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AI: A Key to Unlocking Mass Adoption of Crypto and Web3?
The application of artificial intelligence (AI) is seen as a possible next major innovation in driving the mass adoption of decentralised distributed technology, with the capacity to onboard up to 1 billion users. The rapidly advancing field of AI, characterised by the likes of ChatGPT, is predicted to streamline and enrich user experience in the Web3 domain, a decentralised internet ecosystem. Using AI could simplify and enhance decentralised distribution technology usage, allowing more people to participate effectively.
AI’s capacity for personalised onboarding and application utility could transform the Web3 landscape. This advancement could lead to a user-friendly environment akin to the ease of use experienced on platforms such as Spotify, Amazon and Instagram. Aspects of Web3, such as nonfungible tokens (NFTs), could benefit from AI’s ability to predict patterns and make recommendations based on user wallet history. AI could also improve security and accountability in crypto by examining on-chain data to differentiate between safe and unsafe transactions.
AI could facilitate user engagement and adoption of Web3 by acting as a virtual assistant or investment adviser. For example, an AI chatbot could guide users through complex terminology and processes, boosting user confidence and understanding. Furthermore, AI can analyse on-chain data to personalise application features, aiding users to become adept traders.
For developers, AI can offer significant workflow improvements, notably in the area of smart contract auditing. By using AI as a pre-audit tool, developers could save considerable time and resources, facilitating more efficient operations. AI’s integration into the crypto and Web3 world could help eliminate barriers to innovation and usability, revolutionising the way we interact with these technologies. Read more here.
The integration of artificial intelligence (AI) into the world of decentralised distribution technology can present a transformative opportunity for Zucoins, a digital asset built on the innovative Splitchain network. Balancing AI with easier user-interface design can assist onboarding new users and common interaction points can be significantly enhanced and predicted ahead of time, paving the way for more intuitive engagement with the platform.
AI’s capabilities in delivering personalised experiences can help users navigate the complexities of the decentralised ecosystem with ease. This means users could better understand the unique features of Zucoins and the Splitchain network, fostering a more inclusive and accessible digital environment.
Moreover, the implementation of AI in the auditing of smart contracts can streamline the backend processes on the Splitchain network, enhancing its functionality and reliability. This synergy between AI and the Splitchain network can unlock new levels of operational efficiency, driving the mass adoption of Zucoins and reinforcing its role as a key player in the crypto and Web3 world.
While the Zucoin team sees themselves hitting these milestones in high scalability and adoption using Splitchain’s highly efficient system architecture, coupled with their easy wallet app (and more!), no doubt this topic has been peaking interest and further research in the team.
Sky-High Transaction Costs on Bitcoin and Ethereum Networks
The rise of meme coins and BRC-20s, the non-fungible tokens (NFTs) of the Bitcoin network, have triggered spikes in transaction costs on the Bitcoin and Ethereum blockchains. Resulting from the Bitcoin Ordinals project, BRC-20s have escalated activity on the Bitcoin network, leading to its highest level of congestion in recent years. Consequently, Bitcoin’s network currently holds over 351,000 unconfirmed transactions. The central issue lies in BRC-20s operating solely with Bitcoin-supporting wallets, causing all transactions to be conducted on-chain, quickly filling Bitcoin blocks’ limited space. According to CryptoQuant, daily transactions on the Bitcoin network reached a record high of 682,000 on Tuesday, a significant leap from 250,000 daily transactions at the start of 2023.
The increased congestion has led to a surge in the average transaction fee, reaching $30.82, the steepest since February 2021. The situation escalated to a point where Binance, the world’s leading cryptocurrency exchange, was compelled to halt Bitcoin withdrawals twice and raise the withdrawal fee. Bitcoin miners, however, have welcomed the congestion, as the high transaction fees now comprise 42.6% of the rewards they receive for adding new blocks to the decentralised distribution technology.
The rise in BRC-20s has also favoured the Lightning Network, a layer-two scaling solution for Bitcoin, as more crypto firms consider integrating the protocol to aid in reducing Bitcoin transaction costs.
On the Ethereum network, meme coins like “Pepe” and “Sponge” have been a major cause behind soaring transaction costs. The surge in transactions has led to validators on the network earning a total of 1,571.2 ETH in transaction costs, peaking at 2,168 ETH on May 6. Despite several high-profile upgrades over the past year, Ethereum’s scalability issues persist. For now, the high fees on both Bitcoin and Ethereum networks are perceived as the cost of doing business on decentralised networks amid the worst banking crisis since 2008. Read more here.
Zucoins, powered by the Splitchain network, offers a game-changing advantage in the digital currency space due to its absence of layer 1 network transaction fees. This unique feature not only sets it apart from traditional networks like Bitcoin and Ethereum, which are facing skyrocketing transaction costs but also significantly lowers users’ entry barriers worldwide.
The removal of transaction fees on the Splitchain network reflects its ground-up alternative architecture. This allows the network to handle high volumes of activity while minimising most kinds of network congestion or cost escalation. As digital interactions continue to evolve, Zucoins can foster a more inclusive and democratic digital economy, away from the burden of surging fees.
Crypto Winter: Paving the Way for a Stronger Industry
Marathon Digital’s CEO, Fred Thiel, views the ongoing crypto winter as a crucial catalyst in ridding the sector of unscrupulous operators, likening the turbulence in the crypto market to the transformative phase of the dot-com boom. Speaking at the Financial Times’s Crypto and Digital Assets Summit, Thiel acknowledged the expedited regulatory progress by regions such as the E.U., U.K., Hong Kong, Singapore, and the UAE. Despite a slower response from the U.S., he anticipates a future unified global regulatory framework.
Thiel also touched on the potential impact of higher interest rates on the sector, suggesting they could drive a more commercialised crypto industry as investors become more risk-averse. The market upheaval has seen numerous firms fold, including the exchange platform, Bittrex, which recently filed for Chapter 11 bankruptcy protection. (As far as we know, it does not affect Bittrex Global, which will continue to serve customers outside the United States).
At the same conference, Blockchain Association’s CEO, Kristin Smith, echoed Thiel’s sentiments, viewing the current upheaval as a potentially positive event. She emphasised that the industry shake-up aids in eliminating poorly managed firms and allows other entities to acquire parts of these collapsed companies, considering it a healthy aspect of capitalism and a normal innovation cycle. Like many seasoned people in the business, they view the current challenges as a cleansing storm, preparing the ground for a more resilient and regulated industry, where the best will survive. Read more here.
While the crypto industry is currently experiencing a ‘crypto winter’, it’s an opportunity for serious and robust projects to shine. In these challenging conditions, the Splitchain decentralised network continues to embody resilience and adaptability. It’s been rising from strength to strength for the past year.
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All the best,
Peter
MyZucoins