Generative AI takes over search, stablecoins challenge banks, a16z explores who will reign in the next wave of the digital economy?

The well-known venture capital firm a16z's two co-founders, Chris Dixon and David George, discussed the future development of "AI x Crypto" together on June 1. They pointed out that AI addresses "cognition and reasoning problems," while Crypto Assets solve "trust and collaboration problems." They also emphasized that future AI will not only create content but will also place orders, make payments, and run business operations, completing the entire business process. And Crypto Assets are the key to making this kind of automated business a reality.

Dixon stated that the current stablecoin (Stablecoin) can achieve instant global transfers, equating to creating a "WhatsApp for cash flow." It not only significantly reduces intermediary costs but also allows for seamless transaction settlement and verification processes. The two also predicted that in the future, "AI x Crypto" will create a "native digital economy."

Key Summary

AI drives content production, Crypto solves cash flow and collaboration issues, and the combination of the two poses a challenge to traditional business models like Google and Visa.

The usage of stablecoins has surged, Stripe has joined the fray, and Crypto Assets have finally landed.

The rise of generative AI is impacting search platforms and the content industry, and the lack of a business model may hollow out online originality.

Cash flow and copyright issues, Crypto Assets are the best solution.

George indicated that in the world of AI, many "intermediary layer" issues are gradually emerging, including:

Cash Flow

Copyright owner

Can content still make money through clicks in the AI world?

He believes that these issues of trust and collaboration are precisely the strengths of blockchain. This also responds to his earlier viewpoint that he considers Crypto Assets to be a "second-order effect" of social media: (Second-order effect):

"Without support from social media platforms like Twitter (X), Crypto Assets would have been shot down by mainstream media long ago and would not be able to establish a foothold at all."

Stablecoins are like WhatsApp for cross-border payments, rewriting the traditional financial system.

Dixon shared that the U.S. government has imposed strict controls on Crypto Assets over the past four years, causing the entire industry to stagnate, but the infrastructure has instead become increasingly robust:

In the early days, the transfer fee was 10 USD, but now you just need to download Coinbase Wallet, and you can transfer in 1 second for less than 1 cent.

The monthly trading volume of stablecoins has reached several trillion dollars, significantly surpassing Visa.

He cited the payment network of stablecoins, which, like WhatsApp's disruption of text messaging in the past, breaks the traditional financial model of "layered fees." Major companies like Stripe have also started to implement stablecoin cross-border payment applications, for example:

Stripe's case study indicates that SpaceX uses stablecoins to pay overseas Starlink contractors.

Programmable stablecoins can prevent fraud, such as invoice fraud.

AI changes content, search, and platform order. Who will support the website?

George warns that today's generative AI ( like ChatGPT) has swallowed up the entire web content without even having to click into the website. He pointed out that this not only undermines SEO, but also makes platforms such as Wikipedia (Wikipedia) and StackOverflow unable to survive, directly marginalized, and original content cannot be exchanged for reader clicks and advertising revenue.

But if AI generates answers directly within the model without providing new incentives for contribution, who will create content in the future? And from where should these AI models continue to learn, becoming the biggest problem.

Don't just focus on AI apocalypse theories, think about how content websites will survive.

George emphasized that discussions about the risks of AI should not be limited to ultimate propositions like "destroying humanity and doomsday theories." What is truly worth considering is:

AI will reshape the entire online business model.

The flow economy may collapse.

Many creators and websites may not be profitable.

He believes that it is time to start discussing:

"Destroying the business models of these original platforms, who would still be willing to share knowledge for free in the future?"

AI and Crypto are not in conflict; they are complementary.

Dixon and George both believe that AI and Crypto Assets are not in competition, but are complementary:

AI: Make machines smarter and enhance productivity

Crypto: Solving organizational coordination and value exchange issues, forming a network-native economy

In the future, with the emergence of AI agents (AI Agent), there will be a need for payment and trust mechanisms between humans and AI, and even among AIs, which is exactly where blockchain can play a role.

The winner takes all is an iron law in the tech world, don't choose the wrong side.

At the end of the discussion, both emphasized that "winners take all" is ultimately an iron law of the tech world; choosing the wrong platform means you can only sit on the sidelines. George mentioned his investment philosophy:

"In each category, I only want to choose the best one. If you only come in second, it’s better not to invest."

( Exposing the AI apocalypse theory as a scam? AI encryption czar Sacks: EA, Anthropic, and Biden's aides are deliberately manipulating ).

This article discusses how generative AI is taking over searches and how stablecoins challenge banks, with a16z exploring who will reign in the next wave of the digital economy. It first appeared in Chain News ABMedia.