The common crypto industry slogan that “data is the new oil” is misleading for several reasons. Why would anyone associate with environmental disaster? How do venture capitalists profit from data ownership initiatives? And fundamentally, does the comparison hold true?
AI and RAG are Established Technology
Large Language Models and AI agents are here to stay. These agents execute on-chain and off-chain actions using data from web3 sources combined with user input. A practical example is maintaining a balanced DeFi portfolio automatically across market cycles.
What is RAG?
Retrieval-Augmented-Generation fills knowledge gaps in existing LLMs by providing current information and transparency about sources. GitHub Copilot exemplifies this by accessing project-specific commits and issues for more relevant suggestions. In crypto contexts, RAG could enable simplified interactions like saying “Send $200 USDC to my friend” regardless of wallet location or accepted token standards.
The Real Value Proposition
Rather than data being “the new oil,” the CEO argues that “LLMs will become a commodity; Data won’t.” As AI interactions become cheaper, data retrieval costs remain high while blockchain continues expanding. This creates opportunities for efficient data retrieval solutions.
SQD’s Solution
The company offers modular indexing supporting bulk extraction across 150+ blockchains with competitive pricing and developer tools for both AI and non-AI use cases.