Sam Williams and Teng Yan engaged in an in-depth discussion on the fusion of crypto and AI during the Hack and Tell podcast, focusing on AO’s innovative potential, the transformation of agentFi, and the future opportunities and challenges of AI.
Author: Kyle
Translator: Kyle
Reviewer: Marshal Orange
Source: Content Guild - Translation
Originally published at: PermaDAO
Original link: https://permadao.notion.site/English-Template-296c40e2b816485a941d03afe70b1027?pvs=4
In the latest episode of the Hack and Tell podcast, hosted by Sam Williams and featuring guest Teng Yan, the two discussed the future of crypto, AI, and Decentralized Computation Protocol (AO).
Background
- Sam Williams (@samecwilliams): Founder of Arweave and AO, as well as CEO of Forward Research.
- Teng Yan (@0xPrismatic): Former researcher at Delphi Digital. Currently leading Chain of Thought, an independent research firm at the intersection of crypto and AI.
Key Insights
1. The Synergy Between Crypto and AI
Teng Yan and Sam recognize the significant hype surrounding the integration of crypto and AI. However, both agree that this convergence has genuine disruptive potential, especially in creating trustless intelligent agents and autonomous financial protocols.
Teng Yan highlighted the rapid pace of industry evolution driven by experimentation, while Sam underscored that intelligent financial agents can operate as self-sufficient protocols, removing the need for intermediaries—a key value proposition.
2. The Origins of AO
Sam explained that AO was originally designed to address the content exchange needs of a decentralized social media network (Odysee, which had approximately 7–8 million monthly active users and is now acquired by Forward Research). To build a system capable of supporting content ownership transactions and efficient markets, the team ended up creating a new blockchain supporting scalable smart contracts—an innovative outcome sparked by solving their own challenges.
3. The Transformation of AgentFi
Sam described agent finance as the most tangible integration of decentralized AI and crypto. He noted that decentralized financial agents can not only eliminate reliance on traditional intermediaries (such as funds and banks) but also empower ordinary developers to create financial strategies. This reduction in trust requirements and entry barriers is poised to unlock a significant wave of untapped innovation.
Teng Yan added that since most transactions on blockchains are financial in nature, agentFi represents the best entry point for AI agents to integrate into blockchain.
4. AI Technology Advancements on AO
Sam explained how AO enables LLMs, such as Llama.cpp, to run within smart contracts—a breakthrough in integrating AI with blockchain. While current performance is limited (processing approximately 0.7 tokens per second), this capability provides a foundation for future innovations.
Teng Yan added that despite its early stage, such developments are laying the groundwork for practical, AI-driven blockchain solutions.
5. AI Applications on AO
Sam provided details about Llama Land, an experimental platform within the AO ecosystem that allows users to experience decentralized governance and monetary policy through AI-managed autonomous systems. At the core of Llama Land is an AI (Llama 3) capable of autonomously deciding on monetary issuance. Users can submit requests, and the AI automatically determines whether to grant rewards based on the proposals. This is not only an engaging use case but also a demonstration of the potential for autonomous AI in on-chain economies.
6. Philosophical Reflections on AI
Both Sam and Teng Yan expressed similar views: the rise of decentralized AI is not just a technical innovation but also a philosophical debate between open-source and centralized models.
Teng Yan argued that decentralized AI’s open systems empower global developers and users, breaking the monopoly of major tech companies and democratizing AI development.
Sam emphasized that the neutrality and trustworthy execution of decentralized AI fundamentally distinguish it from centralized AI. This open system functions like a protocol, capable of executing tasks neutrally without being controlled or manipulated by any single entity.
7. Building AI Infrastructure
Sam highlighted the current focus on developing infrastructure that attracts developers, including tools and frameworks to enable the rapid construction and deployment of AI applications. By lowering the barriers to innovation, developers can more easily progress through the cycle of learning, development, and production.
Teng Yan added that blockchain-based AI agents represent an ecosystem evolving step by step from infrastructure to applications, requiring robust development tools and foundational platforms for support.
8. Market Behavior and Growth
Teng Yan pointed out that sentiment in the crypto market often fluctuates independently of technological progress, yet many people mistakenly equate price movements with technical maturity.
Sam elaborated that true technological progress is incremental, and it is common for markets to overestimate short-term potential while underestimating long-term impact. He observed that despite the volatility in market sentiment, technological capabilities continue to advance steadily.
9. Future Vision for AI
Both Teng Yan and Sam envision exponential growth driven by AI-powered blockchain applications.
Teng Yan expressed optimism about significant progress in the coming months, while Sam emphasized a longer horizon, forecasting that the transformative potential of decentralized AI will unfold over the next 10–20 years. From intelligent financial protocols to autonomous governance systems, these technologies will increasingly permeate industries worldwide.
10. Outlook for 2025 and Beyond
Teng Yan forecasted that 2025 could be a pivotal year for the AI sector, as foundational infrastructure will be largely established in the coming months, spurring rapid expansion of developer participation and applications.
Sam emphasized a longer timeline, viewing the integration of AI and blockchain as a deep and enduring process likely to span decades. Nevertheless, the emergence of early adopters and use cases will significantly accelerate progress along the way.
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