Posts from the 'Op-Ed' Category

Why Blockchain could be the solution for data quality and ethics in AI

Why Blockchain could be the solution for data quality and ethics in AI

Artificial intelligence (AI) is transforming the world in unprecedented ways, offering new possibilities for innovation, efficiency, and social good. It also poses significant challenges and risks, especially when it comes to the quality and ethics of the data used to train and operate AI systems. Data is the fuel that powers AI, and the quality and ethics of data directly affect the accuracy, reliability, and fairness of AI outcomes. Poor data quality can lead to errors, biases, and inefficiencies, while unethical data collection and usage can violate privacy, security, and human rights. Therefore, it is imperative to ensure that the data that feeds AI is trustworthy, transparent, and accountable. This is where blockchain technology can play a vital role.

Blockchain is a distributed ledger that records transactions in a secure, verifiable, and immutable way. It can provide a decentralised and tamper-proof platform for storing and sharing data among multiple parties, without the need for intermediaries or central authorities. It can also enable smart contracts, which are self-executing agreements that can trigger actions based on predefined rules and conditions. Blockchain can enhance the quality and ethics of data in AI in several ways, such as:

  • Authenticity: Blockchain can verify the origin and provenance of data, ensuring that it is authentic and reliable. The ability to track the changes and modifications made to data over time, creating an audit trail that can help detect and prevent fraud, manipulation, and corruption. For example, it can help verify the identity and credentials of data providers, as well as the consent and permissions of data subjects. It can also help validate the quality and accuracy of data sources, as well as the integrity and consistency of data processing and analysis.
  • Augmentation: I believe it can augment the intelligence and capabilities of AI by providing access to large and diverse datasets that can enrich the learning and performance of AI models. It can also facilitate data sharing and collaboration among different stakeholders, such as researchers, developers, regulators, and users, enabling cross-domain and cross-border data exchange and interoperability. The technology can also leverage smart contracts to automate data transactions and operations, such as data acquisition, aggregation, annotation, cleaning, and labeling, as well as data monetisation, compensation, and governance.
  • Automation: As mentioned in my speeches, blockchain helps to automate the ethical and legal aspects of data and AI, such as compliance, accountability, and transparency. It can embed ethical principles and values into the design and development of AI systems, as well as the data that feeds them. It can also enforce ethical rules and regulations through smart contracts, such as data protection, privacy, security, and consent. It can also provide mechanisms for monitoring, auditing, and reporting the impacts and outcomes of data and AI, as well as for resolving disputes and addressing grievances.

Blockchain and AI are complementary technologies that can create synergies and benefits for each other. I have mentioned very briefly in my earlier article on trends to look at in 2024. Blockchain can improve the trustworthiness of data resources that AI models pull from and increase the speed of AI operations by connecting models to automated smart contracts. AI can enhance the efficiency and scalability of blockchain by optimising its performance, security, and usability. Together, they can create a more trustworthy, transparent, and accountable data and AI ecosystem that can foster innovation, value creation, and social good.

However, this combination is not a silver bullet that can solve all the challenges and risks of data and AI. They also have their own limitations and drawbacks, such as technical complexity, performance issues, energy consumption, and governance challenges. Therefore, it is important to adopt a holistic and balanced approach that considers the opportunities and challenges of both technologies, as well as the ethical and social implications of their integration and application.

The potential of this intersection is not only theoretical, but also practical and observable. Recently, several developments have highlighted the emerging synergy between AI and cryptocurrency, which is a subset of blockchain technology that enables digital currencies and payments. For instance, Grayscale Investments, the world’s largest digital asset manager, published a research report that reveals the impressive performance of AI-related crypto assets, which are up 522% in the last year, outperforming the Utilities and Services Crypto Sector (+86%) over the same period. The report also discusses how blockchain and AI can address future AI-related societal issues, such as the rise of deepfakes, concerns around data privacy, and concentration of power.

Another example of the convergence of AI and cryptocurrency is the AI fever that took over the World Economic Forum in Davos, Switzerland, in January 2024, pushing crypto aside as the new cool kid on the block. Some of the world’s biggest companies, such as Intel and Salesforce, showcased their AI products and services, while the AI House hosted events and discussions on various topics related to AI and blockchain, such as verifying content authenticity, reducing model bias, and improving access and competition within AI development. The AI dominance at Davos reflects the rapid rise in AI investments and interest last year, sparked by the explosion of popularity of ChatGPT, the AI chatbot developed by OpenAI, and launched at the end of 2022. ChatGPT is an AI system that can generate natural language responses to any text input, using a large dataset of internet conversations. It has been widely praised for its ability to produce coherent, engaging, and sometimes humorous dialogues, as well as for its potential applications in various domains, such as education, entertainment, and customer service.

In my opinion, it also raises some ethical and technical challenges, such as the risk of generating harmful or misleading content, the lack of transparency and accountability of its algorithms, and the difficulty of verifying and controlling its data sources. This is where blockchain technology can come in handy, as it can provide solutions for ensuring the quality and ethics of the data and AI. For instance, blockchain can help verify the origin and validity of the data used to train and operate ChatGPT, as well as the consent and preferences of the users and data subjects. Blockchain can also help track and audit the changes and outcomes of its interactions, as well as enforce ethical rules and regulations through smart contracts. Blockchain can also help augment and automate ChatGPT’s capabilities, by providing access to more diverse and reliable data sources, facilitating data sharing and collaboration, and enabling data monetisation and governance.

In conclusion, blockchain technology can offer a valuable solution for enhancing the quality and ethics of data and AI, as well as for creating synergies and benefits with AI and cryptocurrency. This intersection is not only theoretical, but also practical and observable, as evidenced by the recent developments in the field, such as Grayscale’s new study and the AI fever at Davos. These developments indicate a transformative phase where AI and cryptocurrency coalesce, fostering a landscape ripe for innovation and societal benefit.

This union is not only redefining blockchain’s utility, but also addressing critical challenges in AI governance and development. However, this union also requires a careful and balanced approach that considers the opportunities and challenges of both technologies, as well as the ethical and social implications of their integration and application.

 

 

 

Source: https://ciosea.economictimes.indiatimes.com/blog/why-blockchain-could-be-the-solution-for-data-quality-and-ethics-in-ai/107618432

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

BRC-420: A Game Changer For The NFT Market And Web3

BRC-420: A Game Changer For The NFT Market And Web3

Non-fungible tokens (NFTs) are unique digital assets that represent ownership and authenticity of various forms of content, such as art, music, games, and collectibles. NFTs have exploded in popularity in the past few years, especially on the Ethereum blockchain, where platforms like OpenSea, Rarible, and SuperRare have enabled creators and collectors to buy, sell, and trade NFTs with ease. However, Ethereum is not the only blockchain that supports NFTs. In fact, one of the oldest and most secure blockchains, Bitcoin, has also been home to a vibrant NFT ecosystem since 2018, thanks to the innovation of Bitcoin Ordinals.

Bitcoin Ordinals is a protocol that allows anyone to create and transfer NFTs on the Bitcoin blockchain, using a standard called BRC-20. BRC-20 is similar to ERC-20, the most widely used token standard on Ethereum, but with some key differences. For example, BRC-20 tokens are not smart contracts, but rather simple data structures that are embedded in Bitcoin transactions. This means that BRC-20 tokens are more lightweight, secure, and interoperable than ERC-20 tokens, as they inherit the properties and benefits of the Bitcoin network. Moreover, BRC-20 tokens can be easily integrated with existing Bitcoin wallets and services, without requiring any additional software or infrastructure.

However, BRC-20 is not without its limitations. One of the main challenges is that it does not support metadata, which is essential for NFTs. Metadata is the information that describes the attributes and characteristics of an NFT, such as its name, description, image, creator, and provenance. Without metadata, they are essentially indistinguishable from each other, and rely on external sources to provide context and meaning. This makes BRC-20 tokens less expressive, discoverable, and valuable than their Ethereum counterparts.

This is where BRC-420 comes in. BRC-420 is a new protocol that extends BRC-20 with metadata capabilities, enabling the creation of rich and diverse NFTs on Bitcoin. It was announced in September 2023, at the inaugural Ordinals Summit in Singapore, by Domo, the creator of the BRC-20 protocol. This protocol is inspired by ERC-721, the most popular NFT standard on Ethereum, but with some novel features and improvements. It consists of two parts: Metaverse Standards and Inscription Royalties.

Metaverse Standards are a set of open-source formats and specifications that define how metadata is stored and accessed. This standard supports various types of content, such as game items, multimedia, and art, and ensure that they are compatible and interoperable across different platforms and applications. It also leverage decentralized storage solutions, such as IPFS and Arweave, to ensure that metadata is persistent and censorship-resistant. This means that BRC-420 tokens are not dependent on any centralized server or authority, and can exist independently on the Bitcoin blockchain.

Inscription Royalties are a mechanism that allows creators to receive a percentage of the secondary sales of their BRC-420 tokens. They are embedded in the metadata, and are enforced by the marketplaces and platforms that support BRC-420. They are optional and customizable, meaning that creators can choose whether to enable them or not, and how much to charge. Inscription Royalties are designed to foster sustainability and reward long-term vision in the NFT space, by incentivizing creators to produce high-quality and original content, and by giving them a fair share of the value they generate.

In my humble opinion, BRC-420 is a game changer for the NFT market and Web3, as it brings the power and potential of NFTs to the Bitcoin blockchain. It combines the best of both worlds: the security, scalability, and simplicity of Bitcoin, and the expressiveness, diversity, and creativity of NFTs. It also opens up new possibilities and opportunities for creators and collectors, as well as for developers and entrepreneurs, who can build and innovate on top of BRC-420. It also enhances the user experience and adoption of NFTs, as it lowers the barriers to entry and reduces the costs and complexities associated with NFTs on other blockchains.

This is not a short-term fad, but rather a long-term vision for the future of the web. They are part of the broader movement of Web3, which aims to create a more decentralized, open, and fair internet, where users have more control and ownership over their data and content. It is aligned with the ethos and values of Web3, as it empowers users to create, share, and monetize their own NFTs, without relying on any intermediary or middleman. It is also compatible and complementary with other Web3 technologies and protocols, such as DeFi, DAOs, and DIDs, creating a rich and vibrant ecosystem of decentralized applications and services.

It is still in its early stages of development and adoption, and faces many challenges and uncertainties. For example, they need to overcome the technical and regulatory hurdles that Bitcoin faces, such as scalability, privacy, and compliance. This new protocol also needs to gain more awareness and support from the Bitcoin and NFT communities, as well as from the wider public and mainstream media. It also needs to prove its value proposition and differentiation from other NFT standards and platforms, and to demonstrate its use cases and benefits for various industries and sectors.

However, BRC-420 also has many advantages and opportunities, as it leverages the strength and reputation of Bitcoin, the most established and trusted blockchain in the world. It also benefits from the innovation and collaboration of the Ordinals Protocol, the leading project and community behind Bitcoin Ordinals. It also has the potential to attract and inspire new and existing users and creators, who are looking for a more accessible, affordable, and authentic way to participate in the NFT market and Web3.

To conclude, BRC-420 is a promising and exciting protocol that aims to revolutionize the NFT market and Web3, by bringing them to the Bitcoin blockchain. It is a win-win solution for all stakeholders involved, as it offers more freedom, choice, and value for users, creators, and developers. BRC-420 is not a hype or a bubble, but a reality and a trend, that will shape and define the future of the web. It is here to stay, and we should expect to see more developments and achievements in the coming months and years.

 

Source: https://www.benzinga.com/24/02/37076928/brc-420-a-game-changer-for-the-nft-market-and-web3

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

How ERC-404 Brings Fungible Tokens and NFTs Together

How ERC-404 Brings Fungible Tokens and NFTs Together

Non-fungible tokens (NFTs) have been one of the hottest trends in the crypto world, attracting millions of dollars and users to the digital art, collectables, gaming, and metaverse sectors.

However, NFTs also have some limitations, such as high transaction costs, low liquidity, and lack of interoperability. To address these challenges, a new token standard has emerged on the Ethereum blockchain called ERC-404. This standard combines the features of fungible tokens (FTs) and NFTs, creating a new type of token that can be both fungible and non-fungible, depending on the use case.

Today we explore what ERC-404 is, how it works, what are its benefits and drawbacks, and whether you should invest in it or not.

Key Takeaways

  • ERC-404 is an experimental token standard aiming to merge fungible and non-fungible tokens on the Ethereum blockchain.
  • It addresses NFT limitations like high costs and low liquidity and offers flexibility and enhanced interoperability, including features like fractional ownership.
  • However, it’s not yet an official standard and may lead to complexities and competition.
  • While ERC-404 brings innovation, some view it as over-hyped and potentially overshadowed by existing standards like ERC-1155.
  • Its true impact remains to be seen in both technology and market adoption.

What is ERC-404?

ERC-404 is an experimental token standard built on the Ethereum blockchain that aims to combine the functionalities of ERC-20 tokens (fungible tokens) and ERC-721 tokens (non-fungible tokens, or NFTs) into a single standard.

This means that ERC-404 tokens can be both fungible and non-fungible, depending on the specific implementation. For example, a token can start as an FT and be traded with other tokens of the same kind without losing any value, but once it is used or redeemed, it can become an NFT and gain unique characteristics and value. Alternatively, a token can start as an NFT and be fractionalized into smaller units that can be traded as FTs, but once the units are recombined, the token can regain its NFT identity.

The idea was proposed by the Pandora team, a project that is building a metaverse platform where users can create, explore, and trade digital worlds and assets. The first token to use this standard is the $pandora token, which represents a Pandora Box, an NFT that contains a Replicant, a unique digital creature that can evolve and interact with other Replicants. The $pandora token can be traded as an FT on decentralized exchanges (DEXs) like Uniswap, but once it is opened, it reveals the Replicant NFT inside, which can have different attributes and values.

How Does ERC-404 Work?

ERC-404 works by linking every issued token to an NFT, which acts as the source of truth for the token’s state and ownership. The NFT can have a base unit, which defines the minimum amount of tokens that can be transferred or exchanged.

For example, if the base unit is 100, then the token can be divided into 100 fractions, each representing 1% of the NFT. The token can also have a total supply, which defines the maximum number of tokens that can be issued for the NFT. For example, if the total supply is 1000, then the token can be minted up to 1000 times, each representing 0.1% of the NFT.

The standard defines four main functions for the token contract:

  • Mint: This function allows the token creator to issue new tokens for a given NFT up to the total supply limit. The function also checks if the NFT exists and if the token creator is the owner of the NFT.
  • Burn: This function allows the token holder to destroy tokens and reduce the total supply. The function also checks if the token holder owns enough tokens to burn and if the NFT exists.
  • Transfer: This function allows the token holder to send tokens to another address. The function also checks if the token holder owns enough tokens to transfer and if the NFT exists. Additionally, the function updates the ownership of the NFT according to the token balance. For example, if the token holder transfers all their tokens to another address, the NFT ownership is also transferred to that address. Conversely, if the token holder receives enough tokens to reach the base unit, the NFT ownership is also transferred to them.
  • BatchTransfer: This function allows the token holder to send multiple tokens to multiple addresses in one transaction. The function also checks if the token holder owns enough tokens to transfer and if the NFTs exist. Additionally, the function updates the ownership of the NFTs according to the token balances.

What Are the Benefits of ERC-404?

ERC-404 offers several advantages over the existing token standards, such as:

  • Increased liquidity: Being able to trade NFTs as fungible tokens on DEXs massively increases liquidity. This solves a major limitation with existing NFTs, which often suffer from low trading volume and high price volatility due to their uniqueness and scarcity.
  • Lower costs: Being able to batch transfer multiple tokens in one transaction reduces gas fees and saves time. This also solves another limitation with existing NFTs, which often incur high transaction costs due to their individuality and complexity.
  • Greater flexibility: Being able to switch between fungible and non-fungible modes gives token creators and users more options and possibilities. For example, token creators can use ERC-404 to create dynamic and interactive NFTs that can change their state and value based on certain events or actions. Token users can use it to access fractional ownership of NFTs, which lowers the barrier to entry and expands the potential market.
  • Enhanced interoperability: ERC-404 tokens can interact seamlessly with protocols and platforms in both the fungible token and NFT spaces, bridging these previously disconnected areas. For example, ERC-404 tokens can be used as collateral, governance, or utility tokens in DeFi protocols, or as assets, rewards, or currencies in NFT platforms.

What Are the Drawbacks of ERC-404?

ERC-404 is not without its challenges and limitations, such as:

  • Experimental status: As mentioned above, the ERC-404 is not an official Ethereum standard yet, but rather an experimental one that is subject to change and improvement. This means that there may be bugs, vulnerabilities, or compatibility issues with the standard, which could pose risks for token creators and users. Moreover, there may be legal and regulatory uncertainties regarding the status and treatment of such tokens, especially in jurisdictions that have strict rules for crypto assets.
  • Complexity: It is a complex and novel token standard that requires a deep understanding of blockchain technology and smart contracts. As this is new, developers who want to create them need to study the standard and its functions. Users who want to interact need to have a clear grasp of the token’s behaviour and logic, as well as the risks and benefits involved.
  • Competition: ERC-404 is not the only token standard that aims to combine fungibility and non-fungibility. There are other standards that have similar or different approaches, such as ERC-998 and ERC-1155. These standards may offer different features, advantages, or disadvantages than ERC-404, and may attract more adoption or support from the crypto community. Time will tell.

Should You Invest in ERC-404?

The answer to this question depends on your risk appetite, investment goals, and research. ERC-404 is a new and innovative token standard that has a lot of potential but also a lot of uncertainty. Investing in them could be rewarding but also risky. Therefore, you should do your own due diligence before investing in any crypto asset and only invest what you can afford to lose. Here are some factors to consider before investing:

  • The token’s use case: What is the purpose and value proposition of the token? How does it benefit from the ERC-404 standard? What problem does it solve, or what opportunity does it create? How does it compare to other tokens in the same or similar sector?
  • The token’s performance: How has the token performed in terms of price, volume, and market capitalization? What are the factors that influence its demand and supply? What are the trends and patterns that indicate its future direction?
  • The token community: How large, active, and engaged is the token community? How do they support and promote the token? How do they interact with the token team and other stakeholders? What are their feedback and opinions on the token?

Looking Forward

Taking this opportunity, I spoke to people in the industry asking how they look at this new standard. The feelings on the ground are mixed.

Batulzii, former chairman of the board at Cryptocurrency & Blockchain Association of Mongolia highlighted that ERC-404 increased liquidity for NFTs: “By making NFTs divisible and tradable like tokens, it helps overcome the inherent illiquidity issue of traditional NFTs. This can attract more investors and boost the overall NFT market.

“Fractional ownership unlocks new possibilities for ownership and investment, as people can now access valuable NFTs they couldn’t afford entirely, opening up participation to a wider audience.”

Batulzii, who is also the technology lead and founder of Sanchirtech, also warned that this new standard is still experimental and untested and that its complex design could harbour security vulnerabilities that haven’t been fully explored.

Alex Atashkar, co-founder of Seed.Photo, articulated the vision of their platform as the NFT marketplace dedicated exclusively to photographers. He emphasized the significance of not just showcasing art but anchoring it in genuine ownership and said that Seed.Photo’s is integrating the ERC-404 standard

Atashkar highlighted the team’s excitement about the potential of the ERC-404 standard for its unique capability to enable shared ownership of a single NFT by multiple wallets, a breakthrough in the digital art space. This feature opens up myriad possibilities, including tokenization for diverse purposes such as securing loans, staking, and collective art ownership.

From a crypto exchange perspective, I have asked John Inzo, Social Media Manager at HTX to comment on the topic. “This will be an interesting experiment to see how this will help or hurt Ethereum long-term.”

The Bottom Line

To sum things up, ERC-404 is a hybrid token standard that combines the features of fungible and non-fungible tokens, creating a new type of token that can be both fungible and non-fungible, depending on the use case.

I must say that ERC-404 is an exciting and innovative token standard that is revolutionizing the NFT space, but it is not for everyone. To be very honest, I personally think that ERC-404 is more hype than reality. The previous ERC-1155 could almost achieve the main functions of ERC-404, and ERC-1155 is more mature than ERC-404. The latter now seems to be just a modified version of the former. But we shall wait and see how the technology — and market reaction — plays out.

 

 

Source: https://www.techopedia.com/how-erc-404-brings-fungible-tokens-and-nfts-together

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j