S4E16 Blockchain & AI w. Arthur Breitman (co-founder, Tezos)
Sep 13, 2024
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Arthur Breitman, co-founder of Tezos and a visionary in finance and AI, discusses the intriguing relationship between blockchain and AI. He questions whether these technologies are true allies or fundamentally different. Arthur shares his journey in Web3 and highlights the capabilities of both technologies. The conversation navigates the misconceptions of their interdependence and examines the real obstacles to their combined adoption. He emphasizes the importance of ethics, governance, and infrastructure for future innovations.
Arthur Breitman emphasizes the need for a scalable economy in Web3, highlighting the importance of linear scalability for blockchain efficiency.
He argues that while blockchain and AI can enhance each other, their relationship should not be exaggerated, as substantial synergies are limited.
Deep dives
Arthur Breitman's Background and Tezos Overview
Arthur Breitman highlights his extensive background in finance, statistics, machine learning, and blockchain, emphasizing his work as a research engineer at Waymo focusing on self-driving cars. His journey into blockchain began in 2014, driven by concerns over governance, privacy, and security in cryptocurrencies. He co-founded Tezos as a response to challenges in the blockchain space, aiming to promote decentralized innovation while maintaining the ability to adapt and upgrade protocols. Tezos distinguishes itself by utilizing a proof-of-stake consensus mechanism that incorporates economic penalties and governance models, thus allowing for continuous improvements through community participation.
Scaling in Web3: Beyond Transaction Speed
Breitman articulates a nuanced perspective on scaling within Web3, defining it as more than just the number of transactions per second (TPS). He emphasizes the importance of linear scalability, where increasing resources results in proportional increases in processing capabilities. Using the analogy of firehouses, he illustrates that adding infrastructure can enhance capacity, countering the common misconception that adding nodes does not affect blockchain performance. Furthermore, he stresses the need for a scalable economy that fairly allocates the increasing demand for transactions to facilitate the continuous growth of the ecosystem.
The Relationship and Challenges of AI and Blockchain
Breitman addresses the often-simplistic belief that blockchain and AI inherently need to work together, likening their relationship to that of peanut butter and plumbing. While he acknowledges potential use cases, such as AI enhancing developer experiences through formal verification, he doubts profound synergies between the technologies. Concerns are raised about the commodification of tokens in AI-driven markets, where many tokens fail to capture any real economic value. Overall, he underscores the importance of thorough and thoughtful integration rather than superficial collaboration that seeks to ride the wave of technological hype.
Regulatory Evolution and Wider Web3 Adoption
Breitman suggests that overcoming current regulatory hurdles is vital for broader adoption of Web3 technologies. He notes that many regulations are inherently biased against blockchain applications, creating challenges for traditional financial players who may benefit from integrating blockchain solutions. By advocating for more favorable regulatory changes, he believes the market could tap into substantial efficiencies by automating transactions and reducing costs while ensuring compliance. Ultimately, he envisions a future where a balance is struck between innovation and regulation, allowing decentralized technologies to thrive in a supportive environment.
Are Blockchain & AI force multipliers or competitors? Will Blockchain 'unlock' AI adoption, or is the reality much less positive?...
Arthur Breitman, Co-founder of Tezos, was working with AI and Self-Driving Cars long before he stepped into Blockchain. So he has an informed view, and a desire to see both technologies succeed, albeit without the hype!
On this episode, we'll look to demystify the value of Blockchain and AI, and debunk narratives that talk to Blockchain and AI either being critical for each others' success, or too different to be able to work well together.
On this show, we'll cover:
- Arthur's Web3 and AI journey to-date
- An introduction to the unique capabilities of AI and Blockchain technologies
- Evaluating the claim that "AI needs crypto, and crypto needs AI.”
- Distinguishing between genuine opportunities and hype - What more is needed to see adoption of AI and Blockchain together at-scale
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