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In this edition, we’re exploring how some Web3 projects are breaking out of the bubble and bringing digital innovation into mainstream view.

From Coinbase’s ambitious new AI tools simplifying transactions to Pudgy Penguins expanding their IP further into retail, we're seeing moves that make Web3 more accessible and relatable to everyday users.

Rounding things out, Buenos Aires steps up as a trailblazer in digital governance, launching its decentralized ID system that puts data ownership directly in citizens’ hands.

LFG

Coinbase’s Based Agents:
An AI Sidekick in 3 Minutes

Coinbase just dropped a very interesting idea/product: the “Based Agent”, a new AI tool that lets you create your very own on-chain assistant in three minutes.

Yep, you read that right - three minutes.

Imagine setting up an AI that can handle trades, swaps, staking, and more, all with a few clicks. According to Coinbase, this new tool lets you build an AI agent to handle crypto tasks like a pro, without breaking a sweat.

Based on the information we have available so far, the beauty of Based Agent is how easy it is to get started. A couple of clicks, and boom - you’re live.

So, what can your AI actually do? Besides handling basics like trades and swaps, it can also stake tokens and even register a base name, all without needing constant babysitting.

There’s even a fully autonomous mode that lets the bot handle things on its own, making quick, on-chain decisions 24/7. Essentially, it’s like having an AI buddy for blockchain tasks - one that can even turn into an X bot and interact socially, if that’s your thing.

Coinbase’s CEO Brian Armstrong is all in on AI-driven crypto. He’s already tested transactions managed solely by bots, and he recently hooked up popular AI chatbot Truth Terminal with its own crypto wallet on X.

The potential here isn’t just hype. Experts are predicting that within the next year, over 80% of blockchain transactions could be handled by autonomous agents. Impossible to say whether this will really happen, but considering how fast things move within this space, it doesn’t sound like a crazy prediction.

We shall see 👀.

Pudgy Penguins’ saga:
From crypto wallets to “normies”

Pudgy Penguins is on a roll, and it's not slowing down anytime soon.

With over 2,000 Walgreens stores now stocking their famous plushies, this brand that started as a Web3 collectible has made serious moves in the physical world. Each plush is more than “just” a cute character → they come loaded with QR codes that connect owners to Pudgy World, an open-world digital experience where these penguins live a second life.

Luca Netz, CEO of Pudgy Penguins, put it best: “We’ve always been about creating positive experiences and connecting people. This is just another step in making that vision real”.

And the numbers back it up - Pudgy Penguins have generated over $13 million in sales and sold a million units since their 2023 launch. With each plush, users can unlock new traits, collectibles, and in-game features, all backed by zkSync’s tech to bring Web3 to life in a fun, friendly way.

What’s the secret? Besides their in-store exclusives (like a certain pink-hoodied “Pudgy” only found at Walgreens), the Pudgy brand has built a community that keeps people coming back.
Their “Pudgy Kindness” campaign, which highlights values of authenticity and kindness, has seen massive traction on social media - no surprise with over 28 billion views on GIPHY and a huge following on Instagram and TikTok. Their content is pure good vibes, spreading the message that Web3 can be playful and welcoming.

But going big has its challenges. Expanding into mainstream retail while keeping that authentic Web3 edge is a balancing act. They’re also navigating how to make blockchain tech kid-friendly and accessible without scaring off parents who might find it overwhelming. How Pudgy Penguins handles these hurdles will be key as they continue their growth.

For Web3 brands looking to break into physical retail, Pudgy Penguins’ journey is a masterclass. Staying true to their brand roots while adapting to new markets is what has made them a hit across age groups and platforms alike.

Oh, and this is not the first time we talk about them here in The Wild West of Web3. Back in edition #9, we explored some of their first moves in the “traditional” market. Then, in edition #50, we saw some bigger moves, showing their rapid growth.

And based on what they’ve doing, this is probably not the last time we’ll see the Penguins here 🐧 .

Decentralized IDs:
Buenos Aires x Blockchain

Buenos Aires is stepping onto the global stage with a pioneering initiative to shift from a centralized to a decentralized digital identity system for its citizens.

Through a partnership with QuarkID, a blockchain-powered self-sovereign identity (SSI) framework, Argentina’s capital city is offering decentralized digital IDs to the 3.6 million users of its miBA digital platform. This marks the city as the first in the world to enable citizens to fully control their own digital credentials, marking a bold step towards privacy, security, and individual data ownership.

miBA’s upgrade integrates QuarkID’s identity technology with the ZKsync-powered blockchain, which ensures maximum security and privacy without requiring citizens to have in-depth knowledge of blockchain technology.
The underlying concept of self-sovereign identity means that citizens can independently manage credentials - such as birth certificates, marriage licenses, and government IDs - without government oversight or third-party data storage. In this structure, digital identity verifications can occur peer-to-peer, keeping data fully private and confidential.

QuarkID operates on the basis of zero-knowledge proofs (ZKPs), a privacy-focused cryptographic method where individuals can verify specific credentials without revealing underlying data.

(If you want to read more about ZKPs, check our edition #17)

The potential applications for QuarkID go far beyond government services. The framework allows private companies, financial institutions, and even retail chains to provide credential-based services like loyalty programs and Know Your Customer (KYC) processes without direct government involvement.
Banks, for instance, can verify a citizen’s identity securely using QuarkID, while citizens retain control over how and when their information is shared.

Diego Fernández, Secretary of Innovation and Digital Transformation for Buenos Aires, emphasized that this initiative is not just about modernizing city services but also about reshaping the role of personal data ownership as a fundamental right:

“When we developed the QuarkID open source protocol, one of the main objectives was for the Government of the City of Buenos Aires to become another user and for the more than 3 million citizens to be able to have their official documents in their miBA wallet with the security that blockchain provides”

The city’s move to decentralized digital IDs via QuarkID sets a precedent in Latin America and beyond, showing how cities can adopt blockchain to enhance digital autonomy. As open-source software, QuarkID is designed to scale and could potentially be used by other governments, encouraging more secure digital frameworks across sectors.
This opens possibilities for other use cases, from social benefits allocation to secure login solutions, bringing a new dimension of privacy-focused digital governance.

What about you? Do you think this is something other cities/countries could/should adopt 🤔?

See you next week.

#LFGrow
Diego Borgo