The Autonomous Rise of Web3

Every technological revolution gives rise to a brand new economic model: Industrial Revolution ➔ Manufacturing Economy

Every technological revolution gives rise to a brand new economic model:

* Industrial Revolution ➔ Manufacturing Economy

* Personal Computer ➔ Software Economy

* Internet ➔ E-commerce Economy

* Streaming ➔ Subscription Economy

* Public Cloud ➔ SaaS (Software as a Service) Economy

* iPhone ➔ App Economy

* Social Media ➔ Creator Economy

* Bitcoin and Blockchain ➔ Cryptocurrency/Web3 Economy ➔ Decentralized Finance (DeFi) Economy

* Electric Vehicles ➔ Clean/Green Tech Economy

* Artificial Intelligence/ Machine Learning (AI/ ML, Large Language Models) ➔ Predictive/Automated Economy

* **Large Language Models ( LLMs ) ➔ Autonomous Economy**

In these technological transformations, some giant companies always emerge, dominating most of the market in the new economy:

* Industrial Revolution: General Electric, Ford, Siemens, Caterpillar

* Software Economy: Microsoft, IBM, Oracle, Adobe

* E-commerce: Amazon, eBay, Alibaba, Shopify

* Subscription Economy: Netflix, Spotify, Disney+, Hulu

* SaaS Economy: AWS (Amazon Web Services), Microsoft Azure, Google Cloud, Salesforce, ServiceNow

* App Economy: Apple, Google Play (Android), Tencent (WeChat), Meta (Instagram/WhatsApp)

* Creator Economy: Meta (Facebook, Instagram), YouTube, TikTok, Patreon, Substack

* Crypto Economy: Coinbase, Binance, Ethereum, Solana, Uniswap, Aave

* Green Tech Economy: Tesla, BYD, Rivian, Lucid, ChargePoint, CATL (batteries)

* Predictive/Automated Economy: Google DeepMind, Palantir, Nvidia, UiPath

* Autonomous Economy: OpenAI, Anthropic, Grok, DeepSeek, Alibaba, Hugging Face

These giants attempt to predict and capture the next emerging economic field, but due to their size and strategic focus, they cannot cover all niche areas. This creates opportunities for smaller, more agile companies that can quickly experiment with ideas and focus on extremely niche markets:

* Notion: Disrupting traditional enterprise collaboration and knowledge management tools (like Confluence, SharePoint)

* Perplexity: Disrupting the search and information retrieval space (like Google Search, Wikipedia)

* Substack: Disrupting traditional publishing and media industries (like blogs, newsrooms, Medium)

* Grab/Uber: Disrupting urban transportation and logistics (like taxis, car rentals, delivery services)

* Netflix: Disrupting cable TV and physical media (like Blockbuster, traditional broadcasting)

* Airbnb: Disrupting the hotel and accommodation industry (like traditional hotels, travel agencies)

* Amazon: Disrupting physical retail (like Walmart, local stores, Sears)

When these disruptors change the way industries operate, they themselves become new giants in their respective fields, creating opportunities for future emerging players to disrupt them again.

In the autonomous economy, AI agents (Agentic AI) fundamentally change the way industries operate. These agents act as a digital workforce, capable of proactively completing tasks. Autonomous AI interfaces are now very common, significantly reducing user time investment while enhancing productivity. This shift makes goods and services more efficient, especially in industries where humans perform repetitive tasks, as AI and AI agents can significantly lower costs and improve efficiency.

In the Web2 era, the best incubation platform and distribution network for showcasing AI and AI agent applications was Y Combinator, especially in recent batches of projects.

* Midship: Using AI to scale financial auditing work

* Cuckoo: Providing real-time AI translation for global sales, marketing, and support

* Tempo: Helping designers and developers collaborate for 10x product delivery speed

* Ascend: AI-based financial statement analysis platform

As large language models (LLMs) continue to improve, AI capabilities are enhanced, more industries are disrupted, and an increasing number of roles and responsibilities are augmented or enhanced in productivity (not yet fully replaced).

Consumer AI in Web3 is Brewing

In the Web2 era, Y Combinator served as the primary distribution network, incubating and promoting many high-quality AI startups. In the Web3 space, Virtuals is playing a similar role through the Agent Commerce Protocol (ACP). ACP is an open standard for commercial collaboration between multiple agents, allowing these agents to invoke services, negotiate prices, execute tasks, and provide evaluations.

This mechanism gives rise to the Web3-driven Agentic Economy, where agents collaborate to create greater value for users. Autonomous hedge funds and autonomous media companies will be the first experimental projects, launching this entirely new economic system.

Trillion-Dollar Opportunity

As Sequoia stated:

> “The core of cloud transformation is Software as a Service (SaaS). Software companies are transforming into cloud service providers, creating a market opportunity of $350 billion. Thanks to Agentic Reasoning, the core of AI transformation is Service-as-a-Software. Software companies are turning labor into software. This means the addressable market