The Combination of AI and Blockchain: Future Development and Investment Opportunities

In recent years, the rapid development of artificial intelligence ( AI ) and blockchain technology has made AI+Crypto an investment hotspot. The decentralization, high transparency, and anti-monopoly characteristics of blockchain complement the centralization and opacity issues of AI systems, and the combination of the two brings new opportunities to the industry.

Industry experts believe that the combined application of AI and Blockchain mainly includes four aspects: as application participants, application interfaces, application rules, and application objectives. From the perspective of productivity, AI can optimize computing power, algorithms, and data in Crypto.

Research institutions divide AI+Crypto projects into three directions: foundational layer, execution layer, and application layer. The foundational layer focuses on zkML technology; the execution layer includes data processing, AI agents, etc.; the application layer focuses on areas like AI+DeFi and GameFi. Among them, the infrastructure and application layers are developing rapidly, such as the computing power platform Io.net and the foundational model Flock.

The following directions are worth paying special attention to:

1. zkML Direction

The zkML technology combines zero-knowledge proofs and Blockchain to provide a secure and verifiable solution for monitoring AI agent behavior. It can prove that AI has performed specific tasks while protecting privacy, making smart contracts more flexible and adaptable.

Typical projects include:

1. Modulus Labs: Provides a variety of zkML applications, such as the on-chain trading robot RockyBot.

2. Giza: Develops an on-chain AI model deployment protocol, including functions such as model conversion and execution.

3. Zkaptcha: Focused on Web3 human-machine verification, providing CAPTCHA services for smart contracts to resist Sybil attacks.

2. Data Processing Direction

The application of AI at the execution layer mainly involves the following aspects:

1. On-chain data analysis: Utilize AI to deeply mine blockchain data, such as Web3 Analytics projects.

2. Automated dApp Development: AI-assisted smart contract writing and error correction, improving development efficiency.

3. On-chain transaction security: Deploy AI agents to monitor and defend against malicious attacks, such as the SeQure platform.

3. AI + DeFi Direction

The application of AI in the DeFi space includes:

1. AI-driven trading robots: Quickly and accurately execute trading decisions.

2. Predictive Analysis: Provides market trends and price movement forecasts.

3. AMM liquidity management: Optimize the efficiency of automated market makers.

4. Clearing protection and debt position management: Develop intelligent strategies by combining on-chain and off-chain data.

5. Complex DeFi product design: Use AI models to design flexible vault mechanisms.

4. AI + GameFi Direction

AI is mainly used in GameFi for:

1. Game strategy optimization: Adjust difficulty and strategy based on player habits.

2. Game Asset Management: Help players efficiently manage and trade virtual assets.

3. Enhance game interaction: Create smart NPCs to improve game immersion.

From the perspective of investment time:

• Focus on conceptual AI applications and meme projects in the short term.
• Optimistic about the combination of AI Agents and smart contracts in the medium term.
• Long-term optimism for the integration of AI and zkML technology.

As technology continues to develop, the AI+Crypto field will continue to present innovative opportunities, bringing a broad prospect for investors.