30s Summary

Investment firm Andreessen Horowitz (a16z) has predicted a rise in artificial intelligence (AI)-based blockchain applications, faster adoption of stablecoins and an increase in tokenised ‘unconventional assets’ in 2022. The firm speculates the release of AI-managed wallets, autonomous chatbots and digital user identity proof systems could be industry trends. a16z also anticipates greater use of stablecoins as alternatives to card-based transactions and foresees more items represented digitally via blockchain tokens, including personal biometric data. Additionally, they propose governments might explore onchain debt issuance.

Full Article

The investment company Andreessen Horowitz (also known as a16z) has pointed out some areas in the crypto world that could boom in the coming year. They believe that tokenization and the combination of artificial intelligence (AI) and blockchain technology could be big game changers.

In a report by a16z, they predict that AI-based applications using blockchain (or ‘onchain’) could create three new trends in the industry. These include wallets managed by AI, independent chatbots, and ways to prove a user’s identity. They suggest that these chatbots could be revolutionary, running fully autonomously and possibly becoming a billion-dollar concept.

They also anticipate a rise in the use of ‘stablecoins’ – a kind of digital money that’s linked to a stable currency like the US dollar. A lot of organizations and protocols have recently started using stablecoins. a16z thinks they’ll become a popular substitute for everyday card payments starting next year.

a16z, which manages over $44 billion and is big on supporting Web3 and blockchain companies, thinks small businesses with strong brands could be the first to swap card transactions for stablecoins.

a16z also predicts that more ‘unconventional assets’ will come onchain, meaning more things will be represented digitally using tokens on the blockchain. This could include things like biometric data. Tokenizing such data could create new income sources, with folks able to rent out their data through smart contracts.

Looking at the bigger picture, a16z also sees a future where government bonds are traded onchain. They predict that governments themselves will look into debt issuance onchain, with the UK already exploring digital securities through their financial regulatory body.