Web3 infrastructure can bring new safety and reliability tools to AI, a cycle that will make the intersection of AI and Web3 massively and mutually beneficial, Chainlink scientist Ari Juels and Google AI lead Laurence Moroney write.
Web3 and blockchain technology go far beyond Bitcoin and NFTs. As businesses become more aware of Web3’s possibilities, one feature will play an important role: smart contracts.
Smart contracts enforce an agreement between users in an automated, open and trustworthy way. Written in code and running on-chain, they can be used in place of fragile, high-touch trust relationships requiring extensive paperwork and human ratification.
Ari Juels is the Weill Family Foundation and Joan and Sanford I. Weill Professor at Cornell Tech and Cornell University, co-director of the Initiative for CryptoCurrencies and Contracts (IC3) and chief scientist at Chainlink Labs. He is also author of the 2024 crypto thriller novel "The Oracle."
Laurence Moroney is an award-winning researcher, best-selling author and AI Advocate for Google. He teaches several popular AI courses with Harvard, Coursera and Deeplearning.ai, and is currently working on a Hollywood movie about the intersection of technology and politics.
Expressing agreements in code, though, is a double-edged sword. Raw code — particularly code written in the popular smart-contract language Solidity — lacks the natural language processing capabilities needed to interpret human communication. So it’s no surprise that most smart contracts follow rigid codified rules as used by technical or financial specialists.
Enter large language models (LLMs). We're all familiar with applications like ChatGPT that provide an interface to the underlying intelligence, reasoning and language understanding of an LLM family. Imagine integrating this underlying intelligence with smart contracts! Working together, LLMs and smart contracts could interpret natural-language content such as legal codes or expressions of social norms. This opens a gateway to much smarter smart contracts, powered by AI.
But before jumping on the bandwagon, it's good to explore the challenges at the intersection of smart contracts and AI, particularly in reliability and safety.
2 big challenges: Model uncertainty and adversarial inputs.
When you use an application to chat with an LLM today — such as ChatGPT — you have little transparency about your interactions with the model. The model version can change silently with new training. And your prompts are probably filtered, i.e., modified, behind the scenes — usually to protect the model vendor at the cost of changing your intent. Smart contracts using LLMs will encounter these issues, which violate their basic principle of transparency.
Imagine that Alice sells NFT-based tickets for live concerts. She uses a smart contract powered by an LLM to handle business logistics and interpret instructions such as her cancellation policy: “Cancel at least 30 days in advance for full refund.” This works well at first. But suppose the underlying LLM is updated after being trained on new data — including a patchwork of local laws on event ticketing. The contract might suddenly reject previously valid returns or allow invalid ones without Alice's knowledge! The result: customer confusion and hasty manual intervention by Alice.
See also: Bitcoin Miners May Shift Focus to AI After Halving, CoinShares Says
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