With GPT-4 on the horizon, the crypto community braces itself
Crypto anticipates and makes preparations for the potential effects of OpenAI’s recently released GPT-4.
OpenAI founder Sam Altman’s GPT-4 update to the company’s third-generation AI engine will affect the cryptocurrency industry. The previous version, GPT-3, served as the foundation for the viral success ChatGPT, which has millions of users and has received extensive media attention. Because to GPT-3, Altman was also able to raise an incredible $10 billion from Microsoft, valuing OpenAI as the biggest AI business in the world.
The crypto sector, which is composed primarily of computer enthusiasts, immediately greeted the introduction of implications of GPT-4. Fans of NFT started experimenting with its creative supplies right away. Yet, blockchains and protocols without security testing—including decentralized banking protocols—alarmed many.
GPT-4 exploitation risk for crypto flash loans
Several cited the $197 million attack this week on the new DeFi platform Euler Finance. A cyberattack that manipulated so-called “flash loans” caused Euler’s reserves to be exhausted.
An attacker who receives a flash loan trades and pays it back completely in one Ethereum blockchain block.
Any market participant can use flash loans to make a lot of money with little initial investment. To leverage up and profit on a large trade, the attacker only needs a little collateral.
Worse, assaults based on flash loans reward persistent, tenacious attackers who methodically prepare their entire operation before executing it. AI and Big Data can analyze massive amounts of data and perform flash loan assaults, which complete the entire transaction chain in a single on-chain block.
A flash loan attack usually starts with a profit guarantee. The Euler Financial attacker used malicious code to produce artificially inflated collateral and then used it to steal liquidation money.
Nonetheless, the entire cryptocurrency industry will be watching for any immediate impacts of OpenAI’s new GPT-4 on the ecosystem of digital assets. The new AI will undoubtedly have an impact on NFTs, blockchain experiments, coding tools, security research, and other cryptographic activities, even if permissionless financial exchanges like DEXs and other DeFi technologies are currently the most at risk.