Artificial intelligence (AI) is all the rage, and while some say its potential has been massively overstated, it continues to pull in investment and users in droves. AI, however, faces several challenges, which Unbounded Capital’s Zach Resnick believes can be solved by blockchain-powered microtransactions.
Resnick is the managing partner at Unbounded Capital, an investment firm focusing on scalable blockchains.
“We invest either in companies leveraging scalable blockchains—and BSV is the only scalable blockchain today—or companies that aren’t using a blockchain now but which we have a lot of confidence will in the future,” he told CoinGeek Backstage reporter Becky Liggero on the sidelines of the London Blockchain Conference.
For Resnick, Bitcoin’s superpower lies in micropayments. Unbounded Capital has invested in several portfolio companies providing or leveraging micropayments, from HandCash to Haste.
For Unbounded, micropayments are those below a dollar because “$1 payments are the minimum viable payment within the credit card rails.”
With BSV blockchain, sub-dollar payments are viable as the fees are a hundredth of a cent or lower.
Micropayments open new payment channels and business opportunities, such as the ability to pay-per-use for online media or earn micropayments for social media posts. Additionally, these micropayments can “further other types of commerce.”
The world is waking up to the power of micropayments, Resnick believes. He revealed that in recent times, HandCash—one of his portfolio companies—has “started a ton of talks with large enterprises because of Elon Musk’s comments on integrating a new model to pay on a per-article basis on Twitter.”
As AI adoption surges, blockchain could solve the lack of trust that plagues the technology. Platforms like Midjourney can generate realistic images that would be almost impossible to distinguish from genuine photographs. Resnick believes that authenticating the images on a blockchain is the only way to solve the challenge.
For investors with an eye on blockchain startups, Resnick’s advice is to “have diversified exposure to those blockchain companies.”
Watch: Konstantinos Sgantzos talks AI and BSV with CoinGeek
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