The Historical Convergence of AI and Cryptocurrency
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The Historical Convergence of AI and Cryptocurrency
AI and cryptocurrency share a closely intertwined historical origin and pursue similar goals in multiple aspects.
Navigating Web3 tides with focused insightsAuthor: Wang Chao
On the eve of Christmas in 1940, MIT mathematics professor Norbert Wiener received $2,325 in defense funding to develop a system for predicting enemy aircraft positions. The amount was admittedly modest, but being involved in the effort against the Axis powers energized Wiener.
As early as World War I, people realized that as flight speeds increased, ground-based anti-aircraft operators would gradually become inadequate—humans were becoming the weakest link in the operational chain. Human operation had to be removed entirely from the sequence.
But this proved difficult. Wiener spent considerable time studying pilots’ psychology and other factors, attempting to predict an organism’s future behavior by analyzing its structure, believing this would be the most mechanistic approach closely mirroring pilots’ physiological behaviors. However, faced with delayed progress and pages of formulas submitted by Wiener, officials from the Defense Committee were utterly baffled and ultimately terminated the project.
Many other funded projects emerged during this period, giving rise to innovations such as the VT (variable time) fuse, which enabled shells to autonomously determine detonation timing based on received signals mid-flight. Near the end of WWII, Germany developed the V1 missile—a long-range weapon equipped with a rudimentary autopilot system. This sparked widespread fear at the time, leading people to dub it the "autonomous bomb." Fortunately, anti-aircraft artillery equipped with VT fuses performed admirably, shooting down approximately 79% of incoming V1s. This confrontation marked humanity's first-ever combat engagement in which machines made autonomous life-or-death decisions.
Automation and AI
Although his wartime efforts did not succeed, the experience profoundly influenced Wiener. In 1948, he published Cybernetics: Or Control and Communication in the Animal and the Machine—a landmark work known simply as Cybernetics. The book proposed that both animals (including humans) and machines rely on information transmission and processing to maintain and regulate their functions. This theory broke through traditional disciplinary boundaries, offering a revolutionary new way to understand complex systems—one applicable not only to mechanical and electronic systems but also to biological organisms and social organizations.
Under cybernetics' influence, numerous automation initiatives emerged, including the U.S. aviation automation management system, the Semi-Automatic Ground Environment (SAGE) air defense system, and the Apollo spacecraft navigation system. Among these, Chile’s Cybersyn project stood out particularly. Integrating ideas from big data, machine learning, and DAOs, it attempted to achieve automated national economic management led by machines. However, due to technological and political constraints, this ambitious endeavor ultimately failed.
Cybernetics dissolved the boundaries between physical and mental, natural and artificial, living and non-living. As the scientific community gradually accepted the idea that humans and machines share fundamental similarities, researchers began seriously exploring the construction of machines capable of human-like intelligence. In 1950, Turing published his pioneering paper in artificial intelligence, “Computing Machinery and Intelligence,” which was significantly influenced by cybernetic thought. Warren McCulloch and Walter Pitts—one of the founding figures of neural networks—had even worked alongside Wiener. Pitts’ research in neural networks was deeply inspired by Wiener, while also providing reciprocal inspiration to him.
While AI cannot be directly attributed to cybernetics as its sole origin, both fields share common interests and theoretical foundations in enabling machines to mimic or replicate human intelligence and behavior, and they have historically evolved in tandem, influencing each other over decades.
The wave of enthusiasm sparked by cybernetics in the 20th century left a lasting cultural impact, especially within countercultural movements. This manifested as a strong belief in using technology to drive innovation and transformation—a conviction that became one of the core characteristics of Silicon Valley culture.
From Cyberpunk to Cypherpunk
The term “cybernetics” is actually a rather odd translation. “Cybernetics” originates from the Greek word “κυβερνήτης” (kybernētēs), meaning “steersman” or “helmsman.” Originally referring to the governance of ships or states, it was initially translated into Chinese as “Mechanical Brain Theory,” but eventually “Cybernetics” became the accepted term.
Due to this translation, it's difficult in Chinese contexts to associate the prefix “Cyber” with its roots in cybernetics. In fact, the term “Cyber” originated precisely from cybernetics. Over decades of evolution, it has become closely linked with concepts like internet culture, virtual reality, and digital identity. “Cyberspace” now represents a virtual world constructed through digital technologies.
Geeks viewed cyberspace as a new, free, and ideal frontier. But soon, the U.S. government moved in to assert control—an action seen as intolerable by tech enthusiasts, sparking resistance known as the Crypto Wars that spanned the entire 1990s.
It was during this period that the cypherpunks emerged—a group of activists and technologists advocating for using cryptography to promote personal privacy and freedom. The community represented by the cypherpunks ultimately prevailed. Advanced encryption technologies, once classified as munitions under strict regulation, were eventually opened up globally, granting everyone the right to use cryptographic tools.
During their struggle, U.S. courts ruled that open-source code constituted a form of free speech, providing solid legal protection for contributors worldwide and fostering a vibrant open-source ecosystem. These achievements accelerated rapid advancements in information technology, ushering in a flourishing internet era. More importantly, technically skilled geeks gained a small utopia of their own within cyberspace.
The cypherpunk movement didn’t stop at communication privacy—they also sought to create payment systems based on cryptography, fully protecting privacy and free from centralized authority. Against the backdrop of the Crypto Wars, these tech pioneers launched many innovative experiments. David Chaum developed Digicash, an early form of digital currency that nearly secured a deal with Microsoft; Nick Szabo designed Bitgold and introduced the concept of smart contracts for the first time; Wei Dai proposed B-Money, whose name would later be immortalized in Ethereum as the smallest unit “wei” over two decades afterward. Though none of these early projects endured, they laid crucial groundwork for the development of the crypto ecosystem.
A decade after the end of the Crypto Wars, a mysterious figure built upon these predecessors’ work and introduced his own breakthrough. His true identity remains unknown to this day, but the world is already very familiar with his pseudonym—Satoshi Nakamoto.
AI + Cryptography
Though differing in technical architecture and philosophy, AI and cryptography share a closely intertwined historical origin and pursue similar goals in multiple aspects—especially in their pursuit of “autonomy.”
The envisioned future of AI is autonomous—where various agents operate independently, overcoming human limitations in handling complex and repetitive tasks to enhance efficiency and innovation. The envisioned future of crypto is equally autonomous—networks, protocols, and organizations running via consensus code, leveraging decentralization to build fairer, more transparent, and secure systems, preventing misuse of resources and abuse of power. Despite different focal points, both aim to optimize societal functions and rationalize power structures through technological innovation.
After decades of separate development, AI and cryptographic technologies are now converging into a more powerful force, driving a new era of technological revolution.
Individuals can contribute resources to build stronger decentralized computing networks and benefit accordingly. Models can connect to and access more data via encrypted networks, continuously improving their capabilities. AI creators leverage cryptographic networks to protect their intellectual outputs and fairly distribute rights among stakeholders in a transparent manner. Increasing numbers of AI agents will soon integrate into these encrypted networks—or even form dedicated AI-centric cryptographic networks—to gain better environments and interaction capabilities, engaging with humans and other AIs to unlock vast new applications and flows of capital.
With productivity greatly enhanced, people will have more time to devote to what they truly love. They will join culturally driven DAOs where they pursue deeper meaning and value. This collective effort and spirit of collaboration may spark a new Renaissance, producing unprecedented achievements in art, culture, and technology.
These diverse, limitless scenarios converge into a grand stage for future technological advancement. We are witnessing not merely a technological revolution, but a complete reshaping of social structures and ways of life.
This piece serves as both a historical reflection and an introduction. Over the coming months, I will publish a series exploring how AI and cryptographic technologies will increasingly intertwine and co-evolve in the future.
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