It’s no secret that market downturns can be discouraging, but they also present opportunities for innovation in the world of Web3. Just look at the success of Uniswap and OpenSea as examples of how building in a bear market can spark new bullish cycles. As we navigate the current market climate, one innovation on the horizon stands out: artificial intelligence (AI) and its potential to bring Web3 into its most valuable and exciting period of change, ultimately aiming to onboard 1 billion users.
AI has gained significant traction in recent years, making it one of the most exciting technological innovations since blockchain technology. Given their potential, it’s only natural for these two next-generation industries to join forces and power the future of humanity. However, as AI applications continue to grow and improve our digital existence through algorithmic curation and targeting, there is an opportunity to ask ourselves what Web3 really needs for mass adoption. A major factor in this discussion is simplifying and strengthening blockchain use cases to make it easier for average users to participate.
Taking a look at popular applications like Spotify, Amazon, and Instagram, we can see that they all excel at delivering content that users didn’t even know they needed, largely due to their simple and effective user interfaces. While these companies are known for mining user data and invading privacy to train their algorithms, they have also changed the world with their user-friendly designs.
Despite the potential risks surrounding AI, such as regulatory issues and the speed of adoption, the technology has the potential to personalize the onboarding process and utility of decentralized applications in Web3. For instance, AI could analyze a user’s wallet history to recommend digital assets they might want to buy, just as Amazon does with its product recommendations. AI is excellent at pattern prediction, recommendation, and personalization, which could help users find the best time to buy a non-fungible token (NFT).
In terms of security and accountability within the crypto space, AI can analyze on-chain wallet data to determine a reputation score, helping users distinguish between safe and unsafe transactions. This automated process could lead to reduced instances of phishing and hacking. Furthermore, AI could help developers identify potential attack vectors and address issues before they occur.
For everyday users, terms like “smart contracts,” “seed phrases,” and “wallets” can be intimidating. AI chatbots similar to those used in customer service could help users understand Web3 concepts and complete actions accordingly. This approach has the potential to drive new user engagement and further adoption through improved education.
When applied to decentralized applications, AI could increase user engagement and adoption rates by analyzing on-chain data and recommending optimal features and usage methods. Developers could also benefit from AI’s ability to simplify workflows and pre-audit contracts, ultimately saving time and costs associated with smart contract auditing.
Overall, AI has the potential to revolutionize how we create, chat, trade, and live within the world of Web3. By reducing friction and addressing some of the key barriers to innovation and usability in the industry, AI could become an invaluable tool in building a stronger future for Web3.
Source: Cointelegraph
