In the ever-evolving landscape of technology and innovation, both blockchain and artificial intelligence (AI) have captured significant attention.
Let’s think about blockchain for a bit. Blockchain technology has been met with considerable hype, promising revolution across various industries. However, this enthusiasm has not translated into success for most ventures in this space. Research indicates that approximately 95% of blockchain startups fail within a year of operation. Contributing factors include market volatility, regulatory hurdles, and the lack of clear use cases.
A notable example is the collapse of Terra’s LUNA cryptocurrency in 2022. In just one week, $45 billion was lost, illustrating the inherent risks associated with blockchain projects.
AI startups are now experiencing their own wave of excitement and investment. However, they too encounter significant challenges. Over 80% of AI projects fail due to issues like insufficient market demand, operational difficulties, and ethical complexities.
Consider this: approximately 42% of AI startups fail because there is insufficient demand for their products or services. Not to mention, many AI ventures struggle with resource mismanagement, inadequate expertise, and scaling difficulties. You also have the additional challenge of navigating the evolving landscape of AI ethics and regulations adds layers of complexity that can impede progress. There’s not exactly decades of history to refer to regarding legal precedent with AI.
A lot of the hype and marketing I see today looks just like what I saw a few years ago, except instead of “blockchain” it says “AI” now. There are consulting firms, integration firms, everything. Is this just a sign the industry is just endless fads with no actual commercial usage?
Bitcoin was hyped as reinventing the world’s economy. Sure, it found a few usages, like replacing Western Union, or also by essentially becoming “digital gold” that people can just acquire and sit on, but last time I looked, VISA/Mastercard and the like were still doing 98% of the world’s commerce. In other words, Bitcoin fell far short of where many of its proponents said it would land years ago. Looking around at all these AI firms, I wonder how many of them will even exist in 3 years.
bitcoin is a workaround, not a solution to the byzantine problem. Its security hinges on humans placing value on it and wanting to hoard it. It’s a clever psychological thing that makes it so that the participating cleanly is more advantageous than trying to cheat. But the byzantine fault problem is just as mathematically impossible to solve as ever (because proven math does not change).
Absolutely, I even mentioned that it’s an impossible problem, even so it’s an elegant solution to it, because it’s more profitable to participate.