AI And ChatGPT Could Revolutionize The Web3 Space, Here Is Why

Bear markets are difficult with many once-promising projects already vanishing into obscurity can be seen by quickly reviewing the top projects of any previous market cycle. Although these cycles are frequently depressing, many people fail to recognize that every market downturn also presents a chance for innovation in the direction of a more secure future for Web3. The success of Uniswap and OpenSea serves as a stark reminder of the possibility of "building in a bear market" to initiate fresh bullish cycles.

AI and the crypto game

Artificial intelligence (AI) is at the top of the list because of its ability to usher Web3 into its most fruitful and exciting time of transition.

AI has clearly overtaken blockchain technology as the most fascinating technological advancement in what seems like an instant. It seems inevitable that these two sectors of the future will combine to fuel humanity's future.

The technology has the potential to (ideally 100% impartially) personalize the onboarding process and utility of applications to create a more supportive and effective ecosystem of decentralized applications in Web3, which infamously consists of clumsy, intimidating, and somewhat "cold" UX for average users. While many have rightfully identified vast risks in AI, from potential regulatory issues to its speed of adoption. Therefore, the chance to develop applications that are smarter and more appealing that are driven by frictionless UX is crucial.

Real use cases of AI in the crypto sector

Take non-fungible tokens (NFTs) as an example. In a similar way to how Amazon recommends purchases from its vendors and partners, AI can analyze a user's wallet history to learn their purchasing habits and suggest digital assets they would like. Personalization, or pattern prediction and recommendation, is a specialty of AI. To determine the ideal timing to purchase an NFT, AI can also look at the market activity and patterns on-chain.

Source: Off the Chain Capital

In order to help distinguish between safe and unsafe transactions, AI can also look at on-chain data from wallets and determine their reputation. It can also make users complete additional verification steps before completing transactions, which could reduce widespread phishing and hacks. This is something that exchanges already do, but AI can automate it and guarantee that a user's custody is maintained. If we take this a step further, we may rate protocols according to the various attack vectors they may be vulnerable to, which will aid developers in identifying potential problems before they arise.

AI and blockchain infrastructure

Terms like "smart contracts," "seed phrases," and "wallets" are daunting to many regular consumers. Imagine an outsourced AI chatbot that can grasp our Web3 expertise and user history (through our wallets), similar to the customer service support that many websites offer, to help us accomplish actions – and understand them. With better education, this might increase adoption by attracting new users and re-engaging current Web3 users. It's also simple to implement across all wallets.

Moving on to decentralized applications, AI may greatly boost user adoption and engagement by studying the user's on-chain data and advising the best features and ways to utilize them. With the most cutting-edge technologies, artificial intelligence (AI) can assist users in becoming the finest traders.

And for developers, AI may even streamline their workflow by pre-auditing contracts, which is one of the greatest pain points because it requires a lot of preparation, time, and money to audit smart contracts. Developers will be able to work more efficiently thanks to the advantages of optimizations built into their product when using AI as a pre-audit tool (and writing assistance) for smart contracts.