Ethereum’s “biggest mainstream moment is waiting in the wings with AI,” said Eric Connor on X on April 15. 

While AI is on a fast track to reshape almost every aspect of our lives, it is “plagued by black-box models, centralized data silos, and privacy pitfalls,” Connor continued. However, these problems create an opportunity for Ethereum to shine, he said.

Ethereum offers transparency through verifiable smart contracts, decentralization against big tech monopolies, aligned incentives via token economies, and built-in micropayment infrastructure, he added. 

Smart contracts can provide transparent records of AI model training processes and data sources, addressing the “black box” problem.

However, major AI players may resist open models “as they profit from secrecy and control,” he said. Demand for transparency, fairness, and security will only grow, and that’s where Ethereum “offers an alternative path,” he added. 

“Ethereum already has the ethos with openness, collaboration and trust minimization,  things that ethical and accountable AI needs.”

By proactively building the tooling, research and real-world use cases, Ethereum can give AI developers a reason to embrace decentralized approaches, “and that could deliver mainstream adoption far beyond finance,” Connor concluded. 

The next frontier for crypto will be decentralizing AI, Zain Jaffer, co-founder of Vungle, told Cointelegraph earlier this year. 

Connor left the Ethereum community in January amid growing leadership concerns to pursue interests in AI. 

AI agents on Ethereum

Ethereum may also be important for the development of agentic AI — an emerging and experimental technology,  according to a recent post on the Ethereum blog. 

AI agents are software programs that use artificial intelligence to autonomously perform tasks, make decisions, learn from data, and adapt to changes, and they are growing in numbers on Ethereum.

The Ethereum blockchain provides key advantages for AI agents, including access to transparent, real-time blockchain data, true digital asset ownership, and the ability to execute transactions and interact with smart contracts, it noted.

Related: The future of digital self-governance: AI agents in crypto

The post highlighted three notable projects, which were Luna, an autonomous virtual influencer that controls its own onchain wallet; ¡` ×\AIXBT, an AI agent providing crypto market analysis; and Botto, a decentralized autonomous artist creating NFTs guided by community voting.

Meanwhile, projects like Bankr and HeyAnon are simplifying blockchain interactions through conversational interfaces, allowing users to manage wallets and execute transactions via simple chat commands.

Magazine: Bitcoin eyes $100K by June, Shaq to settle NFT lawsuit, and more: Hodler’s Digest

The governor of the Northern Mariana Islands, a small Pacific US territory just north of Guam, has killed the legislation that would have allowed one of the territory’s local governments to launch a fully backed US dollar-pegged stablecoin.

In an April 11 letter seen by Cointelegraph, Northern Mariana Islands Governor Arnold Palacios said he vetoed the bill as it “presents several legal issues and may be unconstitutional.”

Palacios’ letter said the bill, which largely dealt with issuing licenses to internet casinos, would regulate an activity that could not “be clearly restricted” to Tinian, a small island forming part of the territory that was hoping to launch a stablecoin.

Tinian, which has just over 2,000 residents and a largely tourism-based economy, is governed by the local government, the Municipality of Tinian and Aguiguan, one of four municipalities in the Commonwealth of the Northern Mariana Islands.

In February, Republican Northern Marianas Senator Jude Hofschneider led the introduction of the bill to amend a local Tinian law to allow internet-only casino licenses, which tacked on a provision allowing the Tinian treasurer to issue, manage and redeem a “Tinian Stable Token.” 

The four-member Tinian delegation to the Marianas legislature passed the bill in a unanimous vote on March 12.

In vetoing the bill, Palacios didn’t comment on the proposed stablecoin, instead taking issue with its aim to police an industry that can cross jurisdictional boundaries, and said the measure lacked “robust enforcement measures to prevent illegal gaming activities.”

Tinian misses chance at beating Wyoming

The bill’s passage could have seen Tinian’s government be the first US government entity to issue a stablecoin ahead of Wyoming, whose Governor Mark Gordon said in March that the state’s stablecoin could be ready for a launch in July.

The stablecoin was to be known as the Marianas US Dollar (MUSD), which was to be fully backed by cash and US Treasury bills held in reserve by the Tinian Municipal Treasury, according to statements shared with Cointelegraph last month.

Related: The GENIUS stablecoin bill is a CBDC trojan horse — DeFi exec

The Tinian local government chose tech services firm Marianas Rai Corporation, based in the Commonwealth’s capital of Saipan, to exclusively provide the infrastructure to issue and redeem MUSD and develop its ecosystem.

The token was slated to launch on the eCash blockchain, a network that rebranded from Bitcoin Cash ABC in 2021 and is a fork of Bitcoin Cash — a blockchain that split off from Bitcoin in 2017.

The launch of MUSD was meant to coincide with Google’s $1 billion plan announced in April to route fiber-optic subsea cables from the mainland US through Tinian and onto Japan to improve internet connectivity.

Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle 

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