UXUY Founder Kevin: Why Web3 Should Go All in on AI?

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In April 2024, we established the UXUY Asia AI R&D Center in Hong Kong. At the same time, the AI industry giant, Worldcoin, created by Open AI CEO Sam Altman, achieved a breakthrough, with the number of World APP users officially surpassing 10 million, just 263 days after the app's launch limit.

For all Web3 practitioners, such a report card is impressive; the giants of the AI world are launching a dimensional attack on the crypto industry through the "wave of universal AI." In contrast, cross-border AI has already become a new paradigm in the crypto industry. Recently, UXUY participated in the sixth incubation program of Binance Labs, and already a quarter of the projects belong to the AI-driven field.

It is clear that Binance has keenly sensed the arrival of the AI trend and has invested in it. For all of us Web3 entrepreneurs, we must strive to catch up, take up the weapons of AI, and become Builders in the Crypto × AI field; apart from going All In on AI, we have no other choice.

ALL In AI

On the day we announced the establishment of the UXUY Asia AI R&D Center, countless Web3 and AI practitioners congratulated me, celebrating that UXUY has taken another significant step. The narrative of Crypto × AI will become the main theme of the market for the next decade or even several decades, and I am very certain of this, just as I resolutely left Eastmoney over a decade ago to dive into a new blue ocean.

With the spiral rise of the twin stars of Crypto and AI, it is bound to give birth to highly innovative and creative projects or companies. UXUY is excited to see these developments and establish collaborations with them. Below, I will explain why I am so confident in the AI track, why the combination of Crypto × AI will yield a 1 + 1 > 2 effect, and what UXUY is doing in the AI field.

AI and Noodle Shops

It is evident that the AI track is a certain trend; only products that follow the trend can better capture the market and gain users.

Five years ago, I chose to enter the relatively niche wallet track in Web3 to start my entrepreneurial journey when CEX was still dominant. Due to high on-chain gas fees and the obscure mnemonic phrases, users naturally gravitated towards CEX. However, I clearly realized that wallets would be the ultimate traffic entry point for Web3, inevitably carrying the most traffic in the Web3 world. Participating in asset issuance in the primary market of Web3, exploring the transformation of asset issuance paradigms, and seizing 100x opportunities, wallets are an indispensable tool.

As users in the Crypto industry gradually mature, giants like Binance and OKX have begun to turn back and actively lay out their own Web3 wallets, while traditional world giants like Telegram have also started to integrate wallets and ecosystems.

The development of an industry often goes through a process of "from few to many." In the early days of Web2, the noodle shop near my home only accepted cash payments. A few days ago, I visited again, and it had become a genuine "internet enterprise," complete with online ordering, home delivery, and online payment; the owner was discussing the next marketing plan with an influencer who visited the shop…

Clearly, the current AI is still a game for a few enterprises or individuals. People still have a limited understanding of AI, but the trend towards AI is already certain. I firmly believe that in the future, there will be "AI companies" everywhere, and everyone will be talking about "AIGC," including that inconspicuous noodle shop.

No More "Reinventing the Wheel"

The Crypto × AI track excites me because it fundamentally addresses the dilemma of reinventing the wheel in Web3. The essence of Crypto is the change in production relations; one only needs a certain level of programming ability to issue their own tokens and create their own Web3 company by empowering tokens through on-chain nodes, without spending massive amounts of money on building factories or purchasing machinery, thus changing production relations.

The emergence of AI has completely resolved the productivity issue, and the combination of production relations (Web3) and productivity (AI) will fundamentally change the predicament of Web2 practitioners recreating projects in Web3, substantially promoting social progress.

1 + 1 > 2

The class mobility at the societal level has long been the driving force behind technological change. Each industrial revolution has reshuffled social wealth, with countless "New Money" pushing the progress of social civilization through innovation and opportunity while chasing greed, while the "Old Money" that once thrived at the card table gradually retreats to the background, establishing family funds or fading away due to poor investments.

Just as the "electrification" of the second industrial revolution replaced "mechanization," and the "automation" of the third industrial revolution replaced "electrification." However, this wave of "intelligence" seems a bit different; centralized Web2 has a natural monopoly advantage in the AI field, whether in terms of data, capital, or computing power, with towering walls already built.

They are pouring all resources into the development of artificial intelligence models to produce the most general and powerful models. They will stifle competition and limit innovation; they will capture regulation to solidify their positions as much as possible, making a very small number of people extremely wealthy and powerful. Clearly, they will become our new overlords. In fact, this situation is already happening; the production of AI GPUs is exclusively monopolized by Nvidia, and major giants control AI computing power, with part used for training new models and another part for leasing, creating a highly centralized and monopolized cloud platform that firmly controls the pricing power of computing.

Fortunately, we have Crypto!

Through the native incentive model of Crypto + decentralized on-chain mechanisms, we can organically combine with AI to solve this problem and create a 1 + 1 > 2 benefit. For example, users can earn points by renting CPU and GPU computing power online and participate in voting and company governance through a DAO governance model, or explore decentralized storage and other broader DePIN businesses through token incentives.

I have repeatedly emphasized to the team that UXUY must build the Crypto × AI track to contribute to crypto equity, ensuring that everyone on Earth becomes a beneficiary rather than letting it evolve into a game for the giants. Everyone who contributes to the cause of equality will be our learning object. I have been paying attention to and participating in the crypto equity movement for a long time. Last year, the Satoshi Nakamoto Award sponsored by UXUY awarded the annual person of the year to WorldCoin's founder Sam Altman, whose project establishes records through unique iris scans of residents on Earth and regularly distributes UBI unconditional income to ensure the most basic rights of being human. I deeply resonate with this, and it has profoundly influenced UXUY's direction in the Crypto × AI field.

Vitalik, in his article "The promise and challenges of crypto + AI applications," categorized the combination of artificial intelligence and blockchain into four major types:

• AI as a player in a game
• AI as an interface to the game
• AI as the rules of the game
• AI as the objective of the game

Currently, the development of Crypto is still in its early stages, and some fundamental issues need to be addressed: witch attacks, high energy consumption, malicious mixing products… UXUY has set "AI as an interface to the application" as the entry point, creating the world's first AI-based multi-chain trading ecosystem compliance and anti-witch products, gradually enabling AI to empower Crypto starting from infrastructure construction.

The surge in on-chain interactions will prompt users to migrate from CEX to DEX, making on-chain behavior more common. The asset increment brought by Crypto × AI will encourage traditional Web2 users to begin flowing into Web3, and the logic loop of mutual empowerment between Crypto and AI is forming…

I firmly believe that under the drive of Crypto × AI equality, everyone on Earth will become a beneficiary.