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Web3 & AI: Market Map

Market Mapping the Intersection of Web3 and AI

By: Danny Pantuso, Venture Investor, Decasonic

The Yin and Yang of Web3 and AI

At its core, we see the intersection of AI and Web3 as a powerful and mutually reinforcing relationship. AI, with its capacity for scalable creation, operates within a realm characterized by probability, centralization, and black-boxed processes. It has ushered in unprecedented automation, data analysis, and content generation capabilities.

Conversely, Web3 embodies a decentralized paradigm—a deterministic, trustless, and transparent framework. This transformation has redefined our understanding of trust, ownership, and openness.

While there are still many unknowns in this intersection of AI and web3, we have an early thesis that this convergence tackles critical challenges for each respective technology. One hand washes the other.

Just to name a few, decentralized computing has rapidly emerged as a prominent solution to meet the growing computational shortage of AI. Blockchain allows AI agents to define objectives, create agreements, and cooperate. We anticipate that the AI Agent to AI Agent economy will be massive as these agents become ingrained in every layer of the stack.

Generative AI creates an endless amount of content, while blockchain introduces digital scarcity and authenticity through on-chain provenance. Blockchain facilitates open and transparent governance of on-chain AI models, reciprocated by AI enhancing the governance of DAOs. AI augments financial decision-making, while blockchain provides a transparent, open, and immediate transaction layer.

Together, these two technologies create a pandora box of new use cases. As early-stage venture capitalists, we’ve mapped this intersection and introduced two new dimensions to the traditional market map, corresponding to the concept of product-market fit (PMF).

Blockchain For The Billions Podcast

Episode 2 of BFTB Podcast Season 2 is LIVE!

On this week’s episode, Jamie Gant an Immersioner of WJG Reality, joins us to delve into his first-hand experience with the Vision Pro, Apple’s soon-to-be-released Mixed Reality Headset. He’s one of a handful of people in the world who’s actually used this headset, and by all accounts, it’s a game-changer.

The podcast is worth listening to in full, but here’s a teaser.

Top of Mind

• Crypto is not dead- it’s alive in the early stages, with smaller deals and greater speed toward capital profitability, obviating the need for external dependence on large, late-stage rounds. Read more about the "ozempic effect" on Venture Capital from Paul Hsu here.

• The widespread adoption of high-end Mixed Reality headsets in enterprise organizations primarily centers around a critical use case: training. Read more about Lauren Tierney's thoughts on Mixed Reality adoption challenges here.

• ChatGPT is often likened to a calculator, adept at processing inputs and generating outputs, but recent research by Boston Consulting Group (BCG) reveals that it excels in some areas while falling short in others. Check out Danny Pantuso’s point of view here.

• Gucci’s innovative strides in integrating Web3 within the fashion and technology realm serve as an inspiring model in an ever-evolving landscape. Marketing Manager, Grace Casey, shared more on that here.

Thanks for reading!

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Are you or someone you know building in crypto or web3? Get in touch with the investment team here.

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