In 2024, a synergy of innovations in artificial intelligence (AI) and web3 is predicted to give rise to a thriving cryptocurrency subsector, according to industry analysts.
Nansen analyst Sandra Leow underlined the maturation of both AI and cryptocurrencies, emphasizing the vast potential created by the integration of these technologies. Leow particularly highlighted the emergence of AI agents within the realm of web3, serving as on-chain bots facilitating transactions and value exchanges for users. She envisioned a future where AI agents become prominent users on the blockchain, citing examples such as verification management applications utilizing zero-knowledge learning technologies like Modulus Labs.
Gemini’s 2024 Crypto Trend Report also acknowledged the symbiosis of AI and web3, identifying potential enhancements in privacy, data ownership, content verification, and an alternative to large-scale cloud development. The report emphasized the mitigation of centralized AI weaknesses through decentralized crypto, paving the way for safer evolution and powerful, beneficial features without dominance by special interests.
The Gemini report specifically highlighted the potential for privacy-enhanced machine learning through web3 innovations rooted in decentralization principles, including zero-knowledge proofs. Analysts at Gemini suggested that the integration of AI could elevate the cryptocurrency sector from its niche status to a practical everyday tool for equitable and democratic participation in various sectors.
As generative AI becomes more advanced, concerns about deep fakes rise. Serotonin CEO Amanda Cassatt, as mentioned in the report, anticipates a shift towards assuming content is fake due to the asymmetrical ability of AI to create more content than humans can process. This could lead to increased reliance on on-chain attestations for verification.
Looking ahead to 2024, London Real Ventures CEO Brian Rose anticipates a significant surge in AI-generated metaverse and web3 gaming content. Rose believes that web3 gaming, driven by AI, will be pivotal in onboarding the next billion users onto the blockchain.
AI project tokens have already shown strong performance, particularly during the bear market in early 2023, indicating growing belief and momentum in the convergence of AI and blockchain. Notable gains have been observed in AI-related cryptocurrencies, such as FET (Fetch.ai) and RNDR (Render), reflecting the industry’s anticipation of transformative changes through the collaboration of AI and blockchain technologies.
While the market cap of tokens associated with this subsector remains small compared to major digital assets, the promising performance of AI-related tokens suggests investor confidence in the potential transformative impact of AI and blockchain convergence on the entire cryptocurrency industry.
Related topics:
What is Computer Intelligence & How does Computer Intelligence work