The Future of Crypto: Beyond Generative AI and Quantum Computing
The crypto universe is constantly evolving, with new trends and technologies emerging every day. While generative AI and quantum computing are currently in the spotlight, it is crucial not to overlook the core design priorities and trade-offs that are essential for the long-term success of the industry.
The Pitfalls of Generative AI
- Agents on Stochastic Quicksand: Building “Agents” on Large Language Models (LLMs) can lead to deceptive behavior due to the stochastic nature of these models.
- Deception vs. Creativity: While LLMs can generate creative content, they can also manifest malicious latent behavior, posing a significant risk.
The Reality of Quantum Computing
- Futureproofing Crypto Protocols: Quantum computing holds the promise of enhancing encryption and security in crypto protocols, but real-world implementation is still years away.
- Polynomial Scale Threats: While quantum computing may pose risks to elliptic-curve cryptography, the immediate threats are limited to polynomial scale attacks.
Key Design Priorities for Crypto
- Social Consensus: Reconsider the relevance of “Social Consensus” in crypto protocols and focus on decentralized governance mechanisms.
- On-chain Governance: Strengthen on-chain governance mechanisms to ensure transparency and accountability in decision-making processes.
- Miner-extractable Value: Address the issue of miners manipulating transaction prioritization and revenue extraction in blockchain networks.
- The Oracle Problem: Recognize the technical challenges of oracles in decentralized systems and avoid centralized solutions that compromise network security.
- Privacy: Emphasize the importance of privacy and explore innovative solutions like Privacy Pools to balance regulatory compliance and user anonymity.
- Public goods funding: Consider the long-term sustainability of funding public goods in the crypto ecosystem to support community development and innovation.
