AI and Crypto: Exploring the Strong Connection in a16z’s Report
Nov 6, 2024

Sam

Amy, I just read that a16z's latest report shows a big link between AI users and crypto users. What’s that all about?

Amy

Oh yeah! a16z, the big crypto investment firm, found that many people who use crypto also use AI platforms, like ChatGPT.

Sam

Really? Why do you think that happens?

Amy

Well, it makes sense. Both AI and crypto are cutting-edge technologies, so the same group of people is curious about exploring them.

Sam

Ah, I get it. The report also said something about more crypto activity than ever before. What’s going on there?

Amy

Right, they mentioned that monthly active crypto addresses hit an all-time high: 220 million! That's a 300% increase since last year.

Sam

Whoa, that’s massive! Is there a reason for this spike?

Amy

One reason could be the rise of memecoins. Solana, for example, has 100 million active addresses, partly because of meme-based projects.

Sam

Memecoins still have that much influence? That's wild. Anything else interesting from the report?

Amy

Yeah, stablecoins are doing really well too. Even though crypto spot trading is down, people are still actively using stablecoins for transactions.

Sam

Stablecoins, like digital versions of regular currency, right? So they’re more reliable in value.

Amy

Exactly. And a16z says stablecoins have really found their 'product-market fit,' which means people are using them consistently.

Sam

Cool. The report also mentioned something called ZK proofs. What are those?

Amy

ZK stands for Zero-Knowledge. It’s a way to prove something is true without revealing any extra information. It’s super important for privacy and making blockchains faster.

Sam

Sounds futuristic! Why does a16z think ZK proofs are the 'endgame'?

Amy

Because they can help blockchains scale better and stay private at the same time. Plus, over $4 billion in Ethereum has been used for ZK proof verifications already.

Sam

Wow, that's a lot of money! It really shows how serious people are about blockchain technology.

Amy

Yep, and with AI and crypto growing together, we're likely to see even more innovations. It’s an exciting time!

Sam

For sure! I can’t wait to see what happens next with both of these technologies.