Funding incentives are forcing brilliant AI projects into inefficient blockchain frameworks—at the cost of real innovation.
The Web3 AI sector is conflating “decentralized AI” with “blockchain AI,” forcing projects to integrate blockchain purely to access funding, networks, and communities—often at the expense of efficiency, cost, and performance. True decentralized AI can thrive through distributed computing, federated learning, and P2P networks without blockchain overhead, yet venture funding criteria and community bias treat non-blockchain solutions as irrelevant. Blockchain has valid use cases for AI, like incentive alignment and payments, but it should be one tool among many, not a mandatory architecture. For decentralized AI to reach its potential, the Web3 ecosystem must embrace technological pluralism and support projects that choose architectures based on their problem—not on token economics.
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