In recent years, the tech industry has been surprising us with dozens of new developments. Web3 (including cryptocurrency and NFTs) and now AI—these technologies both experienced major growth in the space of 2 years. It is definitely an exciting time in history, though the uncertainty of what these technologies can do for us may be overwhelming. To help you, we’ve written this detailed article on the future of web3 with/and AI.
What is web3?
Web3 is the third generation of the internet. It is built on blockchain technology and is based on the ideology of decentralization. Web3 uses blockchain technology as it enables users to own their data through decentralization. This is opposed to big tech companies owning user data as seen traditionally. The result of this is greater privacy and greater, fairer access to incentives or money that can be earned on a platform.
What is AI?
AI, or Artificial Intelligence, is a new technology that uses machine learning to simulate human intelligence through computers. AI works by processing large amounts of specific data sets that it then analyzes for patterns and correlations. These patterns are memorized by the AI to predict future states. Examples of AI are chatbots, image recognition software and virtual assistants like Siri or Alexa.
What is the relationship between web3 and AI?
Web3 is built in three main components. These are a blockchain network, decentralized applications (dApps) and finally protocols. AI has the capability to be applied to all three of these components to improve the cost, speed and usability of web3 infrastructure.
The benefits of using AI in web3
- Increased accuracy and efficiency: By automating repetitive tasks that are usually performed manually, AI can help to reduce errors and streamline processes.
- Increased scalability: By reducing the amount of manual labour needed to perform tasks, AI helps to cut costs and time spent on operations. This will businesses be more scalable.
- Improved usability: AI helps to improve the usability of web3 applications by providing users with more relevant and personalized results, such as search results and ads. The easier it is for users to find what they’re looking for, the better their experience of using an application.
- Better security: Because of the amount of personal data and other important information online, security is critical on the internet. AI can be used for security protocols to protect against the threats of cyber criminals and data breaches.
How AI fuels blockchain
It is essential that blockchains have extensive security measures as it is the core layer of web3. Although blockchains themselves are inherently very secure, they are still susceptible to cyber attacks. By adding additional layers of security powered by AI, we are able to significantly reduce the impact of such attacks. AI security systems are able to learn the patterns of fraudulent behaviour on the blockchain and, therefore, pick up on potential attacks.
How AI fuels decentralized applications
AI can be used in coordination with dApps to achieve several different objectives. For instance, AI can be used in web3 game development to create high-quality, interactive games that are more responsive and adaptive than ordinary games. This creates depth which results in a more engaging experience for players.
NFTs and AI are extremely powerful when used together, pushing the boundaries of digital art. The two have already been used by many generative art creators. A notable use of the two is for the creation of the NFT artwork ‘The Merge’ by Pak. When the NFT was minted, the digital files would interact and combine to form something new in the user’s digital wallet. There was a lot of hype surrounding the artwork and it even broke the NFT sales revenue record at $91.2 million.
How AI fuels web3 protocols
AI can be used with web3 protocols to enable the secure sharing of data, algorithms, and models between organizations and individuals.
Web3 AI Projects
AnChain.AI is an AI-powered next-gen blockchain analytics platform. The focus of the platform is transaction security, code security and infrastructure security. They have extensive experience in cybersecurity, artificial intelligence, cloud computing, and big data and work on a range of projects in the crypto space, such as exchanges, protocols and custodians.
The AnChain.AI technology is able to scan contracts and provide instant feedback concerning vulnerabilities and threats. In addition, the audit provides a heatmap which shows how smart contracts match up against each other.
AnChain.AI has partnered with Harmony, Algorand, Elrond and many other leading web3 projects.
The Graph is an indexing protocol for organizing blockchain data and making it easily accessible to projects and developers. Their main product is the Subgraph Studio which allows anyone to create, manage and publish APIs, called subgraphs, which gives people access to specific data sets.
It was first implemented on Ethereum, however, it is now used on over 30 blockchain projects. These projects include Aave, Audius, Balancer, Decentraland, DAOstack, ENS, Gnosis, Livepeer, Opyn, Synthetix, Uniswap and more.
The Graph provides data to major web3 projects like NEAR Protocol, Optimistic and Aurora.
SingularityNET is a decentralized AI marketplace that runs on blockchain. It enables developers to monetize their AI algorithms easily with its public API and decentralized marketplace. SingularityNET is the first and only decentralized platform that allows AI to interact, exchange data and supply results.
SingularityNET has partnered with Cardano and Binance Connect.
Fetch.AI creates tools and infrastructure to support the development of a decentralized digital economy based on artificial intelligence. It is used to power decentralized applications with automation and AI.
Fetch.AI can be used in the development of sectors such as smart cities, supply chain, transport, energy and collective learning.
The Future of Web3 AI
With the combination of blockchain technology and AI in building web3, it is clear that we are up for an exciting future. As more people become aware of this space, they gain interest–giving us new ideas and developing exciting products.
It is not certain when these technologies will become the standard in our daily lives. However, what could be a major propellent, is the creation of web3 AI platforms that directly make ordinary people’s lives easier. For example, ChatGPT gained mainstream attention for its ability to help people compose emails and summarize notes. More practical tools like this will have a great impact on the web3 AI space.
At Web3Futur we will continue to update you on the latest in emerging web3 AI technology and how it will affect you.