CGV Research: From parallel to convergence, explore the new wave of digital economy led by "Web3 and AI integration".

Producer: CGV Research

Authors: Cynic & Shigeru

Introduction

In today’s era of rapid technological development, the convergence of Web3 and artificial intelligence (AI) is becoming an inevitable trend. These two areas are no longer parallel lines that develop independently, but are increasingly intertwined to shape our digital future.

Web3, as a Decentralization and Distributed Network Concept, provides a more fair and transparent digital space. Its core idea is that users have power, giving users control over their data through Blockchain and encryption. And AI is one of the main drivers driving this era forward. By learning and mimicking human intelligence, it improves the speed and quality of decision-making, optimizes the user experience, and plays a huge role in data processing and analysis.

When these two are combined, we can foresee a new internet experience. In this AI-driven, Web3-powered world, we can not only see more personalized and intelligent services, but also experience unprecedented data security and transparency. AI can exert its ability to analyze and predict within the framework of Web3, and Web3 provides AI with a decentralization and tamper-proof data platform.

This convergence heralds a smarter, more decentralization digital future. In this future, technology is not only for human beings, but also closely linked to human lifestyles, values and goals. The combination of Web3 and AI is not only the integration of technology, but also a kind of foresight and shaping of future social forms and cultures.

The CGV Research team will launch a series of research reports focusing on the “integration of Web3 and artificial intelligence (AI)”, exploring the combination of AI technology and Web3’s Defi, Non-fungible Token, Computing Power, data management and other application scenarios, mining the innovation boundaries of Web3 and AI technology, and discovering more practical and cutting-edge Web3 × AI solutions.

Web3: The next generation of the Internet that upholds individual sovereignty

Web3 is the next-generation Internet with Decentralization and Blockchain technology as the core, aiming to build a new value system where users have digital sovereignty. The development goal of Web3 is to break the monopoly of Internet giants on data and empower users to control the content and data assets they create.

The purpose of the Internet is to be open, free and shared. If Web2 Internet giants use centralized servers to extract user data contrary to the spirit of the Internet, then open, transparent, and decentralization Web3 returns control and ownership of data to individual users is a new era of renaissance.

In the early days, Web3 mainly focused on financial scenarios, and Crypto Assets and DeFi Defi were the main application scenarios. Nowadays, the application field of Web3 has been greatly expanded, games, social networking, and governance have become new growth points of Web3, and many traditional business formats are shifting to Web3.

AI: A New Industrial Revolution Driven by Data and Computing Power

AI simulates human intelligence through computer systems, enabling computers to have cognitive abilities, the core of which is: reasoning, learning and self-correction.

Early AI used datasets from a single domain to train specialized models to handle specific tasks, and the main application areas include computer vision (CV), natural language processing (NLP), etc., which can be called AI 1.0. The emergence of large language models (LLMs) represented by ChatGPT represents the development of artificial intelligence technology in the 2.0 era. AI 2.0 uses massive data across domains and is supported by super computing power to train general-purpose models with high generalization capabilities and perform a variety of tasks. Large models for specific application scenarios only need to be fine-tuned to land, with low marginal cost, which is more conducive to large-scale commercial use.

In the AI 2.0 era, general artificial intelligence has excellent capabilities in seven dimensions, including text generation, language understanding, knowledge question answering, logical reasoning, mathematics, code, and multimodality, and its productivity has been greatly expanded, becoming a new growth engine for human society since the Internet revolution.

Web3 x AI: An inevitable trend in the development of the digital economy

From a macro perspective, Web3 and AI may have two opposite cores, Web3 emphasizes decentralization, and AI is often centralized due to the requirements of huge computing power for model training. But the two are not opposites, but complementary. Web3 represents the most advanced production relationship, where individuals truly own their own data, content, and property, and sovereignty is returned to individuals, while AI represents the most advanced productivity, liberating human beings from tedious and repetitive work. The combination of the two is an inevitable trend in the development of the digital economy.

On the one hand, Web3 brings decentralization of production relations to AI, combined with the open, transparent and verifiable characteristics of Blockchain to solve the problem of user incentives. Generative AI has greatly drop the threshold for creating high-quality content, while Web3 allows users to reap the benefits of their high-quality content. With the help of Blockchain, all users’ contributions can be recorded openly, transparently, and immutably, and can benefit from it, stimulating individual creative enthusiasm.

On the other hand, AI makes Web3 intelligent, improves production efficiency, broadens application scenarios, and improves user experience. Generative AI helps speed up the creative process, improve content quality and diversity, empower individuals with greater productivity, and broaden the boundaries of innovation, allowing Web3 innovation to be born at a lower cost. "One person is a team. "With AI, Web3 products can provide smarter services, drop user engagement barriers, and drive mass adoption.

New Industries: Web3 x AI Landing Scenario

After years of research and development, the Web3 and AI industries have the ability to land on a large scale. The singularity of the digital economy is approaching, and many fields will be baptized by Web3 x AI and burst out with new vitality.

At the physical layer, PoW mining rigs can be combined with AI model training to fully release computing power. With the rise of large models led by ChatGPT, Computing Power has become a key factor restricting the development of AI, but only a few giants can obtain massive Computing Power, hindering further innovation in the field of AI. In this context, a Decentralization Network called DePIN came into being. By integrating cutting-edge technologies such as Blockchain, DePIN can effectively integrate globally dispersed computing resources and data, creating an open and shared computing infrastructure framework. This network provides a continuous and reliable resource ecosystem for AI models, making it more feasible and sustainable to train and run AI models.

At the data layer, Web3 can motivate users to generate better data and further improve the quality of AI models. The underlying layer of AI is actually three components, Algorithm, Computing Power, and Data. Data is the most critical factor in determining the quality of AI models. At present, most AI models are trained using public data, which is low in cost and difficult to ensure in quality. Better data is the foundation of efficient AI models, and users in traditional markets cannot derive value from the data they generate, while Web3 allows users to regain control of data sovereignty, which can benefit from it, and has positive incentives to produce better content.

At the application layer, AI can make previous Web3 applications more intelligent and optimize user experience. The security of Defi has always been the sword of Damocles hanging over everyone’s heads, and AI-enabled contract audits will greatly drop the possibility of contract security vulnerabilities. In the field of Non-fungible Token and games, AIGC can drop the difficulty of material creation and accelerate innovation. In terms of DAO governance, AI can not only provide advice to governors as an assistant, but also directly participate in governance as a member of governance, increasing the dimension of governance.

Imagining the integration of Web3 and AI: creating a new era of digital economy

2023 is a year of miracles, with Web3 ushering in large-scale adoption, high-quality projects in the social and gaming tracks producing a circle-breaking effect, AI officially entering the 2.0 era, and large language models empowering all industries, which is about to attract an innovative singularity.

The CGV Research team believes that the integration of AI and Web3 not only opens up a new realm of technology, but also heralds profound changes at the social, economic and even cultural levels. This convergence gives individuals greater digital sovereignty and creativity, while bringing more efficient and intelligent productivity and services to society as a whole. As technology continues to advance, we will usher in a more decentralization, intelligent digital future in which the value and contributions of individuals are fully respected and rewarded.

CGV firmly believes that Web3 x AI is an inevitable trend in the digital economy, or more and more unicorn projects will be born. CGV and builders stand together to create the AIFocus accelerator to provide all-round support for the builders of the Web3 x AI track and jointly build the future of Web3 x AI. Standing at the Node of the era where Web3 and AI technologies converge, AIFocus Accelerator eagerly invites innovators and developers from around the world to join this historic journey.