Academy

How Blockchain and WaaS Can Solve Generative AI’s Trust Problem

2025-05-07

[TL;DR]

  • Generative AI has significantly improved the efficiency and creativity of content production, but it also raises trust-related issues such as difficulty in verifying authenticity, copyright infringement, and unclear accountability.
  • Blockchain, especially Wallet-as-a-Service (WaaS), provides a technological foundation that transparently records the creation history and origin of content, protects creators’ rights, and enables a fair compensation system.
  • However, blockchain also has technical limitations and legal and ethical constraints. Therefore, building a trustworthy digital content ecosystem requires a combination of technology, institutional support, and improved user awareness.

1. Introduction

1.1. The Rise and Current Landscape of Generative AI

Generative AI has emerged as a central force in digital innovation over the past few years. With rapid advancements in large language models (LLMs) and image generation models, generative AI can now create highly sophisticated text, images, audio, and video content—often indistinguishable from that made by humans.

As generative AI continues to evolve at an astonishing pace, it has led to the explosive growth of related markets. Innovations in natural language processing and computer vision are driving transformative change across a range of sectors, from creative industries and marketing to education and healthcare. Today, even general users can easily leverage AI tools without complex knowledge, enjoying the benefits across various platforms.

In South Korea, interest in generative AI is growing rapidly. Major corporations are establishing or expanding in-house AI research labs, while startups are focused on developing specialized solutions. At the government level, various initiatives are being rolled out to foster the AI industry as part of its Digital New Deal policy, recognizing AI as a key area for enhancing national competitiveness. There is especially growing demand for models specialized in the Korean language and tailored to local industry needs, driving active research and development.

However, the pace of technological advancement far outstrips the development of corresponding regulations and ethical frameworks, resulting in a range of social challenges. In particular, concerns around the authenticity and trustworthiness of digital content are becoming increasingly severe. As it becomes harder to distinguish between content created by AI and that made by humans, the need for a systematic method to verify the source and credibility of information has never been more pressing.

If these emerging challenges are not effectively addressed, the full potential of generative AI may not be realized. Thus, in addition to technological progress, there is now a pressing need for societal consensus and institutional safeguards to be developed in parallel.

1.2. Innovations and Opportunities Brought by Generative AI

Generative AI offers unprecedented creative opportunities and productivity gains to our society. It has significantly lowered the barriers to content creation, allowing anyone to produce high-quality content without needing specialized skills or expensive tools. This has democratized creativity and ushered in a new era of digital content.

In business settings, generative AI has dramatically improved efficiency in areas such as marketing content creation, customer support, and product design. Companies are leveraging AI to produce personalized content at scale, enhancing customer experiences while reducing costs. For example, businesses can quickly translate and localize content, or easily run personalized ad campaigns. Internally, AI supports faster and more accurate workflows by assisting with meeting summaries, data analysis reports, and decision-making processes.

In education, generative AI enables automated creation of personalized learning materials tailored to each student’s level and interests, and provides instant responses to student queries during learning. This enhances both accessibility and effectiveness in education. By offering content suited to individual learning speeds and styles, generative AI has the potential to help close educational gaps. It also reduces teachers’ administrative burdens, allowing them to focus on delivering higher-quality instruction.

In creative industries, generative AI is rapidly gaining traction as a new tool for artistic expression. Artists, designers, and writers are using AI as a creative partner to produce experimental works that were previously unimaginable. This human-AI collaboration expands creative boundaries and opens new aesthetic possibilities. By lowering the entry barriers to creation, more individuals can now express their ideas and share them widely.

In healthcare, generative AI is being used in medical image analysis and drug development, improving diagnostic accuracy and drastically reducing the time needed to develop new treatments. This contributes to saving lives and lowering healthcare costs. Especially in rare diseases or personalized medicine, AI helps overcome limitations of traditional healthcare systems. It also opens possibilities for delivering quality medical services to underserved populations and regions.

In everyday life, generative AI enhances convenience through AI-powered personal assistants that help manage schedules, search for information, and automate routine tasks. It also supports hobbies and self-improvement by offering personalized advice and feedback for better outcomes.

However, behind these innovations and opportunities lie significant challenges regarding trust, authenticity, and legal responsibility. Questions remain about how to guarantee the trustworthiness and originality of AI-generated content, and how to protect intellectual property rights. There is also growing concern about the potential for fake news and deepfake content generated by AI to cause social disruption.

These are not simple technical issues—they involve complex legal, social, and ethical dimensions that demand collective solutions. To maximize the benefits of generative AI while minimizing its risks, a balanced and comprehensive approach is more necessary than ever. This article explores the trust challenges associated with generative AI content and how blockchain-based solutions can address them.

2. Challenges of Generative AI Content

2.1. The Difficulty of Verifying the Authenticity of Digital Content

With the rapid advancement of generative AI, verifying the authenticity of digital content has become more difficult than ever. Commercially available generative AI models today can produce text that is nearly indistinguishable from human writing, and they can generate images and videos that are hard to differentiate from real ones.

In such an environment, the average user cannot easily determine whether the information they encounter was created by a human or an AI. This indistinguishability poses serious risks, especially in domains where factual accuracy is critical—such as news articles, academic papers, and product reviews. For instance, if AI-generated fake news is accepted as fact, it can distort public perception and lead to widespread social confusion.

What’s more concerning is that as AI model performance improves, distinguishing between AI- and human-generated content will become even harder. While some detection tools exist today, they are far from perfect. If AI-generated content is edited by a human, it becomes nearly impossible to detect its origins.

Generative AI models also reflect the biases and inaccuracies present in their training data, which means they can produce misleading or false information that appears plausible. In many cases, AI models generate statements that are entirely fictional yet presented in a confident tone—an issue known as "hallucination"—which severely undermines content reliability.

In this context, the need for a mechanism that allows for transparent tracking and verification of content origins and production processes is becoming increasingly urgent. Distributed ledger systems like blockchain offer promising solutions. They can provide an infrastructure that transparently records and verifies the source and modification history of digital content.

2.2. Copyright and Intellectual Property Infringement Issues

Generative AI poses complex challenges related to copyright and intellectual property rights. AI models are trained using massive datasets that often include copyrighted works, and there is currently no clear legal framework for determining ownership of AI-generated content or protecting the rights of original creators.

A particularly difficult issue arises when AI-generated content imitates or transforms existing works. It is often unclear whether such outputs qualify as fair use or constitute copyright infringement. For example, if an AI trained on a specific artist's style generates a similar piece of work, it is hard to determine whether it is a creative transformation or simply a replication.

There are also intellectual property issues related to the AI models themselves. Questions remain over whether the model weights, architectures, and training methods should be protected by copyright or patents, which could lead to disputes between AI developers and companies.

In addition, there are complicated issues regarding the ownership of derivative works created using AI-generated content. For example, if a company uses an AI-generated image in an advertisement, who holds the copyright? If the image incorporates elements from other copyrighted materials without permission, who is legally liable?

These unresolved issues can hinder the healthy development of the digital content ecosystem and obstruct efforts to protect creators’ rights and establish fair compensation systems. Blockchain-based systems are gaining attention as a potential solution. They can transparently record the process and usage history of content and use smart contracts to automate licensing and payments, offering a new approach to intellectual property management.

2.3. The Spread of Deepfakes and Misinformation

With the advancement of generative AI, deepfake technology has become increasingly sophisticated. Deepfakes involve the use of AI to superimpose real people’s faces or voices onto other videos or audio recordings, and such tools have become accessible to the general public.

Although deepfakes can be used for entertainment or educational purposes, they also pose a serious risk of being misused for defamation, fraud, or political manipulation. In reality, deepfake videos of politicians and celebrities are spreading rapidly on social media, leading to widespread confusion. A particularly alarming trend is the democratization of deepfake technology—what once required advanced knowledge and tools can now be done through smartphone apps. This increases the likelihood of deepfakes being used in crimes such as identity theft, privacy violations, and financial scams.

Generative AI also facilitates the production and distribution of text-based misinformation. Fake news generated by AI can be written in an extremely convincing manner, making it difficult to differentiate from real news, and can spread rapidly through social platforms. Especially during politically sensitive times or social crises, such misinformation can cause significant disruption and division.

A more disturbing consequence is the growing difficulty of distinguishing real evidence from fake. As deepfakes and AI-generated content become normalized, even authentic video or audio evidence may be dismissed as fake, undermining the long-standing principle that “seeing is believing.” This erosion of trust can ultimately shake the very foundations of social cohesion.

To address these risks, we need reliable systems for verifying the authenticity of content. Blockchain-based solutions offer the potential to record the origin and creation process of content transparently and immutably, serving as a critical tool to combat deepfakes and misinformation.

2.4. Ambiguity of Content Origin and Accountability

The ambiguity surrounding the origin and accountability of AI-generated content poses a significant challenge in today’s digital ecosystem. In traditional content production, there is a clear creator or publisher responsible for the quality and accuracy of the content. However, in the case of AI-generated content, it is unclear whether responsibility lies with the AI developer, the user, or the platform provider.

This lack of clarity leads to numerous legal and ethical issues. For example, if AI-generated content includes defamatory or hateful language, it is unclear who should be held legally accountable. Similarly, if AI offers inaccurate medical or financial advice that causes harm, determining who bears liability is difficult.

There are also concerns about the transparency of the data used to train AI models. Most AI systems are trained on vast datasets collected from the internet, but the origins and quality of this data are often unknown. This makes it hard to trace the source of biases or errors in the generated content.

Moreover, we face the problem of AI-generated content being reused as training data for other AI models. Over time, as more training data is made up of AI-generated rather than human-generated content, model performance and reliability may degrade, further compounding the issue.

These problems threaten the healthy development of the digital content ecosystem and risk undermining user trust. We need systematic approaches to clarify content origins and responsibilities and enhance transparency. Blockchain-based frameworks can track the creation and modification history of content and define the responsibilities of involved parties. In addition, it is essential to introduce clear labeling systems for AI-generated content, along with metadata about the models and datasets used in its creation.

3. Blockchain as a Solution to Restore Trust

3.1. Verifying Content Origin and Authenticity

Blockchain offers a promising solution to address the ambiguity surrounding the origin and authenticity of digital content created by generative AI. Through its decentralized ledger technology, blockchain enables transparent recording and tracking of content creation and modification, thereby helping rebuild trust in digital content.

By leveraging blockchain, it becomes possible to chronologically log every step in the content lifecycle—from creation to alteration and usage. This enables clear attribution of who created the content, when, and by what method. For AI-generated content, additional metadata such as the AI model used, parameters, and training data can be recorded, offering users a basis for judging its credibility. These records, once written to the blockchain, are immutable and publicly verifiable.

Blockchain-based content verification systems assign unique hash values to each piece of content to prove its originality. Any modification to the content alters the hash value, allowing immediate detection of tampering. Additionally, digital signature technology can authenticate the identity of the content creator, further enhancing trust in its source. This is especially crucial in the current environment, where misinformation and deepfakes are rampant.

This approach is particularly valuable for areas where credibility is critical—such as journalism, academic research, and legal documentation. By clearly tracing content origin and changes, blockchain can help prevent the spread of false information and enhance trust in digital media. Moreover, such systems empower content consumers to independently assess the credibility of information, thereby promoting media literacy.

3.2. Transparent Management of AI Training Data

Blockchain also offers a viable path for transparent management of the data used to train AI systems. This is a key factor in improving the fairness, accountability, and trustworthiness of AI.

Using blockchain, the sources and characteristics of training data can be logged and disclosed. This allows users and regulators to examine what types of data were used to train a particular model, thereby aiding in identifying potential biases and limitations. If an AI model produces questionable results, one can trace back to the training data to understand the root cause—enhancing the explainability of AI systems.

It also becomes possible to grant creators and individuals control over how their data is used in AI training. They can set usage conditions—such as restricting the data to specific purposes or model types—which are then recorded immutably on the blockchain. This empowers data providers and fosters a culture of transparency and consent.

Through blockchain-based quality assessment frameworks, diversity and representativeness of training datasets can be ensured. Independent reviewers from diverse backgrounds can evaluate the quality of the data and record their assessments on-chain. This helps ensure AI systems are trained on inclusive and unbiased data, especially in areas concerning race, gender, or cultural identity.

Such transparent data governance contributes significantly to building trustworthy and accountable AI. This is particularly important in critical sectors such as healthcare, finance, and law, where AI decisions must be rooted in reliable and traceable data.

3.3. Protecting Creator Rights and Enabling Fair Compensation

Blockchain presents a powerful approach to protecting creators’ rights and ensuring fair compensation in an era where content ownership is increasingly blurred due to generative AI.

With smart contracts, rights and payments related to content usage can be automatically managed. Creators can define licensing terms, and whenever their content is used under those terms, compensation is automatically issued—without intermediaries. This is especially useful in global digital environments where differences in national copyright laws often cause friction.

There is also potential to compensate original creators whose works were used in training AI models. If an AI system achieves commercial success, a blockchain-based system could ensure that contributors to the training data are rewarded accordingly. This fosters a collaborative relationship between AI developers and content creators, positioning AI as a supporter—not a threat—to the creative ecosystem.

In the case of co-created content between AI and humans, blockchain can be used to record and manage each party’s contribution, allowing for proportional distribution of rights and profits. For example, if an AI drafts and a human edits the final version, the blockchain can transparently document their collaborative input.

Blockchain also makes it feasible to manage and reward micro-uses of content, such as embedding an image in a blog post or referencing a portion of text in a dataset. Automated micropayments allow such usage to be tracked and compensated efficiently—something that is often impractical with traditional copyright systems.

These innovations enable a more flexible and equitable content ecosystem, supporting sustainability in the age of AI.

3.4. Decentralized Content Verification

Blockchain enables the creation of decentralized systems for verifying content credibility, eliminating reliance on centralized authorities and promoting crowd-sourced trust.

A blockchain-based system can be designed where multiple independent verifiers assess the authenticity or quality of digital content, and their evaluations are immutably recorded on-chain. This harnesses collective intelligence and reduces dependence on a single entity’s judgment. It is especially useful for politically sensitive or controversial content, where impartiality is critical.

Verifiers can also be rated based on their past accuracy and expertise, and those with higher reputations can be given more weight in the system. This reputation model is transparent, auditable, and provides incentives for responsible verification behavior.

AI tools can be integrated into these systems to detect deepfakes or manipulated content and record the results on-chain before such content goes viral. A decentralized ensemble of AI detectors may outperform a single system in terms of accuracy and resilience.

Moreover, by rewarding contributors for accurate content verification, participation in the system can be encouraged. Blockchain's token-based economic models can manage these incentives transparently and efficiently.

Such decentralized verification systems are especially vital for combating misinformation on socially impactful or politically charged issues. They provide a more democratic, transparent, and resilient alternative to centralized moderation, ultimately improving the quality of public discourse and trust in the digital environment.

4. The Unique Value of Wallet-as-a-Service (WaaS) and Content Trust Management

4.1. Distinctive Features and Core Value of WaaS

Wallet-as-a-Service (WaaS) is a cloud-based service that allows businesses and developers to integrate wallet functionalities without needing to develop complex blockchain infrastructure themselves. WaaS abstracts the technical complexities of wallet creation, key management, and security, enabling seamless wallet operations across multiple blockchains via APIs.

What distinguishes WaaS most is its ability to deliver blockchain infrastructure as a service, allowing companies to implement secure and scalable digital asset management with minimal internal development resources. This is especially valuable for companies adopting new technologies like generative AI.

WaaS can support both non-custodial wallets, which give users full control of their private keys, and custodial wallets, which are centrally managed and optimized for ease of use. Additionally, WaaS supports multichain and cross-chain functionality, solving the issue of platform dependency in content authentication and asset management.

More than just a tool for storing digital assets, WaaS provides infrastructure to manage the entire lifecycle of digital content. From content creation, authentication, and distribution to consumption, WaaS securely records and manages all relevant data and transactions. This infrastructure serves as a foundational layer for securing content trustworthiness in the era of generative AI.

4.2. An Integrative Role of WaaS in the Digital Content Ecosystem

WaaS serves as an integrative platform that connects various stakeholders in the digital content ecosystem. It allows users to manage multiple cryptocurrencies from different blockchain networks within a single wallet interface and provides API-level customization for wallet settings and user experience.

For content creators, WaaS provides infrastructure to securely record and manage all data and metadata generated throughout the AI-assisted creative process. It allows creators to prove ownership of their work and manage rights and compensation. This protects creator rights and promotes sustainable creative activity in the AI era.

For content distribution platforms, WaaS offers mechanisms to verify content origin and authenticity and manage licensing and usage rights. Platforms can distinguish between human-generated and AI-generated content and establish appropriate distribution and compensation systems. This enhances platform trustworthiness and contributes to a healthier content ecosystem.

For consumers, WaaS provides a user-friendly interface to verify content origin and authenticity. Users can selectively engage with trustworthy content and directly compensate creators. This enhances user access to reliable information, strengthens content choice autonomy, and improves the overall content consumption experience.

4.3. Transformative Applications of WaaS + Generative AI

The combination of WaaS and generative AI enables innovative applications that go beyond what traditional blockchain wallets or standalone AI tools can offer. WaaS allows companies to integrate digital wallet functions into their platforms without having to build wallet infrastructure from scratch.

First, this integration dramatically improves user experience. AI can interpret user intent and translate complex blockchain concepts into plain language, enabling users to perform wallet functions more intuitively. For example, users could verify content authenticity or manage digital assets through simple voice commands.

Second, it enables automation and streamlining of content authentication workflows. AI can analyze content attributes, automatically generate metadata, and use WaaS to record it on the blockchain. It can also detect potential copyright infringements based on content similarity and store that information immutably, supporting dispute resolution.

Third, the integration makes possible personalized content economies. AI analyzes user preferences and behavior patterns to recommend personalized content, while WaaS automates micropayments and rewards for content consumption. This promotes direct value exchange between creators and users and supports a decentralized content economy.

Finally, WaaS + AI allows for collaborative creation of content in new ways. In projects where multiple AI systems and human creators work together, WaaS can transparently log each participant’s contribution and fairly distribute rights and rewards. This will be key in fostering collaborative creativity in the AI age.

5. Future Outlook and Conclusion

5.1. Limitations of Blockchain and Practical Constraints in Solving Generative AI Issues

While blockchain holds potential to address trust issues in generative AI, there are still several limitations and practical constraints that must be acknowledged to arrive at realistic solutions.

Generative AI suffers from various structural flaws—such as biased training data, lack of transparency, and authenticity issues—which blockchain is often proposed to help mitigate. However, there is a substantial gap between theoretical possibilities and actual implementation.

One of the biggest technical challenges facing blockchain is scalability and performance. In an environment where generative AI is producing enormous volumes of content in real time, blockchain's current speed and capacity are inadequate to keep up. Especially for storing high-resolution images, videos, or complex documents, blockchain remains technically infeasible or highly inefficient.

Legal and ethical issues around AI plagiarism also pose serious challenges—violating creators’ rights and discouraging creative efforts. Solving this requires not only advanced detection tools but also a high level of awareness from companies and users alike. Blockchain alone cannot address these root problems. If copyrighted materials were used during the AI training process, merely recording content metadata on-chain later cannot undo the infringement.

Moreover, blockchain’s immutability is a double-edged sword. Although it strengthens trust, it also makes it extremely difficult to remove or correct false or harmful content once recorded. If AI-generated misinformation or offensive content is registered on the blockchain, it becomes almost impossible to amend or erase.

There are also tensions with personal data protection and digital sovereignty. Blockchain’s transparency means all records are publicly viewable, which may conflict with data protection regulations like GDPR, especially the "right to be forgotten", which fundamentally contradicts blockchain’s immutability.

5.2. The Future of a WaaS-Based Digital Content Ecosystem

The digital content ecosystem centered on Wallet-as-a-Service (WaaS) is expected to undergo profound transformation in the coming years. The social impact of blockchain is already becoming clear, and many experts predict that within the next decade, blockchain will be embedded into the majority of services and financial infrastructure. WaaS is poised to play a central role in this transformation—connecting content creators and consumers directly.

Moving away from dependence on centralized platforms, creators will gain complete control over their content and access to transparent revenue-sharing mechanisms. This will provide fairer compensation, encourage diverse creative activities, and generate a healthy content creation loop.

The synergy of AI and blockchain offers a breakthrough solution to the growing trust problems of content authenticity. AI brings cost savings, improved operational efficiency, and better customer experience—helping companies become more competitive. Combined with WaaS, AI-generated content can be verified and managed for originality, ownership, and fair compensation, paving the way for a reliable digital content infrastructure.

In a future where authenticity and trust become critical, WaaS is expected to serve as a core tool for verifying and certifying digital content. While opinions on crypto and blockchain remain divided, most experts agree that once the technology matures, it will underpin essential service infrastructure in tomorrow’s smart society.

WaaS also plays a vital role in building a global content ecosystem beyond national and political boundaries. The decentralized nature of blockchain allows content to flow freely, increasing global accessibility and offering creators from diverse cultures broader market reach. This will enrich content diversity and innovation on a global scale.

5.3. Conclusion: Toward a Future of Trustworthy Digital Content

Generative AI has brought unprecedented creativity and innovation to the digital content landscape, but it has also raised serious concerns about authenticity and trust. In this context, blockchain technology—especially WaaS—emerges as a key enabler of content reliability and creator rights protection.

However, it is essential to recognize the current limitations of WaaS and blockchain. Blockchain still struggles with scalability, processing speed, energy efficiency, complex user experiences, regulatory uncertainty, and high adoption barriers. When combined with generative AI, challenges like privacy, accountability, and ethical implications also come into play.

Fundamentally, issues such as biased training data, copyright infringement, and hallucination cannot be solved by blockchain alone. While blockchain provides transparency over content history and origin, it does not address the opaque internal workings of AI models or the data used in training them.

Nonetheless, WaaS goes beyond being a technical fix—it introduces a new paradigm for the digital content ecosystem. It supports peer-to-peer transactions, transparent authentication, fair compensation, and user empowerment, forming the basis of a more resilient and sustainable digital environment.

Generative AI and blockchain are both evolving technologies, and their integration is still in its early stages. Rather than expecting blockchain to solve all of AI’s problems, we need to pursue complementary development and incremental innovation.

Ultimately, restoring trust in digital content will require more than just technical solutions. It will demand industry self-regulation, sound government policy frameworks, improved digital literacy, and collective ethical consensus. WaaS will function as essential infrastructure along this roadmap, contributing to a future where digital content is both innovative and trustworthy.

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