In recent years, with the rapid development of Artificial Intelligence (AI) and blockchain technology, the AI+Crypto track has become a hot area of interest for investors. Blockchain, with its characteristics of decentralization, high transparency, low energy consumption, and anti-monopoly, has filled the gaps of AI systems’ strong centralization and opaque processing. The combination of the two has brought unprecedented opportunities.
According to Vitalik, the integration of AI and blockchain applications can be mainly divided into four categories: as application participants, as application interfaces, as application rules, and as application objectives. He suggests that the role of AI in Crypto should be considered more from an “application” perspective, including optimizing computing power, algorithms, and data.
Huobi Research categorizes the directions of Crypto technology participants based on the application levels of AI, which can be divided into basic, execution, and application layers, each offering exploration opportunities. For example, zkML technology combines zero-knowledge proofs and blockchain technology to provide a secure, verifiable, and transparent solution for AI agent actions. Additionally, AI has shown great potential in data processing, automated dApp development, and on-chain transaction security at the execution level. At the application level, AI-driven trading bots, predictive analytics tools, and AMM liquidity management play crucial roles in the DeFi sector.
This article delves into the investment directions of the AI+Crypto track, focusing on innovation and development at the infrastructure and application levels. It analyzes the prospects and challenges of the integration of AI and blockchain from the perspectives of mid-term and long-term investment strategies. The article is written by Huobi Research, a team currently under HTX Ventures. HTX Ventures is Huobi’s global investment department that integrates investment, incubation, and research to identify the world’s most outstanding and promising teams. Currently, HTX Ventures has supported over 200 projects across multiple blockchain tracks, with some high-quality projects already listed on the Huobi HTX exchange.
Key Directions in the AI Track
Blockchain stands in complete opposition to artificial intelligence in terms of centralization, low transparency, energy consumption, and monopolization. Following the above criteria and his own reflections, Vitalik categorizes the applications formed by combining artificial intelligence and blockchain into 4 major classes:
– AI as a participant in the application
– AI as an interface to the application
– AI as the rules of the application
– AI as the objective of the application
Vitalik mainly considers the role of AI in Crypto from an “application” perspective. If viewed from the perspective of productivity vs. production relations, Crypto actually provides more production relations. From this standpoint, one can mainly consider three directions:
– Optimizing computing power: providing decentralized and efficient computing resources to reduce the risk of single points of failure and enhance overall computing efficiency.
– Optimizing algorithms: promoting the open-source, sharing, and innovation of algorithms or models.
– Optimizing data: decentralized storage, contribution, usage, and secure management of data
HTX Research believes that the overall direction of AI can be divided into basic, execution, and application layers, aligning with AI+Web3 projects that can be explored from these three major directions. At the basic level, the focus is on the combination of zk technology with AI ML technology, while at the execution level, data processing, data transmission, and AI agents are significant. At the application level, attention is primarily on AI+DeFi, AI+GameFi, Metaverse, AIGC, Meme, as well as blockchain aspects like RAAS, oracles, coprocessors, and UBI.
Projects at the infrastructure and application levels are progressing rapidly, such as Io.net for computing power, Flock for basic model layers, ZeroGravity for blockchain infrastructure, Myshell for AI agents, and 0x Scope for application layers.
Key Directions for Exploration:
1. zkML Direction
2. Data Processing Direction
3. AI+DeFi Direction
4. AI+GameFi Direction
Investment Strategies Over Time:
– In the short term, attention should be focused on the initial areas where AI is landing in Crypto, such as conceptual AI applications and memes. The logic behind this is that this year, mainstream AI circles will continue to generate new hotspots, and each upgrade of big models from companies like NVIDIA and OpenAI in Web2 will ignite the emotions of the AI track, bringing in new funds.
– In the medium term, the combination of Ai Agents with Intent, and smart contract integration, is a highlight. Once AI successfully provides solutions for smart contract extensions, a new blockchain model of ledger + contract + AI will be formed, breaking the ledger + contract narrative of the Ethereum era.
– AI Agent, a sub-direction that Vitalik has touched upon, is currently at the forefront of the AI field and closest to Mass Adoption at the application layer.
– From a narrative perspective, AI Agent is a sexy and hot girl, GPU cloud computing power is a stable and mature middle-aged entrepreneur, and the combination of AI big models in the DA layer is a messy-haired scientist.
– In the long term, the integration of AI with zkML technology, although ML giants in Web2 AI companies scoff at Crypto, will ultimately impact the Crypto field.
References:
– Twitter:
https://twitter.com/FinanceYF5/status/1772434625387717055
– Web3 Caff:
https://twitter.com/Web3 Caff_Res
– Twitter Vitalik:
https://twitter.com/VitalikButerin
Appendix:
Decentralized Computing and AI Reasoning Platform Project List
Primarily utilizing Crypto for incentives to share and utilize idle computing resources globally.
AI Data and Model Source Project List
Based on data authenticity, transparency, and traceability, using Crypto economic models to incentivize data (for C-end users) and model (Dev, B-end) aspects.
