AI Wisdom Body Ignites the Encryption Revolution! Inventory 3 Interesting Projects, Is the Web4 Era Coming?

Welcome to my weekly Crypto Assets mindset sharing, these are some of my thoughts and discoveries as I explore online. This week I think the content worth discussing include:

About Web4, Jeffy Yu, the founder of Zerebro, wrote a fascinating article this week discussing the advent of the Web4 era. In this era, the Internet will have the ability to autonomously predict, plan, and take action. Web4 builds on the social foundation of Web2 and the financial foundation of Web3, opening up a world where artificial intelligence and intelligent bodies are omnipresent. In his article, he elaborates on the current achievable functionalities, existing shortcomings, and the requirements for achieving Artificial General Intelligence (AGI). His key point is that we are actually closer to achieving the goal than most people think.

I know you may be tired of discussing these intelligences, but I am still very interested in this.

The two most impressive points in the article are: his views on our position in the five stages towards AGI described by OpenAI, and how Cryptocurrency has quickly become the primary platform for artificial intelligence experiments.

First, despite OpenAI's claim that we are in the second stage (see below), those who are active in the Cryptocurrency industry know that we have steadily entered the third stage. Apparently, the current intelligences still have many shortcomings, as they usually require a certain degree of human supervision and can only operate autonomously in specific narrow applications. However, intelligences like Zerebro and Cents have already been able to interact with over 99% of users on Twitter, launch their own Token, and mint their own artworks, which is amazing. These intelligences have demonstrated autonomy in various aspects.

Image source: Deep Tide TechFlow

Projects like Fungi and Ai16z (which will be introduced in detail later) are also about to launch smart bodies with true financial autonomy. These smart bodies will be able to trade, learn, and adjust strategies autonomously. They can not only communicate with humans, but also build influence on Twitter and Warpcast, accumulate financial resources, and hire humans to accomplish tasks they cannot execute.

We also see signs of fourth-level capabilities in the creative industry, such as Truth Terminal establishing its own religion, Zerebro developing its PFP series, and Botto constantly improving its style in years of artistic creation. Clearly, achieving innovation in broader industries such as science and technology will be a major breakthrough.

Jeff compares the development of AGI to the invention of electricity. It is not enough to just invent electricity (i.e., the basic model). It requires a series of inventions such as light bulbs, electric motors, and power grids to truly change society.

This is why encryption currencies will play an important role in the development of AGI. The permissionless and non-standardized financial and application infrastructure, combined with the free flow of capital and enthusiasm for novel things, provide an excellent experimental platform for super-intelligent new applications.

We have entered a cycle of smart body infrastructure. The improvement of the basic model unlocks new smart body features, which will stimulate more infrastructure development when encountering bottlenecks, further promoting capacity improvement.

Once the smart body shines in the Decentralized Finance industry, operates effective Token trading strategies, creates popular meme coins and Non-fungible Tokens, and manages DAO, the TradFi world will spare no effort to introduce them. Putting these products on-chain is the answer we expect, but the smart body will also mature in interaction with traditional systems and the real world, and we look forward to it.

Ultimately, when traditional companies not only improve efficiency by using AI, but also must start adapting and servicing the intelligent protocol to survive in the increasingly important economic system, massive disruptive changes will occur.

Therefore, the key is that we must take all these seemingly strange experiments seriously. Today, we may easily find the problems in them, but these problems will eventually be solved. What we need to follow is what changes will occur when all these technologies truly begin to take effect.

Ai16z

ai16z is a tokenization risk investment DAO managed entirely by AI. The platform intelligently evaluates investment opportunities proposed by the community, executes transactions, and assesses the reputation of members based on the success of these transactions, while increasing the assets under management (AUM) of the fund. In recent weeks, it has experienced a frenzy of speculation fueled by its grand vision and powerful promotion (such as ai16z, marc aindreessen, flip a16z). It is expected that they will prepare the intelligence body to start trading in the next few weeks and launch their 'Virtual Trust Market'.

My interest in Ai16z is not just because it is a fund. It is a coordination center for attention networks and intelligences, a complex that combines memory coins, intelligence emission platforms, and social networks. With the opening of its transactions, the expected flywheel effect will bring amazing impact.

Technology Flywheel: They have developed an Open Source framework called Eliza, on which many top Cryptocurrency projects are being developed and contributed. It is becoming a natural technological choice for those who want to create encryption intelligence. They also provide a 'standard protocol', and if you develop on Eliza and donate 10% of the Token supply to DAO, you will be added to their portfolio company list and receive project support.

Therefore, as more and more people hope to utilize the attention-based mechanism of this project, more people will develop based on this technology, donate tokens, and increase the AUM of the DAO. As more people develop on this technology, the technology will continue to improve and expand its functionality, making it more attractive and further expanding the project's attention-based mechanism. A larger attention-based mechanism means more developers, more donations, better technology, and more followers.

Social Flywheel: Their virtual trust market allows Tokenholders to propose transaction suggestions to the intelligent body and evaluate their reputation and influence based on the success of these suggestions. High reputation scores and high rankings on the leaderboard are not only enviable socially, but also economically influence the intelligent body to purchase the assets you hold.

Therefore, I expect that many people will participate in this 'game', thereby driving the demand for Token. People will promote their rankings, which will attract more participation, create a richer social experience, drop selling pressure, and further increase the demand for Token.

Economic flywheel: The core goal of DAO is to become an efficient trading company and increase its assets under management (AUM). All assets held by DAO are public, and due to the widespread follow of the project, any transactions it makes will be quickly imitated (just like any reputable trader sharing trading recommendations in their Telegram channel).

Therefore, the virtual trust market will ensure that the wisdom body fully understands the market dynamics, and the wisdom body will become more and more adept at choosing the right trades, which will be replicated to ensure the diffusion of memory effects and trigger market reflexivity. AUM will grow rapidly, followed by an increase in attention, and more people will participate in replicated trades, and so on.

Clearly, there are still many issues that need to be resolved here (such as complex reputation systems and how to gracefully exit trades, etc.), but its rapid development potential is obvious. Although the current trading price is 100 times its current AUM, does this sound crazy but is it really?

Interface

If you have been following us or active in the Ether ecosystem, you may have heard of Interface. It is a social trading product based on on-chain activity streams, similar to Twitter's "For You" and "Follow" streams. They have been developed for many years and have a loyal core user base, but recently they have reached a growth turning point, with a steady weekly growth rate of 50% over the past few months.

Interface passed SC06 at the end of 2023. They are a technologically strong native cryptocurrency team with unique insights into the future of on-chain social. I have always believed that on-chain transactions inherently have social attributes and are an ideal starting point for a new type of social network, rather than relying solely on content competition.

In the past year, they have made significant progress in product development, making the product increasingly useful for those who spend a lot of time on-chain. However, they have not yet found a way to attract a wider user base, lacking a key highlight that can quickly attract users and achieve moments of 'enlightenment'.

A few months ago, they launched the 'Copy Trading' feature, allowing users to seamlessly copy any trades directly from the feed. Money Laundering is obtained by the initiator of the trade. Since the launch of this feature, their user growth and daily active user numbers have reached new highs.

Now, when it comes to Interface, you can say "this is the best platform to discover and trade alpha". You can download the app, follow users based on their profit situation, immediately check new trades, copy trades, and make money.

Once the user experience has solidified the value of the product, you can start looking for fren to build your own fan group, explore the on-chain world through it, and gain more social-centered experiences.

A truly powerful attraction lies in its ability to touch the deep desires of users (such as making money and fear of missing out), and the product design aims to quickly realize this experience, which is not to be underestimated.

Hyperliquid

Hyperliquid is a sustainable Perptual Futures Trading platform that combines L1 chain and Decentralization, known for its "top speed, Liquidity, and price". I have been using it for some time because I want to delve into Perptual Futures Trading. After trying multiple platforms, I found that Hyperliquid is undoubtedly the best. In the past year, their volume and total locked value (TVL) have grown significantly, and according to the information I saw on DefiLlama, their derivatives trading volume exceeds all other chains. They are about to launch the HYPE Token, which has some unique features worth following.

We all know that in recent years, the market has been flooded with chains with low circulation and high fully diluted valuation (FDV). Typically, these projects raise a large amount of private funds, conduct mining activities on the test network, airdrop a small amount of tokens to participants, and list on centralized exchanges (CEX) to attract investors with a high FDV, while the community may be restricted or even suffer heavy losses, and no useful infrastructure is generated on-chain.

However, Hyperliquid is taking a completely different path:

They did not raise any venture capital (VC) funding.

While building L1, they have created an unparalleled product in the category.

The development team does not charge any fees, and all profits belong to the protocol.

Their Token issuance has high circulation and is mostly allocated to early users

They could have easily raised a large amount of funds and achieved a high rate of return, but they completely rejected these short-term temptations in order to lay a foundation for long-term success. They realized the importance of maintaining neutrality and not letting insiders interfere with their goal of becoming the platform where all financial activities take place.

I sincerely hope that this model can succeed and become a powerful example for other teams to emulate.

GenZ application usage trends

This week, Techcrunch published a fascinating article analyzing some of the major trends and app usage among Generation Z in 2024. Understanding the concerns and habits of Generation Z is crucial for anyone in the consumer, especially consumer social, industry. They are trendsetters, currently in their social prime, constantly establishing new connections, and eager to try new things.

Nikita Bier once pointed out an interesting statistic: from the age of 13 to 18, the sharing rate drops by 20% for each additional year. Therefore, if your target users are older, you may need to pay more to acquire users. In recent years, all successful social products have risen rapidly because of their rapid spread among young people.

If you are developing consumer-facing products, it is recommended that you read this article, as there are several points worth noting:

Temu, this gamified e-commerce platform is the most downloaded app in 2024.

A new product called ShortMax is heating up in the short video entertainment industry, combining the features of TikTok and Netflix to provide a scrollable interface for script-based ultra-short dramas.

Threads is the product with the highest download volume under Meta, performing significantly better than Twitter.

AI learning assistant Gauth developed by ChatGPT and BytesBeat has shown outstanding performance in the AI industry.

All traditional streaming media applications lag behind in downloads, but it is necessary to check the usage data to determine if they have been widely downloaded.

Dopamine effect is everywhere. Amazing.

[Disclaimer] There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.

This article is authorized for reprint from: "Shen Chao TechFlow"

Original author: Josh Cornelius

The article 'AI intelligence triggers the encryption revolution! Inventory of 3 interesting projects, is the Web4 era coming?' was first published in 'encryption city'.