Artificial Intelligence has been the biggest thread alongside memecoins in 2023. ChatGPT took the world by storm, and with it, this emergi...
Artificial Intelligence has been the biggest thread alongside memecoins in 2023. ChatGPT took the world by storm, and with it, this emerging technology was brought to the forefront of mainstream attention.
Everyone seems to have an opinion on AI, and the cryptocurrency industry is no exception. Many projects that incorporate some form of it in their roadmap have seen explosive growth. And, of course, as it’s almost always the case with crypto – even if they don’t use AI but have it in their name – growth follows, albeit temporarily.
With this in mind, we decided to dig a bit deeper and see what the next emerging technology that could impact crypto as much as AI did is. More importantly, we decided to talk to ChatGPT about it.
Here are its thoughts on the top 4 emerging technologies (apart from AI) that can impact crypto the most in the next 5 years.
ChatGPT Sees Quantum Computing as a Threat to Crypto
First things first, recall that a “boom” is literally used as a synonym for an explosion, and outside of the word’s figurative use, it’s usually associated with devastation.
That said, ChatGPT’s first prediction was that quantum computing could be a threat to the security of traditional cryptographic algorithms.
As quantum computers become more powerful, they could potentially break the cryptographic mechanisms used in cryptocurrencies, compromising their security. This has led to ongoing research into quantum-resistant cryptohgraphic algorithms and the development of post-quantum cryptography to safeguard cryptocurrencies in the future.
It probably goes without saying, but this has been a topic of debate for many years now, and both sides have some sort of valid arguments. The downside for those arguing that a quantum computer could be the end of Bitcoin is that it foregoes many variables, such as the motivation behind an act of the kind, the potential competition between multiple quantum computers that would work against each other to solve the algorithm first, the energy required to do so, and much more.
Of course, theoretically, a supercomputer that works out of the restrains of 1s and 0s can crack Bitcoin, but there’s a lot more to it.
Back to the Roots with Privacy-Preserving Technologies
Before all the fame and glory and the multi-billion capitalizations of random frog-based memecoins, this industry was mostly about cryptography and the privacy that comes with it.
ChatGPT thinks we’re going back to our roots.
Privacy is a significant concern in the crypto industry. Technologies like zero-knowledge proofs (ZKPs), secure multiy-party computation (MPC), and homomorphic encryption hold promise for enhancing privacy in blockchain technologies.
The chatbot argues that these technologies allow for private and secure computations and enable users to prove knowledge of certain information without having to reveal the information itself. For example, I can show you proof that I have a driver’s license without having to show you my driving license.
These are solutions that are being actively developed. In fact, we spent quite some time talking with StarkWare’s PM, Gal Ron, about what zK-Proofs are and if they are the future of scaling.
Interoperability Protocols Come as Number Three
Interoperability is not just a buzzword in ChatGPT’s dictionary but an emerging technology that could cause the industry’s next big boom.
Interoperability protocols aim to facilitate seamless communication and data transfer between different blockchain networks. Currently, most cryptocurrencies and blockchain platforms operate in silos, limiting their interoperability and hindering the flow of value and information across networks.
According to the AI language model, solutions in this field, including cross-chain bridges, sidechains, and interoperability-focused networks, have the potential to enable the transfer of data across multiple blockchains and foster greater liquidity.
Last but NOT Least: Scalability Solutions
Quite naturally, scalability solutions also made the cut in ChatGPT’s list, mostly because it sees scalability as one of the greatest challenges for many networks, especially when it comes to handling a large number of transactions cost-effectively and quickly.
Emerging scalability solutions, such as layer 2 soultions aim to address these issues by offloading transactions or data to secondary layers of dividing the blockchain into smaller partitions.
ChatGPT believes that these solutions have the potential to enhance transaction throughput while also improving performance and reducing fees.
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