What Will Happen Web3 With The Breakthrough Of Artificial Intelligence?

Key Points:

• Blockchain is often considered the foundation for Web3. However, with the development of ChatGPT, this view may have to be revisited.
• AI can learn from the data given to it and become wiser over time; blockchain can assist in explaining AI’s behavior.
• The project’s long-term development of AI is still subject to revision; certain initiatives that are merely superficially AI cannot wear the Web3 moniker.

The Semantic Web, often known as Web 3.0, is the next stage of Internet evolution. Web 3.0 application intends to eliminate the need for a central server, resulting in increased security and interoperability. Blockchain is frequently seen as the cornerstone for Web3, which will reshape future economic and social paradigms. Nevertheless, with the rise of ChatGPT, this viewpoint has come under fire.

Who will define the Internet of the future? We believe that integrating blockchain technology and AI will redefine Web3, the technological revolution will shift from the mobile Internet to the artificial intelligence Internet, and the blockchain will redefine the next-generation Internet’s value, ownership, and asset pricing methods.

Users in Web2 can generate their own content, but the platform still controls the data and assets, whereas Web3 returns data and assets to regular users, who can create, own, and exchange their own data and assets without relying on intermediaries or third-party organizations.

For example, in less than 5 months, Blur has surpassed the supremacy of the NFT trading market behemoth Opensea, becoming the leading NFT aggregator with a market share of more than 40%.

In contrast to the creator of Opeasea, who pursued a stock market listing in the United States to collect money for significant shareholders, Blur, Dydx, and other ventures have opted to benefit the people and a community of dedicated customers. Value and ownership have been realized due to the decentralization and autonomy processes. The new definition is more in keeping with Web 3.0’s philosophy.

What is Artificial Intelligence?

Artificial intelligence (AI) is an area of computer science that uses computers and machines to emulate the human mind’s problem-solving and decision-making skills. This may be accomplished in a variety of ways, but advances in Machine Learning and Deep Learning are causing a paradigm change in almost every sector of the IT industry.

Machine learning (ML) is a subset of AI that employs various methods that need structured data to construct ML models, which are then used to train a computer to do a specific task. The idea is for a machine to learn from its experience and produce a forecast automatically.

Deep learning is a more sophisticated kind of machine learning that can develop Artificial Neural Network algorithms that mimic the human brain’s neural connections to learn from data without any human intervention. The algorithms are divided into layers, each presenting a distinct interpretation of the data. These networks can learn to execute tasks like image recognition and language processing.

How blockchain and artificial intelligence will shape Web3 development?

Blockchain and artificial intelligence (AI) are two different technologies with different applications. The blockchain’s fundamental architecture is a distributed ledger that may store data in the form of blocks. The data on the blockchain is immutable and secure due to encryption. As a result, blockchain can keep data secure without the involvement of third parties.

The essence of artificial intelligence is the machine learning algorithm, which leverages the computational power of computers and the foundation of huge data to mimic the capacity of humans to solve problems. It streamlines decision-making by justifying options and implementing activities that are most likely to result in a given outcome. AI can learn from the data that is supplied to it and get wiser over time.

Let’s examine what type of chemical reactions the integration of these two technologies at the application layer will cause.

On the one hand, blockchain can aid in explaining AI behavior. Blockchain technology enables us to get an immutable record of the data and processes utilized by AI in decision-making, making it simpler to understand and audit how AI algorithms make judgments, resulting in a higher degree of confidence.

Artificial intelligence, on the other hand, can potentially boost blockchain efficiency.

Blockchain transactions are, in fact, this process that requires powerful hardware and consumes a lot of energy after verification and thinking, but artificial intelligence can improve the efficiency of the blockchain by optimizing calculations and processes, reducing the load on miners, and improving latency, thereby speeding up transactions and reducing blocks. Chain technology’s carbon impact.

AI+blockchain may result in new business models and possibilities. As an example:

Smarter dApps and smart NFTs

Web 3.0 will most likely provide smarter decentralized apps (dApps) with more sophisticated real-world value as blockchain developers combine artificial intelligence and machine learning algorithms.

Alice, the first non-fungible token (NFT) with self-learning capabilities, changes the way it interacts with people as it learns from each new encounter, is an intriguing early example. Alice, the first intelligent NFT (iNFT), has her own personality, capable of participating in lengthy interactions with internet users and learning from them.

Next-generation dApps and NFTs may profit from the efficacy of AI algorithms as they improve, as decentralized apps gain greater data management and analytical skills. Next-generation NFTs will have human-like behavior.

Value Realization of Personal Data

While social media companies and marketing businesses are already mining our surfing data to provide more relevant adverts, this is not in the best interests of internet users. Web 3.0’s decentralized ethos strives to restore user power by regaining ownership of their data — data that may optionally be shared with service providers that pay consumers directly.

Service providers can evaluate bigger amounts of data and consider more elements when tailoring the customer experience by implementing AI algorithms. While Web 3.0 users will obtain more personalized services, they will also see the value of personal data in a new light.

Challenges faced by AI + blockchain technology

Blockchain and AI may be the two most disruptive technologies since the Internet’s inception. The decentralized blockchain provides an excellent data basis for AI, and AI has mature module and algorithm resources.

Thus, we have just seen the tip of the iceberg regarding technology applications. The merger of the two will impact the trajectory and evolution of civilization over the next few decades. Individuals and businesses may benefit from a more efficient, secure, and customized digital economy. Bring fresh business concepts and prospects to the table. Yet, the marriage of blockchain technology and artificial intelligence will undoubtedly meet certain difficulties.

Concerning Security

To work, artificial intelligence requires a vast quantity of data, and the data on the blockchain is safely secured to prevent hacking. Consequently, in order to evaluate and process this data, the required files and data must be decrypted, making the data more exposed to malicious assaults. Since Web 3.0 development has not yet resulted in a full security system, consistent security standards and norms have yet to be established.

Limitations on Cost and Efficiency

While artificial intelligence increases the efficiency of blockchain operations, it has several limits. Implementing existing distributed technology, for example, needs large-scale processing and storage systems, hardware constraints, and even physical energy generation of running equipment, transmission, and storage, all limit the practical application of AI and blockchain to some level.

At the moment, given the TPS constraint and gas charge cost generated by the real operation of many chains, the cost of artificial intelligence commercial applications that truly function on the blockchain will be impossibly costly, with unimaginably low efficiency.

As a result, the intersection between blockchain technology with artificial intelligence is still in its early stages.

Conclusion

The AI heat introduced by ChatGPT is still fermenting, and the “blockchain + AI” project has seen a brief phase of rising and sinking. According to the statistics, the total market value of AI concept encryption project tokens previously surpassed $5 billion.

Although the short-term FOMO feeling has increased interest in the AI+ blockchain project, the project’s long-term development must return to its own worth. Certain initiatives that are merely superficially AI cannot wear the Web 3.0 moniker.

Nobody knows what the final goal of this Web 3.0 innovation path is. Is it a redefining of value? Or does decentralization triumph over centralization? Yet, for the time being, we can say that combining AI with blockchain technology will surely open up new and interesting possibilities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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