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Macroscope | How AI and cryptocurrency can work together to realise Web3’s potential
- The convergence of AI and cryptocurrency could bring out each other’s strengths and drive the next generation of the internet
- This is a dynamic, rapidly evolving field with enormous potential for growth and innovation for investors and entrepreneurs
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Generative AI has been making headlines in the past few months with impressive breakthroughs and applications, such as AI-powered chatbot ChatGPT and image generators Stable Diffusion and Midjourney. While generative AI is attracting much attention from the public and investment from the tech industry, cryptocurrency is losing its momentum and appeal. Some venture capital investors have changed their profile taglines from “all in on crypto” to “all in on AI”.
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However, the potential convergence of artificial intelligence and cryptocurrency is being underestimated. They should not be seen as competing forces in the digital economy.
Instead, we should be excited about potential synergies and the impacts they can have on the next generation of the internet. For regulators, investors and entrepreneurs committed to building a global hub for Web3 in Asia, it is important to recognise the next generation of the internet could well result from the coming together of AI and cryptocurrency.
ChatGPT reached 100 million monthly active users just two months after its launch, making it the fastest-growing consumer application in history, according to a recent UBS study. Mass adoption happens to be the major challenge for blockchain technology. AI could accelerate the mass adoption of cryptocurrency by reducing the complexity and security concerns that can be an entry barrier to potential users.
First, AI can provide more user-friendly interfaces and tools for interacting with blockchain networks and smart contracts. Chatbots can guide users throughout their journey in the blockchain world, assisting in the process of creating and managing on-chain transactions, answering questions and providing assistance in real time.
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Binance, a cryptocurrency exchange which got its start in China, recently introduced an AI-powered chatbot called Sensei. The chatbot is designed to enhance the learning experience for Web3, blockchain and cryptocurrencies. Chatbots could soon be capable of more than just educating users. They should create a more personalised experience for users as they navigate the blockchain world by offering tailor-made tutorials, recommendations and support.
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