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Digital tokens on the blockchain that are offered by Web3 projects using artificial intelligence in their solutions are known as artificial intelligence (AI) tokens. These tokens may include decentralized exchanges, generative AI systems, AI-based investment protocols, etc.
To put the above in simple terms, AI tokens are digital currencies that use the power of Artificial Intelligence in some capacity. The use cases may vary like security enhancement, user experience improvements, scalability, and much more. In theory, AI could be programmed to increase automation, boost efficiency, and improve a variety of cryptographic systems.
The rise of AI platforms in the traditional market
Because of the increased interest in artificial intelligence technology, AI tokens have taken off. In early 2023, ChatGPT and AI-powered chatbots were released. As a result of this increased interest, the Fetch token (FET) increased by more than 95% in 30 days.
With its powerful generative AI capabilities, OpenAI’s AI chatbot, ChatGPT, took the world by storm when it was released in January 2023, unlocking many unique use cases. ChatGPT, for example, has been shown to be excellent at writing emails, blog posts, scripts, and even coding programs!
Why are AI tokens the hot topic of 2023
AI tokens are making the buzz and have become a hot topic for the crypto community due to a multitude of reasons. Because of intriguing trends that attract people’s attention, the value of AI tokens is rising. In the cryptocurrency community, AI tokens were a hot topic of conversation, but it was unclear if this was just a fad or a fantastic once-in-a-lifetime investment.
However, the ChatGPT chatbot’s successful public launch has significantly changed AI cryptocurrency. In addition, OpenAI is renowned for creating DALL.E, a deep-learning model that generates images from text prompts. This is another factor in the rising popularity of AI-based tokens.
Given that the Tron blockchain has announced its integration with ChatGPT for a decentralized payment framework, it’s possible that the popularity of ChatGPT will impact cryptocurrency.
Additionally, the sudden success of ChatGPT has persuaded outsiders and crypto investors to invest in these rapidly expanding AI cryptocurrencies. Microsoft recently made a $10 billion investment in OpenAI, the company that created ChatGPT, valued at $29 billion.
Which are some of the crypto tokens focused on AI and what they are doing in the field
The Graph
Due to the Graph token’s (GRT) use of artificial intelligence technology, it has become popular with investors. The Graph is an indexing protocol that uses Subgraphs to index blockchain data. Machine learning algorithms, a branch of AI, are used for indexing.
Singularity Net
SingularityNET enables anyone to create, distribute, and monetize AI services. Users can browse and purchase AI services on its internal market using AGIX, the platform’s native cryptocurrency.
Without having to develop apps for end users fully, developers can profit from AI solutions and models. To use in their applications, developers can purchase AI solutions and models.
Render Token
The purpose of the Render Network is to link users looking for render jobs with individuals who have accessible GPUs to execute the renders. In order to receive and finish rendering jobs using OctaneRender, owners would connect their GPUs to the Render Network. Users would transfer RNDR to the rendering person, and OTOY would get a small percentage of RNDR in exchange for handling the transaction and managing the Render Network.
The true potential of AI + blockchain
AI can result in multiple benefits for everyone involved in crypto. Some of them are as follows:
Increased Efficiency
Although there are many advantages to using AI tokens, perhaps the most important one is improved efficiency. Projects can unlock more effective product solutions and enhance current ones through the use of AI.
For example in the case of The Graph, blockchain data on the Ethereum and Avalanche blockchains are indexed using AI in the Graph protocol. This makes it easier for users to access and extract data from these blockchains for queries.
Improved Investment Returns
AI tokens can also result in increased returns on investments as well. Investment decisions can be made more intelligently with the help of AI technology, as demonstrated by the Numerai project.
In accordance with their products, investors can:
- Possess a broadly diversified portfolio that is unaffected by market, country, sector, or factor.
- Invest in stocks with the highest level of conviction in a concentrated portfolio.
Aside from the cryptocurrency industry, AI trading software has also grown in popularity recently. This might serve as the foundation for further advancements in artificial intelligence-based financial technology and we are certain that great developments await us in the future.
Increased Security
AI tokens are useful for security reasons as well. Projects that make use of this technology can offer better security features and better defence against attacks. AI can be used to help detect malicious activities on blockchain networks.
Smart contract optimization is one such example of increased security brought about by the use of AI in Web3. AI can assist in identifying vulnerabilities and anomalies that can be used to detect fraudulent activity through the extensive analysis of data.
The current scenario and predictions for future
The utility of AI tokens is still being properly tested as they are still in their infancy.
Forbes reports that the market cap for AI cryptocurrencies has grown to $4.27 billion in the early week of February 2023. Although only 0.4% of the $1.07 trillion global crypto market, the significant increase in AI tokens and numerous AI-based projects have drawn attention to the uses of AI in cryptocurrency platforms.
An enormous rise in AI-related cryptos was observed between the end of 2022 and the beginning of the new year. Since the beginning of 2023, Fetch.ai, which has rewarded users with autonomous agents, has increased by almost 200%.
Investors are piling up to invest in this new wave and the community has also been very active recently.
To conclude, the adoption of AI technology within cryptocurrency networks has the potential to have a positive impact on the sector in a number of areas, including efficiency, security, and potential financial gains.
The increase in interest from investors looking to capitalize on the potential of these technologies is also an indicator that this new segment is being welcomed by all in the crypto community. Also as seen in the current environment where AI adoption is increasing rapidly, more Web3 projects will surely integrate AI in novel ways which will result in overall adoption and an increase in the popularity of these tokens.
