Crypto-related projects and AI are two of the most exciting and rapidly evolving areas of technology today. In this article we will discuss many potential ways in which they could interact in the future through various digital asset platforms.
What is AI?
AI enables machines to make decisions based on data and increasingly imitates human intelligence.
AI-generated artwork, in which a program interprets user prompts written in natural language to create digital art, and ChatGPT, a program that can "write" according to a user's brief, are two recent popular examples.
These applications are becoming increasingly sophisticated, and the outputs in both cases are so similar to what a real person might create that they could be mistaken for human creation.
Blockchain AI applications
The applications of AI are practically endless, and the technology has entered the cryptocurrency industry.
1. AI-powered trading algorithms
Algorithms that use machine learning to analyse market data and make more accurate predictions about cryptocurrency prices. These algorithms can use a variety of data sources, such as social media sentiment analysis, news headlines, and trading volume, to identify patterns and trends in the market and make trades based on those insights.
2. Decentralised Autonomous Organizations (DAOs)
DAOs can use AI algorithms to make decisions about how to allocate resources and manage their operations. DAOs are essentially organizations that run on blockchain technology and are governed by smart contracts, which can be programmed to execute certain actions automatically based on certain conditions. By incorporating AI algorithms into these smart contracts, DAOs could become even more efficient and responsive, potentially leading to more innovative and effective business models.
3. Security & Privacy of Cryptocurrencies
AI algorithms could be used to identify and mitigate security threats such as hacking attempts or distributed denial of service (DDoS) attacks, or to help identify potential vulnerabilities in smart contracts before they can be exploited.
4. Blockchain Analytics
AI-powered tools can analyze blockchain data to identify trends, patterns, and anomalies. This could help organisations gain insights into market trends, user behaviour, and potential security threats.
5. Digital Identity Verification
AI can be used to develop more robust and secure digital identity verification systems that could be used for KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance in the crypto industry.
What are AI cryptocurrencies?
AI cryptocurrencies power AI platforms that integrate blockchain technology. SingularityNET and The Graph are two examples of AI blockchain platforms powered by cryptocurrencies. To benefit from the platforms' integrated artificial intelligence, users must spend tokens.
Examples of AI cryptocurrencies
Graph (GRT)
The Graph is a protocol for indexing and querying blockchain data in the same way that Google indexes and queries website data. By organising data into smaller "subgraphs," The Graph changes the difficulty of indexing blockchain data.
This enables developers to build and run decentralised applications (dApps) more efficiently. The Graph uses artificial intelligence (AI) and machine learning algorithms to optimise the data retrieval process, making it faster and more accurate.
SingularityNET (AGIX)
SingularityNET lets anyone build, share, and make money from AI services. Users can browse and pay for AI services in the platform's native cryptocurrency, AGIX, through its internal marketplace.
Without having to fully develop applications for end users, developers can profit from AI solutions and models. In a similar vein, programmers can acquire AI models and solutions for use in their applications.
SingularityNET’s platform uses AGIX as its native token to facilitate transactions and incentivize participation in the network. AGIX is used to pay for the use of AI services on the platform, and it is also used to reward contributors who help improve the platform and its underlying AI technologies
Fetch.ai (FET)
This is a blockchain-based artificial intelligence and machine learning platform, that aims to automate business processes like trading and processing data. enable the creation of autonomous agents that can interact with each other and the environment to complete tasks. The goal of Fetch.ai is to create a decentralised, AI-powered ecosystem where agents can perform tasks such as data exchange, value exchange, and resource allocation in a more efficient and autonomous manner without any intermediaries.
FET, its native cryptocurrency, is used to pay for network transactions.
Ocean Protocol (Ocean)
Ocean Protocol is an Ethereum-blockchain-based platform that allows organisations and people to share their data to monetise it whilst also maintaining privacy and security. This might entail making data accessible to startups and researchers without the data holders having to give it up. The creation of data services is powered by AI.
The platform uses OCEAN as its native token, which is used to incentivize and reward participation in the network, as well as to pay for the use of data and AI services on the platform.
iExec RLC (RLC)
iExec enables users to monetise their computing power and access cloud computing resources on demand.
Developers can rent computing power, servers and data centers, as well as share their unused resources using a unique marketplace on the Ethereum blockchain.
RLC, is an ERC-20 token that serves as the platform's primary medium of exchange. All transactions that occur on iExec's decentralized cloud marketplaces are settled in RLC tokens, and users need to stake RLC tokens to be eligible to operate on the platform.
Alethea Liquid Intelligence (ALI)
Alethea is a digital asset platform for "intelligent NFTs," or iNFTs. These are, in essence, digital avatars that communicate with others through the use of AI. AI-generated animation, voice, and generative AI (AI that can create text, images, code, video, etc.) are two possible features of these iNFTs.
The ALI token is a utility Token of the digital asset platform, which allows users to do various tasks, including:
Use the iNFT Protocol and turn a NFT into an iNFT (a user must lock a minimum amount of ALI Tokens within the iNFT platform).
Upgrade the intelligence level of their NFT by locking up more ALI tokens.
Govern the iNFT Protocol through voting on some decisions.
Numeraire (NMR)
Numerai is an AI blockchain network that acts as a hedge fund by investing in global stock markets using artificial intelligence and machine learning. The platform incentivises and rewards data scientists for contributing to the development of artificial intelligence (AI) models.
Numerai gives data scientists access to financial data and encourages them to create artificial intelligence (AI) models that can predict financial markets. The Numerai hedge fund uses the aggregated models to make investment decisions.
The Numeraire (NMR) token is a way to reward data scientists for their contributions and encourage data scientists to contribute their models to the platform. By using Numeraire, data scientists can be compensated for their contributions to the Numerai platform's development, and the platform can benefit from their contributions by making better investment decisions with their models. As it encourages data scientists to contribute to the platform's AI development and uses AI to drive its underlying business model, Numeraire is an AI-related cryptocurrency.
Summing up, the goals of both of these technologies are similar: to revolutionize our lives' convenience. Technology is changing all the time and will continue to do so in the world we live in. It is essential to establish a healthy ecosystem that is open to inevitable changes. By enhancing Web3's efficiency, security, user experience, and automation, crypto has the potential to ultimately alter not only AI but also Web3 in a variety of its applications. This would make it possible for decentralised services to reach a wider audience and make them more accessible and beneficial to a greater number of people.
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