The Future of Web3: How AI is Reshaping the Decentralised Landscape

4 min readMay 16, 2023

As the world of AI continues to evolve at breakneck speed, this new technology is poised to make a significant impact on Web3, reshaping the decentralised landscape as we know it.

In this article, we will explore the challenges, opportunities, and ethical considerations surrounding the marriage of AI and Web3 while also diving into the latest statistics and trends shaping this exciting new frontier.

Two Powerful Industries

The AI market is projected to reach $190.61 billion by 2025, reflecting a compound annual growth rate (CAGR) of 36.62% from 2018 to 2025. Meanwhile, the NFT market has seen exponential growth, with total sales volume reaching $25 billion in 2021, as per a DappRadar report.

As the AI and NFT markets continue to grow, the intersection of these two technologies presents tremendous opportunities for innovation and economic growth. The development of AI-powered NFT marketplaces, for instance, has the potential to drive further adoption and expansion of the NFT ecosystem, creating new possibilities for artists, collectors, and investors alike.

So what might that actually look like?

Hyper-personalisation

The intersection of AI and Web3 holds a massive amount of potential in delivering a more personalised and seamless user experience across a wide range of platforms and applications. By harnessing the power of AI-driven recommendation engines, natural language processing, and sentiment analysis, Web3 platforms can tailor content, products, and services to individual user preferences and needs.

This level of personalisation can lead to increased user engagement, satisfaction, and loyalty, ultimately driving the growth and adoption of Web3 technologies. As Web3 platforms continue to evolve, the integration of AI will play an increasingly important role in ensuring that users’ unique needs and desires are met, creating a more immersive and intuitive digital experience.

Decentralised AI Services

There is a major, unique opportunity for AI to disrupt traditional centralised AI solutions. By distributing AI resources and services across a decentralised network, users can benefit from greater accessibility, lower costs, and enhanced privacy. This new model of decentralised AI services can foster greater collaboration, innovation, and value creation within the Web3 ecosystem.

Imagine a future where AI services are readily available on a decentralised marketplace, enabling dApps and platforms to leverage powerful algorithms without the need for extensive technical knowledge or expensive resources. This democratisation of AI has the potential to unlock new possibilities and drive the growth and adoption of Web3 technologies across various industries.

We’ve already covered this in detail in our series, The Dawn of a New Asset Class, on how this may impact NFT creation, generation, utility, and even affect NFT marketplaces at large. Read it here.

AI-Enhanced Smart Contracts

Finally, the integration of AI into smart contracts could upend the way these digital agreements are executed, opening the door to more sophisticated, adaptive, and autonomous decision-making processes.

Imagine a new era in the execution of digital agreements, paving the way for more advanced, responsive, and self-governing decision-making processes. The fusion of machine learning algorithms with smart contract execution could help AI facilitate the creation of cutting-edge decentralised applications (dApps) that can adapt effortlessly to fluctuations in market conditions, user behaviours, or real-world events.

Machine learning algorithms can analyse vast amounts of data in real-time, enabling smart contracts to make more informed decisions that optimise outcomes for users and stakeholders. As a result, dApps can become more efficient, dynamic, and capable of providing tailored solutions to users’ needs.

This marriage of AI and smart contracts has the potential to significantly expand the utility and impact of blockchain technology, empowering creators to build innovative solutions and products that transform industries.

Closing Thoughts

The convergence of AI and Web3 marks the beginning of a revolution in the decentralised landscape, unlocking new possibilities for innovation, collaboration, and growth.

As we venture into the exciting realm of AI and Web3, it’s crucial to acknowledge the challenges and ethical considerations that lie ahead. Data privacy is one significant concern, as AI algorithms often require vast amounts of data to learn and improve. Ensuring the protection of sensitive information and user privacy within a decentralised environment will be paramount.

Furthermore, as AI-generated content and AI-driven decision-making become more prevalent, questions arise regarding the ownership of intellectual property rights, the potential for AI to replace or diminish human input, and the ethical implications of autonomous decision-making.

Striking a balance between leveraging AI’s capabilities and preserving human creativity and autonomy will be a critical challenge to overcome as we continue to explore the possibilities of AI and Web3.

But here at MOOAR, we never shy away from a challenge — and we’re beyond excited to see the new worlds that this will open via the power of these two technologies. By embracing the potential of AI while addressing these concerns, we can harness the power of AI to construct a more inclusive, efficient, and engaging Web3 ecosystem.