Discover the future of Web 3 with Morpheus: a dynamic fusion of AI, crypto, and decentralized technology. Witness a sleek AI smart agent interacting with a holographic interface displaying blockchain networks and smart contracts, all set against a vibrant digital cityscape.

Introduction

Welcome to Building Web3, where we delve into the groundbreaking innovations shaping the future of the internet. Today, we have a special guest, David Johnston, a prominent contributor to the Morpheus project. David’s journey from early internet startups to becoming a key figure in defining decentralized applications (dApps) and his current work at the intersection of AI and blockchain is nothing short of inspiring.

The Journey to Web3

Before diving into the world of Web3, David built several startups during the early days of the internet. His fascination with AI began in 2010, but it was in 2012 that he discovered Bitcoin and truly entered the crypto space. As an economics enthusiast, David saw Bitcoin as “real money” and began writing about decentralized protocols and architectures. His most notable contribution was the paper defining decentralized applications (dApps) in October 2013, which laid the groundwork for many developments that followed, including the Ethereum platform.

The Fusion of AI and Blockchain

David is currently passionate about the convergence of AI and blockchain. He believes that AI can provide an intuitive user interface for crypto, while blockchain can offer AI the computational power and financial infrastructure it needs. This synergy is crucial for the development of smart agents — AI-driven entities connected to Web3 wallets that can interact with smart contracts and perform actions on behalf of users.

Defining Key Concepts: Smart Agents, the Mor20 Standard, and DePINs

Explaining Smart Agents

A smart agent, as defined by David, is an AI entity connected to a Web3 wallet capable of interacting with smart contracts. To understand this better, think of a smart agent like a digital personal assistant that can handle complex tasks for you. For example, imagine you want to book flights and hotels for a conference. Instead of doing this manually, you could have a smart agent that knows your preferences and can automatically find the best options, book them, and pay for them using your Web3 wallet. This concept was further elaborated in a paper by anonymous writers named Morpheus, Trinity, and Neo. They proposed a network of smart agents that could provide the necessary compute, tools, and liquidity to build and operate these agents. The goal is to create a decentralized AI that individuals can personally own and control, ensuring privacy and autonomy.

Real-World Applications

The potential applications of smart agents are vast. For instance, a smart agent could manage routine tasks like booking flights and hotels for a conference or executing DeFi transactions by connecting to a user’s wallet. The idea is to lower the technological barriers to entry, making crypto more accessible to billions of people. Just as search engines simplified the internet, smart agents could simplify interactions with blockchain technology.

The Importance of Decentralization

Decentralization is crucial because regulatory environments are becoming increasingly restrictive. For example, recent legislation in California aims to regulate AI development, which could hinder innovation. Decentralized systems like Morpheus offer an alternative by removing middlemen and custodians, allowing individuals to run and control their AI models without centralized oversight.

What is the Mor20 Standard?

The Mor20 standard is a set of guidelines and smart contracts designed to facilitate fair launches of new projects. Think of it like a recipe book for launching a new product. Instead of figuring out everything from scratch, the Mor20 standard provides a tried-and-tested method to ensure transparency and fairness. For instance, when a new cryptocurrency project is launched, using the Mor20 standard means there are no pre-mined tokens (tokens created before the public launch), ensuring that everyone has an equal opportunity to participate from the start.

Diving Deeper: Liquid Staking, Fair Launches, and DePINs

Understanding Liquid Staking

Liquid staking is a process that allows users to stake their cryptocurrency assets and earn rewards without locking them up. Instead of traditional staking, where your assets are inaccessible for a certain period, liquid staking lets you keep your staked assets available for other uses. To visualize this, imagine you have a savings account that earns interest, but unlike a fixed deposit, you can withdraw and use the money anytime you want.

In the context of Morpheus, liquid staking involves using Lido Staked ETH (stETH). When you stake your ETH through Lido, you receive stETH tokens that represent your staked assets. These stETH tokens can be used across various DeFi protocols while still earning staking rewards. Morpheus leverages this by allowing the yield (interest) from stETH to support decentralized projects without locking up the principal amount. This innovative approach encourages more participation by offering flexibility and continual earning potential.

How Fair Launches Work

Fair launches are designed to ensure a level playing field for all participants in a new project. Traditional token launches often involve pre-mining or pre-sale allocations that can favor insiders and early investors, leading to potential imbalances and perceived unfairness. In contrast, a fair launch starts with no pre-mined tokens or early allocations, meaning every participant has an equal opportunity from the very beginning.

In Morpheus’s fair launch approach, tokens are distributed based on contributions to the network, such as staking capital, providing compute resources, or contributing code. This method ensures that rewards are based on merit and contribution rather than insider access. It aligns the incentives of all participants, fostering a more robust and decentralized community.

DePINs: Decentralized Physical Infrastructure Networks

Decentralized Physical Infrastructure Networks (DePINs) are another critical component in the Web3 ecosystem. DePINs are networks that leverage decentralized technology to manage and utilize physical infrastructure, such as data centers, energy grids, and supply chains. The idea is to decentralize control over physical assets, making them more resilient, efficient, and accessible.

For instance, Akash Network is a DePIN that offers decentralized cloud computing by utilizing underused server capacity around the world. This not only democratizes access to computing power but also makes it more cost-effective and scalable. In the context of Morpheus, DePINs like Akash can provide the necessary compute resources for smart agents, ensuring they have the power needed to function effectively.

How Morpheus Fits In

Morpheus is not a compute network but a platform for creating and managing smart agents. It operates across multiple blockchains, including Ethereum, Arbitrum, and Base, with plans to integrate with Solana. Morpheus incentivizes compute, code development, and capital provision, ensuring that all components necessary for smart agent functionality are adequately supported.

For example, developers can build and deploy smart agents on Morpheus, earning rewards in the form of Morpheus tokens (MORE). These tokens can then be used to access computational resources provided by decentralized networks like Akash. This ecosystem approach ensures that every part of the system, from code development to compute power, is adequately incentivized and decentralized.

Upcoming Milestones

The Morpheus community is actively testing its compute capabilities, with a production launch expected soon. Additionally, projects like Venice.ai are leveraging Morpheus to provide open-source AI models. The platform’s growth is driven by community contributions, emphasizing the collaborative nature of decentralized development.

Conclusion

The intersection of AI and blockchain holds tremendous potential for transforming various aspects of our digital lives. David Johnston’s work with Morpheus highlights how smart agents can make blockchain technology more accessible and functional. By removing technical barriers and decentralizing control, we can create a future where AI and blockchain work seamlessly together to empower individuals.

For those interested in exploring these innovations further, David invites listeners to join the Morpheus community and contribute to this exciting journey. Be sure to check out the full episode of Building Web3 featuring David Johnston, and follow @jaxxdwyer on Twitter for more updates and insights.

Watch the Full Episode

For an in-depth look at more innovations and future plans, watch the full episode of the Building Web3 podcast. Hear directly from David about the latest developments in smart agents and decentralized infrastructure.

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As always, stay tuned to the Building Web3 podcast for more insights and developments in the Web3 space.