AI+Crypto: Exploring the Investment Prospects of Emerging Technology Integration

In recent years, the rapid development of artificial intelligence and blockchain technology has made AI+Crypto an investment hotspot. The decentralized, highly transparent, and low-energy consumption characteristics of blockchain technology complement AI systems, bringing new opportunities to the industry.

Industry experts believe that the combination of AI and blockchain is mainly reflected in four aspects: as application participants, application interfaces, application rules, and application objectives. From the perspective of productivity and production relations, blockchain mainly provides production relations, which can be considered from three directions: optimizing computing power, algorithms, and data.

Industry research institutions categorize AI+Crypto projects into three directions: the foundational layer, the execution layer, and the application layer. The foundational layer includes model training, data, decentralized computing power, etc.; the execution layer involves data processing, AI agents, zkML, etc.; the application layer mainly focuses on areas such as AI+DeFi and AI+GameFi. Currently, infrastructure and application layer projects are developing rapidly.

The following directions are worth paying special attention to:

1. zkML Technology

The zkML technology combines zero-knowledge proofs and blockchain to provide a secure and verifiable solution for monitoring AI behavior. It can prove that AI has performed specific tasks while protecting privacy, making smart contracts more flexible and adaptable.

Typical projects include:

• Modulus Labs: Examples of Developing On-Chain AI Applications
• Giza: A protocol for deploying AI models on the chain.
• Zkaptcha: Provides captcha service for smart contracts

2. Data Processing

The breakthroughs of AI in the execution layer are mainly reflected in the following aspects:

1. On-chain data analysis: Utilize AI to deeply mine blockchain data and gain market insights.
2. Automated dApp Development: AI development tools accelerate smart contract writing and error correction.
3. On-chain transaction security: AI agents deployed on the blockchain enhance application security and credibility.

3. AI + DeFi

The applications of AI in the DeFi field include:

1. AI-driven trading bots: Quickly and accurately execute trading decisions.
2. Predictive Analysis: Provides market trends and price movement forecasts
3. AMM Liquidity Management: Intelligent Adjustment of Liquidity Range
4. Liquidation Protection and Debt Position Management: Optimizing Strategies by Combining On-chain and Off-chain Data
5. Complex DeFi product design: Utilizing AI models to design flexible financial products

4. AI+GameFi

The application of AI in GameFi mainly includes:

1. Game strategy optimization: Adjusting game difficulty based on player habits.
2. Game Asset Management: Intelligent Management and Trading of Virtual Assets
3. Enhance game interaction: Create smarter NPCs to improve the gaming experience.

Investment Strategy Recommendations

• Short-term: Focus on conceptual AI applications and meme projects
• Mid-term: Focus on the integration of AI Agent and Intent, as well as the fusion with smart contracts.
• Long-term: Focus on the integration of AI and zkML technology and its impact on the crypto space.

With the continuous development of technology, the AI+Crypto sector will continue to bring new opportunities for investors. Investors should closely monitor industry trends, reasonably allocate assets, and seize the investment opportunities brought by this emerging technology integration.