Virtuals Protocol: A Comprehensive Analysis of the AI Agent Generation Platform Integrating Blockchain Technology

Through a multi-dimensional in-depth analysis of Virtuals Protocol, we can see that the project has shown strong development potential in the field of AI Agent and blockchain integration.

Virtuals Protocol, founded in 2021, is an AI Agent generation platform based on blockchain technology. It aims to allow anyone to create an AI agent, a virtual character that can interact and engage with the environment like a human. Virtuals Protocol's vision is to completely change the way virtual interactions are done by creating hyper-personalized and immersive experiences.

The project was officially launched in 2023. The core vision is to achieve decentralized co-ownership of AI agents through blockchain technology and promote the widespread application of AI in games, entertainment, and the metaverse. Virtuals Protocol's AI agents have multimodal interaction capabilities (text, voice, 3D animation) and can run seamlessly on multiple platforms, such as Roblox, TikTok, and Telegram games.

The development of Virtuals Protocol can be divided into the following important stages:

2021: PathDAO, the predecessor of the project, was established, focusing on game guilds and GameFi investments. PathDAO has accumulated rich resources and experience in the GameFi field, laying the foundation for subsequent transformation.

2023: As ChatGPT leads AI technology to become popular around the world, PathDAO officially transforms into Virtuals Protocol, focusing on the combination of AI and blockchain, and deploying smart contracts on the Base chain. This transformation marks the project's transition from traditional GameFi to AI-driven blockchain protocols.

2024: Virtuals Protocol launches its first AI agent, Luna, which has gained more than 500,000 followers on TikTok, demonstrating the commercial potential of AI agents. Luna's success not only verifies the technical feasibility of the project, but also provides valuable experience for subsequent AI agent development. Currently, more than 1,000 AI agents have been created on Virtuals Protocol.

At the end of 2024, Virtuals Protocol is launched on several well-known exchanges, and the market value of the token $VIRTUAL soars from tens of millions of US dollars to more than 3 billion US dollars in more than two months, marking the official entry of the project into the mainstream cryptocurrency market and gaining widespread attention and recognition.

The Virtuals Protocol team is composed of a group of young people with experience in consulting, blockchain, AI and gaming. The core members include:

Jansen Teng: Co-founder and CEO, graduated from Imperial College London in 2018, participated in the establishment of ThinAir Water, DIAM Digital Marketing, Aidaro and other companies, and worked at Boston Consulting Group (BCG).

Wee Kee: Co-founder, obtained a bachelor's degree from Imperial College London in 2017 and a master's degree from London Business School in 2018. He participated in the establishment of Aidaro and also worked at BCG Consulting.

Other members include Matthew Tang, Josh Wang Khang Hwu, Hardeep Meghera, Armielyn Obinguar, Weixiong Tay, Charan Rao, Joshua Moh, etc. Most of the other team members are from Malaysia and other Southeast Asian regions. Their educational backgrounds include Cambridge University, Imperial College and other prestigious universities, and they have work experience in well-known companies such as Accenture, Grab, Shopee, etc. The team's technical strength and industry resources provide a strong guarantee for the success of the project.

Virtuals Protocol adopts a decentralized operation mode, with blockchain as the underlying infrastructure, and uses smart contracts to ensure the transparency, fairness and immutability of various interactive behaviors in the ecosystem. Users can easily create their own AI agents through the simple operation interface provided by the platform. These AI agents have unique properties and functions. For example, some agents are good at writing articles, while others are excellent in image design.

In terms of business model, on the one hand, the platform charges users a certain fee for creating and managing AI agents, and the fee standards are differentiated according to the complexity of the agent and the amount of resources occupied. For example, creating an agent with basic functions may only cost 10 VIRTUALs, while creating an agent with advanced functions and capable of handling complex tasks requires 100 VIRTUALs. On the other hand, the platform encourages developers to develop various derivative applications based on the Virtuals Protocol. For high-quality applications, the platform will cooperate with them through revenue sharing and other means to jointly promote the prosperity and development of the entire ecosystem. At present, there are about 20 different types of derivative applications on the platform that are under development or in the trial operation stage.

The Virtuals Protocol ecosystem consists of the following layers:

Ø Protocol layer: Provides AI models and algorithms to support developers in creating and deploying AI agents. The protocol layer is the technical core of Virtuals Protocol and determines the performance and functionality of AI agents.

Ø DApp layer: allows decentralized applications (DApp) to integrate AI agent functions, such as NPCs in games and