Expert's Take: DeepSeek Approach 'Inspiring', Can Be A Growth Catalyst In Blockchain Development

When Chinese startup DeepSeek launched its AI model in January, everything went crumbling down for the broader technology sector, and as tech stocks plummeted, so did tokens around artificial intelligence projects blockchain.

DeepSeek's disruption was so immense that it led U.S. President Donald Trump to make a statement, calling on American tech firms to "wake up" and learn something from the emergence of AI technology that didn't need billions of dollars to develop.

Many tech firms were skeptical over DeepSeek's technology, with most raising concerns around national security, but for some in the industry, the low-cost AI's launch was a lesson learned and an inspiration to potentially explore.

In an exclusive with International Business Times, Ilman Shazhaev, the founder of game studio Dizzaract, which combines modern gaming, blockchain and AI in its development strategies, discussed the other side of the DeepSeek launch and how it can inspire other tech and blockchain developers to explore more affordable options in development.

An 'Inspiring' Approach to AI Development

While Trump's comments on the Chinese AI model may have come from a firmer point of view, especially considering the ongoing tech arms race between the United States and China, on the flip side, they could have also come from a place of inspiration.

For Shazhaev, that was the case. "I find the launch incredibly inspiring. DeepSeek's approach, especially with its open-weight design and two-phase training using reinforcement learning, signals a real shift in how we think about high-performance AI. It's a reminder that you don't always need massive budgets or proprietary models to achieve breakthrough performance," he said.

He went on to note that in the industry, where blockchain gaming "demands" not just innovation but also cost-efficiency, seeing the emergence of a model that was able to deliver GPT-4-level reasoning is an encouraging sign.

"For developers and startups, this opens opportunities to integrate sophisticated AI into blockchain gaming, whether it's for smarter non-player characters (NPCs) or dynamic in-game economies, without being hindered by prohibitive costs," he said.

A Short-Lived Disruption That Could Turn Out to be an Opportunity for Growth

Aside from NVIDIA stocks that were shaken to the core by DeepSeek's launch, AI tokens were also among the most affected. However, Shazhaev observed that the immediate impact of DeepSeek on AI cryptocurrencies was largely driven by fear, partnered with concerns that the sector was overvalued.

Weeks after AI tokens plummeted, things have shifted since the harsh immediate impact seems to have passed. As of Monday, the AI agent coin market is up 9.2% in the last week, CoinGecko data showed. Most of the top coins by market value are up, including AI16Z, Artificial Superintelligence Alliance (FET), aixbt by Virtuals (AIXBT), and Virtuals Protocol (VIRTUAL).

Shazhaev expects that moving forward, DeepSeek and similar AI innovations "will be extremely positive" for the blockchain sector.

"If high-performance AI models can be accessed at a low cost, more decentralized systems will be able to leverage them at every level," he explained.

In such a scenario, AI's utility will no longer be restricted to tier-1 blockchain projects who've been showered with millions or billions in funding. Blockchain developers across every spectrum will now have access to development.

The Potential Impact of DeepSeek on Blockchain Gaming

Blockchain gaming, which has seen steady growth in recent years, is expected to continue expanding, even with some challenges along the way.

2024 ended on a good note for the segment, as per DappRadar's Games Report for the year. Gaming activity surged nearly five times in active users compared to figures from the end of the previous year.

Over 5.7 billion on-chain gaming transactions were recorded throughout the year, demonstrating the segment's "growing appeal and utility."

Shazhaev expects DeepSeek's example to have a significant impact on blockchain gaming, especially since such AI models have the ability to "drive smarter in-game economies."

DeepSeek's open availability, unlike other leading AI models, is also an encouraging signal for community-driven development, he said. "This could lead to a surge in creative gameplay mechanics, richer narratives, and smarter AI interfaces that improve user engagement," Shazhaev projected.

Dizzaract has developed a manifesto for its work on blockchain gaming development. Among its most notable principles is: "Let AI enhance creativity, not replace it."

The Big Question: Will Developers Within AI-Crypto Adopt DeepSeek's Approach?

OpenAI's Sam Altman accused DeepSeek of secretly using the American AI giant's data to train its AI assistant, indicating how some in the AI industry may not be open to exploring the Chinese startup's approach due to "bad blood."

However, Shazhaev believes there is a "strong possibility" a shift is coming, specifically for developers within the converged crypto and AI segment. He acknowledged how budget restraints have always been a hurdle in blockchain development, making models like DeepSeek's chatbot an appealing case.

"For developers working on crypto and AI integration, this could mean reallocating funds from heavy cloud expenses to other critical areas, such as improving user experience and refining product quality," he said.

Also, an open, scalable, and efficient model that can deliver the same levels of reasoning the DeepSeek chatbot provides "without breaking the bank" naturally encourages the community to reconsider their investment strategies.

He further predicted the possibility of a trend wherein funding rounds begin to pivot toward decentralized computing and community-driven projects instead of relying solely on traditional, centralized models. "This approach could democratize access to advanced AI, enabling smaller teams to compete more effectively," he noted.

DeepSeek started off with the global tech industry on the wrong footing, but for some experts, the launch was a positive eye-opener that triggered discussions on rethinking the current investment setup around AI and other high-tech innovations.