a16z Crypto has outlined how blockchains can address the challenges posed by AI impersonation and identity management. As AI reduces impersonation costs, blockchains offer decentralized proof-of-personhood systems to maintain identity scarcity without daily user friction. This approach helps prevent the proliferation of fake identities by ensuring one verified identity per person, thus raising the cost of attacks while preserving standard online behavior. The firm also emphasizes the importance of decentralized identities, which allow users and AI agents to have portable credentials across platforms without the risk of revocation or platform lock-in. This system supports seamless interactions across various services, acting as a universal passport for AI agents. Additionally, a16z Crypto points out that blockchains facilitate machine-scale micropayments and enhance privacy through smart contracts and zero-knowledge proofs. These technologies enable frequent, low-cost transactions and allow users to verify information without exposing sensitive data, addressing the limitations of current payment systems and privacy concerns.