Binance sees huge potential for using AI within the crypto industry as it shared its views on the current flavor of the month, ChatGPT.
In a recent blog post, Binance outlined AI technology’s importance in optimizing crypto over the coming years.
Binance CEO Changpeng Zhao (CZ) has confirmed previously that it leverages AI within its risk management and customer services departments. However, the crypto behemoth is now advocating for the importance of integrating AI into other areas of the crypto industry, including trading bots, terminals, smart contracts, analyzing market trends, and improving security.
AI in crypto education
Yet, it is the educational aspect of ChatGPT that Binance believes can accelerate crypto adoption imminently.
Unlike typical chatbots, ChatGPT can communicate in a much more advanced manner, allowing users to get clarification on specific terms given in response to a question.
“In crypto adoption, the biggest benefit is how it can be used to answer questions about how to use crypto and the technology behind it…. ChatGPT has the benefit of being able to help clarify concepts in an interactive and conversational manner.”
When used to educate users on complex terms such as ZK-SNARKS or Account Abstraction, ChatGPT excels in helping clarify any aspect of its answers. For example, if its response contains other words that the user is unfamiliar with, they can ask follow-up questions to ensure they have grasped the entire concept.
In contrast, when using Google Search to research a topic, the user is often forced to read through unnecessary content to get to the required parts.
With ChatGPT, users can learn in their own way and continue to ask more questions until they are fully satisfied the concept is understood.
Further, Binance sees the business benefit of AI technology in reducing costs related to customer support, “thereby freeing up staff to focus on more complex tasks.”
AI limitations
Binance sees this method of education as superior to its own Binance Academy, a resource of common crypto concepts and terminology. However, it does note the potential limitations of ChatGPT as “users should be mindful that there are a number of drawbacks.” In addition, Binance believes it is important not to get complacent or “switch off their critical thinking” when using ChatGPT as it “lacks basic common sense.”
“The language model is simply producing outputs based on probability distributions derived from its training and data.”
ChatGPT only has access to data from before 2021 and thus cannot help with new events and innovations within the crypto space. However, it is important to understand and accept this when using a language model like ChatGPT for research and educational purposes.
Beyond education
In addition to optimizing and enhancing the learning experience, Binance sees tools like ChatGPT as integral to those actively building in the crypto space.
“ChatGPT’s versatility has seen more advanced users leverage its abilities to help code trading bots, trading terminals, and even assist with smart contracts.”
Binance sees ChatGPT as supporting “more advanced users” in tasks such as debugging code, improving creativity, and aiding smart contract development.
Given that some crucial smart contracts, such as those used in liquidity pools and bridges, are not upgradeable, there is a critical need for code to be completely bug-free before going into development. Using an AI model like ChatGPT to check smart contracts for bugs could become commonplace to help avoid future hacks and exploits.
Binance further echoed a UBS analyst’s statement to solidify its position on the impact of ChatGPT, “In 20 years following the internet space, we cannot recall a faster ramp in a consumer internet app.”
Mentioned in this article
Liam ‘Akiba’ Wright
Also known as “Akiba,” Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
