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We’re rolling out genuine use cases for AI and crypto each day this week — including reasons why you shouldn’t necessarily believe the hype. Today get two for the price of one: Blockchain based AI marketplaces, and financial analysis.

It may not seem like the most exciting use case blending AI and crypto, but both Near co-founder Illia Polosukhin and Framework Ventures founder Vance Spencer cite blockchain-based marketplaces that source data and compute for AI as their top pick.

AI is an incredibly fast-growing industry requiring ever-increasing amounts of computing power. Microsoft alone is reportedly investing $50 billion into data center infrastructure in 2024 just to handle demand. AI also needs enormous amounts of raw data and training data, labeled into categories by humans.

Polosukhin believes decentralized blockchain-based marketplaces are the ideal solution to help crowdsource the required hardware and data. 

“You can use [blockchain] to build more effective marketplaces that are more equal,” he tells Magazine, explaining that AI projects currently need to negotiate with one or two big cloud providers like Amazon Web Services. Still, it’s difficult to access the required capacity due to a shortage of Nvidia’s A100 graphical processing units.

Ai Eye
Crowdsourcing an army of AI resources is easier via blockchain based marketplaces.

Spencer also cites blockchain-based marketplaces for AI resources as his current number one use case.  

“The first one is sourcing actual GPU chips,” he says. “Where there’s a big shortage of GPU chips, how do you source them [without] actually having a network that sources and provides and bootstraps a market?” 

Spencer highlights Akash Network, which offers a decentralized computing resources marketplace on Cosmos, and Render Network, which offers distributed GPU rendering.

“There are some pretty successful companies that actually do it at this point that are protocols.”

Another example of a decentralized marketplace offering cloud computing for AI is Aleph.im. Token holders in the project are able to access computing and storage resources to run projects.

Libertai.io, a decentralized large language model (LLM) is being run on Aleph.im. While you might think decentralization would slow an AI down to the point where it’s unable to function, Aleph.im founder Moshe Malawach explains that’s not the case:

“This is the thing: for one user the whole inference (when you generate data using a model) is running on a single computer. The decentralization comes from the fact that you get on random computers on the network. But then, it’s centralized for the time of your request. So it can be fast.”

Another blockchain-powered AI marketplace is SingularityNET, which offers various AI services — from image generation to colorizing old pictures — that users can plug into models or websites.

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An emerging blockchain based AI marketplace that Spencer is super excited about is tokenizing and trading AI models. Framework has invested in the Super Smash Brothers-like fighting game AI Arena, where users train AI models that battle each other. The models are tokenized as nonfungible tokens and can be bought, sold or rented. “I think that’s really cool,” he says. “It’s interesting having the crypto native monetization, but also ownership of these models.”

“I think one day, probably some of the most valuable models — some of the most valuable assets on-chain — will be tokenized AI models. That’s my theory, at least.”

Don’t believe the hype: You can currently source components, data and compute via traditional Web2 marketplaces.

Bonus use case: Financial analysis

Anyone who has tried to interpret the ocean of data produced by on-chain financial transactions knows that although it’s one thing to have an immutable and transparent record, it’s quite another to be able to analyze and understand it.

AI analytics tools are perfectly suited to summarizing and interpreting patterns, trends and anomalies in the data, and they can potentially suggest strategies and insights for market participants.

For example, Mastercard’s CipherTrace Armada platform recently partnered with AI firm Feedzai to use the technology to analyze, detect and block fraudulent or money laundering-related crypto transactions across 6,000 exchanges.

Elsewhere, GNY.io’s machine learning tool attempts to forecast volatility of the top 12 cryptocurrencies and its Range Report uses ChatGPT-4 to analyse trends and buy/sell signals.

Bridgewater
Bridgewater is launching an AI driven fund. (Bridgewater)

But can AI help with traditional markets, too? That’s the hope of Bridgewater, which will launch a fund next year from its new Artificial Investment Associate (AIA) Lab that aims to analyse patterns in financial markets so it can make predictions for investors to capitalize on.

Previous attempts to do this have produced lacklustre results — with a Eurekahedge index of a dozen AI driven funds underperforming the its broader hedge fund index by around 14 percentage points in the five years until 2022.

This is mainly due to the issues involved with feeding in the large amounts of accurate information required.

Ralf Kubli, a board member with the Casper Association, believes AI can revolutionize traditional finance — but only if it combines blockchain records with rigorous standards to ensure the information fed to the models is comprehensive and accurate. 

For years, he’s been advocating for the finance industry to adopt the Algorithmic Contract Types Universal Standards, or ACTUS, created in the wake of the Global Financial Crisis, which was partly caused by complicated derivatives where no one understood the liabilities or cash flows involved. He believes on-chain standardized data will be essential to ensure trust and transparency in model outputs.

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“Fundamentally, we believe that without blockchain, AI will be quite lost,” he tells Magazine. “Imagine you’re going to invest in an AI company, and you’re updated every three months about the progress of their LLMs, right? If you cannot verify what they fed into the model, you have no way of knowing whether they are making any progress.”

He explains blockchain guards against companies fudging their results, “and the past would indicate that […] there’s so much money, they will fudge about what’s going on.”

“AI, without this assurance layer of the blockchain — what happened, when, where, what was used — I think will not be effective going forward.”

He says that combining the two will give rise to new predictive abilities.

“The hope for AI for me going forward is that the prediction models become much more powerful and behavior can be much better predicted,” he says, pointing to credit scores as an example.

“AI used in the right way could potentially lead to much more powerful prediction models, which would mean that certain people who currently cannot get credit — but would be creditworthy — can obtain credit. That’s something I’m very passionate about.”

Don’t believe the hype: AI’s predictive abilities have been shown to be poor at best so far, and trusted and reliable data that’s not recorded on blockchain can be useful input for AI analysis.

Also read:

Real AI use cases in crypto, No. 1: The best money for AI is crypto

Real AI use cases in crypto, No. 2: AIs can run DAOs

Real AI use cases in crypto, No. 3: Smart contract audits & cybersecurity

Real AI & crypto use cases, No. 4: Fighting AI fakes with blockchain

Andrew Fenton

Andrew Fenton

Based in Melbourne, Andrew Fenton is a journalist and editor covering cryptocurrency and blockchain. He has worked as a national entertainment writer for News Corp Australia, on SA Weekend as a film journalist, and at The Melbourne Weekly.

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Sir Keir Starmer could be ousted as PM within months, two senior Labour MPs tell Sky News

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No 10 backs Chancellor Rachel Reeves and says she 'is going nowhere' after tearful appearance in Commons

Two senior Labour MPs have suggested the prime minister may have to go within months if the government continues to perform poorly.

Sky News’ deputy political editor Sam Coates said his sources – a member of the government and a prominent politician – have “put Sir Keir Starmer on notice”.

Both warned that, if Labour performs badly in next May’s elections across Wales, Scotland and London, it could mark the end of his time in Downing Street.

Coates added: “The level of unhappiness and despair in parts of the Labour Party is so striking that right now, on the first anniversary, I am hearing from ministers in government that Starmer might have to go in months.”

Reform UK is surging in the polls in Wales, while Labour faces a threat from left-wing parties such as the Greens in London.

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Why was the chancellor crying at PMQs?

It comes as the prime minister made it clear that Rachel Reeves has his “complete support” as chancellor and remains integral to his project, Sky News’s political editor Beth Rigby understands.

She looked visibly upset during Prime Minister’s Questions, with a spokesperson claiming she had been affected by a “personal matter”.

A day earlier, Sir Keir’s controversial welfare bill was passed despite a sizeable rebellion from Labour MPs, with major U-turns meaning a new £5bn black hole has appeared in the country’s finances.

One senior figure told Rigby that the pair were as “as close politically” as any chancellor and prime minister have ever been.

“She is going absolutely nowhere,” they added.

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Welfare vote ‘a blow to the prime minister’

Ms Reeves’s tears sent markets spiralling, with the value of the pound and long-term government bonds falling sharply.

Later in the day Sir Keir, said Ms Reeves will be chancellor for a “very long time to come”.

The prime minister said it was “absolutely wrong” to suggest her tearful appearance in the Commons related to the welfare U-turn.

“It’s got nothing to do with politics, nothing to do with what’s happened this week. It was a personal matter for her,” he said while speaking to the BBC’s podcast Political Thinking with Nick Robinson.

“I’m not going to intrude on her privacy by talking to you about that. It is a personal matter.”

Read more from Sky News:
Just 25% of public think Starmer will win next election
Analysis: Emotional Reeves a reminder of tough decisions ahead

Asked if she will remain in post, he said: “She will be chancellor by the time this is broadcast, she will be chancellor for a very long time to come, because this project that we’ve been working on to change the Labour party, to win the election, change the country, that is a project which the chancellor and I’ve been working on together.”

He said Ms Reeves has done a “fantastic job” and added: “She and I work together, we think together. In the past, there have been examples – I won’t give any specific – of chancellors and prime ministers who weren’t in lockstep. We’re in lockstep.”

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Starmer to set out 10-year vision for NHS

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Starmer to set out 10-year vision for NHS

Sir Keir Starmer will set out his 10-year vision for the NHS in what the government says is “one of the most seismic shifts” in the health service’s history.

He will pledge three main facets of the plan: moving care into the community, digitising the NHS, and a focus on sickness prevention.

The prime minister will announce neighbourhood health services will be rolled out across England to improve access to the NHS and to shift care out of overstrained hospitals.

PM ‘might have to go in months’ – politics latest

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What will the NHS 10-year health plan focus on?

Sir Keir has already promised thousands more GPs will be trained, and to end the 8am “scramble” for an appointment.

He also previously said his government will bring the NHS into the digital age, with “groundbreaking” new tools to support GPs rolled out over the next two years – including AI to take notes, draft letters and enter data.

And he will promise new contracts that will encourage and allow GP practices to cover a wider geographical area, so small practices will get more support.

Unite, one of the UK’s largest healthcare unions, welcomed the plan cautiously but said staff need to be the focus to ensure people are better looked after.

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How pilot scheme from Brazil is helping NHS

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Do you want AI listening in on chats with your doctor?

‘Reform or die’

Sir Keir said: “The NHS should be there for everyone, whenever they need it.

“But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future.

“That ends now. Because it’s reform or die.”

He said the government’s plan “will fundamentally rewire and futureproof our NHS, so that it puts care on people’s doorsteps, harnesses game-changing tech and prevents illness in the first place”.

The PM said it would not be an “overnight fix”, but claimed Labour are “already turning the tide on years of decline”, pointing towards more than four million extra appointments, 1,900 more GPs, and waiting lists at a two-year low.

“But there’s more to come,” he promised. “This government is giving patients easier, quicker and more convenient care, wherever they live.”

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Why has Starmer axed NHS England?

Neighbourhood health services

The newly announced neighbourhood health services will provide “pioneering teams” in local communities, so patients can more conveniently access a full range of healthcare services close to home.

Local areas will be encouraged to trial innovative schemes like community outreach door-to-door to detect early signs of illness and reduce pressure on GPs and A&E.

The aim is to eventually have new health centres open 12 hours a day, six days a week to offer GP services as well as diagnostics, post-operative care and rehab.

They will also offer services like debt advice, employment support, stop smoking help or weight management.

More NHS dentists

Dentists will also be part of the plan, with dental care professionals part of the neighbourhood teams.

Dental “therapists” will carry out check-ups, treatments and referrals, while dental nurses could give education and advice to parents or work with schools and community groups.

Newly qualified dentists will be required to practice in the NHS for a minimum period, which they have said will be three years.

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‘Trust and confidence lost’ over grooming gang failures in Manchester, watchdog warns

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'Trust and confidence lost' over grooming gang failures in Manchester, watchdog warns

Despite making “significant improvements”, Greater Manchester Police (GMP) has lost the “trust and confidence” of some victims of grooming gangs, according to a report by the police watchdog.

Michelle Skeer, His Majesty’s Inspector of Constabulary, said that since 2019, when GMP started to review its non-recent child sexual exploitation investigations, “the force has improved its understanding and approach to investigating allegations of child criminal and sexual exploitation”.

The document, published today, said police have live investigations into “multi-victim, multi-offender” child sexual exploitation inquiries, involving 714 victims and survivors, and 1,099 suspects.

Grooming gangs scandal timeline

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‘Our chance for justice’

But despite recording improvements, a report by His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS) also identified:

• Various training gaps within the investigation team
• Lack of consistency in evaluating case files between social care, health and police
• Failures to initially support victims meant they had “lost trust and confidence” in police

The report was commissioned by the Mayor of Greater Manchester Andy Burnham in 2024 to evaluate whether police, councils and health services can protect children from sexual exploitation in the future.

More on Andy Burnham

Its release comes days after Sir Keir Starmer announced he was launching a new national inquiry into grooming gangs after previously arguing one was not necessary,

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Starmer to launch new grooming gang inquiry

The findings were issued as the final part of the CSE (child sexual exploitation) Assurance Review process which started in 2017. The first three reports examined non-recent child sexual exploitation in Manchester, Oldham and Rochdale.

Mr Skeer said that the force has been trying to improve its service to those who have experienced sexual exploitation, but previous failings have badly affected trust in GMP.

He said: “For some, trust and confidence in the police had been lost, and the force would not be able to rectify their experiences.

“It is vital that improvements are led by victims’ experiences, and if they do come forward, they are supported, protected and taken seriously.”

A recent report by Baroness Casey found a significant over-representation of Asian men who are suspects in grooming gangs in Greater Manchester, adding though authorities are in “denial” more needs to be done to understand why this is the case.

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Teen caught in child sex exploitation

Inspectors also said there were “training gaps” in some investigation teams and issues with data sharing, with local councils sometimes not willing to provide detectives with information, leading to “significant delays in investigations” into grooming gangs.

It cites problems with intelligence provided by Manchester City Council, which took months to arrive and “was so heavily redacted that some pages contained only a few words”, the report said.

Read more from Sky News:
Analysis: Badenoch’s grooming gangs outrage
Grooming survivor wants apology from Starmer

GMP is the only force in the country to set up a dedicated team to investigate grooming gangs. Called the Child Sexual Exploitation Major Investigation Team (CSE MIT) it has about 100 staff and a ringfenced budget.

In October 2024, the force told inspectors there were 59 live multi-victim, multi-offender child sexual exploitation investigations, of which 13 were being managed by the CSE MIT.

The report adds: “The force fully accepts that it made mistakes in the past.

“It has taken positive and effective steps to learn from these mistakes and improve how it investigates recent and non-recent child sexual exploitation.”

Separately, the Baird Inquiry published in July 2024 found officers at GMP were abusing their power – making unlawful arrests, unlawful and demeaning strip searches, sometimes treating victims as perpetrators, and traumatising those who have suffered sexual abuse or domestic violence.

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