a16z Identifies 11 Connections Between Crypto and AI
Crypto News

a16z Identifies 11 Connections Between Crypto and AI

a16z highlights the potential for blockchain technologies to enhance user control in an AI-driven world.

Andreessen Horowitz’s crypto division recently outlined 11 areas where blockchain technology intersects with artificial intelligence, suggesting that crypto can empower users in a landscape dominated by AI.

The firm posited that cryptocurrency is not merely a speculative asset but vital infrastructure capable of challenging the centralization brought on by AI, by enhancing user control over data, identity, and economic engagement.

a16z Discusses Use Cases as AI Centralization Grows

In a post on January 20, a16z crypto argued that the web is shifting towards AI-managed interfaces, raising concerns over who has authority over data, distribution, and revenue.

They noted that blockchains could establish a neutral foundation for AI systems that offers enduring user context, mobile identities for AI agents, and decentralized payment mechanisms.

Many ideas focused on themes of identity and trust. For instance, decentralized proof of personhood is one concept aimed at enabling platforms to differentiate between humans and bots without centralized ID systems.

The post referenced existing initiatives like the World’s Proof of Human and the Solana Attestation Service, which allows users to link off-chain credentials to wallets while maintaining their privacy.

Payments emerged as another major topic, with a16z explaining how blockchains could facilitate micropayments between AI entities, content creators, and users. This includes models whereby AI tools that utilize third-party content share revenues, as well as scenarios where web crawlers directly compensate sites for data access.

Industry Resonance

The firm observed that nearly half of global internet traffic originates from automated systems, leading to increased efforts by existing website operators to thwart AI scrapers. This trend stimulates demand for blocking tools, exemplified by companies like Cloudflare.

The article also spotlighted decentralized physical infrastructure networks (DePIN) as a way to aggregate untapped computing and energy resources for developing and training AI applications, aiming to lessen dependency on major cloud service providers.

Identity, Payments, and Ownership Themes

Numerous insights echoed wider concerns in the crypto realm. Ethereum co-founder Vitalik Buterin has recently expressed his intent to leave centralized social media in favor of decentralized platforms, emphasizing the advantages of shared data layers that foster competition without confining users to singular interfaces.

Furthermore, the Ethereum Foundation has initiated a new AI team targeting agentic payments, striving to position Ethereum as the go-to settlement layer for AI agents and machine-to-machine transactions. Developer Davide Crapis noted that AI applications require unbiased infrastructures for value transactions and reputation, moving away from reliance on a select few tech companies.

While a16z’s roadmap does not suggest immediate mass adoption, it outlines potential applications—including user-owned AI companions or open markets between agents—indicating where stakeholders envision crypto evolving as AI technologies transition from isolated tools to integral components of daily interactions between people, data, and finances.

Next article

$47M in Bitcoin Disappears From Custody of South Korean Prosecutors

Newsletter

Get the most talked about stories directly in your inbox

Every week we share the most relevant news in tech, culture, and entertainment. Join our community.

Your privacy is important to us. We promise not to send you spam!