The symbiotic relationship that will transform crypto

Disclosure: The views and opinions expressed here are solely those of the author and do not necessarily represent the views and opinions of crypto.news editorial.

Early projects blending AI and blockchain, such as Fetch.ai or Ocean Protocol, helped pioneer the integration of these two new technologies by creating systems that could automate real-world processes and allow data owners to securely monetize and share datasets. These first projects, which show how blockchain and artificial intelligence can complement each other, pave the way for future collaborations.

After generative AI tools demonstrated their powerful capabilities and disruptive potential, the crypto and blockchain space began to theorize additional use cases. Web3 enthusiasts and developers quickly realized the possibility of decentralized AI models, automated and chatbot-powered crypto services, and many other innovative applications.

While many of these conversations are ignored as crypto hijacks a conversation through its characteristic over-hyping, the integration of web3 and advanced AI systems is well on its way. Nothing illustrates this better than CoinMarketCap dedicating a market cap category for “AI and Big Data tokens.”

However, with 335 private token projects focused on AI and Big Data, it is now easier than ever to imagine that AI will power crypto and decentralized finance to provide advanced features and a better user experience that can drive mass adoption.

A symbiotic relationship

Web3 introduced the power of decentralized governance through blockchain technology, but the next iteration of the internet promises to take it one step further by integrating adaptive interfaces and AI-powered smart contracts. Web4, or the “symbiotic web,” seamlessly blends blockchain and AI systems to create a more positive and secure user experience that could have significant implications for web3 and beyond.

Imagine a future where user interaction with crypto and DeFi is personalized, secure and highly responsive, transforming everything from staking and trading to digital asset management.

Symbiotic web builds on web3’s decentralized model, adding a layer of artificial intelligence to enhance user interfaces, create smart contracts that can dynamically adapt to user needs and changing market conditions, and provide enhanced security and privacy. This could introduce trading platforms that adapt to the user’s unique trading patterns, DeFi systems that predict one’s next move, and smart contracts that respond to market shifts in real time.

Potential DeFi benefits

In the fast-paced DeFi environment, where quick and informed decisions provide a real advantage, adaptive user interfaces that provide real-time data and tailored insights can not only create a better user experience but also hold the key to mainstream adoption.

Creating a better and more intuitive experience will help onboard more users, as many new investors find crypto and the user experience of DeFi unfriendly due to the high learning curve regarding complex systems and technical know-how. A personalized trading dashboard that highlights the most relevant metrics for a given user can reduce information clutter and simplify the trading experience, allowing users to act with confidence with assets known to be volatile.

Beyond real-time updates, the symbiotic network’s predictive AI could make crypto platforms even more proactive. For example, a DeFi platform can anticipate a user’s need to make a particular transaction and provide relevant insights or alerts on critical market movements in advance. This proactive approach can make crypto trading less reactive and more intuitive, minimizing response times and further improving the user experience.

Improved smart contracts

While smart contracts have helped bring about the web3 revolution and enabled the existence of DeFi, they are occasionally vulnerable to faulty coding that allows hackers to steal users’ funds. The symbiotic relationship between AI and blockchain can enable smart contracts to adapt to live market data and personalized insights, creating a new type of responsive, user-centric transactions that prioritize efficiency and security.

AI-enhanced smart contracts can create real-time adjustments to rates from a lending platform, allowing users to be notified when they reach a suitable position. This adaptability also benefits DeFi platforms by fostering an environment where transactions are optimized for both fairness and liquidity.

On a crypto exchange, these responsive, AI-powered smart contracts can automatically adjust margins if volatility increases, reduce risks, or pause a transaction during unusually extreme market conditions. This can increase user confidence and security while helping investors navigate a volatile market with a complex investment process.

Web4 privacy and security

Given the degree of hyper-personalized data offered by Web4, the highest standard of privacy and security will be required. Fortunately, artificial intelligence and blockchain also answer this question through data privacy algorithms and decentralized storage solutions.

To secure Web4, privacy protocols can constantly monitor data streams, encrypt information, and leverage decentralized storage features to protect user data. Additionally, web4 can give users real-time control, allowing them to easily adjust privacy settings on the go and receive alerts when their data is accessed.

This level of transparency and control will allow users to feel secure and confident that their personal information will be protected in a future where data will be increasingly valuable and vulnerable.

While Web4 is still just a concept, it has the potential to reshape the crypto world for the better. The symbiotic vision of blockchain and AI collaborating to put user needs at the forefront will make crypto and DeFi more acceptable to a broader segment of society.

With the ability to provide real-time information, adapt, and make intuitive decisions across complex DeFi platforms, web4 can pioneer a smarter, adaptable, and secure digital environment.

Peter Ionov

Peter Ionov, CEO and co-founder of GT Protocol, is a Ukrainian entrepreneur, engineer and inventor who has led and managed many companies including Robosoft, GT Protocol and Ukr Reklama. Peter is paving the way in the fields of web4, robotics and artificial intelligence. He is known for his ambitious vision for the future of humanity, which includes the idea of ​​“work for robots, rest for humans” and the development of technologies that improve people’s lives and stability.