The document discusses the intersection of generative AI and Web3, outlining the evolution of foundation models like ChatGPT and GPT-4, along with the opportunities and challenges they present in the Web3 space. It highlights innovative applications such as conversational wallets, language-based explorers, and intelligent NFTs, while also addressing the current technological gaps in Web3 and the potential for decentralized generative AI solutions. Ultimately, it suggests a transformative future for Web3 through the integration of generative AI as a foundational component.

1. ChatGPT, Generative AI
and Web3
Opportunities, challenges and some ambitious ideas
Jesus Rodriguez
IntoTheBlock

2. GENERATIVE AI and WEB3
Agenda
● A brief history of foundation models
● Web3 and foundation models: opportunities
● Challenges
● Moonshot ideas

3. An Update About IntoTheBlock
GENERATIVE AI and WEB3

4. IntoTheBlock Analytics has a New Look

5. CoinTracking
Libertify
New Live
Customers
GENERATIVE AI and WEB3

6. CoinTracking
Libertify
New Live
Customers
GENERATIVE AI and WEB3

7. GENERATIVE AI and WEB3
● New protocols have been onboarded for the DeFi Risk Radar release
● New DeFi strategies have been added to the ITB Smart Yields platform
● ITB analytics is about to release support for Optimism analytics
Other Updates

8. The evolution towards ChatGPT, GPT4 and
foundation models…
GENERATIVE AI and WEB3

9. GENERATIVE AI and WEB3
Models such as ChatGPT or GPT-4 are known
as foundation models which represents the
dominant paradigm in generative AI

10. GENERATIVE AI and WEB3
A foundation model is a
large artificialintelligence model
trained on a vast quantity of
unlabeled data at scale resultingin
a model that can be adapted to a
wide range of downstream tasks.
Foundation Models

11. GENERATIVE AI and WEB3
It All Started with the BERT Paper

12. GENERATIVE AI and WEB3
Followed by an Explosion of Large Models

13. GENERATIVE AI and WEB3
GPT-3 was the Dominant Foundation Model But Had
Major Limitations

14. What changed between GPT-3 and
ChatGPT(GPT-3.5)?

15. GENERATIVE AI and WEB3
Reinforcement Learning with Human Feedback (RLHF)

16. GENERATIVE AI and WEB3
GPT-3+ RLHF= InstructGPT

17. GENERATIVE AI and WEB3
InstructGPT + GPT-3= ChatGPT

18. GENERATIVE AI and WEB3
What transformers did for language models,
diffusion did for computer vision models…

19. GENERATIVE AI and WEB3
Diffusion Models can Deconstruct and Reconstruct Images

20. GENERATIVE AI and WEB3
The Explosion of Text-to-Image Models

21. GENERATIVE AI and WEB3
Stable Diffusion Showed that Foundation Models can be
Open Source

22. GENERATIVE AI and WEB3
Emerging capabilities such as math and coding
also developed in generative AI models…

23. GENERATIVE AI and WEB3
Coding and Math Became Important Features of
Foundation Models

24. GENERATIVE AI and WEB3
Multi-modality emerges as a dominant paradigm
in foundation models…

25. GENERATIVE AI and WEB3
GPT-4 Combines Language, Image, Code and More in a
Single Model

26. GENERATIVE AI and WEB3
Beyond OpenAI

27. GENERATIVE AI and WEB3
Generative AI and foundation models represent
the most important technological leap in several
generations…

28. Generative AI and Web3
The Opportunities
GENERATIVE AI and WEB3

29. GENERATIVE AI and WEB3
Generative AI Presents Some Immediate
Opportunities in Web3
https://www.coindesk.com/consensus-magazine/2023/02/08/a-pragmatic-view-of-chatgpt-in-a-web3-world/

30. GENERATIVE AI and WEB3
Conversational Wallets
Wallets that use language as its core interface
Capabilities
1. Request information about transactions
2. Buy or sale actions
3. Interact with DeFi protocols, NFT collections and other relevant
Web3 artifacts

31. GENERATIVE AI and WEB3
Language-Based Explorers
Use language as the core interface to interact with a block explorer
Capabilities
1. Query transactions and addresses
2. Engage in long-form dialogs querying blockchain activity
3. Use semantic information and labels for addresses

32. GENERATIVE AI and WEB3
Smart Contract Copilot
Agents that generate security tests against smart contracts
Capabilities
1. Generate security tests based on a specific smart contract
2. Cover the entire lifecycle from dev to audit
3. Become smarter as new vulnerabilities are being uncovered

33. GENERATIVE AI and WEB3
Intelligent NFTs
Collectibles that incorporate intelligent capabilities powered by foundation models
Capabilities
1. Answer questions about a specific NFT
2. NFTs that change based on user’s emotions
3. Audio, video, 3D NFTs

34. Generative AI and Web3
The Challenges
GENERATIVE AI and WEB3

35. GENERATIVE AI and WEB3
There are Some Major Challenges for the Adoption
of Generative AI in Web3
https://www.coindesk.com/consensus-magazine/2023/03/29/chatgpt-web3-crypto/

36. GENERATIVE AI and WEB3
Generative AI can create an unbridgeable
technological gap between Web2 and Web3

37. GENERATIVE AI and WEB3
Lack of
ML Foundation
Web3 platforms
haven’t built a robust
machine learning
foundation in the last
decade.
As a result, generative
AI models mostly rely on
Web2 cloud
infrastructures.
Generative AI can create an unbridgeable
technological gap between Web2 and Web3
Cost and
Scale
Web3 platforms still
don’t scale to the levels
required by large
foundation models.
VC Investment and
Talent
VC funding and
engineering talent is
moving from Web3 to
the generative AI
space.

38. GENERATIVE AI and WEB3
Lack of
ML Foundation
Web3 platforms
haven’t built a robust
machine learning
foundation in the last
decade.
As a result, generative
AI models mostly rely on
Web2 cloud
infrastructures.
Cost and
Scale
Web3 platforms still
don’t scale to the levels
required by large
foundation models.
Generative AI can create an unbridgeable
technological gap between Web2 and Web3
VC Investment and
Talent
VC funding and
engineering talent is
moving from Web3 to
the generative AI
space.

39. GENERATIVE AI and WEB3
Lack of
ML Foundation
Web3 platforms
haven’t built a robust
machine learning
foundation in the last
decade.
As a result, generative
AI models mostly rely on
Web2 cloud
infrastructures.
Cost and
Scale
Web3 platforms still
don’t scale to the levels
required by large
foundation models.
VC Investment and
Talent
VC funding and
engineering talent is
moving from Web3 to
the generative AI
space.
Generative AI can create an unbridgeable
technological gap between Web2 and Web3

40. GENERATIVE AI and WEB3
Some Areas in Which Web3 can Contribute to
Generative AI
Decentralized Generative AI
Provide the infrastructure to
run open source models like
Bloom, Alpaca, Dolly in
blockchain runtimes.
Proof of Knowledge
Use blockchains as a core layer to
enforce accountability, fairness
and transparency of the lifecycle of
foundation models.

41. From Using Generative AI to Embodying
Generative AI
Some Ambitious Ideas
GENERATIVE AI and WEB3

42. GENERATIVE AI and WEB3
In an initial phase, Web3 applications can use
foundation models but there will be a new generation
of core components of Web3 architectures that can
be reimagined with generative AI…

43. GENERATIVE AI and WEB3
A Generative AI Blockchain
Core Idea
A new blockchain runtime
optimized for the training and
operationalization of
foundation models
Capabilities
Public datasets
Model weights
Generative AI agents smart
contracts
Proof of knowledge protocols
…

44. GENERATIVE AI and WEB3
BlockGPT: A Generative AI Model for Crypto
Core Idea
A generative AI model fine
tuned in blockchain records,
news, social media messages,
etc .
Capabilities
Providing a language interface to
interact with blockchain datasets
Finding patterns about
transactions
Understanding white papers,
discord interactions etc
…

45. A new generation of Web3 platforms
will emerge using generative AI as a
core component

46. GENERATIVE AI and WEB3
Summary
● Generative AI is the most transformation technology movement of several
generations
● Web3 applications such as explorers or wallets can be reimagined with
generative AI as a core component
● Web3 has fallen behind in the generative AI race
● There are some ambitious ideas for building the next generation of Web3
infrastructure with generative AI as a core building blocks

48. Thank You!
Jesus Rodriguez
jr@intotheblock.io
medium.com/@jrodthoughts
intotheblock.com