A friend recently challenged me to consider the application of AI to Web3. He suggested that AI technologies will play a key role in facilitating or powering Web3.
Below are my notes starting with the potential connections between AI and Web3, then getting into some concrete examples, and a couple of sources for further reading.
AI and Web3 initially seem at odds—AI often requires decentralized resources, while Web3 is all about decentralization—they actually solve key challenges for each other. AI can make Web3 systems smarter and more efficient, while Web3 can offer AI more transparent and secure data management.
I’ve concluded that the fusion of AI and Web3 will become a transformative force with the potential to reshape industries like energy, transportation, and supply chain management.
I won’t explain AI or Web3 here as there are gazillions of sources on those topics.
By integrating AI into Web3, the idea is to make decentralized systems smarter, more efficient, and user-friendly. These are the technical areas where they could connect.
Web3 is about decentralizing data and control, moving away from single points of failure or control.
AI can help manage this distributed data efficiently, sorting and analyzing data directly at the source, reducing latency, and enhancing privacy.
Smart contracts automate contract execution but are as smart as the code they're written in.
AI can add a layer of "intelligence" to smart contracts, making them adaptive to new conditions without requiring manual updates.
Web3 aims to establish systems where decisions are made collectively, often through token-based governance.
AI algorithms could help automate and streamline governance processes, like proposal vetting, based on historical data and community sentiment.
In decentralized ecosystems, everything from storage to computation could be traded in a peer-to-peer manner.
AI can optimize these marketplaces, matching supply and demand more effectively, or even predicting future supply/demand curves.
Oracles fetch real-world data for smart contracts. A simple oracle might fetch a weather report.
An AI-powered oracle could provide nuanced, predictive data, such as market sentiment or advanced analytics, enriching the capabilities of smart contracts.
By merging AI's capabilities for analysis, adaptation, and automation with Web3's focus on decentralization and peer-to-peer interactions, we can create a more intelligent, responsive, and robust system.
By marrying AI's analytics and automation with Web3's decentralization and immutability, we are looking at applications that are not only more intelligent but also more secure, transparent, and user-focused.
Imagine a decentralized renewable energy grid where consumers can sell back excess energy. Peer-to-peer energy trading could be facilitated via smart contracts. Predictive models trained on electricity demand and supply patterns could make real-time decisions on energy flow and pricing, dynamically enhancing grid efficiency.
Imagine a system to coordinate an increasing number of autonomous vehicles without requiring significant upgrades to infrastructure. Geospatial tokens could be used to claim time-bound road-space reservations. AI could make real-time driving decisions, and dynamically route vehicles based on traffic flow, road construction, or even weather. This could create a fair and transparent mechanism for road-space allocation, reducing congestion and travel time, improving energy consumption and maximizing road utilization.
Imagine an AI that can predict when goods are likely to be needed or when stock will run low. DLTs could provide a tamper-proof identification and tracking of goods moving through the supply chain. Smart contracts could trigger reorder or production events based on the AI's predictions, making the supply chain more responsive and transparent.
In summary, the integration of AI with Web3 has the potential to redefine the way we interact with decentralized systems, making them smarter, more efficient, and user-centric. From enhancing smart contracts to optimizing decentralized marketplaces, AI might serve as a powerful catalyst in the evolution of Web3.
AI in Web3: How AI Manifests in the World of Web3, https://www.leewayhertz.com/ai-in-web3/
Endless Imagination on the Possibilities of Combining AI and Web3 — OP Crypto Venture Capital, https://www.opcrypto.vc/blogs/endless-imagination-on-the-possibilities-of-combining-ai-and-web3
Cameron O'Rourke
