Decentralized AI has the potential to deliver real-world value, not just hype, according to Scott Stuart from Kava Labs. As AI becomes increasingly integral to daily life, transparency and accountability are key.
Decentralized AI Delivers Real Value, Not NFT Style-Hype
Artificial Intelligence (AI) tokens have long been touted as the next big thing in cryptocurrency, but their true potential remains to be seen. Unlike previous crypto trends such as non-fungible tokens (NFTs), which were largely driven by hype and speculation, AI tokens have the potential for real-world value.
Artificial intelligence (AI) has undergone significant transformations since its inception in the mid-20th century.
Initially, AI focused on developing algorithms for playing chess and checkers.
In the 1980s, AI research shifted towards expert systems, which simulated human decision-making capabilities.
The 1990s saw the emergence of machine learning, enabling computers to learn from data without explicit programming.
Today, AI encompasses various subfields, including natural language processing, computer vision, and robotics.
According to Scott Stuart, co-founder of Kava Labs, decentralized AI has long-term staying power and won’t be another crypto fad like NFTs. ‘We had this first AI wave, but that wave was projects like Fetch saying, ‘We’re going to do a merger,’ but producing nothing from it, or projects like Virtuals or AI16z, initially doing well, then dropping off by 80% or 90%. It was an unhappy outcome,’ Stuart said.
Kava Labs is a decentralized finance (DeFi) platform that enables users to create and manage their own digital assets.
Founded in 2018, the company focuses on developing scalable and secure blockchain solutions for various industries.
Its flagship product, Kava, allows 'users to mint, lend, and borrow cryptocurrencies without requiring collateral.'
Kava Labs has gained significant attention for its innovative approach to DeFi, with a growing community of developers and users contributing to its ecosystem.
In contrast, Kava Labs has successfully pivoted its focus to decentralized AI, developing an AI platform and marketplace featuring open-source technology. The company’s approach emphasizes transparency in AI, contrasting with closed-source models that lack accountability. ‘Unlike speculative bubbles such as NFTs, decentralized AI’s fundamental utility ensures its resilience,’ Stuart said.
Decentralized AI refers to artificial intelligence systems that operate independently, without relying on a central authority.
These systems use distributed networks and blockchain technology to enable secure, transparent, and autonomous decision-making processes.
Decentralized AI applications include smart contracts, decentralized data storage, and edge computing.
According to a report by MarketsandMarkets, the decentralized AI market is expected to reach $1.4 billion by 2025, growing at a CAGR of 39.6%.
Key benefits of decentralized AI include improved security, reduced latency, and enhanced scalability.
Kava’s AI platform is built on a blockchain-native chatbot powered by DeepSeek‘s R1 large language model and the autonomous AI agent Oros. The company’s use of decentralized GPU infrastructure also sets it apart from other players in the market. ‘When you look at AI as a technology, it’s just another way for corporations to present you information,’ Stuart said.
The stakes are substantial in separating AI from this black box as technology becomes increasingly integral to daily life. Closed-source AI can tweak models in ways that are unknown and incomprehensible, raising concerns about accountability and transparency. In contrast, Kava Labs promotes an ‘open-weight’ approach, allowing anyone to verify AI model parameters.
Stuart sees an opportunity to build decentralized AI infrastructure that’s certifiably ‘made-in-the-U.S.A.’ and backed by open-source funding initiatives. ‘The future of AI isn’t corporate-controlled,’ he concluded. ‘It’s open, transparent, and decentralized. Kava aims to lead this transformation.’
