a16z Crypto Explains Why AI Needs Blockchains Right Now

• AI slashes impersonation costs, and blockchains restore identity scarcity through proof of personhood without daily user friction.
• Decentralized identities give users and AI agents portable passports across platforms without revocation or platform lock-in.
• Blockchains enable machine-scale micropayments and privacy via smart contracts and zero-knowledge proofs.

AI-generated content now moves faster than the internet’s trust systems can manage. According to a16z crypto, the mismatch became clear as AI agents began acting like humans online. The firm outlined its view in a recent post, explaining why blockchains now matter for identity, payments, and privacy, as AI activity scales across platforms.

Rising AI Impersonation Pressures Online Systems

According to a16z crypto, AI has sharply reduced the cost of impersonation across the internet. Notably, one actor can now simulate thousands of voices, faces, and accounts. However, most platforms still assume one account equals one person, which breaks under AI scale. As a result, detection tools like CAPTCHAs struggle to keep pace.

Blockchains address this gap through decentralized proof-of-personhood systems. These systems allow one verified identity while limiting duplicates. For example, scanning once may remain simple, yet repeating it becomes impractical. Therefore, blockchains restore scarcity at the identity layer without adding daily user friction. This shift raises attack costs while preserving standard online behavior.

Decentralized Identity and Portable Agent Passports

Beyond impersonation, a16z crypto highlighted identity control as a growing issue. Centralized digital IDs allow issuers to revoke access or monitor users. However, decentralization shifts control directly to users. Blockchain-based identities allow people to custody credentials and verify humanity privately.

This structure also supports AI agents operating across services. Notably, agents now move between chats, emails, calls, and APIs. Yet, no universal system links these interactions. Blockchain identities act as portable passports. They reference permissions, capabilities, and payment endpoints. As a result, agents remain consistent across platforms without platform lock-in.

Machine-Scale Payments and Privacy Enforcement

As agents transact more often, existing payment rails face limits. According to a16z crypto, blockchains support micropayments at near-zero cost. These systems allow frequent, automated payments between agents. Moreover, smart contracts enable transparent payment splits across multiple contributors.

Privacy also remains central. Many security systems collect extensive data, which AI can later exploit. Blockchains paired with zero-knowledge proofs change this model. Users can prove facts without exposing underlying data. Consequently, applications gain verification while limiting exploitable information.