken over has intensified with the popularity of OpenAI and applications such as ChatGPT. The trend has also spread to the crypto industry, which has witnessed a price surge in tokens associated with AI-related altcoin projects. Svanevik is confident that AI will be integrated into cryptocurrency applications, significantly improving the user experience.
Top AI coins by market cap / Source: CoinMarketCapSimilar to Bing integrating ChatGPT, he announced that several on-chain crypto data platforms will use AI to help users find information more easily. According to the Nansen CEO, many of the results that the platforms show to users require significant work that can now be translated into human-readable content with artificial intelligence.
Evidence of reservation useful, but insufficient, according to Svanevik
After several cryptocurrency platforms went bankrupt in 2022, institutions have adopted a new standard called ‘proof of reserve’ to provide transparency to their end users. This also sparked controversy. Svanevik believes proof of reserve, or reserve transparency, is helpful. However, he thinks this is not enough unless he also demonstrates what he calls ‘proof of solvency’, which can be done through a combination of proof of reserve and proof of debt.
Still, Svanevik says on Twitter that proving reserves is useless. He argues that because the popular conclusion that solvency cannot be verified is false, many of last year’s crashes could have been avoided if users, exchanges and lending platforms had more knowledge of how deposits are managed through on-chain data. He also adds that it would be more efficient if regulators monitor the on-chain data closely.
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