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HTX Ventures Reveals how AI and Web3 Will Revolutionize DeFi and Beyond

HTX

HTX Ventures, the global investment division of HTX, is paving the way for the future of AI and Web3 Integration. Edward, Managing Director of HTX Ventures, recently outlined the key investment opportunities and challenges in this sector, further underscoring HTX Ventures’ strategic approach to these emerging technologies.

The Synergy of AI and Web3: Investment Opportunities and Challenges

As AI technologies, such as ChatGPT, continues to disrupt industries, HTX Ventures has taken a cautious and focused approach to investment, particularly in projects that leverage the intersection of AI and blockchain for transformative impact.

Edward categorized AI investment opportunities into three distinct layers based on crypto technology integration:

  • Foundational Layer: Technologies like zkML (zero-knowledge machine learning), which combine AI with blockchain to provide secure, verifiable, and transparent solutions.
  • Execution Layer: AI enhances data processing, automated decentralized application (dApp) development, and on-chain transaction security.
  • Application Layer: AI-driven tools, such as trading bots and predictive analytics, are transformative in decentralized finance (DeFi). HTX Ventures has invested in CoreX, a project that uses AI to enhance smart investment services within DeFi. AI is also reshaping GameFi by revolutionizing gaming experiences.

Building a Secure Crypto World: The Role of AI and Investment

Edward also addressed the challenges investors face when evaluating AI and Web3 projects, offering the following key considerations:

  • Decentralization vs. Centralization: Many projects claim to integrate AI with blockchain, but often rely on centralized infrastructures for AI execution. Investors should critically assess whether projects have truly achieved decentralized AI.
  • Smart Contract Limitations: The complexity of AI models exceeds the computational capacity of current blockchain smart contracts. Solutions like zkML, which balance off-chain computation with on-chain verification, are critical for closing this gap.
  • Data Privacy Protection: AI depends on vast amounts of data, while Web3 prioritizes user privacy and data sovereignty. Investors should focus on projects that enable sufficient AI data training while safeguarding privacy.
  • Cross-Disciplinary Talent: AI and Web3 are highly specialized fields, and projects require teams with expertise in both areas. Investors need to evaluate the technical capabilities of teams to ensure they can overcome the integration challenges of AI and blockchain.

Looking ahead, Edward predicted significant growth for AI applications over the next 5-10 years, especially in sectors that drive efficiency and innovation. He identified decentralized AI data markets, AI-driven smart contracts, and AI-enhanced content creation as key investment opportunities.

Edward shared these insights in a Google Cloud panel discussion at the recent TOKEN2049 event, alongside notable industry leaders including Discus Fish, Founder and CEO of f2pool; Walter Lee, Senior Business Development Manager at BNB; and Frank Lin, Corporate Development Principal at Google. Edward concluded the session by reaffirming HTX Ventures’ commitment to advancing AI and blockchain integration: “As AI evolves, so must the infrastructure of Web3. Together, these technologies have the potential to transform industries, and we are excited to be at the forefront of this revolution.”

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