Vitalik Buterin (Ethereum Co-founder) – Future of Privacy, AI, and Crypto (Sep 2023)
Chapters
00:00:19 Recent Developments in Artificial Intelligence and Crypto
Recent Developments in the Global Tech Sector: The rise of artificial intelligence (AI) has captured the spotlight, with significant progress in areas such as mRNA vaccines, generative AI models like GPT, and self-driving cars. Vitalik Buterin emphasizes the potential of AI to empower individuals and enhance productivity, but also acknowledges the centralization risks it poses.
Zero-Knowledge Protocol and Privacy: Audrey Tang explains the concept of zero-knowledge proofs, which allow individuals to prove something without revealing additional information. Taiwan has implemented zero-knowledge principles in contact tracing mechanisms during the pandemic, protecting the privacy of individuals while notifying close contacts of potential exposure.
Taiwan’s Digital Identity System: Taiwan’s Alien Citizen’s Digital Certificate (AlienCDC) and TW Fido app allow individuals to use their gold cards to sign and encrypt data. The MyData platform enables gold card holders to download personal data stored in government agencies.
Crypto’s Role in Decentralization: Vitalik Buterin highlights the responsibility of the crypto space to evolve and provide decentralization solutions in a time when individuals need ways to match the power of those with more resources. Crypto can offer a counterbalance to the centralization risks posed by AI.
Geopolitical Landscape of AI and Crypto: San Francisco is considered the capital of AI, with self-driving cars becoming a reality on its streets. Crypto, on the other hand, lacks a clear geographical center, with multiple cities contributing to its development.
00:11:50 CryptoTech Innovations and Challenges in a Post-Bull Market Era
Main Challenges in the Crypto Space: Crypto bull markets bring funding but also unsustainable development, leading to short-lived projects and models. Certain projects, like game-fi and stablecoins, faced difficulties due to unsustainable economic models and reliance on constant growth. These challenges have caused concerns among developers who often dread bull markets due to the sudden surge in users and scalability issues.
Positive Developments in Crypto Technology: The crypto space has witnessed steady progress during the recent flatline market period. Zero-knowledge proofs have become more accessible and standardized, enabling privacy-preserving applications. Ethereum’s successful merge to proof of stake has reduced energy consumption significantly. ZK-EVMs combine privacy and scalability, unlocking new possibilities for decentralized systems. These technical advancements are essential for the long-term growth and sustainability of the crypto ecosystem.
The Rise of Alternative Social Media Platforms: The Twitter controversy in 2022 sparked interest in alternative social media platforms. Existing platforms like Mastodon gained renewed attention, while new platforms like Farcaster emerged as Ethereum-based alternatives. These platforms offer secure and decentralized alternatives to traditional social media, utilizing Ethereum accounts as identity roots. User experience improvements in onboarding and sign-in processes are being made to enhance accessibility for newcomers. Community-driven platforms like Zuzulu allow for organic growth and adaptation based on user feedback.
00:23:38 Bridging the Gap between Theory and Practice: Improving User Experience in Zero-Knowledge
User Experience Improvements: Vitalik Buterin’s experience with Zoopass initially involved a long delay in regenerating proof, making it impractical for in-person sign-ins. The introduction of service workers and improved signing technology significantly enhanced the user experience, making the process faster and more seamless.
FIDO Adoption and Usability: Audrey Tang encountered resistance from her staff in switching from passwords to FIDO. Measuring the time taken to sign in using FIDO compared to typing passwords helped convince people of its convenience.
Zero Knowledge Proof Performance: Early versions of zero knowledge proofs, such as Zcash, had lengthy proof generation times, making them impractical for certain applications. Continuous advancements have resulted in significant performance improvements, reducing proof generation time from 90 seconds to as low as 3 seconds on a phone.
00:26:09 Rapid Evolution of Web 3 and Open Source Contributions
Improvements in AI and Open Source: Vitalik Buterin highlights the rapid improvements in AI, with each step unlocking new possibilities and applications. Audrey Tang emphasizes the role of open-source communities in driving these advancements. Open-source contributors, who often experience the pain points firsthand, possess the skills to resolve them and contribute to the progress of AI. An example is the recent achievement of running trillion-parameter models on phones, which was made possible by the coordinated efforts of open-source contributors.
Constant Reinvention and Expansion of Web 3: Vitalik Buterin discusses the dynamic nature of the Web 3 space, which undergoes reinventions every few years. He traces the evolution of Web 3 from the Bitcoin space to the emergence of Ethereum, the split between small block and big block sides, and the rise of the business blockchain movement. The DeFi summer and the emergence of NFTs further expanded the Web 3 landscape. Despite these changes, earlier innovations continue to coexist and thrive, demonstrating the expansive nature of the Web 3 ecosystem.
Diversification and Maturity of the Crypto Space: Vitalik Buterin observes the diversification of the crypto space into different parts with distinct philosophies and spirits. He notes that this diversification is a sign of maturity, as it indicates the inclusion of diverse perspectives and approaches. The presence of elements that one may not personally resonate with signifies the growth and inclusivity of the space. This diversification and maturity distinguish the crypto space from smaller, more homogenous communities.
Account Abstraction: Account abstraction is a technology that makes smart contract wallets easier to use. Smart contract wallets are controlled by a computer program rather than a single key. This allows for more complex conditions for authorizing transactions, such as multiple keys, quantum proof algorithms, and changing keys.
Multi-sig Wallets: Multi-sig wallets are wallets that have multiple keys held by different people or institutions. Multi-sig wallets are considered very secure and have never been hacked when implemented properly. Ethereum Foundation funds are stored in a 4 of 7 multi-sig wallet.
Problems with Multi-sig Wallets: Multi-sig wallets have poor usability. Smart contracts cannot pay transaction fees in Ethereum. This requires a separate wallet to control a small amount of ETH to pay transaction fees. This results in extra annoyance, complexity, and inconvenience.
Account Abstraction as a Solution: Account abstraction fixes many of the issues with multi-sig wallets. It allows smart contracts to pay transaction fees. This eliminates the need for a separate wallet to control ETH for transaction fees. It simplifies the process of using multi-sig wallets and makes them more user-friendly.
Account Abstraction: Account abstraction is a standard that allows for more secure and decentralized wallets without changing the Ethereum protocol. Many wallet companies are developing account abstraction solutions, which has helped to reset the clock for new participants in the space.
EIP-1559: EIP-1559 is a reform to the economics of sending transactions in Ethereum that has reduced the time it takes for a transaction to be included on the chain from minutes to seconds. This has significantly improved the user experience and made Ethereum more usable in real life.
Scalability and Fees: Layer 2 protocols are reaching maturity and helping to reduce fees on Ethereum. Once scalability issues are solved, Ethereum will be a secure, cheap, and easy-to-use blockchain ecosystem that can compete with centralized solutions.
Bridging Centralized and Decentralized Solutions: There is a growing open source community working on bridging the gap between centralized and decentralized solutions. Users’ motivation to find the best of both worlds drives the development of solutions that are both decentralized and usable.
00:40:44 Empowering Citizen Involvement in Public Policymaking through AI-Driven Ideathons
Ideathon Overview: Taiwan’s Ideathon involves citizens in creating public policy through a crowdsourcing platform. Participants submit ideas for a human-centric AI society in 2040, earning Soulbound tokens. Idea submissions can indicate whether they are human-generated, AI-assisted, or entirely AI-generated.
Alignment Assemblies: Deliberative workshops called alignment assemblies gather people face-to-face to discuss AI expectations and concerns. The agenda is set by Polis and crowdsourcing technologies like Talk to the City, which synthesizes opinion clusters. Participants engage in conversations with synthesized opinion clusters to reach rough consensus on AI expectations.
Democratizing AI Fine-tuning: The Ideathon aims to democratize AI fine-tuning by directly asking people for their ideas on generative AI. Language models are tuned based on the captured transcripts from face-to-face conversations. Communities can run the open-source model and tune it according to their preferences or enterprise settings.
Audrey Tang’s Philosophy: Audrey Tang describes herself as a conservative anarchist, balancing conservative and anarchist principles in her approach to government. Conservative in the sense of preserving and conserving cultural diversity, especially low-resource languages, from the centralizing force of AI. Anarchist in the sense of promoting direct democracy and empowering communities to run alignment assemblies without permission.
Conclusion: The Ideathon and Audrey Tang’s philosophy emphasize citizen involvement, cultural preservation, and democratized AI fine-tuning to shape a human-centric AI society.
00:46:09 Decentralized Open-Source Philosophy for Societal Innovation
Decentralized Open Source: Audrey Tang draws a parallel between decentralized open source and anarchism.
Empowering People to Innovate: Tang advocates for sharing blueprints and empowering people closest to the pain to innovate and address their challenges.
Ministry of Digital Affairs: The Ministry of Digital Affairs serves as a testing ground for Tang’s philosophy, acknowledging that most innovations do not come from the government.
Co-Creation and Societal Infrastructure: By connecting people facing challenges, their co-creation can be scaled to create societal infrastructure.
Conclusion: Tang emphasizes the importance of empowering individuals to find tailored solutions, underscoring the revolutionary nature of this approach.
Abstract
Zero-Knowledge Proofs and AI: Paving the Way for a Decentralized, Privacy-Focused Future
Abstract:
In an era of rapid technological advancements, Zero-Knowledge Proofs (ZKPs) and Artificial Intelligence (AI) stand at the forefront of societal transformation. This article explores the nuances of ZKPs, their increasing adoption, AI’s impact on society, and the perspectives of Vitalik Buterin and Audrey Tang on the interplay between cryptocurrencies, AI, and privacy.
Zero-Knowledge Protocol and Privacy:
Taiwan’s application of zero-knowledge protocol in contact tracing and digital ID systems exemplifies a growing global trend towards privacy-preserving technologies. ZKPs enable individuals to verify identity or attributes without revealing underlying data, a concept with vital implications for online privacy and security.
Taiwan’s Ideathon: Engaging Citizens in Public Policy Creation:
Ideathon Overview:
Taiwan’s Ideathon involves citizens in creating public policy through a crowdsourcing platform. Participants submit ideas for a human-centric AI society in 2040, earning Soulbound tokens. Idea submissions can indicate whether they are human-generated, AI-assisted, or entirely AI-generated.
Alignment Assemblies:
Deliberative workshops called alignment assemblies gather people face-to-face to discuss AI expectations and concerns. The agenda is set by Polis and crowdsourcing technologies like Talk to the City, which synthesizes opinion clusters. Participants engage in conversations with synthesized opinion clusters to reach rough consensus on AI expectations.
Democratizing AI Fine-tuning:
The Ideathon aims to democratize AI fine-tuning by directly asking people for their ideas on generative AI. Language models are tuned based on the captured transcripts from face-to-face conversations. Communities can run the open-source model and tune it according to their preferences or enterprise settings.
Cryptocurrency vs. Artificial Intelligence:
Vitalik Buterin, a prominent figure in the crypto space, recognizes AI’s potential for progress but warns of its centralization risks. He posits that decentralized technologies like cryptocurrencies are essential to balance these risks, ensuring a future where technological advancements do not compromise individual autonomy.
AI’s Impact on Society:
AI’s progression, seen in self-driving cars, generative AI models, and mRNA vaccines, is set to revolutionize various facets of life. However, it also poses risks, such as potential misuse or concentration of power. The need for checks and balances in this rapidly evolving field is imperative.
Crypto’s Role in a Decentralized Future:
Buterin envisions a pivotal role for cryptocurrencies in countering the centralizing forces of AI. By empowering individuals and providing alternatives to centralized systems, crypto can help maintain a balanced power dynamic in a technology-driven future.
Zero-Knowledge Proofs: A Game-Changer for Online Privacy and Scalability:
ZKPs offer enhanced privacy and improved scalability for blockchain networks. They are increasingly being adopted by governments and corporations for applications ranging from secure identity management to efficient transaction verification. Service workers, which improve web applications’ functionality, and the adoption of FIDO for passwordless login, exemplify the ongoing efforts to enhance user experience and security in the digital field.
Zero Knowledge Proof Efficiency:
Vitalik Buterin’s highlights remarkable improvements in ZKP efficiency, indicating a trend towards more practical and widespread applications of this technology.
Improvements in AI and Web 3 Developments:
Incremental advancements in AI, driven by open-source communities, are unlocking new possibilities. Concurrently, the evolution of Web 3, with its array of innovations like DeFi and NFTs, reflects the crypto space’s dynamic nature.
Maturity of the Crypto Space:
The diversity of philosophies and projects within the crypto space signifies its maturity, accommodating varying viewpoints and approaches. Developments like account abstraction and multi-sig wallets are transforming digital security and transactions, offering more secure and user-friendly solutions.
Account Abstraction and Multi-sig Wallets:
Account abstraction simplifies the use of smart contract wallets, eliminating the need for separate wallets to control ETH for transaction fees. Multi-sig wallets offer enhanced security but have usability challenges that account abstraction addresses.
EIP-1559 and Challenges in Argentina:
Ethereum’s EIP-1559 has reduced transaction times, making it more practical for real-world applications. In Argentina, cryptocurrencies have gained popularity due to economic challenges, highlighting the need for secure and efficient digital financial solutions.
Future Outlook:
The maturation of Layer 2 protocols and efforts towards a more secure, affordable, and user-friendly Ethereum experience foreshadow a future where decentralized solutions can rival centralized ones. Open-source communities and user involvement are crucial in driving this innovation.
Audrey Tang’s Perspective:
Tang advocates for a balance between centralized usability and decentralized security, emphasizing open-source communities’ role in bridging this gap. Initiatives like Taiwan’s Ideathon and Alignment Assemblies demonstrate innovative approaches to policy-making and AI development, encouraging public participation and ensuring AI aligns with societal values.
Decentralized Open Source:
Audrey Tang draws a parallel between decentralized open source and anarchism.
Empowering People to Innovate:
Tang advocates for sharing blueprints and empowering people closest to the pain to innovate and address their challenges.
Ministry of Digital Affairs:
The Ministry of Digital Affairs serves as a testing ground for Tang’s philosophy, acknowledging that most innovations do not come from the government.
Co-Creation and Societal Infrastructure:
By connecting people facing challenges, their co-creation can be scaled to create societal infrastructure.
Audrey Tang’s Philosophy:
Audrey Tang describes herself as a conservative anarchist, balancing conservative and anarchist principles in her approach to government.
– Conservative in the sense of preserving and conserving cultural diversity, especially low-resource languages, from the centralizing force of AI.
– Anarchist in the sense of promoting direct democracy and empowering communities to run alignment assemblies without permission.
As we navigate the complexities of a digitally interconnected world, the interplay between ZKPs, AI, and cryptocurrencies forms a crucial nexus. These technologies, while distinct, are converging to shape a future that values privacy, decentralization, and user empowerment. As they evolve, the challenge lies in maintaining a delicate balance between innovation, privacy, and ethical considerations, ensuring a future where technology serves humanity’s best interests.
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