Research Summary
The report discusses the future of crypto, focusing on the potential of decentralization, the evolution of user experience, the rise of the modular tech stack, the convergence of AI and blockchains, the transformation of “play to earn” games, the role of AI in gaming, the need for formal verification in software development, the ubiquity of NFTs as brand assets, and the mainstream adoption of SNARKs. It emphasizes the importance of these developments in democratizing systems, improving operational functionality, and fostering innovation.
Key Takeaways
Decentralization: The Future of Internet Infrastructure
- Decentralization as a Democratizing Tool: The report highlights the importance of decentralization in promoting competition, ecosystem diversity, and user choice. It notes the challenges of achieving decentralization at scale, particularly against the efficiency and stability of centralized systems. However, it suggests that emerging models and methods, such as DAOs embracing Machiavellian principles, could lead to unprecedented levels of decentralized coordination and innovation.
Revolutionizing User Experience in Crypto
- Resetting the UX of the Future: The report discusses the need for improved user experience in crypto, noting that the fundamentals have not changed significantly since 2016. It highlights the potential of new tools being tested and deployed by developers, such as passkeys, smart accounts, embedded wallets, and advanced RPC endpoints, to make the UX better and more secure than in web2.
The Convergence of AI and Blockchains
- AI + Blockchains Come Together: The report suggests that decentralized blockchains could counterbalance centralized AI, creating global, permissionless markets where anyone can contribute and be compensated. It also discusses the potential of crypto technology to track the origin of AI-generated content and decentralize generative AI, making it safer for consumers.
The Evolution of “Play to Earn” Games
- Play to Earn Becomes Play and Earn: The report discusses the transformation of “play to earn” games, where players make real-world money based on their time and effort. It suggests that games should be fun to play and allow players to capture more of the value they produce, leading to the evolution of “play- and earn” games.
The Ubiquity of NFTs as Brand Assets
- NFTs Become Ubiquitous Brand Assets: The report highlights the growing trend of established brands introducing digital assets in the form of NFTs. It suggests that brands can use NFTs to represent and reinforce customer identity, bridge physical goods and their digital representations, and co-create new products and experiences with their most dedicated enthusiasts.
Actionable Insights
- Exploring the Potential of Decentralization: Stakeholders should consider the potential of decentralization in promoting competition, ecosystem diversity, and user choice. They should also explore emerging models and methods for achieving decentralization at scale.
- Improving User Experience in Crypto: Developers should focus on testing and deploying new tools that could improve the user experience in crypto, such as passkeys, smart accounts, embedded wallets, and advanced RPC endpoints.
- Investigating the Convergence of AI and Blockchains: Stakeholders should investigate the potential of decentralized blockchains to counterbalance centralized AI and create global, permissionless markets. They should also explore the potential of crypto technology to track the origin of AI-generated content and decentralize generative AI.
- Transforming “Play to Earn” Games: Game developers should consider the transformation of “play to earn” games and focus on creating games that are fun to play and allow players to capture more of the value they produce.
- Utilizing NFTs as Brand Assets: Brands should consider the potential of NFTs as digital assets that can represent and reinforce customer identity, bridge physical goods and their digital representations, and co-create new products and experiences with their most dedicated enthusiasts.
