Embracing Change: CZ’s Vision on AI and Blockchain at Japan Blockchain Week

During the recent Japan Blockchain Week, the founder of Binance, Changpeng Zhao, known globally as CZ, shared his visionary insights on the convergence of Artificial Intelligence (AI) and blockchain technology. His address covered a compelling range, from innovations in payment systems to the transformation of our work landscape, while addressing legal ramifications and privacy concerns.

AI and Blockchain: A Natural Fusion for Payments

CZ emphasized the potential of AI requiring autonomous payment systems, with blockchain standing as the most open and native digital payment network.

• Blockchain transactions are immune to interference, allowing AI systems to initiate payments seamlessly.

• This confluence fosters microtransactions, like creators charging minuscule fees per view, enhancing user engagement and revenue models.

• Moreover, blockchain can facilitate AI funding through innovative approaches like issuing Compute Tokens to offset massive computational costs.

With AI’s training needs projected to reach trillions of dollars, CZ made a compelling argument for viewing AI as a public good, warranting global collaboration in its development.

AI in Legal Systems: The Perspective of an Impartial ‘Judge’

In legal contexts, CZ highlighted the rational judgment AI offers, free from human emotional biases, paving the way for more consistent and fair results. The potential for AI to streamline legal systems could revolutionize how justice is administered.

The Workforce and Economy: AI as a Catalyst for Creativity

Challenging perceptions of AI as a job stealer, CZ posits that AI will broaden economic horizons, shifting humans from mundane tasks to unlocking their creative potential.

• For developers, AI’s ability to autonomously write and debug code is rapidly advancing.

• In journalism, AI can produce clear, objective content, moving away from sensationalism.

• AI and robotics are gradually taking over repetitive office and manual labor.

Through this transformation, humanity is poised to tackle more significant challenges in genetic editing, new materials, medical research, and even space exploration.

Privacy and Data: A Blockchain Solution

Addressing privacy concerns, CZ candidly acknowledged the current inadequacies in AI companies’ privacy protocols, where user data often end up in training algorithms and shared with third parties.

• A solution lies in blockchain-based data management, where user information is encrypted and stored on a blockchain, accessible only through one-time authorizations for AI use.

Companies such as Vana are exploring this commercial model, with millions in revenue already being reported, though still in nascent stages.

Embrace AI Early, Don’t Fear It

CZ concluded with a resonant message: “If you don’t use AI, you’re at risk of being replaced by those who do.” He advocated for an early adoption approach to AI, ensuring a competitive edge as it irreversibly transforms every professional landscape.