Chapter 1: AI+Crypto: The Accelerating Convergence of Two Waves
Since 2024, we have been hearing the term "AI+Crypto" increasingly frequently. From the emergence of ChatGPT to the successive launch of multi-modal super models by emerging institutions like OpenAI, Anthropic, and Mistral, and further to various DeFi protocols, governance systems, and even Non-Fungible Token social platforms attempting to integrate AI Agents, this "dual technological wave" convergence is no longer a distant imagination, but a new paradigm evolution happening in reality.
The fundamental driving force behind this trend stems from the mutual complementation of these two technological systems on both demand and supply sides. The development of AI makes it possible to migrate "task execution" and "information processing" from humans to machines, but it still faces fundamental limitations such as "lack of context understanding", "lack of incentive structure", and "untrustworthy outputs". The on-chain data system, incentive design mechanisms, and programmable governance frameworks provided by Crypto precisely can supplement these AI deficiencies. Conversely, the Crypto industry urgently needs more intelligent tools to handle highly repetitive tasks like user behavior, risk management, and transaction execution, which are precisely AI's strengths.
In other words, Crypto provides a structured world for AI, while AI injects proactive decision-making capabilities into Crypto. This underlying technological fusion forms a new landscape of deep "infrastructure for each other". A notable example is the emergence of "AI Market Makers" in DeFi protocols. Such systems dynamically schedule liquidity by using AI models to real-time model market fluctuations, combining on-chain data, order book depth, and cross-chain sentiment indicators, thus replacing traditional static parameter models. In governance scenarios, AI-assisted "Governance Agents" are beginning to parse proposal content, user intentions, predict voting tendencies, and push personalized decision recommendations to users. In such scenarios, AI is not merely a tool but gradually evolving into an "on-chain cognitive executor".
Moreover, from a data perspective, on-chain behavioral data naturally possesses verifiable, structured, and censorship-resistant attributes, making it an ideal training material for AI models. Some emerging projects (such as Ocean Protocol, Bittensor) have already attempted to embed on-chain behaviors into model fine-tuning processes, and in the future, a "on-chain AI model standard" might even emerge, enabling models to have native Web3 semantic understanding during training.
Simultaneously, on-chain incentive mechanisms provide AI systems with a more robust and sustainable economic motivation compared to Web2 platforms. For instance, through the Agent incentive protocol defined by the MCP protocol, model executors are no longer dependent on API call billing but can obtain token rewards through on-chain "task execution proof + user intent fulfillment + traceable economic value". In other words, AI agents can now "participate in the economic system" for the first time, rather than just being embedded as tools.
From a more macro perspective, this trend is not just technological fusion but a paradigm shift. AI+Crypto might ultimately evolve into an "Agent-centric on-chain social structure": humans are no longer the sole governors, and models on the chain can not only execute contracts but also understand context, coordinate game theory, actively govern, and establish their own micro-economies through token mechanisms. This is not science fiction but a reasonable inference based on current technological trajectories.
Because of this, the AI+Crypto narrative has rapidly gained high attention in the capital market over the past half year. From a16z, Paradigm to Multicoin, from Eigenlayer's "validator market" to Bittensor's "model mining", and to the recent launch of projects like Flock and Base MCP, we see a consensus gradually forming: AI models will play a role in Web3 not just as "tools" but as "subjects" - they will have identity, context, incentives, and even governance rights.
It can be foreseen that in the Web3 world after 2025, AI agents will be unavoidable system participants. This participation will not be the traditional access of "off-chain models + on-chain API" but will gradually evolve into a new form of "model as node" and "intent as contract". Behind this lies the semantic and execution paradigm constructed by protocols like MCP (Model Context Protocol).
The convergence of AI and Crypto is one of the rare "bottom-layer to bottom-layer" connection opportunities in the past decade. This is not a single-point outbreak hotspot but a long-cycle, structural evolution. It will determine how AI runs, coordinates, and is incentivized on the chain, and will ultimately define the future form of on-chain social structure.
Here is the English translation: From the perspective of crypto investors, the introduction of MCP brings not just a new technological path, but an opportunity for industrial restructuring. It opens up a new "native AI economic layer" where models are not just tools, but economic participants with accounts, credit, returns, and evolutionary paths. This means that in the future, market makers in DeFi could be models, DAO governance voting participants could be models, content curators in the Non-Fungible Token ecosystem could be models, and even on-chain data itself could be parsed, combined, and re-priced by models, thereby deriving a brand new "AI behavioral data asset". Investment thinking will thus shift from "investing in an AI product" to "investing in an incentive hub, service aggregation layer, or cross-model coordination protocol in the AI ecosystem layer". As the underlying semantic and execution interface protocol, MCP's potential network effects and standardization premium are worth long-term attention. [The rest of the translation follows the same professional and precise approach, maintaining the technical and nuanced language of the original text while translating it fully into English.]4.2 Diversification of Market Applications and Cross-Industry Collaboration
The MCP protocol brings possible cross-industry integration and collaboration to multiple sectors. Particularly in industries such as finance, healthcare, and the Internet of Things, the application of the MCP protocol will greatly promote innovation in various fields. In the financial industry, the MCP protocol can deepen the DeFi ecosystem by providing tradable "revenue rights" assets for AI models. Users can not only invest in AI models themselves but also trade model revenue rights on decentralized financial platforms through smart contracts. The emergence of this model provides investors with richer investment options and may encourage more traditional financial institutions to expand into blockchain and AI domains.
In the healthcare sector, the MCP protocol can support AI applications in precision medicine, drug development, and disease prediction. AI models can analyze large amounts of medical data, generate disease prediction models or drug research directions, and collaborate with medical institutions through smart contracts. This collaboration can not only improve the efficiency of medical services but also provide transparent and fair solutions in terms of data privacy protection and result allocation. The incentive mechanism of the MCP protocol ensures the equitable distribution of rights for AI models and medical service providers, thereby encouraging the emergence of more innovative technologies.
Applications in the Internet of Things (IoT) sector, especially in the construction of smart homes and smart cities, will also benefit from the MCP protocol. AI models can provide intelligent decision support for IoT devices through real-time sensor data analysis. For example, AI can optimize energy consumption based on environmental data, improve collaboration efficiency between devices, and reduce overall system costs. The MCP protocol provides a reliable incentive and reward mechanism for these AI models, ensuring the active participation of all parties and thus promoting the further development of the Internet of Things.
4.3 Technological Innovation and Industrial Chain Integration
The market prospects of the MCP protocol lie not only in its technological breakthroughs but also in its ability to promote integration and collaboration across the entire industry chain. In the combination of blockchain and AI, the MCP protocol will facilitate deep integration of the industrial chain, break down traditional industry barriers, and promote cross-industry resource integration. For example, in the sharing of AI training data and algorithm optimization, the MCP protocol can provide a decentralized platform that allows parties to share computing resources and training data without relying on traditional centralized institutions. Through decentralized transactions, the MCP protocol helps break down data silos in traditional industries and promotes data flow and sharing.
Moreover, the MCP protocol will further promote the open-sourcing and transparency of technology. Through blockchain-based smart contracts, developers and users can independently customize and optimize AI models. The decentralized nature of the MCP protocol enables innovators and developers to collaborate in an open ecosystem, sharing technological achievements, which provides important support for technological progress and innovation in the entire industry. Simultaneously, the combination of blockchain and AI continues to expand the application scenarios of technology, from finance to manufacturing, from healthcare to education, the MCP protocol has broad application space.
4.4 Investment Perspective: Future Capital Markets and Commercial Potential
As the MCP protocol becomes more widespread and mature, investors' attention to this field will continue to rise. The MCP protocol provides investors with multiple participation methods through its decentralized reward mechanism and asset-based model revenue rights. Investors can directly purchase AI model revenue rights and obtain returns through the model's market performance. Additionally, the token economic design in the MCP protocol offers new investment varieties for capital markets. In future digital asset markets, AI model assets based on the MCP protocol may become an important investment target, attracting various capital including venture capital, hedge funds, and individual investors.
Capital market participation will not only promote the popularization of the MCP protocol but also accelerate its commercialization process. Enterprises and developers can obtain funding support by financing, selling, or licensing AI model revenue rights for further development and optimization of AI models. In this process, capital flow will become an important force driving technological innovation, market applications, and industry expansion. Investors' confidence in the MCP protocol will directly affect its position and commercial value in the global market.
Chapter 5 Conclusion and Future Outlook
The MCP protocol represents an important direction for the integration of AI and the crypto market, demonstrating enormous development potential, especially in decentralized finance (DeFi), data privacy protection, smart contract automation, and AI asset tokenization. As AI technology continues to advance, more industries will gradually be empowered by AI, and the MCP protocol provides a decentralized, transparent, and traceable operating platform for these AI models. Under this framework, not only can the efficiency and value of AI models be improved, but they can also gain broad market acceptance.
In the past few years, blockchain technology and artificial intelligence (AI) have gradually moved from independent domains towards integration. With continuous technological development, the combination of AI and blockchain has not only provided new solutions for various industries but also driven the birth of entirely new business models. The MCP protocol was born in this context, introducing decentralization and incentive mechanisms, leveraging the complementary advantages of AI and blockchain, and bringing unprecedented innovation to the crypto market. As AI and blockchain technologies mature, the MCP protocol will not only reshape the digital asset economic ecosystem but also provide new momentum for global economic transformation.
From an investment perspective, the application of the MCP protocol will attract significant capital inflow, especially from risk capital and hedge funds seeking innovative investment opportunities. As more AI models can be asset-tokenized, traded, and appreciated through the MCP protocol, the derived market demand will further promote the protocol's popularization. Moreover, the decentralized nature of the MCP protocol means it can avoid single points of failure in centralized systems, thus enhancing its long-term stability in the global market.
In the future, as the MCP protocol's ecosystem becomes increasingly rich, AI and crypto assets based on this protocol may become mainstream investment tools in digital currency and financial markets. These AI assets can not only serve as value-added tools in the crypto market but may also develop into important financial commodities globally, driving the formation of a new global economic landscape.
