Emerging Technologies / Blockchain and Web3

Decentralized AI integrates blockchain technology to process, distribute, and store data across a network of nodes, enhancing transparency, security, and user control compared to centralized AI systems. This approach allows for equitable participation and benefits across the AI lifecycle, reducing risks associated with centralized data management[1][3][5].

Blockchain technology in decentralized AI systems acts as a transparent ledger, recording transactions, model updates, and data inputs securely and permanently. This enhances trust by allowing stakeholders to verify AI operations, ensuring authenticity and reducing vulnerabilities to breaches or centralized attacks[4][5].

A DePIN is a network that integrates blockchain technology with physical infrastructure, allowing individuals and organizations to contribute resources like IoT devices, network nodes, and storage facilities in exchange for token rewards. This model promotes decentralized resource sharing and governance through blockchain and smart contracts.

Blockchain technology in DePINs provides a transparent and secure platform for managing physical infrastructure, while AI can enhance efficiency and decision-making processes. The convergence of these technologies can lead to more resilient and efficient systems, driving significant growth in the DePIN market.

African innovators are leveraging blockchain not only for financial solutions but also to address energy insecurity and connectivity challenges. For example, in rural Zambia, excess power from a mini hydro station is used to mine Bitcoin, creating a sustainable power loop that generates revenue and reduces waste. Additionally, decentralized WiFi hotspot networks enabled by blockchain allow community members to share bandwidth and receive instant, transparent compensation without intermediaries.

While the technology and need for blockchain solutions exist, mainstream adoption in African countries like Kenya, Nigeria, and South Africa remains cautious due to regulatory focus on consumer protection. Additionally, there is a need for standardized blockchain regulation frameworks to address risks such as financial crimes, ensure interoperability, and support innovation. The unregulated nature of decentralized finance (DeFi) platforms also poses operational challenges, making it urgent for African countries to develop policies that balance innovation with security.

Grigore Roșu argues that blockchain's inherent rigidity, especially its reliance on total ordering of transactions, limits Web3's scalability and user experience. He suggests that the future of Web3 lies beyond traditional blockchains, evolving towards faster, more flexible payment and verification systems that do not depend solely on block-based sequencing. Blockchain may still serve as a universal verifier or decentralized notary within a broader, more agile infrastructure rather than as the central ledger.

Moving beyond rigid total ordering means Web3 systems would no longer require every transaction to be strictly sequenced in a single global order, which is a core feature of traditional blockchains. This shift can enhance scalability by allowing more parallel processing and flexibility, improving transaction speed and reducing bottlenecks. It also enables a better user experience by supporting more agile and interoperable decentralized applications that are not constrained by the slow, linear nature of blockchains.

The integration of AI and blockchain enhances data security and integrity by leveraging blockchain's decentralized and cryptographic design to ensure data is safe from alteration and unwanted access. This provides AI systems with reliable and unmodified data, which is crucial for their operation. Blockchain's transparent ledger also ensures the integrity and reliability of datasets used in AI models, reducing the risk of tainted or biased data.

Combining AI, blockchain, and cloud computing can unlock new applications such as automated smart contracts, personalized healthcare solutions, and fraud detection in financial systems. This synergy can also streamline operations across sectors like supply chain and logistics by enhancing efficiency and security.

The primary objectives include enhancing the value of digital assets through blockchain, improving efficiency across sectors like healthcare and finance, and establishing Beijing as a digital economy innovation hub by 2027. The plan also focuses on developing blockchain infrastructure and software for cryptography and distributed systems.

Beijing's initiative aligns with China's national blockchain roadmap, which aims to establish a comprehensive blockchain infrastructure by 2029. This involves integrating blockchain into key industries and developing standardized protocols for data sharing across the country.

While blockchain currently lags behind AI in job creation, Bitget Research projects blockchain could generate over 1 million jobs by 2030 if adoption accelerates to match AI's growth pace, potentially reaching 1.5 million roles with enterprise integration and regulatory support.

Regulatory clarity (e.g., EU's MiCA framework), enterprise adoption by institutions like JPMorgan and Visa, and $100B+ annual VC funding parity with AI are critical to unlocking blockchain's projected 1.5 million jobs by 2030.