It’s no secret that bear markets are challenging. A quick scan of the top projects of any past market cycle will reveal how many once-promising projects have faded into oblivion. While these cycles are often discouraging, many fail to realize that with every market downturn comes an opportunity for innovation leading to a stronger future for Web3. Just look at Uniswap and the success of OpenSea to see how real the potential is for “building a bear market” to fuel new bullish cycles.
So, as we navigate the market climate, which shows glimmers of hope for an upward trajectory, what innovations do we see on the horizon? At the top of the list sits artificial intelligence (AI) and its potential to bring the Web3 to the most valuable and exciting time of change, a new era that will open a goal that we have been chasing since day one. period: onboarding 1 billion users .
In what feels like an overnight period, AI has arguably become the most exciting technological innovation since, well, blockchain technology. It is only natural that these two next-generation industries will combine to power the future of humanity. The proliferation of AI applications, the next iteration of Web2’s (controversial) success in improving and reshaping our digital existence through algorithmic curation and targeting, also provides an opportunity to step back and ask ourselves what Web3 really needs to hit mass adoption. Near the top of the list, many would agree, is simplifying and strengthening blockchain’s many use cases so that common users can easily participate.
Why are apps like Spotify, Amazon and Instagram so good at delivering content we didn’t even know we needed? While it’s no secret that these companies are mining our data and invading our privacy to train algorithms to know us better than we often know ourselves, these products are on board – and yes, changes – the world through simple and effective UX.
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While many are rightly aware of the many risks of AI, from potential regulatory issues to the speed of adoption, the technology has (at best 100% unbiased) potential to personalize the onboarding process and use of applications to create a more supportive and effective ecosystem of decentralized applications. of Web3, which consists of clunky, intimidating and somewhat “cold” UX for average users. Therefore, the opportunity to create smarter, more attractive applications led by frictionless UX is paramount.
AI apps like ChatGPT-4 are already making their way into classrooms, so why shouldn’t this technology help users become better at engaging with Web3 apps, from onboarding to becoming a power user?
Let’s take nonfungible tokens (NFTs), for example. AI can scrub a user’s wallet history to understand their buying patterns to recommend the digital assets they want, just like Amazon does for its endless abyss of products. AI excels at pattern prediction and recommendation – in other words, personalization. Additionally, AI can analyze on-chain patterns and market activity to find the best time to buy an NFT.
Regarding the much-needed improvements in security and accountability in crypto, AI can also analyze the on-chain data of wallets and determine their reputation to help distinguish between safe and unsafe transactions; it can also require users to complete additional verification steps before completing transactions, reducing widespread phishing and hacks. Exchanges already do something like this, but AI can automate the process and ensure that a user’s custody is preserved. Take this further, and we can define protocol ratings based on the attack vector they may be exposed to, helping developers catch potential issues before they happen.
For many normal users, terms like “smart contracts,” “seed phrases” and “wallets” are scary terms. Imagine an outsourced AI chatbot, similar to the customer service help used by many websites, which helps to understand our knowledge of Web3 and user history (through our wallets) to help us complete actions – and understand it. This has the potential to drive new user engagement and the reengagement of existing Web3 users, leading to increased adoption through improved education; it is also easy to implement in all wallets.
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Moving to decentralized applications, AI can also increase user engagement and adoption rates by analyzing on-chain user data and recommending the best features and how to use them. . AI helps users become the best possible traders, a virtual investment advisor with the latest tools.
And for developers, AI can even simplify their workflow by pre-auditing contracts, one of the biggest pain points for Web3 developers due to the amount of planning, time and cost required to audit of smart contracts. Using AI as a pre-audit tool (and writing assistant) for smart contracts enables a smoother operation for developers, saving significant time and cost with benefit of the optimizations rolled into their product.
Everything seems exciting. Whether you are a developer looking to reduce costs and time or a user looking to reduce what could be hours, days or years of learning required to understand the ins and outs of Web3, the AI can remove the friction that is among the biggest barriers to innovation. and usability for our industry. Like the Web3 as a whole, AI will be an additional layer to the ever-powerful toolkit that is changing how we create, chat, do business and live. Let’s use it as much as we can as we build the future.
Harsh Rajat is the founder and project lead of Push Protocol (formerly EPNS). He has more than 12 years of business experience in various technology spectrums, including system architecture, development and design in various technology fields (including mobile, web services, SaaS and blockchain). He previously founded 3 Magic Shots and Digital Poke.
This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.