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I'm Ashton Addison from the Crypto Coin Show. And today
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on Blockchain Interviews, we have back with us Ari Trau,
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co-founder of XYO. Last time Ari joined us, we dug
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into XYO Layer 1's major performance upgrades. The chain is
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getting faster and faster about AI, hallucinations, provenance, and ensuring
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accountability in AI as it's growing so quickly.
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It's hard to keep up.
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We want to make sure we're on the right track
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and it's not leading us astray. and where that synergy
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between blockchain and AI can fit in and much, much more. Ari,
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welcome back to the show and thanks for taking the time.
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Oh, thank you, Ashlyn. Thanks for having me on the show.
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Yeah, you're very welcome.
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So I'd love to start off with sort of a
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high level on artificial intelligence. Since we last spoke two
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months ago, it just continues in this exponential growth rate
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that is getting faster and faster beyond PhD level. And
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with that also, I feel like intelligence is being commoditized
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and the cost of it is sort of going to zero.
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It's becoming so accessible even in third world countries. So
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with that happening, what becomes scarce and therefore valuable if
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AI is giving us access to something at.
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Almost no cost?
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Well, it's kind of like the internet, right? When it
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first came out, data was much more accessible and stuff
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like that. Then we find things that are missing that
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we need to do. AI is the same thing. We
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have this raw horsepower now where it's like a really
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sharp knife or a really powerful tool, but still controlling
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that tool can be difficult. And people have shown that
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where if you let AI go off, even that was
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demonstrated with the hugging face hack, for example, where it's like,
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You give it a purpose or a goal and you
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tell it to have at it without any sort of oversight.
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It's extraordinarily good at trying to reach that goal, but
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we have to have tools and harnesses and those sorts
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of things to actually have it do what we want
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it to do or to do something useful. A completely
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uncontrolled or for that reason, just an untrained AI will
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do a lot of work, but get very little productive
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work done potentially at the end of the day. It's
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almost like having a super smart computer a college graduate
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that doesn't really know the world go and crank out
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a bunch of code. If the code doesn't actually work together,
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you end up with a system which is not very maintainable,
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it's not very good, stuff like that. So really figuring
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out how to take something as a super high horsepower
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and make it so it's a tool that can actually
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do something useful and what we want it to do
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is the challenge. And so I think that also redefines
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to some degree where humans fit into that equation. And
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the existential crisis or the existential questions people are trying
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to ask themselves about how the workplace is going to
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evolve from this, what they thought before was the commodity
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which made them valuable no longer is, but now, well,
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what is the new commodity that makes them valuable? Definitely.
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And with that Hugging Face example, we saw an acquisition
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this morning from NVIDIA for almost $ 13 billion acquiring Hugging Face.
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And maybe you can dive into that a little bit
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more because I feel like a lot of people have
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heard the name, but they're not familiar with it, and
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just about open source AI models and how that is
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different and maybe important from the oligarchy of LLMs that
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most people are using.
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Well, the primary importance is sovereignty, really. It's one of
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the things that we talked about in the last show also,
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sovereignty and providence, I think are very important. But to me,
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Sovereignty is something that's important. And one of the things
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you definitely cannot do with most of these frontier models
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is you can't run them on your own hardware and
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you can't run them at home or at an office,
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for example. So I can't go out and buy a
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bunch of H200s, set up a data center or just
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some servers in my office and have my personal cluster
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that's data secure that's running Cloud or ChatGPT's latest models.
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They do that for a few reasons. They want, from
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a business standpoint, they want to be able to make
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money off of the systems. And two, also, it's hard
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to make something that works generically. We've seen this with
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Apple versus Windows, for example. Windows, where you have to
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have a bunch of different drivers for different things, there
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are some costs to that. And having your memory pluggable,
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for example, makes it so it's a little bit slower.
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And with Apple, if you put it all on the
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same board, you have just one configuration. It's a lot
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easier to optimize, but it doesn't give you that flexibility.
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So I think An advantage for the frontier model companies
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is that they're running it on a specific stack of
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hardware that they know, they can control, they can see
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the feedback. And also probably the most important thing for
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them is they get the data from us using it
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to be able to train on and they get that feedback.
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But if everyone was running their own models on their
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own hardware, that doesn't happen, which for many people's minds,
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that's a good thing because I don't want my data
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necessarily to go out there where, you know, if you
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ask the new model of ChatGPT or Cloud, it knows
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something private about me that I accidentally had in a
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chat that it learned from. So there's big differences there,
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but really the big difference is the open source ones
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are able to be downloaded and run locally. Now, granted,
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the bigger ones are, they're going to require 256 gigabytes
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of RAM or more and H200s and a lot of horsepower.
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So your average person on a laptop is not going
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to be able to download those anyway and run them
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for a practical reason, but you can if you want to. Definitely.
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And on that note of, you know, the personal information,
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I saw some updates in, in Claude that it's starting
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to differentiate and say, at least on the front end,
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that it's not saving your personal confidential information. And you can,
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you can change those settings, whether that's happening in the
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backend or not. I don't know if it can be proved.
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Yeah, that's difficult to, to enforce, right? Especially when they
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have a, an agent that's running natively on your computer.
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And even if you're running it in, say, for example,
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a sandbox or on a separate server, you're typing things
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into it that might be company proprietary, might be personal,
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might be those sorts of things. So it's kind of
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a catch-22. For it to be able to do some
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of the fantastic things it can do, it needs to
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have access to information. Like, for example, if you wanted
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to help manage a calendar, it's going to know your calendar.
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It's going to know where you are. And either don't
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do that or do it on your own personal stack
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where you know where the data is going. And so
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I think a lot of companies are looking at that.
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I think they do offer, like the frontier model companies,
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they do offer setups where if you're large enough, and
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by large enough, I mean quite large enough, they'll set
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up an enterprise setup for you that runs your frontier
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models in a data center, which is isolated from the
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rest of the system and doesn't trade off of that.
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But to your point, though, it's, you know, they say
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they don't do this and they say they don't do that.
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It's definitely a won't and a can't. And that's one
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of the things that I think fascinates me about a
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lot of cryptographic security and blockchain and that sort of
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a thing where there's a big difference between won't and can't. Like,
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for example, it's not like the Bitcoin Foundation is saying
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we won't take Satoshi's funds out of his wallet. They're
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saying we can't because they don't have the key for it.
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And can't is something which is not negotiable where... won't
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is something which is negotiable or potentially fallible. Definitely.
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And what are your thoughts on the frontier models?
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I've been reading about the.
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Recursive improvements where the models are making themselves better and
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the open source models seem to be a little bit behind.
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And as you're saying, if you want to run the
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frontier models on the centralized versions, you need a lot
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of horsepower, you need warehouses of graphics cards. But there's
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been a discussion around slowing down the frontier models because
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of safety reasons and other reasons. And maybe the open
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source won't catch up, but do you see potential issues
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or a need to slow down the frontier models that
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are growing so fast?
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Well, I don't think you really can. You can say, well,
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we want to slow down the frontier models, but there's
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always going to be somebody doing something that's not necessarily
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in a certain... you know, location. Like, you know, for example, CRISPR,
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I'm sure we can make laws in states or in
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the United States for that reason about what can or
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can't be done with CRISPR, but I'm sure somebody finds
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someplace on earth to go and do things which are
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not so great for CRISPR. So I think the argument
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is always that the best way for us to defend
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against misuse of AI is to have our own personal
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powerful AI that basically can help us defend ourselves against that.
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and have its goal be secure the user or make
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the user happy, as opposed to its goal being survival,
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for example. And so I think we have to make
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sure that those frontier models, assuming that they're companies or
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they're structures that we trust, and that's kind of the
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hard part where it's like, well, do we trust OpenAI?
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Do we trust Anthropic? Do we trust X? Do we
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trust all these different companies? And I think Meta actually
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came up with a pretty good 1.3 version of their
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model recently to kind of close the gap to the
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frontier models as well. So we have a fourth one there. Now, granted,
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they have some sort of history as far as data retention.
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So there's some questions for them there already. But it's
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easier to trust those guys than it is to trust
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somebody who you've never heard of before or somebody who's
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in a jurisdiction which you can't control at all. And
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so I think slowing them down is probably a mistake
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because of the fact that all we're doing is hamstringing
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ourselves to a large degree. It's kind of like saying, well,
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We don't want advanced weapons, so we're going to slow
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down our own advanced weapons growth, right? Well, that doesn't
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mean that the other guy's going to slow down his
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weapons growth, right? Yeah, definitely.
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And on the notion of trust with the information. that
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we're putting in, whether it's personal information or just anything
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that we're typing in and receiving information back from these LLMs,
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what aspects does blockchain fit in that? And can it
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improve the trust in what XYO is working on in
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ensuring not just hallucinations, but overall the validity of the
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conversation and the information that you're working with on AI?
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Well, we just recently announced and we're launching this thing
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called CryptoCards, which is a great demonstration app in partnership
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with Gate. And Gate has this, Gate.ai, which is their
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AI offering along with their crypto stuff. And what we're
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doing there is kind of demonstrating exactly what you're talking
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about there. Well, how does that integrate and how do
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we use cryptographic sovereignty and provenance, especially with X, Y,
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O and X, Y, O layer one to basically make
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the use of AI a little bit more secure and
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a little bit better. And what we do there basically
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is we use transparency. So I've always been a fan
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of transparency as security where, like for example, a troll
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on social media, if they had to go and put
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their actual identity next to the thing that they said,
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they'd probably think twice about what they said, right? And so,
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for example, if we have an AI that's running and
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that AI is controlled by a certain entity, if you
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have transparency and an audit log of what it did
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and who actually did it and controlled that, A, the
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repercussions could be more easily followed through on because you
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can say, well, we know who did this and we
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can go and make them stop or ask them to
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stop doing that or whatever it is. Or if it's
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a bug, for example, we can go and repair it.
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And so really what we do is we focus on
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those audit logs. When a game, for example, in crypto
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cards happens, what we do is we record all the
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provenance of the original hand, which model was used, what
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the prompts were for it, and those sorts of things.
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We store those in a data lake and then put
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those hashes on chain. So that way later on, you
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can go look at that and you can review exactly
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what happened and potentially see, you know, if you run
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that same game with a different model, what would happen
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and those sorts of things. So really having that layer
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of transparency and transparency the ability to go and see
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an audit log of what happened is important. Definitely.
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I agree. And I did see that announcement. Congratulations.
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I do like Gate and their AI offerings as well.
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And I'm excited to see the first hands following along
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with that for the game. With that established as a foundation,
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how do you see the next steps beyond that in
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establishing this trust and validity to more business use cases
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outside of crypto as well, but things where there's more
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at stake than just a game.
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The next steps for applying this to other uses are
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things like robotics, for example. What did the robot actually do?
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Or anywhere where it matters. And in the game, for example,
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the next step there also could be if the game
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has high scores and there's a prize for high scores, then, well,
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how do we know this was actually done legitimately? Or
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how did we know that the house actually did not
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put their their hand in after the fact. So did
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the person go and have the opportunity to see the
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market data in crypto cards prior to playing, or did
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they put their hand in prior to the start of
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the game? So for example, you have to put a
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00:13:27.840 --> 00:13:30.399
hash in that's your play for your hands prior to
256
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the game starting, and then the game starts. And so
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I can't, you know, at the end of the game say,
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oh no, this is the hand that I used that
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basically would have won the game and here it is.
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Trust me, I didn't cheat. Where if you had to
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put the hash in prior to the game starting, the
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hand which you reveal has already been locked in basically.
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So you can't change it as opposed to won't change it.
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So that really gets back to the can't versus won't
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question where we really try to add can't to AI
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as opposed to won't to AI. Now back to a
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point that I hear all the time is people say, well,
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there's these settings that says that, you know, AI won't
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do this on your computer, or it won't do this
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with your data, or, you know, it won't delete your
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things or whatever. It's like, well, won't won't is kind
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of scary. Can't is a lot better.
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Yeah, it would be, uh, well, I, you know, there
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are some permissions that you have to allow. Um, but
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it's sort of like terms and conditions. People just don't
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read it. They just click allow all, and then eventually.
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It starts deleting things that you forgot about the terms
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and conditions from last year.
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Now it can do whatever it wants.
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And it keeps enroaching closer and closer to taking over
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all of your stuff.
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Well, also, it's much more easy to use AI power
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if you give it more ability to do that right.
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Because what happens is, this happened to me when I
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first started using it, where I I want to say
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yes to every single prompt, which is yes just once,
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yes just once. But then I found myself basically not
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really saving much time because all I'm doing is sitting
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there reviewing what it does and saying yes or no
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and me basically being the guardian. And so for me
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to be able to have an agentic experience as opposed
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to a prompt by prompt experience, I need to have
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enough rights so it can go and do things and
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try things and those sorts of things. without me being interrupted,
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especially if I have like 10 of these going at
296
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the same time. I just don't have enough bandwidth to
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be able to go and review all the prompts for
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every single one of those 10 agents. So getting that
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00:15:28.789 --> 00:15:35.570
right balance of fluidity for your AI usage with security
300
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is difficult. But at the same time, I think transparency
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of what actually happened is very important. And they do
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keep logs inside of most of these tools that you
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00:15:44.049 --> 00:15:46.190
can go and look at, which is nice. Because I've
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00:15:46.230 --> 00:15:49.610
had where one agent complains that something changed in this repo,
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00:15:49.629 --> 00:15:51.710
for example, because I have a different agent that's doing
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00:15:51.730 --> 00:15:53.929
something there at the same time. But if they could
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more easily communicate and see, okay, well, these are the
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00:15:56.379 --> 00:15:57.919
things this guy changed, these are the things that those
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00:15:57.960 --> 00:16:00.559
guys changed, and somehow negotiate what's going on. You can
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use work trees, for example, to do that. And GitHub,
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to a large degree, is one of those solutions of
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how do you actually store things, they hash what's on
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GitHub and see what happens. And it has a history
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00:16:11.990 --> 00:16:14.570
there as well. So GitHub is like a Web2 version
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of Providence in many ways.
316
00:16:18.289 --> 00:16:21.710
You mentioned the difference between.
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00:16:23.529 --> 00:16:26.990
Ensuring the validity of data and then of actions, especially
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00:16:27.009 --> 00:16:29.450
when there's money at stake. When the game is a
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00:16:29.490 --> 00:16:33.549
high stakes game and there's money to be earned, or there's,
320
00:16:33.809 --> 00:16:38.090
for example, an AI training program that's out and it's
321
00:16:38.129 --> 00:16:43.500
meant for humans to enter information and they get a reward.
322
00:16:43.580 --> 00:16:46.019
Maybe it's a small reward. Maybe it's, maybe it's big.
323
00:16:46.940 --> 00:16:52.279
How do we prove the authenticity of making sure they
324
00:16:52.299 --> 00:16:55.350
don't cheat? Is there a difference between proving the validity
325
00:16:55.389 --> 00:16:59.309
of data and of actions to prove something was done
326
00:16:59.330 --> 00:16:59.870
at the right time?
327
00:17:01.909 --> 00:17:05.000
Well, the, the goal in most, um, cases is to
328
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try to use the laws of physics to prevent cheating.
329
00:17:08.630 --> 00:17:11.190
So for example, if you have a piece of paper
330
00:17:11.210 --> 00:17:12.329
and you say, well, write your answer on the piece
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00:17:12.369 --> 00:17:14.150
of paper and then put it face down and I
332
00:17:14.589 --> 00:17:17.289
do the same thing. And then maybe I changed the
333
00:17:17.369 --> 00:17:19.430
answer or maybe I got a separate piece of paper
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00:17:19.490 --> 00:17:21.980
or it's hard to say where. If we use hashes,
335
00:17:22.019 --> 00:17:24.400
for example, and we say, well, hash your data and
336
00:17:24.420 --> 00:17:29.369
put that on the ledger, That's there forever. I can't,
337
00:17:29.750 --> 00:17:31.369
the laws of physics are that I can't go back
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00:17:31.410 --> 00:17:34.349
in time and, and change that. And so I've declared
339
00:17:34.390 --> 00:17:36.990
that prior to a certain point of what that answer is. Now,
340
00:17:37.170 --> 00:17:39.829
if it's traditional things to say, well, you write down
341
00:17:39.869 --> 00:17:41.509
your answer. I wrote down my answer. We both give
342
00:17:41.529 --> 00:17:44.130
them to the arbiter of the game. They can go
343
00:17:44.150 --> 00:17:45.670
look at those and they know what the answers are,
344
00:17:46.019 --> 00:17:48.220
but in theory they could be compromised or cheating as well.
345
00:17:48.240 --> 00:17:49.420
And that sort of thing. But the thing which is
346
00:17:49.480 --> 00:17:52.039
nice about a system like X by O layer one
347
00:17:52.819 --> 00:17:57.529
is that we can basically store data. hash in its
348
00:17:57.549 --> 00:18:01.630
provenance without having the data. So what happens is you
349
00:18:01.670 --> 00:18:03.869
hash it, you keep it, you don't give it to anybody.
350
00:18:04.029 --> 00:18:06.390
You give us the hash, we store that. Now, at
351
00:18:06.410 --> 00:18:08.430
the end of the game, you have two choices. Either
352
00:18:08.450 --> 00:18:11.690
you reveal your hand and it matches that hash and
353
00:18:11.710 --> 00:18:14.259
then you play that hand. Or if you want, kind
354
00:18:14.279 --> 00:18:15.539
of like in poker, you can say, well, I'm not
355
00:18:15.559 --> 00:18:17.160
even going to reveal my hand. I'm going to just
356
00:18:17.200 --> 00:18:19.680
muck these cards and throw them away. And at that
357
00:18:19.720 --> 00:18:21.140
point in time, we don't know what your hand was,
358
00:18:21.220 --> 00:18:24.079
but you just you lose by default because you decided
359
00:18:24.140 --> 00:18:26.980
not to reveal. So the one option that's not available
360
00:18:27.000 --> 00:18:29.200
to use, you can't reveal a hand that you didn't play.
361
00:18:30.609 --> 00:18:34.789
So that basically uses time and physics to prevent that.
362
00:18:34.890 --> 00:18:37.869
And so unless you make something which is like physically impossible,
363
00:18:37.970 --> 00:18:39.369
it's kind of like a zero knowledge proof. A zero
364
00:18:39.410 --> 00:18:41.190
knowledge proof just uses math to make it so that
365
00:18:41.309 --> 00:18:44.450
it's perfect. And X, Y, O layer one basically uses
366
00:18:45.349 --> 00:18:50.970
time in many cases to store information about information it
367
00:18:50.990 --> 00:18:54.700
doesn't even have. And so that's what makes it impossible
368
00:18:54.720 --> 00:18:56.529
for a person to cheat there. So even if I
369
00:18:56.549 --> 00:18:57.869
have a log, let's say, for example, I have an
370
00:18:57.890 --> 00:19:00.589
audit log, I can have 10 gigabytes of audit log
371
00:19:00.609 --> 00:19:02.599
that's in a database or a data lake in our case.
372
00:19:03.119 --> 00:19:05.809
If I put that hash in there, Unless I provide
373
00:19:05.859 --> 00:19:09.220
that entire log, I haven't provided the log. So a
374
00:19:09.259 --> 00:19:11.579
person could say, well, I deleted the log and I'm
375
00:19:11.599 --> 00:19:12.799
not going to provide it to you. But then we
376
00:19:12.819 --> 00:19:15.839
assume that they cheated. It's kind of like the IRS
377
00:19:15.859 --> 00:19:17.519
coming to you and asking for your receipts. And you're like, well,
378
00:19:17.539 --> 00:19:18.920
I don't have any receipts at all. It's like, well,
379
00:19:19.440 --> 00:19:20.920
that's a problem for you. But if you can prove
380
00:19:20.940 --> 00:19:26.549
the receipts, then they're there. Say, for example, in tax filing,
381
00:19:26.569 --> 00:19:30.480
if I could hash all my receipts, send that hash
382
00:19:30.559 --> 00:19:32.839
to the IRS. And then when they come and ask
383
00:19:32.880 --> 00:19:34.880
me for my receipts, I can prove that the receipts
384
00:19:34.920 --> 00:19:37.819
I use are this hash that would carry more weight
385
00:19:37.859 --> 00:19:40.140
than it's like, Hmm, maybe I, you know, I had
386
00:19:40.160 --> 00:19:42.700
these receipts or I didn't have those receipts. So it's,
387
00:19:45.079 --> 00:19:49.200
important to use things which humans can't affect to make
388
00:19:49.220 --> 00:19:51.539
a can't as opposed to a won't. Definitely.
389
00:19:51.660 --> 00:19:55.700
And in this case, it's a beautiful use case for
390
00:19:55.740 --> 00:19:58.349
blockchain in that it is that piece of paper you
391
00:19:58.369 --> 00:20:00.140
write on before, but you can't change it.
392
00:20:00.609 --> 00:20:01.450
You can't swap it out.
393
00:20:02.150 --> 00:20:08.150
And physics and time really puts blockchain in the perfect
394
00:20:08.190 --> 00:20:12.160
place to support AI. But you said in the past
395
00:20:12.240 --> 00:20:14.799
that not everything should be on blockchain, and that's what
396
00:20:14.819 --> 00:20:16.460
the use case of the hash is.
397
00:20:17.319 --> 00:20:18.079
Could you.
398
00:20:19.480 --> 00:20:23.369
Explain the difference in what is important? Is it just
399
00:20:23.390 --> 00:20:25.289
the hash of the information.
400
00:20:24.869 --> 00:20:25.910
That needs to be on the blockchain?
401
00:20:25.930 --> 00:20:28.549
And what else should be on the blockchain and what
402
00:20:28.609 --> 00:20:29.390
definitely shouldn't be?
403
00:20:31.029 --> 00:20:33.529
Well, it's definitely important to minimize the size of the
404
00:20:33.549 --> 00:20:35.619
blockchain because one of the problems that Ethereum has is
405
00:20:35.759 --> 00:20:37.759
everything is on the blockchain. So you end up with
406
00:20:37.779 --> 00:20:40.920
a very, very large shared hard drive base that everybody has.
407
00:20:41.339 --> 00:20:43.640
Every blockchain has that to some degree, but you want
408
00:20:43.660 --> 00:20:46.079
to minimize what those are. We call them elevated payloads
409
00:20:46.119 --> 00:20:48.460
where the elevated payloads actually go on chain and they
410
00:20:48.480 --> 00:20:50.460
have to be there and they get validated. But then
411
00:20:50.500 --> 00:20:52.559
the non-elevated payloads are things that are in data lakes.
412
00:20:52.579 --> 00:20:54.519
So for example, if I want to take a movie
413
00:20:54.599 --> 00:20:56.720
and hash that movie, I can store that in the
414
00:20:56.769 --> 00:20:58.589
data lake or I can store it somewhere else and
415
00:20:58.750 --> 00:21:02.109
put the hash on chain. The downside of that is
416
00:21:02.390 --> 00:21:04.589
it's loss is losable as far as I can, I
417
00:21:04.630 --> 00:21:08.009
can lose that, that data. And so people, when they
418
00:21:08.029 --> 00:21:10.529
hear the word permanence, for example, we talk about, um,
419
00:21:10.910 --> 00:21:14.750
ex bio layer one provides permanence. There's two definitions of
420
00:21:14.789 --> 00:21:17.349
permanence that I think are important to differentiate. One is
421
00:21:18.049 --> 00:21:20.569
it can't be lost, which is often what people think
422
00:21:20.609 --> 00:21:24.880
of permanence. And one is it can't be changed. Refocus
423
00:21:24.900 --> 00:21:27.740
on the second one. It can't be changed. So I
424
00:21:27.819 --> 00:21:30.579
permanently locked in my hand that I played, for example,
425
00:21:30.759 --> 00:21:35.250
is permanence. I permanently put my hand on Ethereum's blockchain,
426
00:21:35.309 --> 00:21:38.970
so I can't lose it is also permanence, but the
427
00:21:39.130 --> 00:21:41.690
different permanence. So the permanence of I can't lose it
428
00:21:41.730 --> 00:21:44.990
is very expensive. The permanence of I can't change it
429
00:21:45.069 --> 00:21:47.359
can be very inexpensive. It's just one hash basically for
430
00:21:47.390 --> 00:21:50.200
as much data as you want to. So we really
431
00:21:50.440 --> 00:21:53.910
try to tailor X by layer one to be as
432
00:21:54.049 --> 00:21:58.210
optimal as possible, which does make it much better for
433
00:21:58.250 --> 00:22:00.549
certain use cases and also makes it not possible necessarily
434
00:22:00.589 --> 00:22:02.069
for other use cases. So if you have to have
435
00:22:02.089 --> 00:22:06.710
your data not losable, that's something which is not really
436
00:22:06.779 --> 00:22:08.640
practical for X, Y, O layer one. But I would
437
00:22:08.660 --> 00:22:10.660
also argue that it's not really practical for anything that's
438
00:22:10.740 --> 00:22:15.380
out there because things can still get lost. Definitely.
439
00:22:15.980 --> 00:22:20.170
Yeah. especially those private keys from Bitcoin back in 2010.
440
00:22:20.170 --> 00:22:25.630
I wish we had those. What are your thoughts on
441
00:22:25.869 --> 00:22:29.309
how much focus there is on the synergy of AI
442
00:22:29.390 --> 00:22:34.410
and blockchain throughout the blockchain industry? I know there's a
443
00:22:34.789 --> 00:22:38.180
couple of protocols that are focused on decentralized AI and
444
00:22:38.460 --> 00:22:40.980
improving AI. I feel like a lot of the focus
445
00:22:41.019 --> 00:22:43.920
is on finance, which is important, of course, and an
446
00:22:43.980 --> 00:22:44.599
early use case.
447
00:22:44.759 --> 00:22:45.750
But maybe there's not.
448
00:22:45.730 --> 00:22:50.750
Enough discussion going on right now in understanding how important
449
00:22:50.789 --> 00:22:53.589
blockchain is to building up AI properly.
450
00:22:54.849 --> 00:22:57.329
Well, I think it's kind of an interesting situation. This
451
00:22:57.390 --> 00:23:00.099
comes along every few years where people are like, oh,
452
00:23:00.150 --> 00:23:02.619
AI is a hard word and blockchain is a hard word.
453
00:23:03.000 --> 00:23:04.200
Let's put them together and put them in a pitch
454
00:23:04.240 --> 00:23:07.720
deck and see what happens, right? So I think often
455
00:23:07.819 --> 00:23:12.079
you'll see more projects that are trying to merge them.
456
00:23:12.200 --> 00:23:16.309
And in some cases, it's just like have a AI
457
00:23:16.329 --> 00:23:18.789
bridge or some sort of AI router, for example, that
458
00:23:18.910 --> 00:23:21.549
uses blockchain. And it's, well, how is it better with
459
00:23:21.569 --> 00:23:23.970
blockchain in that case? So you always have to ask,
460
00:23:23.990 --> 00:23:26.630
you know, is it better if you combine these two
461
00:23:26.670 --> 00:23:29.559
things or is it not better? And I'd say in
462
00:23:29.619 --> 00:23:33.279
most cases, it may not be better necessarily. It's just fuzzy.
463
00:23:33.640 --> 00:23:36.980
It's not better. But in many cases, like in that
464
00:23:37.019 --> 00:23:40.720
layer one case, I think there's a distinct usage for
465
00:23:40.789 --> 00:23:43.500
it and a way to make the system better. where
466
00:23:44.099 --> 00:23:48.759
if I could have a provable history of say robots
467
00:23:48.900 --> 00:23:53.440
or autonomous hardware that's running around, especially if they can
468
00:23:53.980 --> 00:23:56.369
check in with each other, cosign things and then put
469
00:23:56.390 --> 00:23:59.069
those on the blockchain, I can see where these items were.
470
00:23:59.470 --> 00:24:01.609
And in a weird sort of way, it's almost like
471
00:24:01.630 --> 00:24:04.910
a real life version of our coin app where having
472
00:24:04.930 --> 00:24:10.390
these things check in autonomously into the blockchain allows you
473
00:24:10.650 --> 00:24:13.789
to see what actually happened in the real world, because
474
00:24:13.809 --> 00:24:14.609
I think it's going to be one of the, one
475
00:24:14.619 --> 00:24:17.690
of the difficulties is going to be, well, you know,
476
00:24:17.730 --> 00:24:20.130
something bad happened. Um, was it my robot that did it?
477
00:24:20.150 --> 00:24:21.849
Was it your robot that did it? Was it, yeah,
478
00:24:22.349 --> 00:24:24.369
it was on purpose. Was it by accident? And if,
479
00:24:24.549 --> 00:24:26.250
you know, having audit logs for those things that are
480
00:24:26.269 --> 00:24:30.849
constantly being stored and also constantly being, um, like bookmarked
481
00:24:30.910 --> 00:24:33.250
on an X by layer one system, we'll make it
482
00:24:33.289 --> 00:24:35.170
so that we can go back in time and we
483
00:24:35.190 --> 00:24:38.059
can at least, um, find some sort of direction for
484
00:24:38.079 --> 00:24:41.549
where it is. And so, an actual solution for an
485
00:24:41.650 --> 00:24:45.529
actual problem is important to have. And so I think
486
00:24:46.490 --> 00:24:51.150
some cases where we see that synergy, that's not the case.
487
00:24:51.190 --> 00:24:54.809
In some cases, it's extremely true to be the case.
488
00:24:54.869 --> 00:24:59.839
And so I think there's probably more place for blockchain
489
00:25:00.430 --> 00:25:03.640
in AI or in the world now with AI around
490
00:25:03.680 --> 00:25:06.400
than there was before, just because it's a natural fit.
491
00:25:08.220 --> 00:25:08.619
I agree.
492
00:25:08.660 --> 00:25:10.660
I'm looking forward to seeing it more And I think
493
00:25:10.740 --> 00:25:15.420
another major synergy we haven't spoken about yet is not
494
00:25:15.460 --> 00:25:19.359
just AI and the data provenance of blockchain, but the
495
00:25:19.400 --> 00:25:24.130
payments and the wallets of AI agents or humanoid robots
496
00:25:24.250 --> 00:25:26.970
or self-driving cars and things like that. Is there a
497
00:25:27.009 --> 00:25:34.009
plan for XYO to extend beyond data to ensuring the
498
00:25:34.049 --> 00:25:38.130
validity of payments or the success in having that infrastructure expanded?
499
00:25:38.470 --> 00:25:41.690
in there as robots start interacting and paying on our
500
00:25:41.730 --> 00:25:42.849
behalf or paying each other?
501
00:25:42.869 --> 00:25:47.210
Well, we're looking more at facilitating payments as opposed to
502
00:25:47.289 --> 00:25:50.349
validating other people's payments. So for example, one of the
503
00:25:50.369 --> 00:25:53.910
things which we built into CryptoCards that's not really that
504
00:25:53.970 --> 00:25:55.250
easy to see unless you go and look at the
505
00:25:55.269 --> 00:25:58.170
blockchain and understand it is we have an eventing system
506
00:25:58.210 --> 00:26:01.019
where basically on our blockchain, a person can go and
507
00:26:01.380 --> 00:26:05.440
register for an event by assigning a payload with their address.
508
00:26:06.019 --> 00:26:08.880
And then the eventing server will start sending those events
509
00:26:08.920 --> 00:26:12.900
to you through like a webhook, for example. And then
510
00:26:14.220 --> 00:26:15.750
it can stop when you stop paying for that. But
511
00:26:15.769 --> 00:26:16.869
what you can do is you can say, well, I
512
00:26:16.910 --> 00:26:19.750
want to get this event for the next, say, 1,000 blocks.
513
00:26:20.410 --> 00:26:22.769
And I'm going to pay 3XL1 to get those events
514
00:26:22.829 --> 00:26:26.490
or a certain amount per event. So the actual payment
515
00:26:26.750 --> 00:26:31.970
of microservices, I mean like micro-microservices, like nano-services, is something
516
00:26:31.990 --> 00:26:33.470
which I think is going to become much more prevalent
517
00:26:33.509 --> 00:26:38.380
where A robot or AI might be like, hey, I
518
00:26:38.420 --> 00:26:42.759
want to know for the next two minutes, when does
519
00:26:42.819 --> 00:26:45.299
a new block appear on X by layer one? And
520
00:26:45.319 --> 00:26:47.319
I want to get those events pretty frequently for the
521
00:26:47.339 --> 00:26:49.109
next two minutes and then stop. But I don't want
522
00:26:49.119 --> 00:26:52.289
to go and have to create an account with a
523
00:26:52.329 --> 00:26:54.390
credit card and that sort of thing to be able
524
00:26:54.410 --> 00:26:57.049
to use the API for whatever it is. And so
525
00:26:57.150 --> 00:27:01.089
I think real-time ad hoc usage of services that get
526
00:27:01.170 --> 00:27:04.069
paid for via blockchain payments in a very, very efficient
527
00:27:04.150 --> 00:27:06.960
way is going to be extremely important for AI and
528
00:27:07.079 --> 00:27:10.420
for robotics because of the fact that they need a
529
00:27:10.460 --> 00:27:15.259
very broad spectrum of access to things. And they need
530
00:27:15.279 --> 00:27:16.859
to be able to pay for those things efficiently and
531
00:27:16.880 --> 00:27:19.660
to authenticate for them efficiently without having to go through
532
00:27:19.819 --> 00:27:23.380
all the pomp and ceremony of credit cards and accounts
533
00:27:23.529 --> 00:27:25.390
and logins. Definitely.
534
00:27:25.509 --> 00:27:27.069
And micropayments has been a.
535
00:27:28.710 --> 00:27:32.589
Supposed use case of blockchain for many, many years, but
536
00:27:32.710 --> 00:27:35.190
we haven't really seen it. at least in real world payments.
537
00:27:35.269 --> 00:27:39.250
But now with AI and token usage, we're starting to see.
538
00:27:39.849 --> 00:27:42.069
Every word is a micro cent.
539
00:27:42.210 --> 00:27:46.450
And that seems like the perfect use case for micropayments.
540
00:27:46.490 --> 00:27:49.230
We're still putting your credit card into the AI and
541
00:27:49.269 --> 00:27:52.670
just preloading it. But I feel like there's a perfect
542
00:27:52.970 --> 00:27:56.400
use case for micropayments on blockchain with AI. It's like
543
00:27:56.500 --> 00:27:58.900
the number one use case that's now coming to light.
544
00:28:00.210 --> 00:28:01.809
I thought it was actually kind of funny when they
545
00:28:02.109 --> 00:28:04.450
came out with the AI thing and called it tokens.
546
00:28:04.569 --> 00:28:06.410
It's like, how many tokens in, how many tokens out?
547
00:28:06.430 --> 00:28:08.470
I'm like, well, I've heard the word tokens before. It's
548
00:28:08.650 --> 00:28:12.450
an ERC-20 token. So they're kind of modeling that to
549
00:28:12.490 --> 00:28:17.180
some degree where it's a token economy. I'm surprised they
550
00:28:17.200 --> 00:28:20.720
haven't said yet, well, I'll pay you in 500 Claude
551
00:28:22.019 --> 00:28:23.720
tokens and I'll use that as money to pay you
552
00:28:23.740 --> 00:28:25.519
with or something like that. But there's no way for
553
00:28:25.539 --> 00:28:28.299
me to actually transfer tokens from one account to another
554
00:28:28.319 --> 00:28:31.720
account on Claude before they know. But there's nothing saying
555
00:28:31.759 --> 00:28:36.720
that I can't use their tokens as a payment method.
556
00:28:36.759 --> 00:28:40.359
But I think definitely using blockchain as a way to
557
00:28:40.519 --> 00:28:45.740
autonomously give tokens, for example, to an agent for its use.
558
00:28:46.539 --> 00:28:49.299
is something which we're going to be doing very often
559
00:28:49.440 --> 00:28:51.329
in the near future, as opposed to saying, well, here's
560
00:28:51.369 --> 00:28:54.029
my login for my cloud account, use as many tokens
561
00:28:54.089 --> 00:28:55.970
as you want. That's a little scary, where if I
562
00:28:56.009 --> 00:28:59.069
can give it an allowance with a blockchain system, it's
563
00:28:59.109 --> 00:29:00.829
something which I think people would definitely want to use.
564
00:29:00.890 --> 00:29:05.880
But the token economy is something which I think will
565
00:29:05.940 --> 00:29:08.759
blossom a lot under AI, just because AI is so
566
00:29:08.779 --> 00:29:10.700
much more fragmented in the way that it uses the world,
567
00:29:10.720 --> 00:29:12.609
as opposed to a human where it's like, well, I
568
00:29:12.630 --> 00:29:15.630
don't want to do a microtransaction for every single bite
569
00:29:15.670 --> 00:29:17.660
of food that I eat at a restaurant, for example,
570
00:29:17.740 --> 00:29:20.259
or for every minute of the movie that I watch.
571
00:29:20.660 --> 00:29:22.500
I want to just get the whole movie. And so
572
00:29:22.700 --> 00:29:25.579
microtransactions have kind of, I think, failed to this point
573
00:29:26.079 --> 00:29:29.039
with blockchain for those two reasons. One, it's just the
574
00:29:29.059 --> 00:29:31.589
gas cost for Bitcoin and for Ethereum is way too expensive.
575
00:29:32.049 --> 00:29:36.740
But two, it's humans don't think in those micro steps
576
00:29:37.099 --> 00:29:38.259
the way that AI can.
577
00:29:39.240 --> 00:29:42.759
Yeah, no, that makes perfect sense. And, you know, it's
578
00:29:42.799 --> 00:29:44.819
two months since our last video. I would love to
579
00:29:44.859 --> 00:29:46.779
get you back on once more at the end of
580
00:29:46.819 --> 00:29:49.730
the year and see what Q4 has in store for
581
00:29:49.789 --> 00:29:52.869
the growth of AI. It's just getting faster and faster,
582
00:29:52.930 --> 00:29:55.470
as well as blockchain now kicking back up, not just
583
00:29:56.190 --> 00:29:59.190
the development of blockchains and you know, X, Y, O
584
00:29:59.190 --> 00:30:00.740
layer one is developing super fast.
585
00:30:00.839 --> 00:30:03.480
I understand using AI, but also the prices are going
586
00:30:03.519 --> 00:30:03.839
back up.
587
00:30:03.859 --> 00:30:06.299
So people are getting more interested and more people are
588
00:30:06.319 --> 00:30:10.460
looking at different ways that these two technologies can synergize together.
589
00:30:11.049 --> 00:30:14.049
What is some of the most important things that are
590
00:30:14.089 --> 00:30:16.289
happening at X, Y, O between now and the end
591
00:30:16.329 --> 00:30:18.170
of the year that we may have to look forward to?
592
00:30:19.609 --> 00:30:21.650
Well, it kind of says something interesting there, which I
593
00:30:21.690 --> 00:30:25.099
think is very appropriate for thinking about AI in the
594
00:30:25.140 --> 00:30:27.420
context of X, Y, O layer one. Well, we use
595
00:30:27.460 --> 00:30:29.720
AI in two different ways. One is we use AI
596
00:30:29.759 --> 00:30:32.660
to develop and to accelerate how fast we can do
597
00:30:32.700 --> 00:30:35.329
really cool things and make new products with X, Y,
598
00:30:35.380 --> 00:30:37.880
O layer one. So AI as a tool for us
599
00:30:37.920 --> 00:30:41.420
has been fantastic. And we've really dove into that, made
600
00:30:41.440 --> 00:30:44.069
a bunch of skills and that we use ourselves, we
601
00:30:44.109 --> 00:30:45.880
share with our partners and they can use the skills
602
00:30:45.940 --> 00:30:49.089
as well. And then also we prioritize AI things. Kind
603
00:30:49.109 --> 00:30:51.849
of the crypto cards is that where the house, which
604
00:30:51.970 --> 00:30:55.369
plays the hand of crypto cards uses AI the AI
605
00:30:55.450 --> 00:30:58.390
from gate, for example, in this case, to actually decide, well,
606
00:30:58.430 --> 00:31:00.740
how should I play that? And so prioritizing AI is
607
00:31:00.779 --> 00:31:02.099
the other aspect of it. Well, how do you use
608
00:31:02.220 --> 00:31:05.539
AI as a feature in the product that you want
609
00:31:05.579 --> 00:31:08.039
to use? And so we're really focusing on both of those.
610
00:31:08.079 --> 00:31:10.920
We're focusing on using AI as a tool to accelerate
611
00:31:10.980 --> 00:31:14.529
ourselves and reusing AI as a feature that we can
612
00:31:14.609 --> 00:31:17.630
use in our products and in different things and interlacing
613
00:31:17.670 --> 00:31:23.069
those features with hashes and with provenance and sovereignty through X, Y,
614
00:31:23.109 --> 00:31:23.589
or layer one.
615
00:31:25.579 --> 00:31:28.380
I'm definitely going to test out these crypto card first hands.
616
00:31:28.500 --> 00:31:29.299
I saw the announcement.
617
00:31:29.920 --> 00:31:32.900
I'm subscribed to when the first hands go live. I'll
618
00:31:32.940 --> 00:31:34.779
put it in the show notes below because we've mentioned
619
00:31:34.799 --> 00:31:38.410
it quite a bit. I appreciate your insights into everything AI.
620
00:31:38.470 --> 00:31:42.089
You're such a smart brain. And I'm looking forward to
621
00:31:42.630 --> 00:31:44.450
talking with you again in the near future. Thank you
622
00:31:44.470 --> 00:31:45.410
so much for the time, Ari.
623
00:31:46.289 --> 00:31:47.490
I appreciate it. Thanks so much for having me on.
1
00:00:00.320 --> 00:00:02.669
I'm Ashton Addison from the Crypto Coin Show. And today
2
00:00:02.730 --> 00:00:05.610
on Blockchain Interviews, we have back with us Ari Trau,
3
00:00:05.750 --> 00:00:09.189
co-founder of XYO. Last time Ari joined us, we dug
4
00:00:09.289 --> 00:00:14.939
into XYO Layer 1's major performance upgrades. The chain is
5
00:00:15.130 --> 00:00:20.399
getting faster and faster about AI, hallucinations, provenance, and ensuring
6
00:00:20.460 --> 00:00:23.920
accountability in AI as it's growing so quickly.
7
00:00:24.320 --> 00:00:25.100
It's hard to keep up.
8
00:00:25.160 --> 00:00:27.120
We want to make sure we're on the right track
9
00:00:27.800 --> 00:00:30.750
and it's not leading us astray. and where that synergy
10
00:00:30.789 --> 00:00:35.490
between blockchain and AI can fit in and much, much more. Ari,
11
00:00:35.509 --> 00:00:37.509
welcome back to the show and thanks for taking the time.
12
00:00:37.530 --> 00:00:39.969
Oh, thank you, Ashlyn. Thanks for having me on the show.
13
00:00:40.450 --> 00:00:41.329
Yeah, you're very welcome.
14
00:00:42.090 --> 00:00:44.030
So I'd love to start off with sort of a
15
00:00:44.030 --> 00:00:47.929
high level on artificial intelligence. Since we last spoke two
16
00:00:47.969 --> 00:00:53.109
months ago, it just continues in this exponential growth rate
17
00:00:53.649 --> 00:00:57.979
that is getting faster and faster beyond PhD level. And
18
00:00:58.520 --> 00:01:02.740
with that also, I feel like intelligence is being commoditized
19
00:01:02.759 --> 00:01:04.480
and the cost of it is sort of going to zero.
20
00:01:05.120 --> 00:01:09.489
It's becoming so accessible even in third world countries. So
21
00:01:09.829 --> 00:01:15.599
with that happening, what becomes scarce and therefore valuable if
22
00:01:16.159 --> 00:01:18.700
AI is giving us access to something at.
23
00:01:18.680 --> 00:01:19.340
Almost no cost?
24
00:01:21.590 --> 00:01:24.349
Well, it's kind of like the internet, right? When it
25
00:01:24.370 --> 00:01:27.450
first came out, data was much more accessible and stuff
26
00:01:27.469 --> 00:01:29.219
like that. Then we find things that are missing that
27
00:01:29.239 --> 00:01:31.260
we need to do. AI is the same thing. We
28
00:01:31.280 --> 00:01:33.439
have this raw horsepower now where it's like a really
29
00:01:33.480 --> 00:01:36.900
sharp knife or a really powerful tool, but still controlling
30
00:01:36.920 --> 00:01:39.719
that tool can be difficult. And people have shown that
31
00:01:39.780 --> 00:01:45.060
where if you let AI go off, even that was
32
00:01:45.079 --> 00:01:47.680
demonstrated with the hugging face hack, for example, where it's like,
33
00:01:48.090 --> 00:01:49.829
You give it a purpose or a goal and you
34
00:01:49.849 --> 00:01:52.049
tell it to have at it without any sort of oversight.
35
00:01:52.870 --> 00:01:55.750
It's extraordinarily good at trying to reach that goal, but
36
00:01:55.950 --> 00:01:59.680
we have to have tools and harnesses and those sorts
37
00:01:59.700 --> 00:02:01.640
of things to actually have it do what we want
38
00:02:01.680 --> 00:02:05.599
it to do or to do something useful. A completely
39
00:02:05.640 --> 00:02:10.330
uncontrolled or for that reason, just an untrained AI will
40
00:02:10.750 --> 00:02:13.169
do a lot of work, but get very little productive
41
00:02:13.210 --> 00:02:14.849
work done potentially at the end of the day. It's
42
00:02:14.909 --> 00:02:17.849
almost like having a super smart computer a college graduate
43
00:02:17.889 --> 00:02:21.909
that doesn't really know the world go and crank out
44
00:02:21.930 --> 00:02:24.870
a bunch of code. If the code doesn't actually work together,
45
00:02:24.969 --> 00:02:27.349
you end up with a system which is not very maintainable,
46
00:02:27.430 --> 00:02:29.849
it's not very good, stuff like that. So really figuring
47
00:02:29.909 --> 00:02:33.750
out how to take something as a super high horsepower
48
00:02:33.960 --> 00:02:37.960
and make it so it's a tool that can actually
49
00:02:38.060 --> 00:02:40.819
do something useful and what we want it to do
50
00:02:41.759 --> 00:02:44.900
is the challenge. And so I think that also redefines
51
00:02:44.919 --> 00:02:48.840
to some degree where humans fit into that equation. And
52
00:02:48.879 --> 00:02:51.139
the existential crisis or the existential questions people are trying
53
00:02:51.159 --> 00:02:54.599
to ask themselves about how the workplace is going to
54
00:02:54.659 --> 00:02:59.219
evolve from this, what they thought before was the commodity
55
00:02:59.259 --> 00:03:01.860
which made them valuable no longer is, but now, well,
56
00:03:01.900 --> 00:03:04.860
what is the new commodity that makes them valuable? Definitely.
57
00:03:05.020 --> 00:03:08.259
And with that Hugging Face example, we saw an acquisition
58
00:03:08.300 --> 00:03:14.280
this morning from NVIDIA for almost $ 13 billion acquiring Hugging Face.
59
00:03:14.699 --> 00:03:16.580
And maybe you can dive into that a little bit
60
00:03:16.620 --> 00:03:18.219
more because I feel like a lot of people have
61
00:03:18.439 --> 00:03:22.439
heard the name, but they're not familiar with it, and
62
00:03:22.500 --> 00:03:25.810
just about open source AI models and how that is
63
00:03:25.889 --> 00:03:30.229
different and maybe important from the oligarchy of LLMs that
64
00:03:30.349 --> 00:03:31.210
most people are using.
65
00:03:32.729 --> 00:03:35.189
Well, the primary importance is sovereignty, really. It's one of
66
00:03:35.210 --> 00:03:37.039
the things that we talked about in the last show also,
67
00:03:37.219 --> 00:03:39.400
sovereignty and providence, I think are very important. But to me,
68
00:03:39.969 --> 00:03:41.770
Sovereignty is something that's important. And one of the things
69
00:03:41.789 --> 00:03:44.509
you definitely cannot do with most of these frontier models
70
00:03:44.569 --> 00:03:46.110
is you can't run them on your own hardware and
71
00:03:46.129 --> 00:03:48.909
you can't run them at home or at an office,
72
00:03:48.930 --> 00:03:50.509
for example. So I can't go out and buy a
73
00:03:50.560 --> 00:03:54.659
bunch of H200s, set up a data center or just
74
00:03:54.680 --> 00:03:57.740
some servers in my office and have my personal cluster
75
00:03:57.759 --> 00:04:03.240
that's data secure that's running Cloud or ChatGPT's latest models.
76
00:04:03.520 --> 00:04:05.419
They do that for a few reasons. They want, from
77
00:04:05.439 --> 00:04:07.520
a business standpoint, they want to be able to make
78
00:04:07.599 --> 00:04:11.680
money off of the systems. And two, also, it's hard
79
00:04:11.800 --> 00:04:14.639
to make something that works generically. We've seen this with
80
00:04:14.699 --> 00:04:17.259
Apple versus Windows, for example. Windows, where you have to
81
00:04:17.279 --> 00:04:19.810
have a bunch of different drivers for different things, there
82
00:04:19.850 --> 00:04:23.889
are some costs to that. And having your memory pluggable,
83
00:04:23.930 --> 00:04:25.470
for example, makes it so it's a little bit slower.
84
00:04:25.490 --> 00:04:26.689
And with Apple, if you put it all on the
85
00:04:26.730 --> 00:04:28.750
same board, you have just one configuration. It's a lot
86
00:04:28.769 --> 00:04:31.579
easier to optimize, but it doesn't give you that flexibility.
87
00:04:31.620 --> 00:04:35.189
So I think An advantage for the frontier model companies
88
00:04:35.350 --> 00:04:37.629
is that they're running it on a specific stack of
89
00:04:37.670 --> 00:04:39.569
hardware that they know, they can control, they can see
90
00:04:39.600 --> 00:04:42.339
the feedback. And also probably the most important thing for
91
00:04:42.360 --> 00:04:45.939
them is they get the data from us using it
92
00:04:46.040 --> 00:04:48.000
to be able to train on and they get that feedback.
93
00:04:48.040 --> 00:04:50.220
But if everyone was running their own models on their
94
00:04:50.279 --> 00:04:54.389
own hardware, that doesn't happen, which for many people's minds,
95
00:04:54.410 --> 00:04:55.829
that's a good thing because I don't want my data
96
00:04:55.889 --> 00:04:58.370
necessarily to go out there where, you know, if you
97
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ask the new model of ChatGPT or Cloud, it knows
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something private about me that I accidentally had in a
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chat that it learned from. So there's big differences there,
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but really the big difference is the open source ones
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are able to be downloaded and run locally. Now, granted,
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the bigger ones are, they're going to require 256 gigabytes
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of RAM or more and H200s and a lot of horsepower.
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So your average person on a laptop is not going
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to be able to download those anyway and run them
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for a practical reason, but you can if you want to. Definitely.
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And on that note of, you know, the personal information,
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I saw some updates in, in Claude that it's starting
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to differentiate and say, at least on the front end,
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that it's not saving your personal confidential information. And you can,
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you can change those settings, whether that's happening in the
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backend or not. I don't know if it can be proved.
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Yeah, that's difficult to, to enforce, right? Especially when they
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have a, an agent that's running natively on your computer.
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And even if you're running it in, say, for example,
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a sandbox or on a separate server, you're typing things
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into it that might be company proprietary, might be personal,
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might be those sorts of things. So it's kind of
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a catch-22. For it to be able to do some
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of the fantastic things it can do, it needs to
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have access to information. Like, for example, if you wanted
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to help manage a calendar, it's going to know your calendar.
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It's going to know where you are. And either don't
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do that or do it on your own personal stack
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where you know where the data is going. And so
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I think a lot of companies are looking at that.
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I think they do offer, like the frontier model companies,
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they do offer setups where if you're large enough, and
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by large enough, I mean quite large enough, they'll set
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up an enterprise setup for you that runs your frontier
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models in a data center, which is isolated from the
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rest of the system and doesn't trade off of that.
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But to your point, though, it's, you know, they say
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they don't do this and they say they don't do that.
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It's definitely a won't and a can't. And that's one
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of the things that I think fascinates me about a
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lot of cryptographic security and blockchain and that sort of
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a thing where there's a big difference between won't and can't. Like,
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for example, it's not like the Bitcoin Foundation is saying
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we won't take Satoshi's funds out of his wallet. They're
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saying we can't because they don't have the key for it.
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And can't is something which is not negotiable where... won't
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is something which is negotiable or potentially fallible. Definitely.
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And what are your thoughts on the frontier models?
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I've been reading about the.
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Recursive improvements where the models are making themselves better and
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the open source models seem to be a little bit behind.
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And as you're saying, if you want to run the
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frontier models on the centralized versions, you need a lot
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of horsepower, you need warehouses of graphics cards. But there's
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been a discussion around slowing down the frontier models because
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of safety reasons and other reasons. And maybe the open
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source won't catch up, but do you see potential issues
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or a need to slow down the frontier models that
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are growing so fast?
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Well, I don't think you really can. You can say, well,
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we want to slow down the frontier models, but there's
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always going to be somebody doing something that's not necessarily
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in a certain... you know, location. Like, you know, for example, CRISPR,
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I'm sure we can make laws in states or in
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the United States for that reason about what can or
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can't be done with CRISPR, but I'm sure somebody finds
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someplace on earth to go and do things which are
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not so great for CRISPR. So I think the argument
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is always that the best way for us to defend
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against misuse of AI is to have our own personal
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powerful AI that basically can help us defend ourselves against that.
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and have its goal be secure the user or make
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the user happy, as opposed to its goal being survival,
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for example. And so I think we have to make
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sure that those frontier models, assuming that they're companies or
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they're structures that we trust, and that's kind of the
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hard part where it's like, well, do we trust OpenAI?
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Do we trust Anthropic? Do we trust X? Do we
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trust all these different companies? And I think Meta actually
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came up with a pretty good 1.3 version of their
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model recently to kind of close the gap to the
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frontier models as well. So we have a fourth one there. Now, granted,
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they have some sort of history as far as data retention.
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So there's some questions for them there already. But it's
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easier to trust those guys than it is to trust
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somebody who you've never heard of before or somebody who's
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in a jurisdiction which you can't control at all. And
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so I think slowing them down is probably a mistake
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because of the fact that all we're doing is hamstringing
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ourselves to a large degree. It's kind of like saying, well,
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We don't want advanced weapons, so we're going to slow
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down our own advanced weapons growth, right? Well, that doesn't
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mean that the other guy's going to slow down his
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weapons growth, right? Yeah, definitely.
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And on the notion of trust with the information. that
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we're putting in, whether it's personal information or just anything
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that we're typing in and receiving information back from these LLMs,
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what aspects does blockchain fit in that? And can it
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improve the trust in what XYO is working on in
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ensuring not just hallucinations, but overall the validity of the
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conversation and the information that you're working with on AI?
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Well, we just recently announced and we're launching this thing
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called CryptoCards, which is a great demonstration app in partnership
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with Gate. And Gate has this, Gate.ai, which is their
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AI offering along with their crypto stuff. And what we're
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doing there is kind of demonstrating exactly what you're talking
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about there. Well, how does that integrate and how do
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we use cryptographic sovereignty and provenance, especially with X, Y,
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O and X, Y, O layer one to basically make
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the use of AI a little bit more secure and
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a little bit better. And what we do there basically
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is we use transparency. So I've always been a fan
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of transparency as security where, like for example, a troll
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on social media, if they had to go and put
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their actual identity next to the thing that they said,
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they'd probably think twice about what they said, right? And so,
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for example, if we have an AI that's running and
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that AI is controlled by a certain entity, if you
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have transparency and an audit log of what it did
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and who actually did it and controlled that, A, the
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repercussions could be more easily followed through on because you
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can say, well, we know who did this and we
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can go and make them stop or ask them to
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stop doing that or whatever it is. Or if it's
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a bug, for example, we can go and repair it.
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And so really what we do is we focus on
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those audit logs. When a game, for example, in crypto
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cards happens, what we do is we record all the
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provenance of the original hand, which model was used, what
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the prompts were for it, and those sorts of things.
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We store those in a data lake and then put
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those hashes on chain. So that way later on, you
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can go look at that and you can review exactly
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what happened and potentially see, you know, if you run
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that same game with a different model, what would happen
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and those sorts of things. So really having that layer
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of transparency and transparency the ability to go and see
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an audit log of what happened is important. Definitely.
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I agree. And I did see that announcement. Congratulations.
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I do like Gate and their AI offerings as well.
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And I'm excited to see the first hands following along
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with that for the game. With that established as a foundation,
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how do you see the next steps beyond that in
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establishing this trust and validity to more business use cases
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outside of crypto as well, but things where there's more
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at stake than just a game.
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The next steps for applying this to other uses are
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things like robotics, for example. What did the robot actually do?
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Or anywhere where it matters. And in the game, for example,
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the next step there also could be if the game
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has high scores and there's a prize for high scores, then, well,
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how do we know this was actually done legitimately? Or
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how did we know that the house actually did not
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put their their hand in after the fact. So did
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the person go and have the opportunity to see the
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market data in crypto cards prior to playing, or did
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they put their hand in prior to the start of
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the game? So for example, you have to put a
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hash in that's your play for your hands prior to
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the game starting, and then the game starts. And so
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I can't, you know, at the end of the game say,
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oh no, this is the hand that I used that
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basically would have won the game and here it is.
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Trust me, I didn't cheat. Where if you had to
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put the hash in prior to the game starting, the
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hand which you reveal has already been locked in basically.
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So you can't change it as opposed to won't change it.
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So that really gets back to the can't versus won't
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question where we really try to add can't to AI
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as opposed to won't to AI. Now back to a
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point that I hear all the time is people say, well,
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there's these settings that says that, you know, AI won't
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do this on your computer, or it won't do this
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with your data, or, you know, it won't delete your
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things or whatever. It's like, well, won't won't is kind
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of scary. Can't is a lot better.
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Yeah, it would be, uh, well, I, you know, there
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are some permissions that you have to allow. Um, but
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it's sort of like terms and conditions. People just don't
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read it. They just click allow all, and then eventually.
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It starts deleting things that you forgot about the terms
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and conditions from last year.
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Now it can do whatever it wants.
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And it keeps enroaching closer and closer to taking over
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all of your stuff.
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Well, also, it's much more easy to use AI power
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if you give it more ability to do that right.
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Because what happens is, this happened to me when I
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first started using it, where I I want to say
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yes to every single prompt, which is yes just once,
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yes just once. But then I found myself basically not
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really saving much time because all I'm doing is sitting
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there reviewing what it does and saying yes or no
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and me basically being the guardian. And so for me
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to be able to have an agentic experience as opposed
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to a prompt by prompt experience, I need to have
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enough rights so it can go and do things and
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try things and those sorts of things. without me being interrupted,
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especially if I have like 10 of these going at
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the same time. I just don't have enough bandwidth to
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be able to go and review all the prompts for
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every single one of those 10 agents. So getting that
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right balance of fluidity for your AI usage with security
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is difficult. But at the same time, I think transparency
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of what actually happened is very important. And they do
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keep logs inside of most of these tools that you
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can go and look at, which is nice. Because I've
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had where one agent complains that something changed in this repo,
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for example, because I have a different agent that's doing
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something there at the same time. But if they could
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more easily communicate and see, okay, well, these are the
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things this guy changed, these are the things that those
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guys changed, and somehow negotiate what's going on. You can
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use work trees, for example, to do that. And GitHub,
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to a large degree, is one of those solutions of
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how do you actually store things, they hash what's on
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GitHub and see what happens. And it has a history
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there as well. So GitHub is like a Web2 version
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of Providence in many ways.
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You mentioned the difference between.
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Ensuring the validity of data and then of actions, especially
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when there's money at stake. When the game is a
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high stakes game and there's money to be earned, or there's,
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for example, an AI training program that's out and it's
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meant for humans to enter information and they get a reward.
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Maybe it's a small reward. Maybe it's, maybe it's big.
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How do we prove the authenticity of making sure they
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don't cheat? Is there a difference between proving the validity
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of data and of actions to prove something was done
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at the right time?
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Well, the, the goal in most, um, cases is to
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try to use the laws of physics to prevent cheating.
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So for example, if you have a piece of paper
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and you say, well, write your answer on the piece
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of paper and then put it face down and I
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do the same thing. And then maybe I changed the
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answer or maybe I got a separate piece of paper
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or it's hard to say where. If we use hashes,
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for example, and we say, well, hash your data and
336
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put that on the ledger, That's there forever. I can't,
337
00:17:29.750 --> 00:17:31.369
the laws of physics are that I can't go back
338
00:17:31.410 --> 00:17:34.349
in time and, and change that. And so I've declared
339
00:17:34.390 --> 00:17:36.990
that prior to a certain point of what that answer is. Now,
340
00:17:37.170 --> 00:17:39.829
if it's traditional things to say, well, you write down
341
00:17:39.869 --> 00:17:41.509
your answer. I wrote down my answer. We both give
342
00:17:41.529 --> 00:17:44.130
them to the arbiter of the game. They can go
343
00:17:44.150 --> 00:17:45.670
look at those and they know what the answers are,
344
00:17:46.019 --> 00:17:48.220
but in theory they could be compromised or cheating as well.
345
00:17:48.240 --> 00:17:49.420
And that sort of thing. But the thing which is
346
00:17:49.480 --> 00:17:52.039
nice about a system like X by O layer one
347
00:17:52.819 --> 00:17:57.529
is that we can basically store data. hash in its
348
00:17:57.549 --> 00:18:01.630
provenance without having the data. So what happens is you
349
00:18:01.670 --> 00:18:03.869
hash it, you keep it, you don't give it to anybody.
350
00:18:04.029 --> 00:18:06.390
You give us the hash, we store that. Now, at
351
00:18:06.410 --> 00:18:08.430
the end of the game, you have two choices. Either
352
00:18:08.450 --> 00:18:11.690
you reveal your hand and it matches that hash and
353
00:18:11.710 --> 00:18:14.259
then you play that hand. Or if you want, kind
354
00:18:14.279 --> 00:18:15.539
of like in poker, you can say, well, I'm not
355
00:18:15.559 --> 00:18:17.160
even going to reveal my hand. I'm going to just
356
00:18:17.200 --> 00:18:19.680
muck these cards and throw them away. And at that
357
00:18:19.720 --> 00:18:21.140
point in time, we don't know what your hand was,
358
00:18:21.220 --> 00:18:24.079
but you just you lose by default because you decided
359
00:18:24.140 --> 00:18:26.980
not to reveal. So the one option that's not available
360
00:18:27.000 --> 00:18:29.200
to use, you can't reveal a hand that you didn't play.
361
00:18:30.609 --> 00:18:34.789
So that basically uses time and physics to prevent that.
362
00:18:34.890 --> 00:18:37.869
And so unless you make something which is like physically impossible,
363
00:18:37.970 --> 00:18:39.369
it's kind of like a zero knowledge proof. A zero
364
00:18:39.410 --> 00:18:41.190
knowledge proof just uses math to make it so that
365
00:18:41.309 --> 00:18:44.450
it's perfect. And X, Y, O layer one basically uses
366
00:18:45.349 --> 00:18:50.970
time in many cases to store information about information it
367
00:18:50.990 --> 00:18:54.700
doesn't even have. And so that's what makes it impossible
368
00:18:54.720 --> 00:18:56.529
for a person to cheat there. So even if I
369
00:18:56.549 --> 00:18:57.869
have a log, let's say, for example, I have an
370
00:18:57.890 --> 00:19:00.589
audit log, I can have 10 gigabytes of audit log
371
00:19:00.609 --> 00:19:02.599
that's in a database or a data lake in our case.
372
00:19:03.119 --> 00:19:05.809
If I put that hash in there, Unless I provide
373
00:19:05.859 --> 00:19:09.220
that entire log, I haven't provided the log. So a
374
00:19:09.259 --> 00:19:11.579
person could say, well, I deleted the log and I'm
375
00:19:11.599 --> 00:19:12.799
not going to provide it to you. But then we
376
00:19:12.819 --> 00:19:15.839
assume that they cheated. It's kind of like the IRS
377
00:19:15.859 --> 00:19:17.519
coming to you and asking for your receipts. And you're like, well,
378
00:19:17.539 --> 00:19:18.920
I don't have any receipts at all. It's like, well,
379
00:19:19.440 --> 00:19:20.920
that's a problem for you. But if you can prove
380
00:19:20.940 --> 00:19:26.549
the receipts, then they're there. Say, for example, in tax filing,
381
00:19:26.569 --> 00:19:30.480
if I could hash all my receipts, send that hash
382
00:19:30.559 --> 00:19:32.839
to the IRS. And then when they come and ask
383
00:19:32.880 --> 00:19:34.880
me for my receipts, I can prove that the receipts
384
00:19:34.920 --> 00:19:37.819
I use are this hash that would carry more weight
385
00:19:37.859 --> 00:19:40.140
than it's like, Hmm, maybe I, you know, I had
386
00:19:40.160 --> 00:19:42.700
these receipts or I didn't have those receipts. So it's,
387
00:19:45.079 --> 00:19:49.200
important to use things which humans can't affect to make
388
00:19:49.220 --> 00:19:51.539
a can't as opposed to a won't. Definitely.
389
00:19:51.660 --> 00:19:55.700
And in this case, it's a beautiful use case for
390
00:19:55.740 --> 00:19:58.349
blockchain in that it is that piece of paper you
391
00:19:58.369 --> 00:20:00.140
write on before, but you can't change it.
392
00:20:00.609 --> 00:20:01.450
You can't swap it out.
393
00:20:02.150 --> 00:20:08.150
And physics and time really puts blockchain in the perfect
394
00:20:08.190 --> 00:20:12.160
place to support AI. But you said in the past
395
00:20:12.240 --> 00:20:14.799
that not everything should be on blockchain, and that's what
396
00:20:14.819 --> 00:20:16.460
the use case of the hash is.
397
00:20:17.319 --> 00:20:18.079
Could you.
398
00:20:19.480 --> 00:20:23.369
Explain the difference in what is important? Is it just
399
00:20:23.390 --> 00:20:25.289
the hash of the information.
400
00:20:24.869 --> 00:20:25.910
That needs to be on the blockchain?
401
00:20:25.930 --> 00:20:28.549
And what else should be on the blockchain and what
402
00:20:28.609 --> 00:20:29.390
definitely shouldn't be?
403
00:20:31.029 --> 00:20:33.529
Well, it's definitely important to minimize the size of the
404
00:20:33.549 --> 00:20:35.619
blockchain because one of the problems that Ethereum has is
405
00:20:35.759 --> 00:20:37.759
everything is on the blockchain. So you end up with
406
00:20:37.779 --> 00:20:40.920
a very, very large shared hard drive base that everybody has.
407
00:20:41.339 --> 00:20:43.640
Every blockchain has that to some degree, but you want
408
00:20:43.660 --> 00:20:46.079
to minimize what those are. We call them elevated payloads
409
00:20:46.119 --> 00:20:48.460
where the elevated payloads actually go on chain and they
410
00:20:48.480 --> 00:20:50.460
have to be there and they get validated. But then
411
00:20:50.500 --> 00:20:52.559
the non-elevated payloads are things that are in data lakes.
412
00:20:52.579 --> 00:20:54.519
So for example, if I want to take a movie
413
00:20:54.599 --> 00:20:56.720
and hash that movie, I can store that in the
414
00:20:56.769 --> 00:20:58.589
data lake or I can store it somewhere else and
415
00:20:58.750 --> 00:21:02.109
put the hash on chain. The downside of that is
416
00:21:02.390 --> 00:21:04.589
it's loss is losable as far as I can, I
417
00:21:04.630 --> 00:21:08.009
can lose that, that data. And so people, when they
418
00:21:08.029 --> 00:21:10.529
hear the word permanence, for example, we talk about, um,
419
00:21:10.910 --> 00:21:14.750
ex bio layer one provides permanence. There's two definitions of
420
00:21:14.789 --> 00:21:17.349
permanence that I think are important to differentiate. One is
421
00:21:18.049 --> 00:21:20.569
it can't be lost, which is often what people think
422
00:21:20.609 --> 00:21:24.880
of permanence. And one is it can't be changed. Refocus
423
00:21:24.900 --> 00:21:27.740
on the second one. It can't be changed. So I
424
00:21:27.819 --> 00:21:30.579
permanently locked in my hand that I played, for example,
425
00:21:30.759 --> 00:21:35.250
is permanence. I permanently put my hand on Ethereum's blockchain,
426
00:21:35.309 --> 00:21:38.970
so I can't lose it is also permanence, but the
427
00:21:39.130 --> 00:21:41.690
different permanence. So the permanence of I can't lose it
428
00:21:41.730 --> 00:21:44.990
is very expensive. The permanence of I can't change it
429
00:21:45.069 --> 00:21:47.359
can be very inexpensive. It's just one hash basically for
430
00:21:47.390 --> 00:21:50.200
as much data as you want to. So we really
431
00:21:50.440 --> 00:21:53.910
try to tailor X by layer one to be as
432
00:21:54.049 --> 00:21:58.210
optimal as possible, which does make it much better for
433
00:21:58.250 --> 00:22:00.549
certain use cases and also makes it not possible necessarily
434
00:22:00.589 --> 00:22:02.069
for other use cases. So if you have to have
435
00:22:02.089 --> 00:22:06.710
your data not losable, that's something which is not really
436
00:22:06.779 --> 00:22:08.640
practical for X, Y, O layer one. But I would
437
00:22:08.660 --> 00:22:10.660
also argue that it's not really practical for anything that's
438
00:22:10.740 --> 00:22:15.380
out there because things can still get lost. Definitely.
439
00:22:15.980 --> 00:22:20.170
Yeah. especially those private keys from Bitcoin back in 2010.
440
00:22:20.170 --> 00:22:25.630
I wish we had those. What are your thoughts on
441
00:22:25.869 --> 00:22:29.309
how much focus there is on the synergy of AI
442
00:22:29.390 --> 00:22:34.410
and blockchain throughout the blockchain industry? I know there's a
443
00:22:34.789 --> 00:22:38.180
couple of protocols that are focused on decentralized AI and
444
00:22:38.460 --> 00:22:40.980
improving AI. I feel like a lot of the focus
445
00:22:41.019 --> 00:22:43.920
is on finance, which is important, of course, and an
446
00:22:43.980 --> 00:22:44.599
early use case.
447
00:22:44.759 --> 00:22:45.750
But maybe there's not.
448
00:22:45.730 --> 00:22:50.750
Enough discussion going on right now in understanding how important
449
00:22:50.789 --> 00:22:53.589
blockchain is to building up AI properly.
450
00:22:54.849 --> 00:22:57.329
Well, I think it's kind of an interesting situation. This
451
00:22:57.390 --> 00:23:00.099
comes along every few years where people are like, oh,
452
00:23:00.150 --> 00:23:02.619
AI is a hard word and blockchain is a hard word.
453
00:23:03.000 --> 00:23:04.200
Let's put them together and put them in a pitch
454
00:23:04.240 --> 00:23:07.720
deck and see what happens, right? So I think often
455
00:23:07.819 --> 00:23:12.079
you'll see more projects that are trying to merge them.
456
00:23:12.200 --> 00:23:16.309
And in some cases, it's just like have a AI
457
00:23:16.329 --> 00:23:18.789
bridge or some sort of AI router, for example, that
458
00:23:18.910 --> 00:23:21.549
uses blockchain. And it's, well, how is it better with
459
00:23:21.569 --> 00:23:23.970
blockchain in that case? So you always have to ask,
460
00:23:23.990 --> 00:23:26.630
you know, is it better if you combine these two
461
00:23:26.670 --> 00:23:29.559
things or is it not better? And I'd say in
462
00:23:29.619 --> 00:23:33.279
most cases, it may not be better necessarily. It's just fuzzy.
463
00:23:33.640 --> 00:23:36.980
It's not better. But in many cases, like in that
464
00:23:37.019 --> 00:23:40.720
layer one case, I think there's a distinct usage for
465
00:23:40.789 --> 00:23:43.500
it and a way to make the system better. where
466
00:23:44.099 --> 00:23:48.759
if I could have a provable history of say robots
467
00:23:48.900 --> 00:23:53.440
or autonomous hardware that's running around, especially if they can
468
00:23:53.980 --> 00:23:56.369
check in with each other, cosign things and then put
469
00:23:56.390 --> 00:23:59.069
those on the blockchain, I can see where these items were.
470
00:23:59.470 --> 00:24:01.609
And in a weird sort of way, it's almost like
471
00:24:01.630 --> 00:24:04.910
a real life version of our coin app where having
472
00:24:04.930 --> 00:24:10.390
these things check in autonomously into the blockchain allows you
473
00:24:10.650 --> 00:24:13.789
to see what actually happened in the real world, because
474
00:24:13.809 --> 00:24:14.609
I think it's going to be one of the, one
475
00:24:14.619 --> 00:24:17.690
of the difficulties is going to be, well, you know,
476
00:24:17.730 --> 00:24:20.130
something bad happened. Um, was it my robot that did it?
477
00:24:20.150 --> 00:24:21.849
Was it your robot that did it? Was it, yeah,
478
00:24:22.349 --> 00:24:24.369
it was on purpose. Was it by accident? And if,
479
00:24:24.549 --> 00:24:26.250
you know, having audit logs for those things that are
480
00:24:26.269 --> 00:24:30.849
constantly being stored and also constantly being, um, like bookmarked
481
00:24:30.910 --> 00:24:33.250
on an X by layer one system, we'll make it
482
00:24:33.289 --> 00:24:35.170
so that we can go back in time and we
483
00:24:35.190 --> 00:24:38.059
can at least, um, find some sort of direction for
484
00:24:38.079 --> 00:24:41.549
where it is. And so, an actual solution for an
485
00:24:41.650 --> 00:24:45.529
actual problem is important to have. And so I think
486
00:24:46.490 --> 00:24:51.150
some cases where we see that synergy, that's not the case.
487
00:24:51.190 --> 00:24:54.809
In some cases, it's extremely true to be the case.
488
00:24:54.869 --> 00:24:59.839
And so I think there's probably more place for blockchain
489
00:25:00.430 --> 00:25:03.640
in AI or in the world now with AI around
490
00:25:03.680 --> 00:25:06.400
than there was before, just because it's a natural fit.
491
00:25:08.220 --> 00:25:08.619
I agree.
492
00:25:08.660 --> 00:25:10.660
I'm looking forward to seeing it more And I think
493
00:25:10.740 --> 00:25:15.420
another major synergy we haven't spoken about yet is not
494
00:25:15.460 --> 00:25:19.359
just AI and the data provenance of blockchain, but the
495
00:25:19.400 --> 00:25:24.130
payments and the wallets of AI agents or humanoid robots
496
00:25:24.250 --> 00:25:26.970
or self-driving cars and things like that. Is there a
497
00:25:27.009 --> 00:25:34.009
plan for XYO to extend beyond data to ensuring the
498
00:25:34.049 --> 00:25:38.130
validity of payments or the success in having that infrastructure expanded?
499
00:25:38.470 --> 00:25:41.690
in there as robots start interacting and paying on our
500
00:25:41.730 --> 00:25:42.849
behalf or paying each other?
501
00:25:42.869 --> 00:25:47.210
Well, we're looking more at facilitating payments as opposed to
502
00:25:47.289 --> 00:25:50.349
validating other people's payments. So for example, one of the
503
00:25:50.369 --> 00:25:53.910
things which we built into CryptoCards that's not really that
504
00:25:53.970 --> 00:25:55.250
easy to see unless you go and look at the
505
00:25:55.269 --> 00:25:58.170
blockchain and understand it is we have an eventing system
506
00:25:58.210 --> 00:26:01.019
where basically on our blockchain, a person can go and
507
00:26:01.380 --> 00:26:05.440
register for an event by assigning a payload with their address.
508
00:26:06.019 --> 00:26:08.880
And then the eventing server will start sending those events
509
00:26:08.920 --> 00:26:12.900
to you through like a webhook, for example. And then
510
00:26:14.220 --> 00:26:15.750
it can stop when you stop paying for that. But
511
00:26:15.769 --> 00:26:16.869
what you can do is you can say, well, I
512
00:26:16.910 --> 00:26:19.750
want to get this event for the next, say, 1,000 blocks.
513
00:26:20.410 --> 00:26:22.769
And I'm going to pay 3XL1 to get those events
514
00:26:22.829 --> 00:26:26.490
or a certain amount per event. So the actual payment
515
00:26:26.750 --> 00:26:31.970
of microservices, I mean like micro-microservices, like nano-services, is something
516
00:26:31.990 --> 00:26:33.470
which I think is going to become much more prevalent
517
00:26:33.509 --> 00:26:38.380
where A robot or AI might be like, hey, I
518
00:26:38.420 --> 00:26:42.759
want to know for the next two minutes, when does
519
00:26:42.819 --> 00:26:45.299
a new block appear on X by layer one? And
520
00:26:45.319 --> 00:26:47.319
I want to get those events pretty frequently for the
521
00:26:47.339 --> 00:26:49.109
next two minutes and then stop. But I don't want
522
00:26:49.119 --> 00:26:52.289
to go and have to create an account with a
523
00:26:52.329 --> 00:26:54.390
credit card and that sort of thing to be able
524
00:26:54.410 --> 00:26:57.049
to use the API for whatever it is. And so
525
00:26:57.150 --> 00:27:01.089
I think real-time ad hoc usage of services that get
526
00:27:01.170 --> 00:27:04.069
paid for via blockchain payments in a very, very efficient
527
00:27:04.150 --> 00:27:06.960
way is going to be extremely important for AI and
528
00:27:07.079 --> 00:27:10.420
for robotics because of the fact that they need a
529
00:27:10.460 --> 00:27:15.259
very broad spectrum of access to things. And they need
530
00:27:15.279 --> 00:27:16.859
to be able to pay for those things efficiently and
531
00:27:16.880 --> 00:27:19.660
to authenticate for them efficiently without having to go through
532
00:27:19.819 --> 00:27:23.380
all the pomp and ceremony of credit cards and accounts
533
00:27:23.529 --> 00:27:25.390
and logins. Definitely.
534
00:27:25.509 --> 00:27:27.069
And micropayments has been a.
535
00:27:28.710 --> 00:27:32.589
Supposed use case of blockchain for many, many years, but
536
00:27:32.710 --> 00:27:35.190
we haven't really seen it. at least in real world payments.
537
00:27:35.269 --> 00:27:39.250
But now with AI and token usage, we're starting to see.
538
00:27:39.849 --> 00:27:42.069
Every word is a micro cent.
539
00:27:42.210 --> 00:27:46.450
And that seems like the perfect use case for micropayments.
540
00:27:46.490 --> 00:27:49.230
We're still putting your credit card into the AI and
541
00:27:49.269 --> 00:27:52.670
just preloading it. But I feel like there's a perfect
542
00:27:52.970 --> 00:27:56.400
use case for micropayments on blockchain with AI. It's like
543
00:27:56.500 --> 00:27:58.900
the number one use case that's now coming to light.
544
00:28:00.210 --> 00:28:01.809
I thought it was actually kind of funny when they
545
00:28:02.109 --> 00:28:04.450
came out with the AI thing and called it tokens.
546
00:28:04.569 --> 00:28:06.410
It's like, how many tokens in, how many tokens out?
547
00:28:06.430 --> 00:28:08.470
I'm like, well, I've heard the word tokens before. It's
548
00:28:08.650 --> 00:28:12.450
an ERC-20 token. So they're kind of modeling that to
549
00:28:12.490 --> 00:28:17.180
some degree where it's a token economy. I'm surprised they
550
00:28:17.200 --> 00:28:20.720
haven't said yet, well, I'll pay you in 500 Claude
551
00:28:22.019 --> 00:28:23.720
tokens and I'll use that as money to pay you
552
00:28:23.740 --> 00:28:25.519
with or something like that. But there's no way for
553
00:28:25.539 --> 00:28:28.299
me to actually transfer tokens from one account to another
554
00:28:28.319 --> 00:28:31.720
account on Claude before they know. But there's nothing saying
555
00:28:31.759 --> 00:28:36.720
that I can't use their tokens as a payment method.
556
00:28:36.759 --> 00:28:40.359
But I think definitely using blockchain as a way to
557
00:28:40.519 --> 00:28:45.740
autonomously give tokens, for example, to an agent for its use.
558
00:28:46.539 --> 00:28:49.299
is something which we're going to be doing very often
559
00:28:49.440 --> 00:28:51.329
in the near future, as opposed to saying, well, here's
560
00:28:51.369 --> 00:28:54.029
my login for my cloud account, use as many tokens
561
00:28:54.089 --> 00:28:55.970
as you want. That's a little scary, where if I
562
00:28:56.009 --> 00:28:59.069
can give it an allowance with a blockchain system, it's
563
00:28:59.109 --> 00:29:00.829
something which I think people would definitely want to use.
564
00:29:00.890 --> 00:29:05.880
But the token economy is something which I think will
565
00:29:05.940 --> 00:29:08.759
blossom a lot under AI, just because AI is so
566
00:29:08.779 --> 00:29:10.700
much more fragmented in the way that it uses the world,
567
00:29:10.720 --> 00:29:12.609
as opposed to a human where it's like, well, I
568
00:29:12.630 --> 00:29:15.630
don't want to do a microtransaction for every single bite
569
00:29:15.670 --> 00:29:17.660
of food that I eat at a restaurant, for example,
570
00:29:17.740 --> 00:29:20.259
or for every minute of the movie that I watch.
571
00:29:20.660 --> 00:29:22.500
I want to just get the whole movie. And so
572
00:29:22.700 --> 00:29:25.579
microtransactions have kind of, I think, failed to this point
573
00:29:26.079 --> 00:29:29.039
with blockchain for those two reasons. One, it's just the
574
00:29:29.059 --> 00:29:31.589
gas cost for Bitcoin and for Ethereum is way too expensive.
575
00:29:32.049 --> 00:29:36.740
But two, it's humans don't think in those micro steps
576
00:29:37.099 --> 00:29:38.259
the way that AI can.
577
00:29:39.240 --> 00:29:42.759
Yeah, no, that makes perfect sense. And, you know, it's
578
00:29:42.799 --> 00:29:44.819
two months since our last video. I would love to
579
00:29:44.859 --> 00:29:46.779
get you back on once more at the end of
580
00:29:46.819 --> 00:29:49.730
the year and see what Q4 has in store for
581
00:29:49.789 --> 00:29:52.869
the growth of AI. It's just getting faster and faster,
582
00:29:52.930 --> 00:29:55.470
as well as blockchain now kicking back up, not just
583
00:29:56.190 --> 00:29:59.190
the development of blockchains and you know, X, Y, O
584
00:29:59.190 --> 00:30:00.740
layer one is developing super fast.
585
00:30:00.839 --> 00:30:03.480
I understand using AI, but also the prices are going
586
00:30:03.519 --> 00:30:03.839
back up.
587
00:30:03.859 --> 00:30:06.299
So people are getting more interested and more people are
588
00:30:06.319 --> 00:30:10.460
looking at different ways that these two technologies can synergize together.
589
00:30:11.049 --> 00:30:14.049
What is some of the most important things that are
590
00:30:14.089 --> 00:30:16.289
happening at X, Y, O between now and the end
591
00:30:16.329 --> 00:30:18.170
of the year that we may have to look forward to?
592
00:30:19.609 --> 00:30:21.650
Well, it kind of says something interesting there, which I
593
00:30:21.690 --> 00:30:25.099
think is very appropriate for thinking about AI in the
594
00:30:25.140 --> 00:30:27.420
context of X, Y, O layer one. Well, we use
595
00:30:27.460 --> 00:30:29.720
AI in two different ways. One is we use AI
596
00:30:29.759 --> 00:30:32.660
to develop and to accelerate how fast we can do
597
00:30:32.700 --> 00:30:35.329
really cool things and make new products with X, Y,
598
00:30:35.380 --> 00:30:37.880
O layer one. So AI as a tool for us
599
00:30:37.920 --> 00:30:41.420
has been fantastic. And we've really dove into that, made
600
00:30:41.440 --> 00:30:44.069
a bunch of skills and that we use ourselves, we
601
00:30:44.109 --> 00:30:45.880
share with our partners and they can use the skills
602
00:30:45.940 --> 00:30:49.089
as well. And then also we prioritize AI things. Kind
603
00:30:49.109 --> 00:30:51.849
of the crypto cards is that where the house, which
604
00:30:51.970 --> 00:30:55.369
plays the hand of crypto cards uses AI the AI
605
00:30:55.450 --> 00:30:58.390
from gate, for example, in this case, to actually decide, well,
606
00:30:58.430 --> 00:31:00.740
how should I play that? And so prioritizing AI is
607
00:31:00.779 --> 00:31:02.099
the other aspect of it. Well, how do you use
608
00:31:02.220 --> 00:31:05.539
AI as a feature in the product that you want
609
00:31:05.579 --> 00:31:08.039
to use? And so we're really focusing on both of those.
610
00:31:08.079 --> 00:31:10.920
We're focusing on using AI as a tool to accelerate
611
00:31:10.980 --> 00:31:14.529
ourselves and reusing AI as a feature that we can
612
00:31:14.609 --> 00:31:17.630
use in our products and in different things and interlacing
613
00:31:17.670 --> 00:31:23.069
those features with hashes and with provenance and sovereignty through X, Y,
614
00:31:23.109 --> 00:31:23.589
or layer one.
615
00:31:25.579 --> 00:31:28.380
I'm definitely going to test out these crypto card first hands.
616
00:31:28.500 --> 00:31:29.299
I saw the announcement.
617
00:31:29.920 --> 00:31:32.900
I'm subscribed to when the first hands go live. I'll
618
00:31:32.940 --> 00:31:34.779
put it in the show notes below because we've mentioned
619
00:31:34.799 --> 00:31:38.410
it quite a bit. I appreciate your insights into everything AI.
620
00:31:38.470 --> 00:31:42.089
You're such a smart brain. And I'm looking forward to
621
00:31:42.630 --> 00:31:44.450
talking with you again in the near future. Thank you
622
00:31:44.470 --> 00:31:45.410
so much for the time, Ari.
623
00:31:46.289 --> 00:31:47.490
I appreciate it. Thanks so much for having me on.