#69 Real Use Cases for AI in Web3. ‘Forbes Blockchain 50 List’ 2023 Edition.
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Real, Relevant Use Cases for AI in Web3
I’m sure by now you have at least once heard about ChatGPT, the poster child of AI progress - it’s been everywhere. It’s great stuff, and a lot of the demos are cool. But that’s what they are, mainly - demos. Now, people are starting to build on top of the technology in order to solve real problems, and you might have seen Microsoft and Google start the race for AI-powered search. This is all well and good, but I wanted to take a closer look at the real potential of AI models like ChatGPT in the decentralized Web3 world.
Recently, I came across an article on CoinDesk that offered a more pragmatic approach to discussing the impact of AI models in the decentralized Web3 ecosystem. Written by IntoTheBlock’s CEO Jesus Rodriquez, the article highlights how AI models like ChatGPT have the potential to provide more human-like interaction and improve efficiency in decentralized systems. With their natural language processing capabilities, AI models can parse and interpret user requests, allowing decentralized applications to respond in real-time with relevant information and actions. For example, imagine having a natural language interface to a blockchain explorer - it could revolutionize the way we interact with decentralized systems.
The integration of AI technology in the decentralized Web3 ecosystem is an exciting development that has the potential to greatly improve the overall user experience. As we continue to see advancements in AI models, I believe that we'll see more and more valuable use cases for them in decentralized systems. It's a step in the right direction, and I'm eager to see how AI models will continue to shape the future of decentralized technology.
Mihnea
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Aave’s potential demise
There’s a new player in the DeFi lending town… or is there? Just recently, MakerDAO, the creator of the decentralized stablecoin DAI, announced that they are launching a new protocol and it’s all part of their endgame plan.
Spark protocol is the newest creation of Maker and it is an Aave v3 fork meant to increase the use case of DAI. And that’s because DAI hasn’t been doing excellent lately - especially with constant news of DeFi projects looking to launch their own stablecoins, such as the case of Aave and $GHO or Curve’s $cvrUSD. Both very important for DAI’s future as they facilitate the lending, borrowing and swapping liquidity for the stablecoin.
So MakerDAO found itself in a competitive environment: suddenly, DAI is at risk of losing even more market share with the upcoming launches and there’s less business to be done. Even projects that aren’t (yet) launching their stablecoin opted out of DAI, like Compound v3 which launched with just USDC support for borrowing. A slap in the face for Maker. So, instead of using their old strategy of integrating DAI in DeFi protocols, they are now looking to build their own ecosystem. Since it’s an Aave v3 fork, Spark Protocol will send 10% of the profits to Aave DAO for the next two years. It will allow users to borrow DAI at the DSR (DAI Savings Rate - 1%) via a credit line from Maker, effectively creating an extraordinarily good borrowing rate in DeFi - and in hopes of siphoning users from Aave. With this new project in development, Aave becomes a direct competitor of Maker as a whole (or Spark Protocol to be more specific).
I think this is a great first step for Maker’s endgame plan to become a decentralized, unstoppable beast. And the idea of moving into more agile subDAOs coming from larger, general DAOs proves to become more and more popular.
Matei
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Who made it to ‘Forbes Blockchain 50- 2023’ List?
In 2019, Forbes started putting together annual reports that celebrated blockchain adoption among enterprises. Since the list's inception, many initiatives have moved from test projects to implementation. Many key players have started actively using distributed ledgers as key parts of their processes and strategies.
A few days ago Forbes has released the 2023 Forbes Blockchain 50 List and I wanted to bring a few participants that we haven’t spoken about that much to your attention.
The label behind Lizzo and Chris Stapleton has entered into a partnership with leading blockchain gaming developer Splinterlands. The first-of-its-kind deal will see the two companies collaborate to give select WMG artists opportunities to create and develop unique, play-to-earn (P2E), arcade-style blockchain games. Splinterlands currently operates the world’s most popular blockchain game dapp, called Splinterlands. The key leader of the initiative is Warner’s Chief Digital Officer, Oana Ruxandra, who declared the following: “Our partnership with Splinterlands pulls focus to our artists and their music as we all work together to develop and maintain tokenized games. As we build, we will be unlocking new revenue streams for our artists while further solidifying fans’ participation in value created.”
People care about what they put on their skin, so cosmetics behemoth Estée Lauder Companies is blending blockchain technology with its brands like Aveda to track components such as vanilla extract and pomegranate seed oil, whose supply chains are vulnerable to environmental and labor issues.
“Blockchain technology adds an extra layer of transparency to our sourcing practices, verifying our vanilla supply chain’s compliance with the highest ethical and environmental standards, and strengthening trust with our suppliers, consumers, and investors,” said Greg Polcer EVP at Estée Lauder Companies (ELC).
The electronics powerhouse runs a blockchain innovation lab in Brussels for more than 50 clients including Italian carmaker Iveco and beer giant Anheuser-Busch. In July, it partnered with Tokyo chemical conglomerate Teijin to create a blockchain for manufacturers looking to offset their carbon footprint by using recycled materials. The software verifies the origin of recycled materials and then tracks a firm’s carbon footprint over time—making it difficult to falsify or greenwash data.
It’s best known for smartphones and flat screens, but Samsung is also a leader in developing blockchain products and services. For example, AIA, the largest insurance company in the Asia-Pacific region, uses Samsung’s blockchain Nexledger to quickly access clients’ personal information and process consent forms including insurance agents’ electronic signatures, reducing related costs by more than half. More than 150,000 Samsung employees use the in-house blockchain service to store things like product design documents and salary contracts which can’t be easily altered or deleted.
De Beers, which sources diamonds in Canada, Botswana, Namibia and South Africa, has been using blockchain since 2019 to track the gems as they’re mined, cut, polished and sold, and is now processing more than 100,000 stones a month. Overall, its Tracr blockchain keeps tabs on 600,000 registered diamonds, roughly 15% of the world’s production—a haul of precious stones worth more than $2 billion.
I do encourage you to have a look at the entire list as the rest of the initiatives and pilot projects are also worth a read and give a glimpse the utility blockchain technology has already found in the business world.
Evelyne
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