Sometimes, I’m a fan of the popular saying- Not by power, not by might. Other times, I’m not. Now, I’m not trying to dismiss your religious beliefs or personal opinions. However, the incredible ChatGPT innovation might make you want to question that line. Take it or leave it.
In the midst of confusion and increasing skepticism, I decided to see why this AI application has become such a a toast among the numerous threads sewn on Twitter. Heck, even the mainstream media can’t keep calm!
— CNN International (@cnni) March 16, 2023
On the journey to feedback, and past events
So, for the purpose of this article, I decided to test the AI’s intelligence regarding one of the major upgrades of the crypto space this year – Ethereum’s [ETH] Shanghai Upgrade. Proposed in 2022, the upgrade is the most significant development of the second-largest blockchain after the Merge.
For a while, assets had been allocated to the Ethereum Beacon Chain. The Beacon Chain acts as the consensus mechanism for the 2022 Proof-of-Stake (PoS) transition. Thereby, making sure that newly created blocks and validators are duly rewarded.
But, in this case, each validator needs 32 ETH deposited into the Ethereum Mainnet to qualify. The idea of the Shanghai upgrade was scheduled for March 2023, but it has been already pushed forward to 12 April. This, to allow these validators to begin withdrawal of their rewards.
ChatGPT, on the other hand, has been existing for some years. However, its recent push by OpenAI has shown that its ability is one that no other AI product may be able to match up with.
Here’s where it gets interesting. I openly admit that ChatGPT could be one of the best innovations of this decade. However, my views on this incredible development won’t allow me to keep my hands to myself. So, I decided to test its knowledge about the Shanghai upgrade. Trust me, you will be amazed at its response.
Looking at its response above, it’s evident it started by correcting me. Some would say it has a point too. However, a further evaluation showed that it acted like it was not yet in 2023. Notably, it made some errors with the definition.
ChatGPT: Using apologies to liberate itself?
A notable observation is its mention of the PoS switch, popularly called the Merge. This is an event that took place in September 2022. Even so, it still responded like it is a future event. But no, I’m not blaming its capability as it is a learning tool. So, to further assess its knowledge, I educated it or shall I say “jailbreak-ed” it by having a heart-to-heart conversation.
Something I find interesting about ChatGPT is not only its smartness, but its human feel too. As shown above, I tried to educate it on what the upgrade was. And to be honest, I never expected an apology from a bot. But yes, I got it.
However, it again failed to give the correct answer to my inquiry. Although I must applaud it for giving bits and pieces of related information.
While it did not get to the Testnet stages that the blockchain had reached and passed, it is worth noting that the Sepolia and Goerlii Testnets have been forked. However, Ethereum developer Tim Beiko had on 14 March said that several validators have failed to upgrade on the Beacon Chain.
And, this has caused some issues with the nodes on Georli, with Beiko noting that the development team is working on it so it does not affect the Mainnet upgrade.
Deposits are being processed (https://t.co/CxYtPcGMCp), but it seems like several validators haven’t upgraded. Looking into it 👀
One challenge with testnet validators is that given the ETH is worthless, there’s less incentive to run a validator/monitor it.
— timbeiko.eth ☀️ (@TimBeiko) March 14, 2023
Now, let’s get back to ChatGPT. As you probably know, developments in the crypto-ecosystem sometime leads to a hike of tokens related to projects. Unfortunately, that was not the case for ETH during the Merge. In fact, the altcoin’s was price shredded after many looked forward to an uptick.
The sentiment, as the next upgrade approaches, is similar among some investors. In light of this, I decided to ask ChatGPT’s opinion about the matter. It gave me the following response –
Here’s what it thinks of ETH’s price
Remember how I said it apologized and gave me a human-like feel? This time, it was different and its reply was something any honest person in the space would give.
As the popular saying goes— Not financial advice, ChatGPT advised caution and gave instances where price action depends on several underlying factors. This is one part that, to me, the AI seems to have perfected.
Meanwhile, ETH’s price at press time was $1,660— Up 8% from its value seven days ago. But moving forward, will the cryptocurrency favor the greens or fall to bears’ demands?
At the time of writing, the Relative Strength Index (RSI) had a reading of 56.44. The indications from the daily chart showed that ETH only left the oversold region a few days back. So, its prevailing value means that it is at a relatively good buying stage.
However, in terms of volatility, the Bollinger Bands showed that ETH has been expanding. An interesting scrutiny of the situation revealed ETH’s price leaving the lower band, to hit the upper band. A situation like this implies that ETH was overbought. However, the indicator alone might not be enough to trigger a price retrace, except other signals like the RSI also hit an overbought point of 70.
Concerning its direction, the Directional Movement Index (DMI) favored the buyers (green) over the sellers (red). Even so, it still lacked the support of the Average Directional Index (ADX) which could have cleared all doubts if it was 25 or above. However, the ADX (yellow) remained still at 18.22.
Finally! It showed me the code
So, I gave ChatGPT a last chance to redeem itself. Again, this question was a simple one and I expected an accurate answer. I went further to explain things to it carefully. But, here is what I got when I asked it to show me the code of ETH’s price on a price tracking platform like CoinGecko or CoinMarketCap.
If you had thought it would disappoint again, sorry to burst your bubble. ChatGPT gave me the code for ETH’s price. Another thing I was impressed with was the disclaimer it gave about not using the information for investment purposes.
All in all, I must admit that ChatGPT has come to stay. Even though it lags in some areas, I noticed that if you teach it, it learns very fast. However, I can’t say for sure that it would get you information about Ethereum or the Shanghai upgrade quickly.
Thoughtful responses and the GPT-4 mastermind?
Since I had limited knowledge about AI, I decided to speak to an expert. I was lucky enough to get the attention of Ilman Shazhaev, CEO and founder of Farcana. He is a Dubai-based techpreneur with extensive experience in launching IT and DeepTech projects. Has a strong background in IT management, data science, and AI.
Q- ChatGPT seems to be giving a few incorrect or backdated answers. What do you think could be responsible for this?
Despite its tag as a know-all Artificial Intelligence tool, ChatGPT is still a human invention and, therefore, prone to errors. The chatbot is still in its early stages of adoption, so incorrect responses are imminent and bound to serve as a basis for future developments. With the recently launched GPT-4 showing more advanced responses, we can be sure that improvements are being made and that this tool will be more consistent moving forward.
Q- Do you think the AI is capable of predicting a cryptocurrency’s price, especially if a development is approaching? Let’s say the Ethereum Shanghai Upgrade
Artificial Intelligence can do anything, including predicting a cryptocurrency’s price. The tool can do this by riding on the tons of available data, which it can efficiently use as a basis for its predictions.
Still, while predicting the price of crypto is one thing, the accuracy of the prediction is another. Considering the fact that AI can only use data, there are fundamental factors and analyses that it may not be able to factor in, thus impairing its accuracy by a significant factor.
Q- If it struggles to give correct responses to up-to-date developments. How long do you think it would take to learn about it?
AI development and what ChatGPT embodies is a dynamic innovation that is bound to improve over time. With the current advancement in OpenAI and the available funding level, we can expect the technology’s evolution to produce real-time results in the next 3-5 years.
Q- Do you think AI in any way can influence the Ethereum blockchain or ETH’s price going forward?
There are many aspects through which AI and a blockchain protocol can co-exist, and innovators, including our team at Farcana, are exploring what new use cases we can build in this regard. While AI and blockchain are independently innovative, their combination can do quite a lot, including influencing ETH’s price.
Meanwhile, OpenAI may be working on improvements to the challenges experienced by ChatGPT. On 14 March, the company revealed an upgraded version of the product in GPT-4. With amazing capabilities and talks of passing difficult exams, who knows? Maybe it could fill in for all the lapses opened up by ChatGPT.
— OpenAI (@OpenAI) March 14, 2023
So, now that there is a new version, I wanted to see if there is any difference or improvement. My next line of action was to ask GPT-4 the first question I asked ChatGPT.
And to my surprise, it gave me a direct answer.
Following my experience with the upgraded version, I must admit that GPT-4 seems to be smarter than ChatGPT. Although the answers were not entirely correct, it did not give a “not being familiar” with the term excuse.
In conclusion, these AI products developed by the OpenAI team, have the capability to improve several sectors including the crypto-ecosystem. However, one thing you must keep in mind is that it is not entirely up-to-date. However, if you teach it, it can learn and provide you with the information you need.