Ethereum co-founder Vitalik Buterin recently tested the capabilities of the AI tool known as ChatGPT to determine its potential for suggesting APIs or application programming interfaces needed for developing successful trading strategies in the crypto sphere. Through his experiments, Buterin found that even though ChatGPT had limited capabilities, it was able to expose users, particularly amateurs, to a wide variety of software libraries they can use to formulate almost accurate, meaningful responses.
ChatGPT has succeeded in the automation of certain processes. In the case of Buterin, the AI tool provided application programming interface (API) suggestions to calculate the distance between two points related to travel time. The AI bot further assisted Buterin in writing a script to access publicly-available data from GeoLife and used a Google Maps API to compute the distance between two starting and ending points. ChatGPT even wrote a script of its own to interpret the GeoLife’s location data. However, the AI technology was yet unable to offer any APIs to calculate the optimal route, including flights, between two points at more than 500 kms distance apart.
Buterin’s experiments suggest that ChatGPT may be used to fast-track the development of customized tools that can come in handy for traders. Recently, San Francisco-based prime broker FalconX announced a new AI-based tool known as Satoshi that provides trading advice for a specific portfolio or market scenario. The tool makes use of a large language AI training model much similar to that of ChatGPT.
This AI tool can be used to create a script corresponding to pre-specified strategies so that amateur traders can execute their plans in a standardized way. For example, Michael King, an award-winning AI writer and trader, once utilized ChatGPT to generate a script to trade BTCUSDT on Binance, thus permitting market buy order placement above Binance’s minimum limitations with it.
However, it is essential to note here that such AI tools like ChatGPT are still in the early stages and cannot guarantee full accuracy. Moreover, it may not be as proficient in accounting for any complex or unforeseen market conditions. Additionally, hallucinations are a possibility where a false assumption masquerades itself as surety. On top of all this, there is a risk of acquiring incorrect results based on the words utilized in the query.
Overall, Vitalik Buterin’s experiments demonstrate that even though AI tools such as ChatGPT have the potential to fail in the creation of real-time reliable answers, it can nevertheless speed up the creation of tools for traders.
FalconX is a prime broker headquartered in San Francisco. It is a provider of mission-critical infrastructure for digital asset trading. It focuses on making digital assets easily accessible to institutional investors worldwide. They also provide services to make it easier for retail investors to understand and become a part of digital asset trading markets.
Vitalik Buterin is a Russian-Canadian programmer, entrepreneur and co-founder of Ethereum. Buterin first got interested in Bitcoin in 2011 and had an article published on Bitcoin Magazine the same year. In 2013, he proposed the development of a new blockchain platform with a “more general scripting language.” This led to the formation of Ethereum in 2014. Since then, he has been involved in a number of cryptocurrency and blockchain startups and has worked as a researches advisor in the crypto field.
