In this engaging discussion, Chris Dixon, Founder and Managing Partner at a16z crypto, explores the fascinating intersection of AI and cryptocurrency. He shares insights on how these technologies can create decentralized systems and empower creators through innovative revenue models. The conversation also dives into the challenges posed by current internet economics and the need for new incentive structures. Dixon emphasizes the potential of community-driven initiatives to revolutionize industries and promote equitable access to technological advancements.
The convergence of AI and crypto offers new economic models that empower creators while addressing the limitations of traditional platforms.
Innovative protocols like Story Protocol aim to redefine intellectual property management, enabling creators to establish their own usage rights and profit shares.
Deep dives
The Intersection of AI and Crypto
AI and crypto are seen as complementary technologies that can create new opportunities for internet services. This intersection offers a fresh approach to architecture in building decentralized networks, which can enhance the functionality of AI systems. For instance, projects like Jensen utilize a crowdsourced model to create a computing layer for startups, enabling them to access computational power beyond their own capacities. Additionally, the Story Protocol provides a new method for managing intellectual property through blockchain, allowing creators to establish usage rights and terms for their media.
Creating Economic Models for Creatives
There is a growing focus on developing sustainable economic models that empower creatives in a technology-driven landscape. Traditional systems, which often favor large corporations, leave smaller creators with little to no revenue share from their work. Innovative solutions like the Story Protocol aim to democratize the creation process by allowing individual creators to set their own terms and retain a percentage of profits. This shift could realign incentives and foster a more vibrant, collaborative creative economy.
Rethinking the Internet's Economic Covenant
The traditional economic covenant between platforms and content creators faces disruption in the age of AI, particularly as chatbots and generative AI provide content directly, bypassing original creators. This shift risks breaking the long-held implicit agreements that allowed creators to benefit from traffic generated by search engines and social networks. A potential consequence is a centralized internet dominated by a handful of AI systems, reducing the diversity and innovation currently offered by numerous independent websites. Addressing these concerns requires consideration of new incentive structures that promote equitable growth and a healthy ecosystem for all contributors.
Future Prospects of Networked Technologies
The convergence of AI, crypto, and emerging hardware platforms hints at a transformative wave akin to past technological advances, such as mobile and social media. This synergy could lead to novel applications that harness the unique capabilities of each technology, promoting advancement in various sectors, including entertainment, productivity, and personal interactions. However, the pace of these developments may be hampered by cultural resistance and regulatory challenges, particularly in established industries like Hollywood and healthcare. Ultimately, the success of these intersecting technologies hinges on human creativity and the willingness to adapt and embrace new ways of working.
Welcome to web3 with a16z, today we’re running a special episode about the intersection of AI and crypto.
Our guests are a16z crypto Founder and Managing Partner Chris Dixon & a16z Growth General Partner David George. They discuss the broken economics of the internet, new models for creative people, how to think through the first-, second- and third-order effects of big platform shifts, and more.
Today’s episode is a crossover from a16z’s AI Revolution conversation series — and it’s especially timely as the paperback edition of Chris Dixon’s bestselling book Read Write Own goes to print. Check out the show notes for links to those and more.
As a reminder, none of the content should be taken as investment, business, legal, or tax advice. Please see a16z.com/disclosures for more important information, including a link to a list of our investments.
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