The Synergy of AI and Web3: Investment Opportunities and Challenges
As AI technologies, such as ChatGPT, continues to disrupt industries, HTX Ventures has taken a cautious and focused approach to investment, particularly in projects that leverage the intersection of AI and blockchain for transformative impact.
Edward categorized AI investment opportunities into three distinct layers based on crypto technology integration:
Foundational Layer: Technologies like zkML (zero-knowledge machine learning), which combine AI with blockchain to provide secure, verifiable, and transparent solutions.
Execution Layer: AI enhances data processing, automated decentralized application (dApp) development, and on-chain transaction security.
Application Layer: AI-driven tools, such as trading bots and predictive analytics, are transformative in decentralized finance (DeFi). HTX Ventures has invested in CoreX, a project that uses AI to enhance smart investment services within DeFi. AI is also reshaping GameFi by revolutionizing gaming experiences.
Building a Secure Crypto World: The Role of AI and Investment
Edward also addressed the challenges investors face when evaluating AI and Web3 projects, offering the following key considerations:
Decentralization vs. Centralization: Many projects claim to integrate AI with blockchain, but often rely on centralized infrastructures for AI execution. Investors should critically assess whether projects have truly achieved decentralized AI.
Smart Contract Limitations: The complexity of AI models exceeds the computational capacity of current blockchain smart contracts. Solutions like zkML, which balance off-chain computation with on-chain verification, are critical for closing this gap.
Data Privacy Protection: AI depends on vast amounts of data, while Web3 prioritizes user privacy and data sovereignty. Investors should focus on projects that enable sufficient AI data training while safeguarding privacy.
Cross-Disciplinary Talent: AI and Web3 are highly specialized fields, and projects require teams with expertise in both areas. Investors need to evaluate the technical capabilities of teams to ensure they can overcome the integration challenges of AI and blockchain.
Looking ahead, Edward predicted significant growth for AI applications over the next 5-10 years, especially in sectors that drive efficiency and innovation. He identified decentralized AI data markets, AI-driven smart contracts, and AI-enhanced content creation as key investment opportunities.
Edward shared these insights in a Google Cloud panel discussion at the recent TOKEN2049 event, alongside notable industry leaders including Discus Fish, Founder and CEO of f2pool; Walter Lee, Senior Business Development Manager at BNB; and Frank Lin, Corporate Development Principal at Google. Edward concluded the session by reaffirming HTX Ventures’ commitment to advancing AI and blockchain integration: “As AI evolves, so must the infrastructure of Web3. Together, these technologies have the potential to transform industries, and we are excited to be at the forefront of this revolution.”
About HTX Ventures
HTX Ventures, the global investment division of HTX, integrates investment, incubation, and research to identify the best and brightest teams worldwide. With more than a decade-long history as an industry pioneer, HTX Ventures excels at identifying cutting-edge technologies and emerging business models within the sector. To foster growth within the blockchain ecosystem, we provide comprehensive support to projects, including financing, resources, and strategic advice.
HTX Ventures currently backs over 300 projects spanning multiple blockchain sectors, with select high-quality initiatives already trading on the HTX exchange. Furthermore, as one of the most active FOF (Fund of Funds) funds, HTX Ventures invests in 30 top global funds and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build a blockchain ecosystem.
About HTX
Founded in 2013, HTX has evolved from a virtual asset exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, wallets, research, investments, incubation, and other businesses. As a world-leading gateway to Web3, HTX harbors global capabilities that enable it to provide users with safe and reliable services. Adhering to the growth strategy of “Global Expansion, Thriving Ecosystem, Wealth Effect, Security & Compliance”, HTX is dedicated to providing quality services and values to virtual asset enthusiasts worldwide.
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