Ethereum is poised to play a significant role in addressing some of the critical challenges facing artificial intelligence, according to Eric Connor, a former core developer of the blockchain.
In a post shared on X on April 15, Connor suggested that Ethereum’s potential for mainstream adoption could be unlocked through its integration with AI. He pointed to the current issues of centralization, opaque algorithms, and escalating privacy concerns as significant hurdles in the AI space.
“AI is plagued by black-box models, centralized data silos, and privacy pitfalls,” he remarked, asserting that Ethereum is particularly equipped to tackle these challenges.
Ethereum: A Decentralized Alternative for AI, According to Connor
Connor elaborated on how Ethereum’s decentralized framework, transparent smart contracts, incentive-driven token economy, and integrated micropayments system could create a more ethical foundation for AI innovation, free from the grip of major tech companies.
He noted that smart contracts could enhance the transparency of AI training and data sourcing processes, counteracting the secrecy that often shrouds commercial AI platforms.
However, Connor recognized that large AI corporations might resist such transparency, as their business models are heavily reliant on maintaining control over data.
Despite this, he believes the increasing demand for ethical practices and transparency may encourage developers to pursue Ethereum’s collaborative approach.
Ethereum has already introduced trustless, programmable finance through DeFi and stablecoins. However, its most significant opportunity lies in its potential intersection with AI, a field on a rapid trajectory to transform everyday life while grappling with issues of black-box models,…
— Eric Conner (@econoar) April 15, 2025
Moreover, Ethereum’s capabilities extend to the developing sector of agentic AI, which involves autonomous software agents capable of making decisions, executing transactions, and interacting with smart contracts.
A recent feature on the Ethereum blog detailed how the blockchain supports these agents, facilitating real-time data access, digital asset ownership, and interoperability with decentralized applications.
Various projects are already leveraging this foundational technology, including Luna, a virtual influencer with control over an on-chain wallet; AIXBT, an AI agent that provides insights into the crypto market; and Botto, a community-driven decentralized NFT artist.
Additionally, tools like Bankr and HeyAnon are creating conversational interfaces, enabling users to interact with blockchain systems using natural language.
Connor stressed the necessity for Ethereum to continue developing the tools, research, and practical applications essential for implementing decentralized AI.
Should these efforts succeed, Ethereum could emerge as a key player in promoting ethical AI practices, extending its influence well beyond the realm of finance.
Investment Appeal of Ether Declines, Cites VC
In related news, crypto venture capitalist Nic Carter from Castle Island Ventures recently highlighted two primary factors undermining Ether’s investment appeal: the emergence of layer-2 (L2) scaling networks and rampant token issuance.
Carter argued that “greedy Eth L2s” are detracting value from Ethereum’s foundational layer while offering little return.
In addition, he criticized the Ethereum community for tolerating excessive token creation, claiming that “ETH was buried in an avalanche of its own tokens, having died by its own hand.”
His remarks echo similar concerns raised by Quinn Thompson, founder of Lekker Capital, who stated that Ethereum is “completely dead” as an investment opportunity.
Thompson cited a decrease in transaction activity, diminished user growth, and falling network revenues as indicators that ETH lacks a robust investment case, despite its utility as a blockchain platform.
Make no mistake, $ETH as an investment is completely dead. A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not. pic.twitter.com/XjZNjPjy2s
— Quinn Thompson (@qthomp) March 28, 2025
Back in September 2024, Carter had warned that Ethereum’s fee revenue had plummeted by 99% within six months, as layer-2 solutions attracted user engagement and financial returns without benefiting Ethereum’s core layer.
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