Under the wave of artificial intelligence and Web3, how to prepare for the next generation of the Internet?

Preparing for Web3, the next generation of the Internet

To tackle the upcoming next generation of Internet Web3, we need to be prepared. In this new digital environment, our data is freely portable and uncontrolled, which challenges the current monopoly situation. Web3 promises to create such an environment, and investors can refer to the evolution of the Internet to better understand this transformation.

The first phase is Web1, which provides users with unprecedented access to information and connectivity (such as Yahoo! and Google). Then came Web2, which further enhanced the user experience (such as Facebook and Twitter) by providing personalized user-generated content through apps.

As a next-generation network, Web3 runs on a global peer-to-peer infrastructure, which is supported by blockchain technology. Similar to Bitcoin, the Web3 network is decentralized, which means it removes intermediaries and doesn't have any single entity control.

The core goal of Web3 is to solve problems such as data monopoly, privacy risks, and algorithm bias, and promote a fairer and more open Internet. We'll see a shift from platform-centric to individual-centered data and identity management, leading to new technologies and business models.

But to actually establish such a network, users (including humans and machines) need to be actively involved. To achieve this, developers can use tokens to manage activities and record transactions on the blockchain. Additionally, other key components of this next-generation ecosystem may include smart contracts and digital wallets.

02.

Investments in Web3 companies

Blockchain technology, with its “trustless” system, is seen as a solution to the lack of trustworthiness of various traditional institutions. However,The recent failure of Crypto-related companies, including FTX and Silvergate, has raised investors' uncertainty about digital assets and cast a shadow over the future of Web3。

Take a look at the chart below, which is data from a recent Deloitte report. From 2016 to 2022, early investors injected around $94 billion into Web3 companies, most of which was concentrated over the past two years, peaking at $13 billion in the first quarter of 2022. This corresponds to a sharp drop in Bitcoin's price after hitting an all-time high of nearly $69,000.

However, as Deloitte points out, there are some similarities between the collapse in digital asset prices and the bursting of the internet bubble in the early 2000s. Just as the internet has become an integral part of life and work over time, the transformative potential of Web3 is likely to persist, attracting venture capital and private equity investors.

03.

Rising Stars in Artificial Intelligence, American Businesses, and the Metaverse

Attention to artificial intelligence (AI) is also growing, and this is reflected in the American business community. According to FactSet's analysis, a study of the Q1 2023 Earnings Conference Call showed thatThe number of S&P 500 companies discussing artificial intelligence has increased significantly. Over this period, 110 companies mentioned artificial intelligence. Compared with the five-year average of 57 and the ten-year average of 34, this is a clear growing trend.

In the same direction, real-time 3D virtual applications developed by companies such as Meta, Roblox, and Apple are expected to drive increased spending on AI servers. According to forecasts, AI server spending is expected to grow at a rate of 19% per year until 2032. This is because of the growing demand for generative artificial intelligence, and popular apps like ChatGPT and Midjourney are also the main reasons.

“Generative artificial intelligence” refers to applications that can create unique content based on simple prompts submitted by users. Earlier this year,ChatGPT became the fastest growing app in history, attracting 100 million users within just two months of launch。

To operate efficiently, these metaverse applications will require advanced graphics and artificial intelligence processors, which will increase investment in high-performance AI chips from companies such as NVIDIA and AMD, as well as data center operators such as HIVE Blockchain Technologies. According to Bloomberg Smart Predictions,AI server spending could account for nearly 30% of total workload spending by 2032In comparison, the share in 2022 was around 15%, which is a significant increase.

04.

Generative artificial intelligence, a trillion-dollar industry

But in the “real world,” where can generative artificial intelligence be used? McKinsey & Company discovered that there are 63 such AI applications in 16 business functions. If applied, it can generate economic benefits of 2.6 trillion to 4.4 trillion US dollars per year. This would increase the potential value of current $11 trillion to $17.7 trillion in non-generative artificial intelligence and analytics by 15% to 40%.

Goldman Sachs's forecast is more optimistic. According to the bank,Advances in generative artificial intelligence are likely to have a significant impact on the global economy. Global GDP is expected to grow by 7% (equivalent to nearly 7 trillion US dollars) and increase productivity growth by 1.5% within 10 years。

As an example, Amazon Web Services (AWS) last week announced the launch of the AWS Generative Artificial Intelligence Innovation Center, a $100 million initiative to help customers develop and implement generative AI solutions. The move is part of the company's strategy to expand the accessibility of generative artificial intelligence to customers and partners around the world.

05.

People will adopt new technology at a faster rate

Understandably, some readers may be confused, but it's worth remembering that technology cycles usually occur every 10-15 years. Web3, artificial intelligence, and digital assets are no exception.

Admittedly, widespread adoption of assets such as Web3, artificial intelligence, and blockchain is no easy feat. The main obstacle is probably the user experience. For example, the process of setting up a crypto wallet can be quite complicated and tedious, and standard web browsers may require additional plug-ins to support Web3 functionality.

To promote mass adoption, Web3 needed to provide a user-friendly interface, just like when transitioning from Web1 to the current, more interactive version of the internet. This shift is likely led by major tech companies like Meta, who understand the potential benefits of simplifying Web3 for the average user.

The good news is that people seem to be getting better at embracing new technology. A 2013 study by the MIT Technology Review confirmed this trend. For example, it took half a century for phones to become common devices in American homes.Smartphones, on the other hand, have reached 40% penetration in just 10 years。

Similarly, progress in digital transformation is expected to be very rapid. According to a survey conducted last summer,75% of retailers plan to accept digital currencies as a form of payment within the next two years. Andreessen Horowitz (Andreessen Horowitz) predicts that blockchain technology, as the cornerstone of Web3, will usher in a new digital age that could have 1 billion global users by 2031. It is worth comparing that the Internet only reached 1 billion users in 2005.

Original text byU.S. Global Investorscompose, Chinese content compiled by the MetaverseHub (MetaverseHub) team，If you need to reprint, please contact us.

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说明: All Bitpush articles reflect the author's views only and do not constitute investment advice.

Under the wave of artificial intelligence and Web3, how to prepare for the next generation of the Internet?

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