Insights

AI and Blockchain Convergence to Reshape Crypto and Web3 in 2024

• This article covers the first part of crypto and Web 3 predictions in 2024.
• The integration of AI and blockchain technology is expected to enhance the Web 3 user experience.

The year 2023 has been a remarkable one for the crypto and Web3 space, with many innovations, challenges, and opportunities emerging. The adoption of decentralized technologies has grown exponentially, reaching new heights of user engagement, value creation, and social impact.

New UX User Experience

One of the main barriers to mass adoption of crypto and Web3 is the user experience (UX), which is often complex, confusing, and intimidating for newcomers. Users have to deal with unfamiliar concepts such as wallets, keys, addresses, gas fees, transactions, smart contracts, and more. They also have to navigate through multiple platforms, protocols, and applications, each with its own interface, functionality, and terminology.

This creates a steep learning curve and a high cognitive load for users, who may feel overwhelmed and frustrated by the process. However, in 2024, I predict that we will see a significant improvement in the UX of crypto and Web3, thanks to several factors:

• Modular technology stack: The crypto and Web3 space is evolving into a modular technology stack, where different layers and components can be easily integrated and interoperated. This allows for more flexibility, scalability, and compatibility among different solutions and reduces the friction and complexity for users. For example, users can access multiple blockchains, protocols, and applications through a single wallet, such as MetaMask, without having to switch between different accounts, networks, or devices.
• Users can also leverage cross-chain bridges, such as Polygon, to transfer assets and data across different blockchains, such as Ethereum or Solana, without having to deal with multiple transactions, fees, or conversions. Users can also use aggregators, such as Zapper, to manage their portfolios, track their performance, and access various decentralized finance (DeFi) opportunities, such as lending, borrowing, swapping, staking, or farming, without having to visit multiple websites, apps, or platforms.

• AI + blockchain: Another factor that will enhance the UX of crypto and Web3 is the integration of artificial intelligence (AI) and blockchain. AI can provide various benefits for users, such as personalization, recommendation, automation, and optimization. For example, users can use AI-powered assistants, such as GPT-4, to interact with crypto and Web3 applications through natural language, voice, or chat without having to learn complex commands, codes, or interfaces.
• Users can also use AI-powered tools, such as [Rebalance] or [Yearn] , to automatically allocate, rebalance, and optimize their crypto portfolios based on their preferences, goals, and risk profiles without having to manually monitor, analyze, or execute their strategies. Users can also use AI-powered platforms, such as OpenAI Codex, to create, deploy, and manage their own crypto and Web3 applications, such as smart contracts, decentralized autonomous organizations (DAOs), or non-fungible tokens (NFTs), without having to write, test, or audit any code.

• User-centric design: The third factor that will improve the UX of crypto and Web3 is the user-centric design, which is the process of designing products and services that are tailored to the needs, wants, and behaviors of the users, rather than the features, functions, or technologies of the products and services. User-centric design involves various methods, such as user research, user testing, user feedback, user personas, user journeys, user stories, and user interfaces, to understand, empathize, and satisfy the users. User-centric design is essential for crypto and Web3, as it can help to reduce the gap between the users and the technology, and increase the usability, accessibility, and desirability of the products and services.
• For example, users can use user-centric platforms, such as Audius, to discover, create, and share music or art, using crypto and Web3 technologies, such as tokens, royalties, or governance, without having to know the technical details or implications of these technologies.

Play to Earn Becomes Play and Earn

Another trend that will dominate the crypto and Web3 space in 2024 is the play to earn model, which is the concept of earning crypto rewards by playing games. Play to earn games are powered by blockchain technology, which enables the creation of digital assets, such as NFTs, that can represent in-game items, characters, or lands, and can be owned, traded, or monetized by the players. Play to earn games also leverage smart contracts, which enable the creation of decentralized economies, such as tokens, that can reward the players for their participation, contribution, or achievement in the games.

Play to earn games are attractive for players, as they can provide fun, entertainment, and social interaction, as well as income, empowerment, and ownership. However, in 2024, I predict that we will see a transformation of the play to earn model, into a play and earn model, which is the concept of earning crypto rewards by playing and creating games. Play and earn games are powered by Web3 technology, which enables the creation of decentralized platforms, such as DAOs, that can empower the players to become creators, curators, or governors of the games.

Play and earn games also leverage AI technology, which enables the creation of generative content, such as stories, worlds, or characters, that can enrich the gameplay, diversity, and creativity of the games. Play and earn games are attractive for players, as they can provide not only fun, entertainment, and social interaction but also expression, innovation, and collaboration.

Personally, I do believe the bigger players like Axie Infinity and Sandbox will make big changes and moves in 2024. In the second part of this article, we will look at the role of AI in developing games.

Source: https://www.financemagnates.com/cryptocurrency/ai-and-blockchain-convergence-to-reshape-crypto-and-web3-in-2024/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.