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.

  • @Nibodhika
    4•3 hours ago

    First of all no technology is the only way to solve a problem, for example Lemmy and Reddit essentially solve the same problem except one is open source decentralized and the other is centralized and closed source. With that in mind, Blockchains solve the decentralized 0-trust validation of tokens, which can be used for anything you might need a token for, e.g. money or proof of ownership. Sure, you can do that in a centralized manner, but the fact that we’re having this discussion over Lemmy instead of Reddit should be enough of a proof to you of why you can’t always rely on centralized solutions. If you have any other technology that solves tokens in a decentralized 0-trust way I would love to hear about it.

      • @Nibodhika
        1•1 hour ago

        Your arguments are nonsense, just because lemmy is a decentralized social network and better than reddit, that doesn’t mean that blockchain is useful for anything.

        No, but it means you recognize the usefulness of decentralized platforms.

        In what application do you need 0-trust validation of tokens?

        An example would be money but others could be international ownership tracking, e.g. cars.

        Also if you use it for money, what happens when you accidentally send the money to the wrong address? Since it’s decentralized no one has the authority to get that money back to you, do they?

        Same thing that happens if you give money to the wrong person. Is that an argument against paper money?