Cryptocurrency is increasingly being positioned as a catalyst for the acceleration of artificial intelligence (AI) adoption, especially among startups in the AI sector. During a recent panel discussion at the LONGITUDE event hosted by Cointelegraph, Polygon’s co-founder Sandeep Nailwal emphasized the role of cryptocurrency in helping AI startups attract and onboard users effectively through innovative incentive mechanisms.
According to Nailwal, “You can use crypto incentives and disincentives to onboard users and ecosystem players.” He believes that AI projects equipped with robust on-chain incentive structures can enhance the quality of AI development itself, driven by the engagement of enthusiastic developers.
LONGITUDE is a series of events designed to foster dialogue among leaders and innovators in the blockchain and Web3 space. Joining Nailwal on the panel was Illia Polosukhin, co-founder of Near Protocol, who discussed the long-term potential of integrating crypto with AI. He projected that crypto-native AI agents might one day serve as the primary interfaces for users accessing Web3—rendering traditional web applications obsolete. “We don’t need applications or websites anymore. Your AI becomes the interface to computing and the internet,” Polosukhin stated.
Despite the optimistic outlook, Nailwal sounded a cautionary note regarding the proliferation of AI-related tokens in the crypto space. “We know that 99% of those projects are literally token scams, but very few projects are actually trying to have meaningful AI applications,” he warned.
The Era of Web3 AI Agents
AI agents are anticipated to assume a more significant role in decentralized communities. Recent statements from J.D. Seraphine, co-founder of Web3 developer Raiinmaker, highlighted the emergence of AI agents, predicting that over one million could enter the market by 2025, many of which will be linked to decentralized finance applications. These agents are already reshaping the digital economy by building decentralized applications, launching tokens, and engaging autonomously with users.
As Nailwal pointed out, “AI is an extremely centralizing force. A few companies could become the warlords of the world.” Hence, initiatives that support crypto-native, peer-to-peer AI solutions are crucial for fostering privacy-preserving innovation in the digital space. Polosukhin echoed this sentiment, underscoring the importance of establishing frameworks that empower decentralized AI development.
For further insights on the evolving relationship between AI and decentralized technologies, stay tuned for more updates.
