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ChatGPT from OpenAI Has Taken Over the Internet

Open AI’s newest release, ChatGPT, took over the internet this past week. ChatGPT is an Aritifical Intelligence model that interacts in a conversational way. ChatGPT can write full paragraphs, answer follow-up questions, admit mistakes, challenge incorrect premises, and reject inappropriate requests. It can write in conversational style, program, and debug software and much else. This feels like a watershed moment in technology innovation that raises some important and increasingly urgent questions. Check out Alex’s section for a full write-up!

FTX’s Sam Bankman-Fried Tries to Avoid December 13th House Committee Hearing

Despite countless media interviews over the past few weeks, Sam Bankman-Fried maintains that he is “unsure” of his ability to fulfill US House Committee Chair Maxine Waters’ request to participate in a House Committee Hearing on December 13th. Waters has pushed back and urged Bankman-Fried to attend. This hearing would be his first official time testifying to US lawmakers under oath.

Ethereum Network Benefits from Phantom and Trader Joe Support Announcements

The Ethereum Network benefitted from big announcements encompassing cross-chain support from Phantom, a Solana-based wallet, and Trader Joe, an Avalanche-based decentralized exchange. Phantom is the largest and most popular Solana wallet and has extended operational support for Ethereum and Polygon, which will provide its users with access to all three ecosystems. The Trader Joe DEX will soon take a monumental stride in deploying on the Ethereum scaling system, Arbitrum; it is the first time the DEX will be deployed on a separate network, hoping to capture new user bases in their global expansion efforts.

Maple Finance Issues $36M Default Notice to Orthogonal Trading & Severs Ties, Revealing Risks of Contagion in DeFI

Maple Finance, a decentralized finance application, has been bruised by the fallout from the FTX collapse, issuing a default notice to cryptocurrency firm Orthogonal Trading for $36M in unpaid debt. As of December 5th, Maple severed ties with Orthogonal Trading due to “misrepresenting its financial position” and “operating while effectively insolvent.” Orthogonal Trading was not just a significant borrower of Maple, but also a credit pool manager and underwriter. Despite DeFi’s solid record through the various crises, this incident reveals that any unsecured form of credit is still at risk of default. 

The Dawn of The Age of Artificial Intelligence (AI)

Guest Essay

This week’s essay is on OpenAI’s ChatGPT, which has taken the internet by storm. AI is not my area of expertise, so I asked someone trained in this field to share their thoughts. Enjoy!

"The Transformative Potential of Artificial Intelligence: Implications for Business, Work, Art and Culture, and Society"

As we stand on the cusp of a new technological revolution, artificial intelligence (AI) has the potential to fundamentally transform our world. From business and the nature of work to art and culture, and the very fabric of society, AI is poised to have a profound impact on virtually every aspect of our lives. In this essay, we will explore some of the key ways in which AI is likely to transform our world, and consider the implications of these changes for businesses, workers, and society as a whole. As Alex Tapscott, author of "Blockchain Revolution," has said, "The potential for AI to transform our world is vast, and the implications are far-reaching. It is up to us to ensure that we harness the power of this technology for the benefit of all."

AI is already having an impact in many areas of business and society. For example, in the healthcare industry, AI is being used to develop new medical treatments, analyze medical images, and diagnose diseases. In the transportation sector, AI is being used to improve traffic management and develop self-driving cars. In the education sector, AI is being used to personalize learning experiences and provide individualized support to students.

These examples illustrate the potential of AI to improve our lives and make important contributions to various industries. In the future, we can expect to see even more widespread adoption of AI, which will likely lead to even more significant changes in the way we live and work.

In the business world, AI is likely to continue to be used to automate routine tasks, freeing up workers to focus on more complex and creative work. It could also help businesses to make more accurate predictions and improve decision making, giving them a competitive advantage. This could lead to increased productivity and efficiency, which could in turn drive economic growth and create new job opportunities.

In terms of the nature of work, AI is likely to continue to create new jobs that require specialized skills in areas such as machine learning and data analysis. At the same time, it may also lead to the displacement of some jobs, particularly those that are routine and can be easily automated. This could result in significant changes to the labor market, with an emphasis on developing skills that are complementary to AI rather than competing with it. Governments may need to provide support and training to help workers adapt to these changes.

In society, AI has the potential to continue to improve the quality of life for many people. However, it could also lead to increased inequality if certain groups are unable to adapt to the changing labor market or if the benefits of AI are not distributed evenly. This could put pressure on governments to take steps to mitigate these effects and ensure that the benefits of AI are shared by all members of society.

The role of government in the age of AI is likely to become even more important in the future. Governments will need to create policies and regulations that support the development and adoption of AI while also addressing potential negative impacts. This could include investing in education and training programs to help workers adapt to the changing labor market, and developing ethical guidelines for the use of AI. Governments may also need to consider the potential economic and social impacts of AI, and take steps to ensure that the benefits of the technology are distributed fairly across society.

Did you enjoy this essay? What expert penned this work? Perhaps by now you’re catching on…

Indeed, this essay was written by ChatGPT in response to the simple prompt: Write a 6 paragraph essay describing how artificial intelligence will transform business, the nature of work, society, the role of government and more.

Personally, I thought that ChatGPT glossed over the risks of AI a bit (as one might expect from the AI itself!) so I urged it to probe deeper by asking the follow-up question: “Please add one section on the risks that AI pose to society and another on how it forces us to rethink the meaning of art and culture.”

One of the potential risks that AI poses to society is the potential for job displacement. As AI continues to advance, it is likely to automate more and more tasks that were previously performed by humans. This could lead to significant changes in the labor market, with some workers finding it difficult to adapt to the new roles that are created by AI. This could result in increased inequality and social unrest, unless steps are taken to ensure that the benefits of AI are shared by all members of society.

Another potential risk of AI is the possibility that it could be used for malicious purposes. For example, AI could be used to develop sophisticated cyber-attacks or manipulate social media to spread misinformation. This could have serious consequences for individuals and society as a whole and could require governments to develop policies and regulations to mitigate these risks.

In addition to these risks, the increasing use of AI also raises questions about the meaning of art and culture. As AI becomes more advanced, it is likely to be used to create art and other forms of cultural expression. This could challenge our traditional notions of what counts as art and who can create it, and could require us to rethink the way we value and appreciate art and culture. It could also lead to the creation of new forms of art and culture that are uniquely suited to the capabilities of AI.

Overall, the increasing use of AI poses both risks and opportunities for society. It is important for businesses, governments, and individuals to work together to ensure that the benefits of AI are realized while minimizing any potential negative effects. By doing so, we can harness the power of this technology to improve our lives and create a better future for all.

OK, so here are a few questions for you to think about:

1. How can you know a Tweet or email was written by the author and not the AI? As an employer, when you assign a task can you be sure your employee didn’t merely assign it to AI?

2. If an employee did assign it to the AI, and the work is of a fine quality, why have the employee at all?

3. How many earnings reports, articles or other forms of ‘business prose’ will ever be written by people again?

4. Will kids ever do homework again? How can we make sure they don’t just ask the AI?

5. Will the great skill of the future be how to master AI prompts, like a magician masters their wand (credit to Eric Wall for that metaphor)?

Time to work on your magic spells!

Introducing our New Co-Host, ChatGPT (Alex, you’re fired!)
On this week’s episode of DeFi Decoded, Alex and Andrew talk about OpenAI’s smash hit ChatGTP and how Andrew is using it to unlock new capabilities, debug software and accelerate the growth of SX Network. On the topic of SX, Andrew gives us a sneak peek into the roadmap for the SX Network Merge, and shares his vision for how prediction markets can help solve big problems, manage risk and support new governance models. But before all that, Alex tells us about his recent trip to Turkey where he was the keynote speaker at the Turkish Capital Markets Congress. Plagued by inflation many in Turkey have chosen crypto as an off-ramp. Alex was very impressed by the working knowledge of Web3 in many of the country’s leading financial firms. The future of Web3 in Turkey looks bright!
#1: BTC Accumulation – Record High Total Number of Addresses Holding At Least 1 BTC 
The total number of Bitcoin wallets holding at least 1 BTC has reached 960,000 and continues to hit new highs amid historically large withdrawals from centralized exchanges this past month. Having increased ~ 5.3% since the FTX collapse in early November, this signifies significant BTC accumulation by mid-sized buyers and an emphasis on self-custody over 3 rd party custodians. 
#2: Exchange Volume Depletion (7DMA) - Down ~ 61.70% Since November 11 
In the past 24 days, the total spot market volume for cryptocurrency exchanges has plunged over 61%, after spiking in the wake of the FTX collapse. Investors are now waiting to see if there are any more negative catalysts before getting the comfort to step back into the markets.
#3: Sharp Incline in Bitcoin Volatility Index (BVIN) - 67% Increase in Last 18 Days  
The Bitcoin Volatility Index (BVIN) measures the implied volatility of BTC over the next 30 days; in the past two weeks, it has spiked by 67%. This significant increase in BVIN suggest an increase in investor demand for out of the money put options that would increase in value should Bitcoin decline significantly.