In a report released on October 24, Coinbase Ventures predicts that the convergence of artificial intelligence (AI) and blockchain technology will revolutionize the digital economy and usher in a new era where autonomous AI agents interact freely with humans on Web3. This revolutionary state, dubbed the “Agentic Web” by Coinbase Ventures, will witness self-governing AIs developing decentralized applications and engaging in cryptocurrency transactions with human users and other AIs.
According to the report, Coinbase Ventures envisions a future where these AI agents possess their own cryptocurrency wallets, allowing them to independently carry out transactions and even utilize stablecoins to compensate humans and other agents for completing tasks essential to their overall objectives.
The combination of blockchain and AI has garnered significant interest from venture capital firms specializing in cryptocurrency, with $213 million invested in AI-related startups in the third quarter of 2023, as reported by crypto researcher Messari. Aethir, a decentralized graphic processing unit (GPU) provider, recently launched the Aethir Ecosystem Fund, a $100 million initiative aimed at accelerating innovation in the realms of artificial intelligence and gaming.
Additionally, on October 24, Web3 payments platform Skyfire secured $9.5 million in funding from venture capital firms including Coinbase Ventures and a16z. This capital injection will be used to develop infrastructure that enables AI agents to autonomously carry out transactions using the stablecoin US Dollar Coin (USDC). Skyfire has already successfully onboarded several AI developers onto its payment network.
Coinbase Ventures believes that blockchain technology can serve as a foundation for the future of AI, as cryptocurrencies enhance accessibility, transparency, and the range of use cases within this emerging field. The report also predicts that crypto will become the preferred payment method for transactions between AI agents and humans, while generative AI will become the primary mode of interaction for users engaging in onchain transactions.
Furthermore, Coinbase Ventures foresees AI playing a central role in the development of software code, including smart contracts, resulting in a proliferation of onchain applications and experiences. Crunchbase data reveals that in the third quarter, venture capital firms invested a total of $19 billion in AI startups, accounting for 28% of all venture funding during that period.