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

AI Agent as a new infrastructure of Web3, combined with other core elements Depth, will surely give birth to new applications and business models.

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 value exchange foundation for 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 realize that the structural paradigm and basic elements of the BTC blockchain have had a profound impact on areas such as currency and finance, value exchange and social cooperation, and the development of the Internet, which are specifically reflected in the following aspects:

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

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

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

As a pioneer of blockchain technology, Bitcoin (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 driven 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 diversified public chain ecosystem. Public chain is the cornerstone of ecosystem development, and its prosperity directly affects the overall development of Web3.

Smart Contract: Smart contracts provide programmability to 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 emphasizes 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 innovative models such as ICO, Decentralized Finance, and accelerates industry development.

In conclusion, Distributed Ledger, Smart Contracts, and Tokens complement each other and together constitute the infrastructure of the Web3 era. Ethereum’s innovation integrates these three elements organically, generating a strong synergistic effect and driving the prosperity of the ecosystem. The industry’s market capitalization has repeatedly reached new highs, marking a new development stage for the Web3 industry.

However, after experiencing the initial rapid development phase, the Web3 industry also faces many challenges, such as the waning heat of VC projects, the unmet expectations of the BTC ecosystem, and the Ethereum ecosystem deeply mired in fear, uncertainty and doubt (FUD), adding uncertainty to the market.

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

Three, the driving force behind AI memecoin - AI Agent

At present, it is the “super Memecoin cycle”, with tens of thousands of memecoins emerging. Memecoin, as a Cryptocurrency originating from Internet culture, has sparked wave after wave of craze in the Cryptocurrency market with its strong community effect and viral transmission capability. But each wave of craze 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 up with the times. The core driving force of the first five stages of Memecoin mainly came from the encryption community, closely linked with Web3 infrastructure such as blockchain, Smart Contracts, and Tokens. However, the arrival of the sixth stage marked a new stage of development for Memecoin. As an external force, the AI Agent successfully broke the circle, injecting new vitality into Memecoin and becoming its new engine.

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

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

Value support: The 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 buyback 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 is limited in function due to the lack of legitimate digital identity and asset ownership. In Web3, with the help of Wallet, Decentralization identity (DID), public and private keys, AI Agent can obtain independent digital identity and account, able to own and manage assets, and have the ability to perform 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 Contracts and AI Agents as shown in Figure 4-1.

The combination of AI Agent and smart contracts can fully leverage the strengths of both, unleashing their potential:

The combination of determinism and flexibility: Smart contracts provide a reliable execution environment, while AI Agent can make dynamic adjustments based on real-time data and environmental changes, achieving 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.

Integration of On-chain and Off-chain Data: Smart Contracts mainly deal with on-chain data, while AI Agents can use 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 new era of intelligence. This is mainly manifested 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 very 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. It is worth following as a common goal and action guide to promote the application of AI Agents.

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 capable of parallel computing, which is highly compatible with the AI Agent-driven application architecture.

In terms of system resources: AI relies on the elements of models, algorithms, and computing power, so it has a high demand for resources. This happens to be consistent 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 to each AI process independently, effectively eliminating computational performance bottlenecks; it can provide trustworthy data resources for AI models to help learn and train drop model biases.

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

In terms of basic protocols: FusionFi Protocol (FFP) is a protocol specification and development tool designed to connect different Agents, build information bridges, and standardize interactions between DApp Agents. Through FFP, seamless integration of various financial businesses such as transactions, loans, and futures can be achieved, creating a cross-application, cross-scenario Decentralization financial ecosystem.

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 has innovatively proposed the concept of ‘AgentFi Notes’, aiming to reconstruct the trust of Decentralization between entities through AgentFi Notes. This concept allows everyone to exercise sovereignty, issuance their own notes, and manage assets, integrating various financial scenarios such as exchange, futures, collateralized borrowing, and stablecoins.

In terms of application innovation: Permaswap is the DEX leader in the ecology. After launching the FusionFi Protocol, it has developed into a super aggregator of Liquidity by integrating multiple financial forms. As the first autonomous agent-driven DEX in the ecology, Botega has built an AMM system with independent processes, which can independently execute advanced order types such as tracking stop loss, Auto-Invest, limit orders, and intelligently allocate Liquidity to improve trading efficiency.

With the maturity of conditions, Arweave/AO, with its advantages in the permanent storage of data and data atomic assets, as well as ultra-parallel computing, may stimulate the potential development of data-driven intelligent business, thus meeting the needs of real economic activities on-chain/off-chain.

Although the Arweave/AO ecosystem is still in its early stages, the ecosystem has been able to develop in synergy, becoming an active builder of the Web3 intelligent era, and the future development prospects are worth looking forward to.

Summary of the entire document

The development of Web3 is a process of continuous innovation and iteration. Core elements such as Distributed Ledger, Smart Contract, and Token have played a key role in the early and development stages of Web3, driving innovation and maturity in areas such as encryptionDigital Money, public chains, 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 progress of AI technology, AI Agent will play an increasingly important role in Web3, opening a more intelligent, open, and inclusive digital new era.