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‘AI can be defeated with cryptography,’ says Chelsea Manning at SXSW

Cointelegraph sat down with activist and cybersecurity expert Chelsea Manning to discuss how blockchain technology can combat challenges associated with artificial intelligence.

Artificial intelligence (AI) has become a hot topic following the launch of ChatGPT, an AI chatbot created by research company OpenAI. Yet, while ChatGPT has the potential to write blogs and create crypto trading bots, some worry that AI could be harmful. 

A survey conducted by sales platform Tidio found that 69% of college graduates believe AI could take their job or make it irrelevant in the coming years. Others have pointed out that the rise of AI will make it increasingly challenging to verify accurate information versus fake news generated by artificial intelligence.

For example, Chelsea Manning — an activist, security consultant for decentralized privacy platform Nym and former army intelligence analyst — told Cointelegraph that information verification would become a fundamental problem as AI is integrated into society. Manning told Cointelegraph about how blockchain technology can help combat AI challenges during an exclusive interview at South by Southwest 2023.

Cointelegraph: Why is the rise of AI concerning, and how can blockchain technology combat these concerns?

Chelsea Manning: The actual teachings of AI have been going on for a long time, yet as surveillance in AI becomes more efficient, it will reduce the effectiveness of virtual private networks and other circuits from protecting user data.

Another danger associated with AI and deep fakes is that these elements will eventually become so convincing that many of these instances will end up in a courtroom setting. For instance, there will be situations in the future where individuals will have to forensically verify to a court if something was generated by AI.

We can use blockchain technology to create a decentralized list of where information is coming from, who is producing it and where it was created. This can then be verified on a distributed ledger to prove that a particular event historically occurred, resulting in less dispute.

For instance, someone could take a photograph and then place that metadata on a ledger for verification. If someone tries to dispute that, they can go to the ledger and view the cryptographic signature for verification to see that a particular event occurred.

CT: Do you think we will see more companies evolve that will use cryptography to combat AI challenges?

CM: Yes — since verification is going to be a fundamental problem that arises between society’s exposure to products or surveillance that leverage AI. One way to challenge this is through cryptography, which is going to be fundamental.

Manning (right) with Cointelegraph reporter Rachel Wolfson at SXSW. 

I also believe that a great battle within the technology space over the next decade is going to be this issue of verification and knowing if the information we are receiving is accurate. We are running the very real risk of having our entire reality exposed through our phones or televisions and other places online. Although this is a fundamental way to interact with the world, this information will increasingly not be accurate, yet it will be convincing. I believe there are solutions to these problems, and with some foresight and planning, these doomsday scenarios can be navigated.

CT: You also have strong views on taking an infrastructure approach when it comes to ensuring privacy and security. Can you explain what this means?

CM: One of the most frustrating aspects of developing hardware technology is ensuring that the hardware itself is secure. This is why hardware developers need to focus intensively on supply chain matters — who is developing the technology, who is designing it, etc.

I also believe in the added benefit of an open-source architecture, as these standards are common and universal. I’ve been looking at open-source architectures for designing and developing secure hardware technology for Nym. For example, RISC-V is open source architecture developed at the University of California, Berkeley. RISC-V was designed to grow over time as a standard that doesn’t require any intellectual property (IP). Users can build an IP based on RISC-V, but the architecture itself is available to anyone without requiring a fee.

CT: What are your thoughts on cryptocurrency?

CM: I was very interested in Bitcoin when the white paper came out, but I didn’t necessarily view tokens as being assets or the value behind blockchain technology. I was quite surprised and struck by how readily people were to view proof-of-work certificates as being something that they would buy, sell and speculate on.

This is not necessarily my interest, as I don’t play with speculative assets in general. But from a purely academic sense, I find the technology fascinating. I think cryptocurrency is still a proof-of-concept for what is possible down the line with blockchain technology, but not necessarily ripe and ready to change the world.

CT: Recently, we saw Silicon Valley Bank overtaken by regulators. How do you think this will impact the tech industry as a whole?

CM: This is a seismic event and it goes back to my skepticism of speculative assets in general. This shows that we are still at the whims of the economy, both with traditional banks and with token assets.

The Federal Reserve System and regulators are all interconnected, so it doesn’t surprise me that as inflation has been high, and as the Federal Reserve has tried to curtail the amount of currency flowing, we have seen a number of stressors on more speculative and risky ventures. We are now seeing the effects of that.

But out of every one of these cycles, there has been innovation. If anything, operating in an environment where there is less cash available forces people into a position where they have to innovate more in order to survive. I think this will be an interesting time for the technology industry. It will slow down startups for sure, but I think that existing startups that are able to survive this will be the ones to look out for the most over the next 10 years.

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‘CryptoGPT’ Twitter accounts spring up as hashtag trends on Twitter

Dozens of Twitter accounts have emerged on Twitter claiming to be related to "CryptoGPT."

A Twitter hashtag relating to a purported artificial intelligence (AI) crypto token called “CryptoGPT” has been trending on Twitter.

Alongside it, a number of very similar-looking Twitter accounts have also sprung up — some of which have been touting likely fake giveaways.

As of the time of writing, “Download CryptoGPT” is trending with 6,185 tweets associated with it. GPT-4 (Generative Pre-trained Transformer 4), an unreleased neural network created by OpenAI, is also trending with 4,683 tweets.

Trending topics on Twitter. Source: Twitter

Meanwhile, dozens of Twitter accounts sporting the name "CryptoGPT" can also be found on Twitter, with some offering likely fake giveaways or airdrops

Many of these accounts describe the purported project as allowing users to use blockchain to monetize their data with AI. The system is based on Ethereum and scales with a zero-knowledge rollup layer-2 network.

The project purportedly aims to attract decentralized application developers to build on its blockchain. CrypoGPT will offer its GPT tokens as payment for anonymous user data generated from the usage of these DApps.

Contrary to what its name may suggest, however, the project doesn't appear to be directly related to the ChatGPT AI chatbot that has taken the internet by storm in recent months.

A snippet of Twitter accounts with names relating to "CryptoGPT" Source: Twitter

The crypto token also appears to have backing from certain crypto exchanges, at least from a listing perspective.

On Mar. 8, Bitfinex announced a listing of GPT on Mar. 10, describing CryptoGPT as a project that aims to offer users an opportunity to earn crypto for sharing their anonymized data. Other exchanges that will reportedly list the GPT token include PancakeSwap, ByBit, Gate, MEXC, Bitget, among others.

Related: ChatGPT learns Bitcoin will end central banking and fiat currency

Earlier this year, blockchain analytics firm PeckShield warned its followers about dozens of alleged "pump & dump" tokens purporting to be related to ChatGPT and Bing AI, in a Feb. 20 Twitter post. 

A pump-and-dump scheme typically involves the creators orchestrating a campaign of misleading statements and hype to persuade investors into purchasing tokens, then secretly selling their stake in the scheme when prices go up. 

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ESG Analyst Daniel Batten Reveals Dynamic Charts Showing Bitcoin’s 52.6% Sustainable Energy Use

ESG Analyst Daniel Batten Reveals Dynamic Charts Showing Bitcoin’s 52.6% Sustainable Energy UseEnvironmental, social, and governance (ESG) analyst Daniel Batten said Tuesday that the computational backbone of the Bitcoin network now uses 52.6% sustainable energy. Batten and onchain analyst Willy Woo created Dynamic Bitcoin ESG Charts to showcase the protocol’s progress. Contrary to Cambridge University Data, Analyst Says Bitcoin Mining Uses 52.6% Sustainable Energy These days, there […]

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Bitcoin ATM decline: Over 400 machines went off the grid in under 60 days

Between December 2020 and January 2022, more than 1,000 crypto and Bitcoin ATMs were installed each month.

Crypto ATMs — one of the key infrastructure pillars for the mass adoption of cryptocurrencies — have seen a drastic reduction this year. In the first two months of 2023, the net cryptocurrency ATMs installed globally reduced by 412 machines.

Since 2014, the total number of crypto ATMs has maintained a steady upward trajectory while catering to millions of users worldwide for seamless crypto-fiat conversions. For over a year, between December 2020 and January 2022, more than 1,000 crypto and Bitcoin (BTC) ATMs were being installed every month. However, the bear market had an immediate impact on its growth.

Net crypto ATM installations worldwide. Source: Coin ATM Radar

September 2022 was the first time in history when total crypto ATMs saw a net decline. However, 2023 marked a new low by recording a decline in total crypto ATM installations for two consecutive months.

In January 2023, the global crypto ATM network shed 289 machines, further dropping by 123 machines in February. While the ongoing decline was initially purely attributed to geopolitical tensions, revenue losses and a prolonged bear market, service providers have been trying out cheaper alternatives for operations.

Recently, crypto ATM provider Bitcoin Depot converted its 7,000 physical machines to BitAccess software. The move helped reduce operational costs related to software licensing fees, which cost $3 million annual.

Do you have an ATM in your area and are unsure how to use it? Check out Cointelegraph’s beginner’s guide to learn everything about Bitcoin ATMs.

Related: UK-native stablecoin integrates into 18,000 ATMs nationwide

On the other hand, payments giant Mastercard partnered with Binance to launch a card for crypto payments in Latin America.

In a press release shared with Cointelegraph, Guilherme Nazar, Binance Brazil’s general manager, stated:

“Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow.”

Moreover, at launch, the card offered up to 8% cash back in crypto on eligible purchases and zero fees on some ATM withdrawals.

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Bitcoin’s Blockchain Growth Accelerates With Trend of Ordinal Inscriptions

Bitcoin’s Blockchain Growth Accelerates With Trend of Ordinal InscriptionsThe Bitcoin blockchain has 40.49 gigabytes (GB) to go until it reaches half a terabyte (TB), and with the recent trend of Ordinal inscriptions, it’s likely to get there faster. The average block size reached a high of 2.52 megabytes (MB) on Feb. 12, 2023, but block sizes have subsided and dropped to an average […]

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Bitcoin-Based NFTs Cross 200,000 Ordinal Inscriptions, Yuga Labs Launches Twelvefold Collection

Bitcoin-Based NFTs Cross 200,000 Ordinal Inscriptions, Yuga Labs Launches Twelvefold CollectionOn Monday, Feb. 27, 2023, the number of Ordinal inscriptions on the Bitcoin blockchain crossed 200,000 at 1:02 p.m. Eastern Time. In addition to the 200,000 inscriptions, Yuga Labs, creators of the Bored Ape Yacht Club (BAYC) non-fungible tokens (NFTs), revealed that the team had created a collection of 300 generative ordinal NFTs called Twelvefold. […]

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Artificial Intelligence Crypto Assets Continue to Surge, Accounting for $4 Billion in Market Value

Artificial Intelligence Crypto Assets Continue to Surge, Accounting for  Billion in Market ValueFollowing a brief downturn in mid-February 2023, artificial intelligence (AI) crypto assets have continued to see gains over the last 30 days. Currently, out of 74 listed AI-focused cryptocurrencies, the net value of all these tokens has risen to more than $4 billion, which accounts for 0.37% of the entire crypto economy’s value. Majority of […]

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OpenSea implements 0% fees to win over NFT userbase lost to Blur

NFT marketplace Blur surpassed OpenSea in daily ETH trading volume as users — anticipating greater returns on their NFT investments — are looking for a trading arena that works in their favor.

Major nonfungible token (NFT) marketplace OpenSea announced a massive structuring around lower platform fees and greater creator earnings as competing marketplaces continue to drain away its once dominant user base.

On Feb. 18, NFT marketplace Blur surpassed OpenSea in daily Ethereum (ETH) trading volume as users — anticipating greater returns on their NFT investments — are looking for a trading arena that works in their favor, shows Nansen data.

Daily trading volume of major NFT marketplaces. Source: Nansen

As a reactionary measure, OpenSea announced three major changes to win back its migrating customers. The measures include a 0% fee for a limited time, introducing optional creator earnings and leniency on other operators.

OpenSea admitted losing users to other “NFT marketplaces that don’t fully enforce creator earnings,” and the new measures are an attempt to revitalize its dominance in the space, adding:

“Recent events – including Blur’s decision to roll back creator earnings (even on filtered collections) and the false choice they’re forcing creators to make between liquidity on Blur or OpenSea – prove that our attempts are not working.”

OpenSea believes that it defended creator earnings on all collections while reiterating its support for Operator Filter — a function that was aimed at helping creators secure their revenue for the resale of their work. However, this filter proactively blocked recommendations of marketplaces that sported the same policies.

OpenSea's plan of action to counter falling market dominance. Source: OpenSea (via Twitter)

Blur’s daily trading volume supremacy can be attributed to its new royalty policy showcasing differences in royalty payment options between its platform and OpenSea. It read:

“OpenSea’s current royalty policy prevents collections from being able to earn royalties everywhere. They have cited various reasons for this (see FAQ), but the end result is that creators are limited to earning royalties on only one platform at a time.”

Amid the royalty war between the two marketplaces, community members highlighted the importance of competition in the industry. If it wasn’t for zero royalty marketplaces, bigger players like OpenSea would eventually increase fee structure, which would have a negative impact on creators and collectors.

Moreover, OpenSea plans to continue testing the model and identify what works best for the community and the organization. Community members speculate that OpenSea would probably increase its platform fees in the future if it successfully manages to amass its lost customers — a predatory move often noticed in industries with less competition.

Related: eBay NFT platform KnownOrigin launches creator smart contract

YouTube’s appointment of new CEO Neal Mohan was perceived as a win for the crypto community considering Mohan’s inclination to use NFTs and Web3 as revenue streams for creators.

As Cointelegraph reported, Mohan — while serving as YouTube’s chief product officer — outlined tentative plans in February 2022 to integrate features such as Metaverse-based content experiences and content tokenization via NFTs.

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Bitcoin hits record 44M non-zero addresses, thanks to Ordinals: Glassnode

Glassnode noted that this is the first time in Bitcoin history where the network has been used for purposes other than for monetary purposes.

The launch of Bitcoin nonfungible tokens (NFTs) — known as Ordinals — has tipped the number of non-zero Bitcoin addresses to a new all-time high of 44 million, according to crypto analytics platform Glassnode.

In a Feb. 13 report from Glassnode, the firm explained that for the first time in Bitcoin’s 14-year history, a portion of network activity is being used for purposes other than peer-to-peer monetary Bitcoin (BTC)  transfers:

“This is a new and unique moment in Bitcoin history, where an innovation is generating network activity without a classical transfer of coin volume for monetary purposes.”

Glassnode explained that the Ordinals surge has contributed to a “short-term uptick in Bitcoin network usage of late” which has brought many “new active users” with a non-zero BTC balance to the network:

Number of Bitcoin addresses with a non-zero balance. Source: Glassnode.

“The primary source of this activity is due to Ordinals, which instead of carrying a large payload of coin volume, is instead carrying a larger payload of data and new active users,” said Glassnode.

“This describes a growth in the user base [...] from usage beyond the typical investment and monetary transfer use cases,” it added.

A new player competing for block space

Glassnode noted that Ordinals is now competing for block space demand, which is “creating upward pressure on the fee market," but noted that this hasn't led to a significant increase in Bitcoin transaction fees. 

According to Glassnode, since Ordinals launched on Jan. 21, the upper range of the mean Bitcoin block size has increased from 1.5-2.0 MB to 3.0-3.5 MB in a matter of weeks.

Mean Bitcoin block sizes over the last three months. Source: Glassnode.

However, this hasn't led to a surge in fees. While there have been some short-lived spikes, Glassnode stated that a “new lower bound transaction fee required for block inclusion” has been reached since Ordinals made their mark on Jan. 21.

Median transaction fees on the Bitcoin network over the last five years. Source: Glassnode.

The technological applications behind the Ordinal protocol were enabled by the Taproot soft fork, which took effect in November 2021. Bitcoin Ordinals launched on Jan. 21.

Through the use of the Ordinals numbering scheme, Bitcoin users can assign arbitrary content to satoshis — the smallest denomination of BTC — which enables them to inscribe Bitcoin-native, nonfungible token (NFT)-like images.

There have been over 78,400 NFT-like images and videos inscribed thus far.

The latest Ordinals inscripted onto the Bitcoin network. Source. Ordinals.

The impact of the NFT-like images on Bitcoin hasn’t come without controversy though.

Related: Bitcoin is already in its ‘next bull market cycle’ — Pantera Capital

Some notable “Bitcoiners” such as Blockstream CEO Adam Back have recently expressed their his disliking the Ordinals protocol, suggesting that it deviates from Bitcoin’s purpose as a peer-to-peer electronic cash system.

However, others have been more open to the idea. Bitcoin bull Dan Held has asserted on several occasions that Ordinals bring more “financial use cases to Bitcoin.”

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Ordinal Inscriptions Take the NFT World by Storm: Over 50,000 Added to the Bitcoin Blockchain in 2023

Ordinal Inscriptions Take the NFT World by Storm: Over 50,000 Added to the Bitcoin Blockchain in 2023As of Friday, Feb. 10, 2023, the Bitcoin blockchain had seen the addition of more than 50,000 Ordinal inscriptions as the trend has continued to increase daily. People are inscribing text, images, videos, audio, and software applications onto the blockchain, with some inscriptions fetching high prices via over-the-counter (OTC) trades. A clone of the popular […]

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