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Lesson # 5

Risks, Challenges & the Future of AI in Web3

Blockchain Basics

1. What is the main concern behind the "black-box problem" in AI systems?

A. AI models are open-source and easy to copy

B. AI systems crash frequently under pressure

C. The decision-making process is not easily interpretable

D. AI systems refuse to generate outputs without human input

2. Which method helps users understand how a complex AI model made a specific decision?

A. Blockchain timestamping

B. Data compression

C. Explainable AI (XAI)

D. Deepfake filtration

3. In decentralized AI systems, what makes bias and misinformation harder to control?

A. AI models are trained only on books

B. All nodes are legally registered

C. Lack of a central authority and uniform oversight

D. Developers are publicly identified by law

4. What legal challenge arises when an AI-generated NFT infringes on copyright?

A. NFTs cannot store legal data

B. There’s no recognized human authorship to assign liability

C. Only DAOs can sue AI models

D. Smart contracts override global laws

5. What is a primary ethical concern of AI-powered DAOs?

A. They eliminate transaction fees

B. AI can evolve into quantum consciousness

C. AI decision-making may lack community values or accountability

D. Only bots can participate in governance

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