"Wow, apparently there are a lot of benefits if you combine AI and Web3."
Artificial Intelligence (AI) systems rely on large amounts of data that can be exploited for theft or cyberbullying, but blockchain can solve that crisis as it can improve trust and privacy in AI and challenge technology monopolies.
Like to be informed that venture capital (VC) funding in Web3 and AI startups has surpassed $637 million in 2023, where the combination has successfully emerged as the top choice for investors in blockchain startups.
So here you can see startups working at the intersection of blockchain and AI to develop code writing tools, decentralized data storage, AI computing infrastructure, content authenticity, privacy and AI-enabled Web3 security solutions continue to receive investor support.
Over the past five years, the number of research publications, patents and GitHub activities related to blockchain and AI has steadily increased with over 5,600 research publications focusing on both during this period.
That streak, the value of AI-related tokens has experienced significant growth as interest and confidence in on-chain AI grows, while the market capitalization of the top 15 AI-related tokens will reach $12 billion by December 31, 2023, which is a 443% increase.
Blockchain can function as a reliable data source for AI, increasing important factors such as trust and privacy of data without intermediaries, on the other hand AI has the potential to change networks and decentralized applications thus driving the widespread use of Web3 technology.
The three main applications of AI to improve the main Web3 infrastructure are intelligent smart contracts also known as AI-based smart contracts, intelligent protocols also known as AI-based approaches to consensus mechanisms and AI-based Web3 security solutions.
In the context of DeFi, AI algorithms can play an important role in assessing the risk profile of borrowers by detecting fraudulent behavior patterns, unusual trading activities, high-risk transactions and suspicious addresses.
Not only that, AI-powered trading bots and predictive analytics are used to improve trading decisions, leverage market trends, analyze real-time market conditions and assist DeFi platforms in making risk assessments.
While AI-driven portfolio management can be used to optimize on-chain asset allocation and portfolio performance while AI-enabled payment infrastructure can allow AI agents to make payments on behalf of users according to the rules and strategies set.
