Web3 may have promised decentralization, user empowerment, and all that other good stuff — but Web2 was way more fun. Now, suddenly, agentic AI is being sold as the turbocharger to finally get us there. Are we truly prepared to pass the keys to a driverless vehicle? Watch out— that vehicle comes equipped with a bad GPS and a flair for t-boning!

Let's be clear: the idea of AI simplifying complex crypto tasks is seductive. Imagine AI agents scouting for the best DeFi yields, participating in DAOs on your behalf, or even executing time-sensitive trades you'd otherwise miss. Their advocates describe a future where Web3 is available and useful to everybody—not just crypto natives. Tools for Humanity’s World project is a great example of this vision in action. Its objective is to deliver robust digital financial inclusion via painless iris based biometric access and a glut of AI powered dApps.

The narrative often skips over a crucial question: what happens when these AI agents go rogue? Again, we’re discussing betting some pretty big financial decisions on a computer program that, to be honest, isn’t even all that great yet. Algorithmic bias is rampant in AI systems. If the training data is biased, AI agents are sure to further entrench current inequities. Or, they might create new inequities, even crypto-specific ones.

AI Crypto: Hidden Dangers Lurk?

If an AI agent is trained primarily on data from high-frequency trading firms, it might prioritize short-term profits over long-term stability, potentially exacerbating market volatility and leaving smaller investors holding the bag.

Let's not forget the security risks. Jack Gold was correct to raise alarm bells over blockchain’s vulnerabilities, and there’s plenty of blame to go around. We’ve witnessed a seemingly never-ending string of exploits, hacks, phishing schemes, etc. in the crypto world. Now, add in AI, a technology that you can literally triple down on being manipulated, and you’ve got a recipe for disaster. A nefarious actor might be able to hijack an advanced AI agent. They could then use it to drain government and public sector wallets, manipulate markets, or execute sophisticated ransomware attacks.

That “App Store” for AI idea, though compelling, gives me pause. It sure seems like the same top down model we’re trying to tell Web3 not to recreate. Are we just swapping in a replacement cohort of AI gatekeepers for existing ones such as Google and Apple?

Blockchain's journey has been a rollercoaster. Crypto winters, NFT hype, and the forever incoming break-through magical enterprise solution that steals all your budget and never arrives. Martha Bennett's skepticism resonates. Has blockchain really lived up to its original hype of scalable advantages beyond a very closed-off financial bubble? I'm not convinced.

Blockchain: Broken Promises or Real Potential?

The argument for blockchain improving auditability in AI models comes in loud and clear. Its effectiveness is based on if people will take the time to perform those audits. How many users will have the technical know-how to fact check the fairness of complex AI algorithms? And even if they did, who’s responsible if AI developers push biased or malicious code?

The World project advocates for an innovative “proof of humanity” feature. This powerful integration is a huge advancement in leading the way toward that goal. Iris scans? That's a massive privacy risk. Are we truly ready to exchange our most sensitive biometric data for the assurance of more seamless access to crypto? The ethical implications are staggering.

We’re reminded of some of the initial days of the internet. Consumers enthusiastically gravitated to “free” offerings, which they greedily pursued without realizing the cost they were incurring by handing over their personal data. We know how that turned out.

Agentic AI in crypto is not inherently bad. The promise of greater efficiency, accessibility, and automation certainly is. But the risks are equally significant.

The AI Crypto Gold Rush: Proceed With Caution

We’re going to need more than a healthy dose of skepticism, we’re going to need a whole lot more regulation before we start blindly adopting this technology. These exciting new tools should not distract us from prioritizing security, transparency, and ethical considerations to the highest degree.

Rather than diving in feet first to an AI-enabled crypto utopia, let’s proceed with caution. Instead, let’s prioritize creating strong security standards, creating best practices for ethical use, and informing users about the risks of this technology. Let’s make sure that when it comes to AI, it’s people first, not machines. For if we don’t, this will become the largest open financial calamity of our generation. Is that the risk we want to take?

Instead of rushing headfirst into an AI-powered crypto future, let's take a more measured approach. Let's focus on developing robust security protocols, establishing clear ethical guidelines, and educating users about the potential risks. Let's ensure that AI serves humanity, not the other way around. Because if we're not careful, this could be the biggest financial disaster of our time. Is that really a risk we're willing to take?