The Future Where Web3 and AI Intersect - The Intensifying Development Competition Already Underway [N.Avenue Club Phase 3 Round 1 Table Report] | CoinDesk JAPAN

"Web3" and "AI" are attracting attention at the forefront of business and finance.

In the cryptocurrency market, the development of systems where AI autonomously conducts trading and investment is progressing, along with its application in various areas such as fraud prevention and taxation. Additionally, startups are emerging that are working on the development of decentralized AI based on blockchain, aiming to challenge major players like OpenAI, Google, and China's DeepSeek.

In the world of business and finance, "Web3" and "AI," which are attracting the most attention, are finally about to intersect in earnest. A membership-based community called "N.Avenue Club," which aims to assist in accelerating Web3 business, adopted this theme at the roundtable on July 24. They covered everything from technical backgrounds to the realities of development sites, listening to presentations from leading experts and developers about the new forms of value brought by Web3 and the evolution of business accelerated by AI, and discussed the changes and possibilities that will be brought to finance and business.

The activities of N.Avenue club mainly include a monthly "roundtable (study group)" inviting guest lecturers from both domestic and international backgrounds, as well as "gatherings" that promote interaction between member companies and related startups or experts. Both are aimed at helping to accelerate Japan's Web3 business.

The roundtable is a closed event for members only, so a part of it will be reported here.

Sentient Co-founder Aiming for the Democratization of AI Technology: Challenges to Sustain Open Development

At the beginning of the round table briefing session, Mr. Himanshu Tyagi, co-founder of Sentient, which supports the development of Artificial General Intelligence (AGI) based on a community of AI contributors aiming for the democratization and borderlessness of AI technology, gave an online presentation.

Sentient, which raised $85 million (approximately 12.6 billion yen, based on an exchange rate of 148 yen to the dollar) in its seed round, counts among its members Mr. Chagi, a professor at the Indian Institute of Science, as well as professors from Princeton University and co-founders of Polygon.

Mr. Chagi expressed concerns about the current situation, stating that AGI development, which originally flourished in an open culture of collaboration among universities and research institutions, has recently seen large IT companies monetizing that technology and dominating the entire industry. He also pointed out that "the risks of AGI are higher compared to historical technologies, and there is a risk of threatening humanity."

Furthermore, two challenges to sustain open development were raised—fair reward distribution for contributions and security and alignment—and Sentient's efforts towards each were introduced.

KDDI Takebayashi: Overview of Domestic and International Investments in the "AI x Web3" Field and Promising Areas

The first speaker in the main session was Shunpei Tatebayashi from KDDI (Deputy General Manager of the Open Innovation Promotion Headquarters and Director of the Business Co-Creation Promotion Office). The company established a Web3 Promotion Department in 2023 and has been developing the NFT marketplace "αU market", the non-custodial wallet "αU wallet", and a validator business.

Mr. Tatebayashi reported on the state of domestic and international investment in the "AI x Web3" field, noting that while investments in AI are increasing and investments in Web3 alone are on the decline, the number of investments in the combined field of "AI x Web3" is definitely increasing both domestically and internationally. He introduced that money is particularly being gathered for infrastructures where AI agents exchange rewards with each other.

Furthermore, the area where money is gathering both globally and in Japan is the tokenization of RWA (real-world assets). On the other hand, what is attracting attention globally is the infrastructure for AI agents, while in Japan, businesses are focusing on building resources required by AI using decentralized technologies, known as DePIN (decentralized physical infrastructure), and constructing economic zones for IP content.

Bitgrit CEO: The Reason for Starting a Startup on AI and Decentralized ID Based on Experience in Intellectual Property Management at Canon

Next to take the stage was Yoshikazu Mukai, CEO of the AI × Web3 startup Bitgrit based in Abu Dhabi, UAE. In addition to his company, Mukai has also founded a decentralized ID startup in Singapore. He pointed out that the time will undoubtedly come when decentralized IDs will permeate society, and mentioned that the first areas to do so will be those that "cross boundaries," such as countries and companies.

The starting point for Mr. Mukai's entrepreneurship was his involvement in intellectual property at Canon, where he realized the importance of patents. He stated that his encounter with blockchain and smart contracts led him to consider whether it would be possible to protect the rights of AI algorithms, which are difficult to safeguard under traditional patent systems.

Mr. Mukunawa believes that a community of data scientists is necessary for the democratization of AI, and has held data science competitions. He has now built a global community of AI developers with a scale of 40,000 people.

AVILEN・CEO Matsukura: Amplifying the Benefits of AI in Web3

The last speaker was Rei Matsukura, the Director and CEO of AVILEN (founded in 2018, listed in 2023), who is also a qualified lawyer. The company focuses on supporting business transformation using AI, and its distinguishing feature is that it not only provides AI but also accompanies customer companies to the point where they can internalize it.

Matsukura pointed out that what AI can achieve are three points: "cost reduction / high-speed processing / creation of new value," and amplifying these through Web3 is key. He stated that the current bottleneck is the "data depletion" necessary for AI development, emphasizing that unique data and online feedback are crucial. He mentioned that Web3 could provide the foundation and incentive structures for data sharing, payments, and proof, which could allow AI to create greater value.

Discussion on the application areas, challenges, and specific service proposals of "AI × Web3"

The second half of the roundtable involved all participants splitting into six tables for discussion. The themes were: ① "What are the areas of application and challenges for AI x Web3?" and ② "What are the specific service proposals for AI x Web3?".

From the six tables, there was a point made that "both AI and Web3 are advancing so rapidly that the law cannot keep up, causing players to hesitate. There is a state of whether use cases come first or the law comes first." Additionally, it was noted that credit card fraud has increased fivefold over the past decade, exceeding 50 billion annually, and ideas were raised about how this could be utilized for fraud prevention measures.

From the speakers who also participated in the discussion, comments such as "Diving deep into a specialized area weakens other areas, so discussing with people from other industries broadens perspectives," "The most important thing is being able to hear from the parties involved," and "Hearing about initiatives from people in other industries was refreshing" were heard.

N.Avenue club is a membership-based community aimed at accelerating Japan's Web3 business by hosting "roundtable discussions" (study groups) every month, inviting guest lecturers from both domestic and international backgrounds. In addition to the roundtables, events like "gatherings" that promote interaction between member companies and related startups or experts are also held.

The N.Avenue club secretariat is calling for participation from corporate stakeholders and business professionals who are involved in or interested in Web3 business.

| Author: Kei Mizusawa | Edited by: CoinDesk JAPAN Editorial Department | Photo: Keisuke Tada