AI Agent iterates Web3 new infrastructure, opening a new era of intelligence

Article: ‘Ping Shuo’ Blockchain

“New Infrastructure” refers to the underlying technical elements and architecture with innovative driving forces, such as cryptography, Token (Token), Distributed Ledger, and Smart Contract. These technologies constitute the core pillars of Web3 development. The development of Web3 is essentially a process of continuous iteration, integration, and driving innovation and change through these new infrastructures.

This article will divide the current development of Web3 into three stages from the perspective of ‘core elements’, revealing the core elements of each stage as driving forces, and how their innovation, iteration, and integration drive the evolution of Web3.

1. Initial Stage: BTC + Blockchain

The emergence of the BTC blockchain has laid the foundation for the development of the Web3 industry, as shown in Figure 1-1.

Figure 1-1 shows the three-layer structure of the BTC blockchain system, from which we can extract two core elements:

encryptionDigital Money（$BTC）: As a carrier of value, it provides the underlying basis for value exchange in Web3.

Distributed Ledger (Blockchain): As a trust mechanism and innovative data structure for decentralization, it provides possibilities for building various decentralization applications.

From the subsequent development, we gradually realized that the structural paradigm and basic elements of the BTC blockchain have had a profound impact on currency and finance, value exchange and social cooperation, as well as the development of the Internet, which are specifically reflected in the following aspects:

Gave birth to the globalization of Digital Money: BTC has created a permissionless global currency circulation, bringing new possibilities to cross-border payments, financial inclusion, and other fields.

Built a trust mechanism of Decentralization: the characteristics of Distributed Ledger, such as public transparency and immutability, have built a trust mechanism of Decentralization, promoting efficient value exchange and collaboration on a global scale.

The success of the Block chain has verified the feasibility of the Blockchain technology, providing an effective means of value carrying and transmission, and laying the foundation for the development of the value internet of Web3 era.

As a pioneer of blockchain technology, BTC has brought revolutionary changes and paved the way for the arrival of the Web3 era. However, BTC has limited scalability and is difficult to support complex applications such as Smart Contracts. In this case, the innovation of Ethereum has propelled the industry into the next stage of development.

Stage 2: Blockchain + Smart Contract + Token Development

Ethereum introduced Turing Complete Smart Contracts based on BTC, making the blockchain not just a Digital Money system, but a Programmability blockchain platform. The structural paradigm of the Ethereum blockchain is shown in Figure 2-1.

Smart contracts, tokens, and Distributed Ledgers play important roles in the structural paradigm of Ethereum:

Distributed Ledger (Blockchain): Ensures the security and transparency of data. Builds a diverse public chain ecosystem. The prosperity of the public chain directly affects the overall development of Web3.

Smart Contract: Smart Contracts provide programmability to the blockchain, driving the thriving development of Decentralized Finance. According to @0xmiddle’s analysis, Decentralized Finance 1.0 laid the foundation, Decentralized Finance 2.0 improved capital efficiency, Decentralized Finance 3.0 emphasized composability, and Decentralized Finance 4.0 focuses on AI intelligence.

Token: As a value carrier and incentive mechanism, Token provides an effective means of value capture for the protocol, innovates the value distribution method, gives birth to ICO, Decentralized Finance and other innovative models, and accelerates industry development.

In conclusion, the Distributed Ledger, Smart Contract, and Token complement each other and together constitute the infrastructure of the Web3 world. Ethereum’s innovation organically integrates these three, generating a powerful synergistic effect, driving the prosperity of the ecosystem and repeatedly setting new highs in the industry’s total Market Cap, marking the entry of the Web3 industry into a new development stage.

However, after the initial rapid development phase, the Web3 industry also faces many challenges, such as the decline in the heat of VC projects, the unsatisfactory development of the BTC ecosystem, and the deepening fear, uncertainty and doubt (FUD) dilemma of the ETH platform, adding uncertainty to the market.

Currently, the industry has reached a critical turning point, requiring new forces to break through bottlenecks and bring innovation and change.

3. The driving force behind AI memecoin - AI Agent

The current “Super Memecoin Cycle” is happening, with tens of thousands of memecoins emerging. As a Cryptocurrency rooted in internet culture, Memecoin has sparked wave after wave of enthusiasm in the Cryptocurrency market, thanks to its strong community effect and viral transmission capability. However, each wave of enthusiasm has different core driving factors. As shown in Figure 3-1.

The development of Memecoin, like a microcosm of the Cryptocurrency market, has always kept pace with the times. The core driving force of the first five stages of Memecoin mainly comes from the encryption community, closely related to Web3 infrastructure such as blockchain, Smart Contracts and Tokens. However, the arrival of the sixth phase marks a new stage of development for Memecoin. As an external force, AI Agent has successfully broken through the circle, injected new vitality into Memecoin, and become the new engine of Memecoin.

The addition of the AI Agent has brought a qualitative leap to Memecoin:

Narrative upgrade: AI Agent elevates Memecoin from simple ‘meme’ to a digital asset with profound cultural connotations by generating personalized and high-frequency content. For example, $GOAT’s AI-generated religious content not only attracts a large number of users, but also builds a unique community culture.

Value support: AI Agent can monitor market dynamics in real time and conduct data analysis to provide more accurate market strategies for Memecoin. For example, $LUNA’s AI can automatically adjust the Token repurchase plan according to market conditions to stabilize the token price.

Community Building: AI Agent can interact with community members in a personalized manner, enhancing user stickiness. For example, through natural language processing technology, AI Agent can understand user emotions and provide corresponding responses, enhancing the cohesion of the community.

With its autonomy, creativity, and social skills, the addition of AI Agent has taken Memecoin to a new level, bringing unprecedented opportunities for development. However, the potential of AI Agent goes beyond Memecoin. It is becoming the new infrastructure of Web3, bringing new changes to the entire Web3 ecosystem and continuously driving industry innovation and development.

Phase Four: AI Agent becomes the new infrastructure of Web3

AI Agent, as an intelligent agent capable of autonomous learning, decision-making, and task execution, is gradually becoming a new infrastructure in the Web3 world. Its unique position in Web3 stems from its outstanding performance in economic independence, integration with smart contracts, Depth, and driving Web3 innovation.

1. Economically independent intelligent individual

In traditional Internet, AI Agent’s functionality is restricted due to the lack of a legitimate digital identity and asset ownership. In Web3, with the help of Wallet, Decentralization Identity (DID), public and private keys, etc., AI Agent can obtain independent digital identity and account, be able to own and manage assets, and have the ability to execute verification and signing. In this way, AI Agent becomes an independent economic entity - a digital citizen of the Web3 world. This capability enables AI Agent to actively participate in various financial and economic activities in Web3.

2, the best partner of smart contracts

Smart Contract and AI Agent, these two seemingly independent concepts, are merging into Depth and becoming the best partners under the promotion of blockchain and artificial intelligence.

We compare the features of Smart Contract and AI Agent as shown in Figure 4-1.

By combining AI Agent with smart contracts, the strengths of both can be fully leveraged, unleashing their potential:

Combining Determinism and Flexibility: Smart contracts provide a reliable execution environment, while AI agents can make dynamic adjustments based on real-time data and environmental changes, enabling more flexible applications.

The combination of decision-making ability and automatic execution: AI Agent, as the intelligent brain, can analyze complex problems, make decisions, and then automatically execute the decision results through smart contracts to improve efficiency.

The integration of on-chain data and off-chain data: Smart contracts mainly deal with on-chain data, while AI agents can leverage both on-chain data and off-chain data (such as sensor data, social media, and market data) for more comprehensive analysis and decision-making.

The combination of Decentralization and intelligence: Smart Contracts ensure the decentralization and transparency of the system, while the AI Agent brings intelligence to the system, helping to achieve the vision of Decentralized Autonomous Organization (DAO) and Decentralized Application (DApp).

By integrating Depth with Smart Contracts, AI Agent will play a more important role in Web3, driving innovation and transformation in Web3.

5. AI Agent opens a new era of Web3 intelligence

As a new infrastructure, AI Agent is leading Web3 into a smart new era. This is mainly reflected in the infrastructure and application innovation of various public chains, covering areas such as AI memecoin, systems and tools, AgentFi, AI Payment, games and entertainment, etc., where you can find more information on the Internet.

Among many public chains, Arweave/AO is highly compatible with the development of AI in terms of architecture and system resources, and the community attaches great importance to the development of AI Agents, which will drive the application of AI Agents to land as a common goal and action guide, worth special attention to follow.

In terms of system architecture: AO adopts the Actor model for design, whose core idea is that each component in the system is an independent and autonomous agent that can perform parallel computing, which is highly consistent with the AI Agent-driven application architecture.

In terms of system resources: AI relies on the three elements of models, algorithms, and computing power, so it has a high demand for resources. This is exactly in line with the system resource characteristics of AO. The Arweave+AO system built based on the SCP paradigm has scalable computing, data, and storage resources, which can allocate computing resources independently for each AI process, effectively eliminating computing performance bottlenecks; it can provide trusted data resources for AI models to help learn and train drop model biases.

In terms of key technologies: With the support of three key technologies, WASM64, WeaveDrive, and Llama.cpp large language model inference engine, AO can directly run a variety of large language models in smart contracts, such as Llama 3 and GPT-2, laying a solid foundation for AI agent application development and operation.

In terms of basic protocol: FusionFi Protocol (FFP) is a protocol specification and development tool, which aims to connect different agents, build information bridges, and standardize the interaction between DApp agents. Through FFP, the seamless integration of multiple financial services such as trading, loans, and futures can be realized, and a cross-application and cross-scenario Decentralization financial ecosystem can be built.

In terms of trusted data: Dria enables AI models to access the latest, complete, and verified information, effectively reducing the common biases and inaccuracies of centralized data sources, thus providing high-quality data sources for AI Agent applications.

In terms of asset innovation, EverVision’s founder @outprog innovatively proposed the concept of ‘AgentFi Notes’, aiming to reconstruct the trust of decentralization between entities through AgentFi Notes. This concept enables everyone to exercise sovereignty, issue their own notes, and manage assets, integrating various financial scenarios such as exchange, futures, mortgage lending, and stablecoins.

In terms of application innovation, Permaswap is the DEX leader in the ecosystem and has evolved into a super aggregator of Liquidity by integrating various financial forms after the launch of FusionFi Protocol. Botega, as the first autonomous agent-driven DEX in the ecosystem, has built an AMM system with independent processes, which can autonomously execute advanced order types such as stop loss, Auto-Invest, limit orders, and intelligently allocate Liquidity to improve trading efficiency.

As conditions mature, Arweave/AO, with its advantages in permanent storage of data and data atomic assets and hyper-parallel computing, may unleash the potential for data-driven, intelligent business development to meet the needs of on-chain/off-chain real economic activity.

Although the Arweave/AO ecosystem is still in its infancy, the upstream and downstream of the ecosystem have been able to develop synergistically and become an active builder of the Web3 intelligent era, and the future development prospects are worth looking forward to.

Summary of the entire text

The development process of Web3 is a continuous process of innovation and iteration. Distributed Ledger, Smart Contract, and Token, as core elements, have played a key role in the early stage and development stage of Web3, promoting innovation and maturity in areas such as Digital Money, public chain, and Decentralized Finance.

Now, as a new infrastructure of Web3, AI Agent is integrated with other core elements like Depth, and can play a role in various fields such as Crypto, GameFi, Gaming, Social, Metaverse, etc., which will definitely give birth to new applications and business models. From AI Memecoin to AgentFi, these innovative cases demonstrate that AI Agent has become the core driving force to promote the intelligent upgrading of the Web3 ecosystem.

With the continuous improvement of the public chain ecosystem and the continuous advancement of AI technology, AI Agent will play an increasingly important role in Web3, opening up a more intelligent, open, and inclusive digital new era.