GM, this is your Daily Bolt briefing.
In this edition, we’ve included some insights from Avalanche Founder Emin Gun Sirer on AI and Crypto integrations, the role Bitcoin plays in the AVAX ecosystem, and more.
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Over and out.⬇️
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Avalanche - All Access with Emin Gün Sirer - Ep. 57
In this episode of Avalanche - All Access, which took place on June 2, Emin Gün Sirer discusses the integration of AI into the blockchain, the need for Bitcoin in the blockchain ecosystem, Web3 gaming, and more. Read our notes below to learn more.
Background
Emin Gün Sirer (Host) - Founder and CEO of Avalanche
Avalanche - a decentralized, open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem.
Integration of AI into the Blockchain
Sirer says that there is a lot of potential for integrating artificial intelligence (AI) into blockchain technology.
He suggests that AI could help ensure that blockchains perform as intended, potentially reducing errors and improving efficiency. This integration would represent a significant learning process for humanity as people continue to explore and understand the capabilities and implications of these advanced technologies.
Sirer says that his ambition for Avalanche is to be at the forefront of AI integration into the blockchain.
He hopes Avalanche is the first to successfully combine AI and blockchain in a meaningful and effective way.
He believes that AI can embody common sense and human knowledge without having to explicitly program this function, which could improve the efficiency and effectiveness of blockchain systems.
Sirer says that there is potential for artificial intelligence to empower Decentralized Autonomous Organizations (DAOs).
He believes that this could potentially allow DAOs to operate more smoothly and make more informed decisions, as the AI could provide insights and knowledge that might not be readily available to the human members of the DAO.
He also proposes the idea of an AI-powered oracle that could serve as a mediator for DAOs when conflicts need to be resolved. This oracle could provide an independent perspective and help guide decision-making within the DAO.
He says that this is crucial for validators because they need to agree on the state of the blockchain to maintain its integrity and security. If an AI engine is non-deterministic, meaning it could produce different outputs given the same input, it could lead to divergence among validators. This divergence could potentially cause network fractures and forks, disrupting the operation of the blockchain.
To address this, Sirer suggests that any necessary randomness should be introduced via an external beacon. An external beacon is a source of randomness that is outside the control of any single entity, ensuring fairness and unpredictability. This would allow the AI to remain deterministic while still being able to introduce randomness when necessary.
Sirer says that he is skeptical about the feasibility and desirability of limiting AI development.
He suggests that any such limitations would be ineffective, as other countries would simply continue their AI development and potentially get ahead.
Sirer says that if one country or entity were to impose restrictions on AI development, it wouldn't necessarily slow the overall progress of AI technology because other countries or entities around the world would continue their own development efforts.
He believes that this could potentially lead to a situation where the entities that impose restrictions on AI end up falling behind in the global AI landscape.
Instead of trying to limit AI, Sirer says that he advocates for remaining engaged in AI development and being part of the process. By staying involved in the development of AI, one can better understand its direction and implications, and potentially influence its development in a way that aligns with one's values and goals.
He believes that this approach acknowledges the transformative potential of AI while also recognizing the need for thoughtful and informed engagement with this technology.
Need for Bitcoin in the Ecosystem
Sirer talks about his belief in the importance of Bitcoin within the blockchain ecosystem. He suggests that Bitcoin's presence on Avalanche would be beneficial.
He says that he sees Bitcoin as a significant player in the blockchain space and believes that its integration into Avalanche would enhance the platform's capabilities and reach. This is due to Bitcoin's widespread recognition and acceptance, which could potentially attract more users to Avalanche.
Sirer also says that he is interested in supporting people who are doing exciting things on Avalanche through an entity like Bitcoin. Sirer says that he has a desire to foster innovation and growth in the blockchain space, with Bitcoin serving as a catalyst or enabler for such development.
Web3 Gaming
Sirer says that he is excited about the emerging field of Web3 gaming. Web3 gaming refers to games that are built on blockchain technology, enabling features like true ownership of in-game assets, provable fairness, and interoperability between different games.
Sirer talks about specific games like Shrapnel, and Off the Grid by Gunzilla. He praises their focus on gameplay first and blockchain integration second.
He believes these games are compelling because they offer immersive experiences and don't overemphasize their blockchain elements.
He suggests that this makes them more accessible and enjoyable for gamers who may not be familiar or comfortable with blockchain technology.
He also says that he is very excited about the upcoming release of Off the Grid. He says that the game's immersive universe is great and the gameplay is addictive, suggesting that it represents the kind of high-quality, engaging experiences that can be created with Web3 gaming.
Use of Multi-Signature Wallets for DAOs
Sirer says that he advocates that all DAOs should use multi-signature wallets for their treasuries. A multi-signature wallet, often referred to as a multi-sig wallet, is a type of digital wallet that requires multiple signatures to authorize a transaction.
He says that this adds an extra layer of security because even if one party's private key is compromised, the transaction cannot be completed without the additional required signatures.
Sirer suggests that this is a necessary security measure to protect the funds of the DAO and its members.
He says that by using a multi-sig wallet, DAOs can reduce the risk of funds being misused or stolen. If a single person or entity has control over the treasury, they could potentially leave with the funds or use them in ways that the rest of the DAO does not agree with. With a multi-sig wallet, this risk is significantly reduced because multiple parties need to agree on each transaction.
Use of Capturing Intent in Blockchain Transactions
Sirer talks about an article from Paradigm's research group on capturing intent in blockchain transactions. The idea is to express what a user intends for a transaction when it's included in a block.
Sirer says that he finds the concept thought-provoking but also raises questions about its practicality.
He suggests that expressing intent in a transaction might be complex and cumbersome for users. He believes that writing additional code or information around transactions to express intent could potentially make the process of submitting transactions more complicated.
Instead, he proposes that it might be more practical to see specialized networks emerge that cater to common cases of intents.
He gives an example that a network could promise a certain service level agreement that implicitly captures a user's intent, such as a guarantee against front-running (a practice where someone benefits from prior access to market information).
He believes that this approach might capture a large portion of what people want to use intents for and could be a more user-friendly solution.
He suggests that we might see more of these specialized use cases and networks before we see a generalized method of expressing intent at a very low granularity.
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Our friends at Dynamo Defi publish an extremely useful newsletter called Chain Catalyst which we read weekly.
Dynamo DeFi is a weekly newsletter that covers the latest web3 products, strategies, and trends.
If you are actively operating, trading or working in DeFi, this newsletter is a must!
Sign up for the free newsletter here -