Blockchain and artificial intelligence (AI) have the potential to mutually enhance each other, ushering in exciting and diverse opportunities. A recent report from TenSquared Capital sheds light on how AI can bolster speed and efficiency within the Web3 landscape.
The synergy between AI and Web3 holds promise for addressing global challenges, automating essential tasks, facilitating data-driven decision-making, and bolstering trust and transparency for users.
TenSquared Capital’s research team delves into specific areas where AI can be deployed to streamline Web3 processes.
AI’s Influence in Cross-Language Coding
AI tools like ChatGPT and Github Co-Pilot stand to revolutionize the crypto industry by simplifying code writing. These tools empower developers to work across various blockchains, bridging language barriers and facilitating smoother collaboration.
For instance, developers proficient in Solidity can seamlessly transition to coding in Rust for Cosmos with the assistance of ChatGPT/Co-Pilot.
AI not only accelerates code writing but also enhances blockchain infrastructure by enabling the creation of smart contracts and consensus protocols that leverage on-chain data for real-time decision-making.
Startups like Oraichain are leveraging AI-powered APIs to lay the groundwork for intelligent smart contracts and advanced decentralized applications (DApps). Furthermore, AI agents are poised to handle crypto transactions efficiently, interacting with smart contracts and DeFi protocols effectively.
Strengthening Web3 Security
Researchers and startups are exploring AI-based consensus methods to fortify blockchain security and scalability. Projects like Velas are developing AI Delegated Proof-of-Stake systems, while Inery is devising efficient block validation mechanisms.
AI also plays a pivotal role in bolstering Web3 security, safeguarding against cyber threats and fortifying blockchain defenses. This is crucial as security remains a significant concern for crypto users, with recent incidents reflecting substantial financial losses due to cyberattacks.
AI in Credit Scoring and DeFi
AI holds the potential to reshape decentralized finance (DeFi) by leveraging historical lending data to formulate credit scores and enhance loan decisions. For instance, Spectral’s MACRO Score utilizes advanced machine learning to provide on-chain credit scores for DeFi lending.
Additionally, AI-driven trading bots and predictive analytics empower traders to make informed decisions and capitalize on market trends, as seen with platforms like 3Commas offering crypto trading bots for automated strategies.
Interactive Gaming and NFT Platforms
Generative AI can personalize gaming experiences by crafting unique stories and characters. Platforms like Inworld AI create AI NPCs to enhance gaming immersion.Moreover, AI enhances NFT platforms and Web3 social networks by delivering personalized content and relevant product recommendations to users.
However, Ethereum co-founder Vitalik Buterin cautions that the integration of crypto and AI poses challenges, particularly in establishing a decentralized AI trusted by various applications.