AI+Web3: Towers and Squares

Introduction

In the past two years, the development of AI has been like pressing the acceleration button, and this butterfly effect triggered by Chatgpt has not only opened up a new world of generative artificial intelligence but has also sparked a wave in the Web3 field.

With the support of AI concepts, the financing in the cryptocurrency market has significantly improved. In the first half of 2024, 64 Web3+AI projects completed financing, among which the AI-based operating system Zyber365 achieved $100 million in Series A funding.

The secondary market is more prosperous, with the total market value of the AI sector reaching $48.5 billion and a 24-hour trading volume nearing $8.6 billion. After the release of OpenAI's Sora text-to-video model, the average price of the AI sector rose by 151%. The AI effect also radiated to Meme coins, with the first AI Agent concept MemeCoin GOAT quickly gaining popularity and achieving a valuation of $1.4 billion.

The research and topics surrounding AI+Web3 are equally hot, from AI+Depin to AI Memecoin, and now to the current AI Agent and AI DAO, new narratives are constantly emerging.

The combination of AI and Web3, filled with hot money and future imagination, is inevitably seen as a marriage arranged by capital. It is difficult for us to distinguish whether it is the home ground of speculators or the eve of a new technological explosion. To answer this question, the key lies in considering whether both sides can benefit from each other's models. This article attempts to examine how Web3 plays a role in various aspects of the AI technology stack, and what new vitality AI can bring to Web3.

Opportunities in Web3 under the AI stack

Before diving into this topic, we need to understand the technology stack of AI large models:

• Data Collection and Preprocessing
• Model training and fine-tuning
• Inference Application

In response to the pain points of AI across various stacks, Web3 has initially formed a multi-layered, interconnected ecosystem:

Infrastructure Layer: Sharing Economy of Computing Power and Data

Hashrate:

• Web3 projects like io.net, Aethir, etc. allow individuals to contribute idle GPU resources, forming a computing power sharing market similar to Uber.
• More suitable for long-tail market demands such as AI reasoning.
• Decentralized ownership allows resource providers to retain control and earn profits.

Data aspect:

• Projects like Grass and Vana allow users to participate in data value creation.
• PublicAI and others achieve low-cost access to private data
• Gamified data annotation tasks for projects like Synesis
• Privacy technologies such as TEE, FHE, ZK, etc. protect sensitive data

Data Storage:

• 0g.AI and other projects design storage solutions for high-performance AI requirements.

Middleware: Model Training and Inference

Open Source Model Decentralized Market:

• Bittensor and others establish an open-source model P2P market
• ORA introduces the initial model issuance ( IMO ) concept
• Spectral Nova and other AI model creation and application

Verifiable Reasoning:

• Technologies like zkML, opML, and TeeML ensure the verifiability of off-chain AI computation.

Application Layer: AI Agent

• The decentralized nature of Web3 allows the Agent system to be more distributed and autonomous.
• Token issuance and other mechanisms help AI Agent projects secure early funding.

How AI Empowers Web3

AI and On-Chain Finance

• The AI Agent can autonomously execute on-chain transactions, such as information collection predictions, asset management, etc.
• AI enhances the security of on-chain transactions, such as transaction monitoring, risk analysis, etc.

AI and On-chain Infrastructure

• AI-powered on-chain data analysis, such as Web3 Analytics, etc.
• AI-assisted smart contract development and auditing, lowering the development threshold.

New Narratives of AI and Web3

• AI injects creativity into NFTs
• AI-powered GameFi content production
• AI applied to scenarios such as DAO governance

Conclusion

AI and Web3 are like towers and squares, each with its own advantages. AI brings technological breakthroughs, while Web3 seeks decentralization. The combination of both is expected to create new possibilities, allowing machines to better serve humanity. We look forward to seeing the future development of AI + Web3.