As the crypto space rapidly evolves, Andreessen Horowitz (a16z), a leading venture capital firm, has taken notice. The company highlighted 14 transformative trends expected to shape the cryptocurrencies ecosystem by 2025.
A16z pointed to artificial intelligence and chatbots
According to VC Firm A16z, fully autonomous AI agents will become a reality by 2025 and individual AI systems will have their own crypto wallets and participate in transactions within decentralized networks. These AI agents could oversee functions such as checking the validity of a block of transactions in a blockchain or participating in decentralized energy systems, opening up new possibilities for blockchain automation.
At the same time, decentralized autonomous chatbots (DACs) are also predicted to emerge. These AI-driven bots will operate within trusted execution environments (TEEs) to make them independent of human intervention to create audiences, generate revenue and manage cryptoassets. This could drastically change the way content is created and monetized on the web.
The blockchain space is expanding
According to a16z, as the use of AI content creation increases, so will the need for proof of personhood, which blockchain technologies will address with secure methods to verify people in digital interactions to combat deepfakes and fraud. This will help make digital spaces more secure and trustworthy. In addition to digital identity, a16z predicts that blockchain’s use cases will expand from prediction markets to information gathering.
By 2025, blockchain-based systems could be used for decentralized data sharing and decision-making in sectors as diverse as community governance, finance and sensor networks. Such systems will help communities make more rational and informed decisions, while ensuring that processes are more open.
Critical developments for cryptocurrencies
By 2025, nearly every small and large business will accept stablecoins as a payment method, as reflected by USDC company Circle gaining regulatory approval in Canada. Starting as a tool for small businesses to minimize transaction costs, stablecoins will eventually be used by large enterprises. This exchange will greatly reduce transaction costs and increase the use of cryptocurrencies in normal life.
Moreover, governments may start to consider issuing government bonds on the blockchain system. This could disrupt traditional bond markets by increasing transparency and openness, and also offer DeFi systems with government-guaranteed assets. In addition, tokenization of assets that have not traditionally been treated as such, such as biometric data and patents, will continue to evolve, offering new opportunities for liquidity and ownership.
New governance system for cryptocurrencies
Blockchain technologies will bring new forms of governance, including liquid democracy. This model increases the fluidity of the system and decentralization of decision-making by enabling voters to cast their votes to the intermediaries of their choice. Liquid democracy can be adopted by local governments and decentralized autonomous organizations (DAOs) as a transition to a more fluid and participatory system of governance. This process is expected to be further enhanced by DUNA (Decentralized Nonprofit Organization), which is expected to be the standard for blockchain governance in the US by 2025. This legal structure will enable decentralized organizations to operate with a more legal standing and efficiency, especially in sectors such as energy and DeFi.
According to a16z, over the next few years, the Blockchain development community will shift its attention from building new solutions from scratch to building on what has already been developed. This will allow developers to focus on creating added value instead of developing similar applications. Meanwhile, crypto companies will shift their focus from the development of the technological foundation to the development of the user experience. Thus, by 2025, blockchain products will focus on usability and will be designed in such a way that decentralized applications will be no different from existing ones.
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