Battle for Blockchain: Why “Proof-of-Human” Could Decide Crypto’s Future

Battle for Blockchain: Why “Proof-of-Human” Could Decide Crypto’s Future

As automated systems flood blockchain networks, the need for human-centered infrastructure has become urgent. Steven Smith, head of protocol and applied research at Tools for Humanity, warns that unless the industry acts now, AI bots could permanently reshape the financial landscape, leaving human users behind.

The Rise of the Bots: A Threat to Blockchain’s Promise

Blockchain technology was built on the ideals of trust, transparency, and decentralization. But today, nearly half of all internet traffic stems from bots, and an estimated 80% of blockchain transactions are now automated, primarily driven by AI agents.

While some bots serve useful purposes, a growing number clog networks through airdrop farming, fake account creation, and market manipulation. These actions drive up fees, congest blockchains, and erode the accessibility that decentralized systems were meant to guarantee.

“It’s up to humans to protect the blockchains we know and love,” Smith urges. Without intervention, people risk being pushed out of decentralized finance (DeFi) ecosystems by faster, cheaper AI-driven machines.

Congestion, Costs, and Control: The Impact of AI Automation

AI bots aren’t just a nuisance — they are reshaping entire networks.

• Some blockchains have reported failure rates exceeding 75% during bot-induced congestion.

• Ethereum’s mempool is increasingly saturated with automated transactions, making it harder for human users to access scarce block space.

• Beyond crypto, AI botnets fueled a 55% rise in DDoS attacks on banking and financial services in 2024.

Smith emphasizes that unless action is taken, both decentralized and traditional financial systems risk falling under the control of automated agents optimized for speed and scale — not fairness or accessibility.

Scaling Alone Won’t Save Blockchain Networks

To date, the main solution to bot congestion has been to scale networks:

• Layer-2 rollups,

• High-performance clients,

• Faster transaction speeds.

However, Smith warns that without human prioritization, scaling can backfire.
Lower transaction costs make it even easier for bots to flood networks, while faster execution speeds allow AI traders to outcompete human investors even more ruthlessly.

Recent examples include:

• Zcash’s blockchain disruption due to a spam attack,

• Manta Network’s DDoS attack during a token launch,

• Ethereum gas price manipulation during periods of high congestion.

Introducing Proof-of-Human: A New Pillar for Blockchain Integrity

Smith proposes a solution: building Proof-of-Human infrastructure.

This system would digitally verify the humanness and uniqueness of participants, ensuring that blockchain systems remain human-centric in the age of AI.

Key proposals include:

• Guaranteed block space reserved for verified human users.

• Gas subsidies to prevent humans from being priced out during peak congestion.

• Optimized execution clients with safeguards against bot-driven spam.

“Blockchain architecture must evolve with a human-first approach,” Smith argues, underscoring that scalability, interoperability, and security should not come at the cost of human accessibility.

The Urgent Choice Ahead

The industry stands at a crossroads:

• Allow unproductive bots to dominate networks, sidelining human users.

• Or implement human-centric protections, ensuring fairer access, greater security, and sustainable growth.

“The future of blockchain — and bringing more humans onchain — depends on it,” Smith concludes.