AI in Crypto & Beyond: Looking into The 2024 State of Crypto Report
In Brief
The State of Crypto Report by a16z explores the growing crypto user base and the potential of AI and blockchain in enhancing the crypto landscape.
A recent State of Crypto Report by a16z has made quite a noise in the cryptocurrency community and beyond. From a vastly growing crypto user base to political implications of crypto for the 2024 US election, there’s so much to find in this report.
But, one interesting finding is the interplay between artificial intelligence (AI) and the crypto landscape, particularly blockchain.
This report could be the answer to a popular question in the crypto world: Can AI and blockchain help each other?
In the end, we’ll discuss a ground-breaking expansion of AI beyond crypto.
Crypto Activity Reaching All-time Highs
According to the report, the crypto landscape has witnessed explosive growth, with over 220 million blockchain addresses engaging at least once in September 2024. This figure has tripled compared to the end of 2023.
While decentralized finance (DeFi) and non-fungible tokens (NFTs) have found stability after their surge in 2021, Web3 applications are diversifying rapidly.
The report notes a booming interest in gaming, with over 600 new Web3 games launched last year. This suggests that gaming will continue to be a driving force behind blockchain adoption.
Additionally, stablecoins have become highly popular, facilitating transactions worth $8.5 trillion in the 2nd quarter of 2024, more than double the volume processed by Visa during the same period. Their efficiency in providing swift and affordable global payments has solidified their market presence.
On top of that, the report emphasizes the rising prominence of crypto in political discourse as the US election approaches. With Donald Trump’s strong claim to support cryptocurrency and the promise of a “National Bitcoin Reserve,” it’ll be interesting to see how, or if, the crypto sector can impact the 2024 race, particularly in swing states.
Blockchain Improving AI?
The report also explores the intersection of blockchain technology and artificial intelligence (AI), suggesting that blockchain can help address challenges related to AI’s centralization, authenticity in digital media, and creator compensation. Given the growing reliance on AI, a16z argues that blockchain could play a crucial role for organizations leveraging AI solutions.
Tristan Dickinson, the Head of Marketing and Communications at dYdX Foundation, shares a similar view by suggesting that the data-based ground of blockchain can provide an “ideal platform” for artificial intelligence to flourish.
Crypto activity spans various sectors, and a16z maintains a positive outlook for decentralized technologies and their potential to transform industries, especially as blockchain infrastructure becomes more scalable and efficient.
Interestingly, according to A16z’s Builder Energy dashboard, about 34% of crypto projects have integrated AI into their operations, an increase from 27% the previous year. The adoption of AI is especially prominent within blockchain infrastructure projects.
However, rising costs associated with training advanced AI models have sparked concerns over potential centralization, as only major tech firms might possess the resources for developing the latest AI technologies.
This issue of centralization reflects a stark contrast to the decentralization opportunities provided by blockchain networks. Some crypto projects, such as Gensyn and Story, are already addressing these challenges, working toward democratizing AI access and ensuring fair compensation for creators.
The unique features of blockchain, such as immutable records and decentralized storage, present solutions to the transparency and trust issues commonly associated with AI. By incorporating blockchain technology, AI systems can achieve higher levels of accountability and privacy, enhancing their effectiveness and user trust.
AI Beyond Crypto
Even now, AI does not show any sign of stopping. In fact, its reach goes well beyond the crypto realm into surprising sectors and players like Zoom.
Zoom Becoming AI-First
The founder of Zoom, Eric Yuan, described this phase as “Zoom 2.0,” where the platform evolves to integrate diverse work functionalities, encompassing video calls, messaging, document collaboration, and task management. This open platform will seamlessly connect with other services, like Microsoft OneDrive and Google Drive.
Yuan emphasized Zoom’s commitment to adopting an “AI-first” strategy, moving from AI-assisted features to fully AI-driven services that proactively manage tasks for users. This means that AI could handle everything from filtering emails to summarizing lengthy messages, freeing users from mundane tasks. Yuan envisions a future where users can rely on AI Companion to manage a significant portion of their workload before they even start their day.
AI Companion 2.0
During Zoomtopia 2024, the next iteration of Zoom AI Companion was unveiled, designed to assist users in becoming more productive without additional costs. The company also introduced a customizable add-on for AI Companion, tailored to meet the specific needs of different organizations.
Zoom’s objective is to create an AI-first platform that enhances human connections. With this approach, the enhanced capabilities in AI Companion 2.0 empower users to focus on their core tasks, fostering engagement and creativity in their work.
Smita Hashim, Zoom’s Chief Product Officer, emphasized that the integration of AI into Zoom Workplace is pivotal to supporting users throughout their daily activities. With the new add-on, organizations can customize AI Companion to align with their unique workflows at an affordable price.
Customers have reported tangible benefits from using AI Companion. Pablo Riboldi, the Chief Information Security Officer at BairesDev, noted that since adopting Zoom AI Companion in November 2023, their fully remote company has saved an estimated 19,000 hours, enhancing productivity through reliable post-meeting notes.
How Further Can AI Go?
As we witness the confluence of AI and blockchain, the opportunities for innovation are vast. The 2024 State of Crypto Report illustrates how these technologies can complement each other, creating transformative solutions across various sectors.
Companies like Zoom are leading the charge with their AI-driven initiatives, enhancing user experiences and productivity. Meanwhile, crypto projects are leveraging blockchain to address the challenges of AI, paving the way for a decentralized future.
Together, these developments represent an exciting frontier in technology, promising to reshape our interactions and redefine efficiency in our digital lives.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
