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Web3 is losing the battle to decentralize AI. | by Peter A. McKay | The Capital | Jun, 2025

July 1, 2025
in Altcoin
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This submit is tailored from w3w, my e-newsletter about rising expertise over on Substack. To obtain it in your inbox each Sunday, together with further headlines from across the web about web3, AI, and extra, subscribe right here. 😊

In principle, the potential intersection of web3 and AI is definitely intriguing. However in actual fact, real-world implementation has superior so little that the window of alternative for web3 to have an effect could also be closing.

So says DeFi entrepreneur Jesus Rodriguez in a latest essay for CoinDesk. The co-founder and CEO of IntoTheBlock writes:

“AI innovation is compounding quickly, and Web3 has been a passive observer. Not one of the main AI milestones — unsupervised pretraining, superior fine-tuning, retrieval-augmented technology, reasoning engines, or agentic frameworks — have concerned Web3 architectures in a significant approach.

“As every new launch compounds on the final, the obstacles to catching up grow to be steeper. All vital tooling, platforms, and infrastructure for constructing frontier fashions are at present centralized. With out pressing, coordinated efforts to alter this trajectory, Web3-AI will likely be left a long time behind in a area that advances in months.”

As if on cue, the headlines that broke within the days proper after Rodriguez printed this warning solely served to underscore his level:

Meta — unequalled poster youngster for the evils of centralized tech — introduced it might purchase a 49% stake within the startup Scale AI for $14.3 billion.Disney sued Midjourney, calling the AI picture generator “a bottomless pit of plagiarism.”

Ouch.

You understand, it’s nearly as if the web economic system is crying out for some native approach for folks to immutably doc identification, authorship, and provenance of mental property. Particularly as generative AI proliferates, it might even be useful if this method had been to allow straightforward digital funds, licensing, and assortment of royalties on IP.

Or we may all simply hold suing one another, operating up authorized payments, and see how that seems.

Yeah. Positive. Let’s do the latter.



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Tags: BattleCapitaldecentralizeJunLosingMcKayPeterWeb3
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