AI and Blockchain: A Power Couple or Just a Fling?

AI
Nov 22, 2024Reading Time: 4 minutes

The introduction of adaptable AI agents slapped markets around the world. Startups and funders alike were scrambling to add AI to everything, with blockchain acting as a supercharging force. But was it worth it? Let’s check in with some of those startups and the progress they made.

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DevCon recently wrapped up with AI related talks and side events at the top of the list. This on the heels of the Coinbase announcement of its AgentKit launch. AI is still feeling the hype in Web3, and blockchain projects are turning up the heat.

If you read our AI & blockchain synergy report in July, you learned that AI transforms into a 10x system when combined with blockchain. We took a good look at several early adopters exploring AI applications on the blockchain. You may be wondering how those startups are going now that the market has shifted. Let’s have a look.

A brief overview of how AI + blockchain rocks

AI can take incredible work off your hands (example in our Minions article). It has some weaknesses, but when combined with blockchain tech, these issues are resolved while the strengths of both are improved. 

AI can be leveraged in Web3 to manage data computing, executing and checking smart contracts, gaming, investing, and more. That’s why the sector was so bullish about it. But AI performs best for specific use cases. Our goal in our report was to identify what sectors would most benefit from AI application and the massive opportunities that lay ahead. Our conclusion was that blockchain wasn’t even close to fully leveraging the power of AI.

Below are three use cases from our AI x Blockchain report. Have a look at what was expected of them and how they’re doing two quarters later.

ChainGPT

Many of us are utilizing AI to help us write code onchain. However, the popular ChatGPT isn’t exactly optimized for blockchain projects. That’s why we love ChainGPT. It is an expert in smart contracts and the goings on in blockchain. Other than our Web3 Insights Marketplace, ChainGPT is one of the best sources of blockchain research. 

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  • Now: Public opinion seems to be mixed about ChainGPT, despite the health of its token. However, ChainGPT is moving forward without pause. Since the summer, ChainGPT launched its Labs website, updated their TTIM models, integrated with Midjourney and DallE, released trading and NFT assistants, spruced up their overall UX/UI, and more. It just announced a $500,000 competition in collaboration with Binance as they roll out their collaboration, transforming Binance a smart wallet with an AI-powered trading assistant.
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  • Summary: ChainGPT is healthy and moving forward with partnerships and features alike. It provides a great resource for new blockchain entrepreneurs and those curious about the latest blockchain news. We look forward to their 2025 roadmap. 

Powerledger

This AI-powered SAAS company geared toward renewable energy has made a massive name for itself. Not only was it honored as one of the Top 50 Crypto Companies in Crypto Valley, it also found support with the likes of Sir Richard Branson’s global Extreme Tech Challenge. The media loves this project, but how has it held up? 

  • Then: Powerledger launched its AI-based model titled Hybrid Weighted Energy Forecasting Algorithm (HWEFA) in December 2023 to help its customers optimize their energy consumption. The launch was well received as can be seen by the pump in its $POWR coin.
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  • Now: Since then, the biggest milestone for Powerledger was their successful migration to the Solana mainnet, expanding its reach and easing engagement for users. The move is also expected to enhance transaction speeds and scalability. In spite of this, the $POWR coin has fallen alongside the market. The reputation of Powerledger, however, has not. Their Renewable Energy Certificate (REC) trading marketplace was nominated for the World Summit Awards Global Competition. They’ve also had large success reducing solar costs in their target communities.
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  • Summary: Powerledger is healthy and expanding. Unfortunately for Powerledger, their use of AI (and to some extent, blockchain) is in direct conflict with their mission to expand and democratize renewable energy. AI is slated to double its power consumption by 2026, making it rather not eco-friendly. What do you think Powerledger should do in response? 

ORA Protocol

ORA (optimistic machine learning) does exactly what we called for in our AI Minions article: combines AI agents with smart contracts to increase the power and security of both. They aim both to support open-source AI startups and bring AI machine learning onchain. We were quite bullish on ORA in our AI Report, but have they held up?

  • Then: In March 2024, ORA launched its Initial Machine Offering (IMO) designed to support open-source AI projects in competing against private projects. The launch was well-received, and was quickly backed by Polychain and SevenXVentures several months later.
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  • Now: We reached out to ORA for an update on their progress since our AI Report. ORA launched the ORA Foundation and the $ORA token, offering its community governance and a funding mechanism over IMO projects. They also rolled out their DAICO (Decentralized AI Community Offering) which puts community-driven tokenization first. They are further developing their Onchain AI Oracle (OAO), fraud-proof systems, full determinism in their AI framework, and exploring fully homomorphic encryption (FHE) integration.
  • Summary: ORA offers a lot of promise to the entire blockchain ecosystem. We’re excited to see their security rollouts, especially FHE integration. What are you bullish about? Tag us on Twitter/X to share.

Does AI and Blockchain Work?

Our opinion is yes. We conducted an in-depth review of several blockchain-based AI projects in our AI report. This follow-up investigation confirms that AI is a powerful asset in combination with blockchain projects. While AI ought not to be thought of as an entire business model, it strengthens blockchain’s and expands its offerings. That makes us bullish. Head to our report, AI And Blockchain Disruption – Unveiling Perfect Synergy Use Cases.

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