https://dailyhodl.com/2023/11/23/ai-and-blockchain-will-revolutionize-the-gaming-world-forever/

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Traditional gaming, as we know it, is gasping its last breaths. We’re hurtling towards a future where AI and blockchain don’t merely complement – they command the gaming domain.

AI, having reshaped industries far and wide with its unerring knack for prediction and personalization, is not just enhancing gaming realism – it’s obliterating the boundaries of what we once thought possible.

On the other hand, Web 3.0 – with its decentralized might – is giving the player a seat at the decision-making table, turning them from passive participants into the very epicenter of their gaming universes.

This metamorphosis isn’t just groundbreaking, it’s epoch-defining. This isn’t merely the integration of two technologies – it’s the forging of a new gaming ethos.

Imagine a world where AI’s hyper-realistic gameplay is intertwined seamlessly with a decentralized, player-driven economy.

Every challenge, every achievement, every storyline becomes not just a programmed outcome but a unique, player-centric experience.

The ramifications are vast, prompting developers to venture into uncharted territories – not to evolve but to revolutionize the gaming fabric.

AI’s game-changing potency in blockchain gaming

On-chain generative assets

AI’s capability to produce distinctive on-chain assets presents a groundbreaking evolution in blockchain gaming.

Picture a universe where every in-game item, from armors to avatars, is a product of intricate AI computations, rendering each asset as identifiably unique in its attributes.

Such an AI-driven approach fosters an organic, ever-mutating gaming realm where players are continuously presented with novel and unique in-game assets, enriching their overall experience and prolonging the game’s lifespan.

Adaptive and engaging game difficulty

The diverse spectrum of gamers – each with varying skills and preferences – necessitates a gaming environment that can mold itself according to the player.

Through AI, games gain the capability to analyze and interpret player strategies, subsequently adjusting in-game challenges on the fly.

Such adaptability ensures a nuanced gaming journey, where beginners find an accommodating learning curve, and veterans encounter challenges that test their mettle.

Enhanced immersion through AI

AI’s influence extends beyond mere game mechanics – it revitalizes the in-game universe.

With NPCs (non-player characters) driven by intricate AI logic, their responses and actions mimic real-world unpredictability and consciousness.

This AI-guided realism redefines player-NPC interactions, making the game’s environment a dynamic entity in itself.

Such a world not only resonates with the player’s choices but also evolves in tandem, creating an immersive narrative that’s both unpredictable and deeply engaging.

The future of gaming is written on the blockchain

Blockchain’s imprint on gaming is not just about creating a new type of asset or a novel way to transact.

It fundamentally revolutionizes how players view and interact with their games.

By placing true ownership in the hands of players, blockchain breathes life into virtual realms, where every action, decision or trade has tangible consequences and rewards.

Gone are the days when in-game achievements had a fleeting value, limited by game servers or company decisions.

Now, every armor piece, every rare item, and every in-game milestone becomes a part of a broader digital economy, allowing players to leverage their skills and assets in ways previously unimagined.

This decentralized approach empowers players, fostering communities built on trust, transparency and the shared knowledge that their gaming pursuits yield real-world value.

The inevitability of AI and blockchain in gaming

The course is clear. Gaming’s destiny is now firmly in the grasp of AI and blockchain. The purists may yearn for yesteryears, but change is not just on the horizon – it’s here.

We’re transitioning from rigid narratives to fluid, player-driven sagas. Games of the future will not be about traversing a set path but about forging one’s destiny.

With AI’s groundbreaking innovations reinforced by blockchain’s capability of gamers’ empowerment, the gaming landscape is on the brink of an era that’s transformative and unparalleled.

The promise? A gaming world that’s richer, more dynamic and incomparably immersive.

The old guard might resist, but the future of gaming, shimmering with promise and potential, waits for no one.

Jack O’Holleran is the co-founder and CEO of SKALE Labs, the team behind SKALE, the world’s fastest blockchain, designed for ultra-fast, secure, user-centric Ethereum scaling. Jack is a veteran Silicon Valley Technology entrepreneur with a deep background in machine learning/AI technologies and blockchain.

https://forkast.news/ai-web3-will-spark-cambrian-explosion/

Imagine your favorite social media platform started using a new AI bot detection tool, and for some reason, your account kept getting flagged as fraudulent despite you being a real, human user.

You, and anyone else mistakenly getting flagged, would have little recourse today. 

With millions, even billions, of users, it’s almost impossible to get noticed by customer service reps on some of the larger platforms. And if you wanted to get the platform’s algorithm to consider additional data points, such as metrics that would prove the humanity of you and others in your situation? Yeah, good luck.

But what if the platform’s artificial intelligence model was integrated with the blockchain?

The factors that drive the model’s bot determinations would be publicly available on chain, for anyone with an internet connection to see. The AI model’s decision framework would be transparent, and if it were tied to a blockchain-based decentralized autonomous organization (DAO), members of the platform could make a proposal for how to change the model so that it doesn’t incorrectly label people as bots.

There are countless other things one could vote on, of course — everything from content moderation standards to user experience decisions. The broader point? Fully integrating AI models with Web3 technology can unlock greater transparency, greater value exchange, greater decentralization, greater education, learning and communication. 

That promise has people all over the Web3 ecosystem raving, to the point that their shared excitement over AI and Web3 has become easily memed. And while that excitement is valid, let’s dump some cold water on this whole thing: We’re still probably a decade away from seeing true AI-Web3 integration become a reality.

The current blockchain AI market, valued at US$230 million in 2021, is expected to grow into a billion-dollar industry within the next decade. It could potentially get to that valuation much sooner — but it will have to first overcome the fact that decentralizing AI is a difficult and costly affair. 

Doing the millions, even billions of transactions required to run an AI model is already an extremely expensive affair, and doing so on the blockchain is significantly more so. That output will require much more from smart chips than is currently possible, similar in many ways to the massive advances that will be needed to power another high-transaction Web3 innovation: the metaverse. 

AI-empowered blockchains and protocols could stack the benefits of machine learning with the decentralization and aligned incentivization of Web3. That stacking can lead to exponential gains, optimizing not just work through AI, but also the way the value from that work is distributed through the incentivization, ownership and transparency models enabled by Web3 technology.

Powered by AI, here are five Web3 use cases we’re likely to see in the future:

1. DeFi with AI-boosted risk assessment: AI can significantly enhance decentralized finance applications by providing advanced risk assessment models that evaluate the creditworthiness of a user requesting a loan or determine the risk of an investment product. Since the blockchain ensures transparent and immutable record-keeping, AI models can leverage this data to make more accurate predictions.

2. AI-driven NFTs: As NFTs evolve from static to dynamic entities, AI can play a significant role. For example, AI could enable the creation of “smart” NFTs that change over time based on certain conditions or inputs. This could lead to a wide range of innovative applications, such as NFTs that adapt their appearance according to the time of day or an artist’s mood, or NFT-backed virtual characters that evolve based on user interaction.

3. DAOs managed by AI: Decentralized autonomous organizations can leverage AI to automate decision-making processes and improve the efficiency of operations​. For instance, AI could help with optimizing resource allocation, making predictions about future trends, or even voting on proposals based on predefined criteria. The parameters guiding these AI models could be set and adjusted by the community, providing a balance between autonomy and human oversight.

4. Personal data monetization: Web3 gives individuals greater control over their personal data. Combined with AI, users could not only control who has access to their data but also monetize it if they choose to. For example, users could allow AI algorithms to use their personal data to improve their models, and in return, they could receive compensation in the form of cryptocurrency.

5. AI-powered metaverses: Artificial intelligence can be integrated into virtual worlds to create more realistic and dynamic experiences. For example, AI could be used to generate unique, real-time content in the metaverse, such as creating personalized quests in a game or simulating realistic weather patterns in a virtual world.

Next-generation blockchain layers will incorporate AI into the core components of their network, expanding efficiency in storage and other essential functions. One can imagine a world where the validator market consists of not just human validators but also AI ones, enhancing security on protocols as well.

Eventually, AI will be incorporated in a way that it can essentially “govern” Web3 blockchains and networks. Instead of a DAO voting on every small tweak or adjustment to the protocol, the AI model could be given wide purview to make decisions that keep the DAO working efficiently.

The community could adjust this purview based on their own values and interests. Importantly, it could also adjust the parameters by which the AI model makes decisions about the network — and due to the transparency of the blockchain, these parameters could be public and easily accessible for all to see. 

Right now, it’s difficult for ordinary users — even large communities of them banding together — to compete against massive platforms with huge amounts of technical and financial capital at their disposal. AI’s ability to augment human capabilities could help level the playing field for those ordinary users, combining with DAOs and other Web3 organizations built on the blockchain to better distribute ownership and governance. 

This final stage of AI and Web3 integration will be difficult and costly to achieve, which is why it won’t happen overnight. In fact, it will take much longer than much of the hyped-up pieces that are being shared across the internet today.

Still, once that integration does come, it will open up a whole new galaxy of apps and services that reward people with more ownership and control. And the level of innovation that emerges could be orders of magnitude greater than what we can imagine today — akin to humanity using flip phones in 2005 without realizing that in a decade they would be able to click a few buttons and instantly call drivers to their location, order groceries, code applications and do countless of other previously unimaginable things.

https://dailyhodl.com/2023/07/27/beijing-once-banned-bitcoin-now-its-made-blockchain-inevitable/

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Two years ago, China banned crypto outright, leaving Web 3.0 companies blocking signups from Chinese users and fleeing the Middle Kingdom.

Now, Beijing may be responsible for quietly making Web 3.0 all but inevitable.

It was easy news to miss if you don’t speak Chinese or follow blockchain news – but on June 2, 2023, officials speaking at an industry forum released the ‘Beijing Internet 3.0 Innovation Development White Paper.’

The document outlined the capital city’s attempts to encourage consensus and development of the Web 3.0 industry, laying out technical needs behind the tech that Beijing officials believe will undergird generative artificial intelligence, content production tools, XR interaction terminals and other technologies.

To be clear, the People’s Bank of China hasn’t reversed its September 2021 ban on cryptocurrencies, which perhaps make up the most prominent use case of the blockchain for casual Web 3.0 users.

China has kept the 2021 ban, which led companies like Binance and Huobi to stop people with Chinese phone numbers from using their services.

For some crypto purists, the omission of digital currencies negates any sense of forward momentum.

Many in the space have mixed feelings about CBDCs (central bank digital currencies) like the ‘digital yuan’ that China has in the works, and it doesn’t take much for them to get up in arms.

Those skeptics are missing the point though.

While Chinese residents won’t be trading Bitcoin any time soon, the decision by Beijing and dozens of other cities across China to publish reports voicing support for blockchain technologies is a clear sign that they see Web 3.0 as critical infrastructure for the future internet.

In fact, the white paper calls Web 3.0 “the culmination of modern science and technology, and the inevitable trend of future internet industry development,” according to translations of the text posted by Zhao Changpeng, CEO of Binance, on Twitter this week.

This is what mass Web 3.0 adoption looks like. It’s piece by piece, brick by brick.

It’s critical validation for the underlying technology driving everything from cryptocurrencies and non-fungible tokens to digital ledger services and decentralized financial services.

Even countries with CBDCs have some benefits.

While government-regulated currencies artificially restrict competition, they will most likely give Web 3.0 users and app developers clearer understanding for what blockchain products they can build and use going forward, encouraging future growth of this essential internet infrastructure.

What’s more, it becomes even harder for crypto-skeptical nations to push off further investment in blockchain tech when some of the world’s most powerful nations are not just admitting its here to stay but also devoting more funds and research to the space – even if Beijing’s promise to allocate 100 million yuan annually (roughly $14 million) is a relatively modest amount.

It’s no wonder then that Beijing’s ‘Internet 3.0’ white paper received major praise from Binance’s Changpeng, Huobi CEO Justin Sun and Animoca Brands co-founder Yat Siu, among other prominent Web 3.0 leaders.

More critical than the actual monetary investment is the signal it sends to the rest of the world – Beijing’s support for Web 3.0 is a not-so-subtle nod to the nation’s support for Hong Kong’s new digital asset regulations, which went into effect on June 1, 2023.

Regardless of your personal geopolitical ties, it’s a well-understood fact that competition motivates nations.

China’s backing of blockchains makes it impossible for Western nations to completely opt out of Web 3.0 innovations, as doing so could put them at a severe competitive disadvantage.

That’s important, especially as the European Union continues its broadly restrictive stance toward Web 3.0 technologies, and the United States, despite being a hotbed for blockchain innovation, has increasingly cracked down on Web 3.0 companies while perhaps underestimating how empowering they can be with the right support.

Imagine how different the world would be today if the United States, after seeing the dot-com bust, had decided to crack down on internet infrastructure companies rather than continue developing them.

Web 3.0 has the potential to be every bit as transformative as the internet evolution humanity has seen over the last two decades – and after Beijing’s announcement this week, no major nation will want to sit out and risk being left in the Web 3.0 ‘stone age.’

Imagine if the epicenter of Silicon Valley were in Guangzhou and not Palo Alto.

Jack O’Holleran is the co-founder and CEO of SKALE Labs – the team behind SKALE, the world’s fastest blockchain, designed for ultra-fast, secure, user-centric Ethereum scaling. Jack is a veteran Silicon Valley Technology entrepreneur with a deep background in machine learning/AI technologies and blockchain.

https://dailyhodl.com/2023/06/14/web-3-0-gaming-isnt-just-about-asset-ownership-its-much-bigger/

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People think they know the value of Web 3.0 gaming – that it’s all about users owning their own in-game assets as non-fungible tokens (NFTs).

This view is the most common misperception in the space, and it’s flat-out wrong. Ownership matters, but limiting the value of Web 3.0 gaming to ownership misses the full picture – the potential for blockchain-based incentives to expand the gaming industry beyond even its current size.

Web 3.0 driving a world of monetization models for gamers

The innovation that is getting far less attention could be far more valuable – a world of monetization models for gamers, game builders and the communities that support them.

Right now, game developers have limited points of sale to reach both experienced gamers and casual ones. They may sell their game through a console, an app store or a service like Steam, for example.

But what if they could multiply their storefronts to include the entire internet, monetizing thousands and thousands of virtual spaces?

Consider the possibilities for developers if they were able to capture not just the new game market – but also the secondary resale market so that they receive a portion back for each new user interacting with the game.

Games built on the blockchain are able to access a market so much larger than their current one, giving creators the ability to reach far more than they previously could.

It’s the difference between only being able to sell your game in a closed system, such as a single app store, and being able to sell it through a Shopify site that can integrate with every app and marketplace on the internet.

Consider this year’s League of Legends World Finals, where VIP guests were given a badge that, on the front of it, gave an ominous warning – anyone who sold or transferred that badge to another person would be immediately banned from the event.

That’s the current gaming economic model, intensely focused on keeping as strict a user moat, and as tight control over your closed game ecosystem, as possible.

Under a more open, blockchain-enabled economic model, you could create that VIP badge as an NFT.

Event organizers, instead of trying to restrict access, could instead let VIP holders sell that ticket to anybody, and each time it sold, the organizers would earn another five percent of that ticket – resale value they weren’t able to harness before.

Smart contract-enforced royalties allow creators to receive compensation each time their digital assets are bought, sold or traded, ensuring fair compensation and long-term benefits – an economic innovation most game developers could benefit from.

NFT assets are good for the gamer/purchaser of that NFT. If the owner no longer has use for it, then they can get a portion of their money back.

And those blockchain assets are also good for the devs, who get that royalty, allowing them to monetize their assets wherever things are sold, while also making it easier for them to grow their community of supporters.

Although most prominent Web 2.0 games feature in-game digital currencies, they lack the economic guarantees inherent to Web 3.0 games, such as publicly accessible information on quantity, inflation and reward schedules.

Expanding the possibilities of in-game asset ownership

If you own an NFT, you also own a history of that ownership and all the traits of that asset are stored on the blockchain.

If you are playing a Web 2.0 game, then you do not ‘own’ anything you earn or purchase in the game, outside of that game server.

This essentially makes all game assets temporary ‘IOUs’ from game developers – and particularly nebulous ones, since in-game currencies or assets often collapse as soon as the server/game they exist in is no longer supported by its makers.

Future generations of gamers are likely to prioritize true ownership of digital assets that NFTs offer over the mere IOUs provided by centralized Web 2.0 servers.

And that is a truly valuable proposition for those gamers and game developers interested in playing and building on the blockchain – especially when combined with the expanded economic models for gaming made possible by the advent of blockchain.

Jack O’Holleran is the co-founder and CEO of SKALE Labs – the team behind SKALE, the world’s fastest blockchain, designed for ultra-fast, secure, user-centric Ethereum scaling. Jack is a veteran Silicon Valley Technology entrepreneur with a deep background in machine learning/AI technologies and blockchain.