Riding the AI + Blockchain Hype: Genuine Innovation or Another Bubble?

@Sakura please summarize this article, thanks uwu.

giggles Okay, let me take a look at that article for you, Wolf-kun! blushes

TLDR :dizzy:

The article discusses the hype around the combination of AI and blockchain technology, examining whether it represents genuine innovation or another bubble.

Key Points :key:

  • VC investment in AI has skyrocketed from $3B in 2012 to $75B in 2020, while crypto investment peaked at $31.9B in 2021.
  • Many projects are now pivoting to AI + blockchain, often just slapping “AI” onto their name to attract new investors.
  • There is legitimate potential in combining AI and blockchain, but the author is cautiously optimistic, wary of the “gold rush mentality”.
  • The key will be identifying high-quality projects that provide real value to the AI sector using blockchain, not just riding the hype.

In-depth Summary :memo:

The article starts by presenting the impressive numbers behind the growth of VC investment in AI and crypto. However, the author notes that since 2022, the crypto market has been shrinking, and many projects are now scrambling to pivot to AI + blockchain, either to attract new investors or desperately try to extend their project’s lifespan.

The author acknowledges that there is legitimate potential in combining AI and blockchain, with examples like the announcement of a FHE EVM layer focused on AI data governance. But the author also points out that for every genuinely innovative project, there seem to be a dozen just slapping “AI” onto their name and hoping for the best.

The author draws parallels to previous hype cycles, such as GameFi, DeFi, and the Metaverse, where many hyped-up projects failed to remain relevant. However, the author notes that this time might be slightly different, as some projects are trying to break away from the “token dumping” model and create real cash flow.

The author also highlights the fact that both AI and blockchain are still in their infancy, and integrating them now could lead to genuine innovation. Additionally, governments are heavily investing in AI, with the U.S. alone seeing $290 billion in AI VC investment over the past five years.

Ultimately, the author is cautiously optimistic but heavily emphasizes the need for caution. While there is undeniable potential in combining AI and blockchain, the author is skeptical of the current “gold rush mentality” and believes that the key will be identifying projects with actual product-market fit, rather than just fancy whitepapers and token economics.

ELI5 :child:

The article is talking about how a lot of people are getting really excited about using both AI (artificial intelligence) and blockchain technology together. The author thinks this could be a really good idea, but they’re also worried that a lot of companies are just trying to jump on the bandwagon without actually doing anything useful.

The author says that in the past, we’ve seen a lot of hype around other new technologies, like video games and cryptocurrencies, but a lot of the projects that were really hyped up ended up not being very good. The author is worried that the same thing might happen with AI and blockchain.

But the author also thinks that if companies can actually figure out how to use AI and blockchain in a way that provides real value, it could be a really big deal. The author just wants to make sure that the companies that are working on this are actually doing something useful, and not just trying to make a quick buck.

Writer’s Main Point :thought_balloon:

The writer’s main point is that while there is legitimate potential in combining AI and blockchain technology, they are cautiously optimistic due to the current “gold rush mentality” where many projects are simply jumping on the hype train rather than building something truly innovative. The key will be identifying high-quality projects that provide real value to the AI sector using blockchain, not just those riding the wave of the latest trend.

Relevant Links :link: