The Synergy of AI and Web3: Investment Opportunities and Challenges
As AI technologies like ChatGPT continue to change industries, HTX Ventures has adopted a focused and careful approach to investment, particularly in projects that combine AI with blockchain to create lasting change.
Edward from HTX Ventures breaks down AI investment opportunities into three key areas based on their integration with crypto technology:
Foundational Layer: Technologies like zkML (zero-knowledge machine learning) combine AI with blockchain to provide secure, transparent, and verifiable solutions.
Execution Layer: AI improves data processing, automates the creation of decentralized applications (dApps), and enhances the security of blockchain transactions.
Application Layer: AI-driven tools, such as trading bots and predictive analytics, are transforming areas like Decentralized Finance (DeFi). HTX Ventures has invested in CoreX, a project that uses AI to improve smart investment services within DeFi. AI is also transforming GameFi, creating new gaming experiences.
Building a Secure Crypto World with AI and Investment
Edward also highlighted the challenges investors face when assessing AI and Web3 projects, offering these key points:
Decentralization vs. Centralization: Many projects claim to combine AI with blockchain, but they may still rely on centralized systems for AI functions. Investors should carefully evaluate whether a project truly achieves decentralized AI.
Smart Contract Limitations: AI models are more complex than what current blockchain smart contracts can handle. Solutions like zkML, which balance off-chain computation with on-chain verification, are key to bridging this gap.
Data Privacy: AI requires large amounts of data, while Web3 prioritizes user privacy and control over data. Investors should focus on projects that use data responsibly while protecting user privacy.
Expert Teams: AI and Web3 are both highly specialized fields. Successful projects need teams with expertise in both areas. Investors should assess whether a project’s team has the technical skills to handle the challenges of integrating AI with blockchain.
Looking ahead, Edward predicts major growth in AI applications over the next 5-10 years, especially in sectors focused on improving efficiency and innovation. He sees opportunities in decentralized AI data markets, AI-powered smart contracts, and AI-driven content creation.
Edward shared these insights during a Google Cloud panel discussion at the recent TOKEN2049 event, where he was joined by industry leaders like Discus Fish (Founder & CEO of f2pool), Walter Lee (Senior Manager at BNB), and Frank Lin (Corporate Development at Google). Edward wrapped up by reaffirming HTX Ventures’ commitment to advancing AI and blockchain integration: “As AI evolves, so must Web3. Together, they can transform industries, and we’re excited to be leading the way.”
