What is AI?
Artificial intelligence (AI) is a field of computer science enabling machines to make decisions based on data, increasingly mimicking human intelligence. It is the science and engineering of making intelligent machines, especially intelligent computer programs. It is related to the similar task of using computers to understand human intelligence, but AI does not have to confine itself to methods that are biologically observable.
What is AI Cryptocurrencies?
AI crypto coins, also known as artificial intelligence coins or tokens, are a type of cryptocurrency that incorporates artificial intelligence technology into their operations. AI crypto coins study market patterns, make predictions and execute automated trades using machine learning algorithms and natural language processing. Because of their ability to learn and adjust to market developments, investors treat them as a more dynamic and responsive investment option.AI tokens are cryptocurrencies created to power AI-related projects, apps, and services such as decentralized AI marketplaces, AI-powered portfolio management, predictions, image generation, path finding, autonomous organizations, and others.
Here are few examples of the biggest AI cryptocurrency projects according to their Market cap
FETCH (FET)
Fetch.ai is an open-access decentralized machine learning blockchain-based network designed to enable the development and growth of the digital economy without the intervention of humans. The network not only connects devices and services to the Internet of Things, but it also allows other agents, such as people, to participate. The network connects people, devices, and services, allowing for data sharing and collaboration. Fetch.ai develops tools and infrastructure to support the growth of a decentralized digital economy based on artificial intelligence.
NUMERAIRE
Numerai is a network that functions as a hedge fund, allowing users to trade stocks on the Ethereum blockchain. According to the website, the platform invests in global stock markets using artificial intelligence (AI) and machine learning technology. The platform’s goal is to provide clean, regularized, and usable data. In a nutshell, Numerai is blockchain-based software that forecasts the stock market and makes investments based on artificial intelligence. One of the major issues with forecasting the stock market is relying on historical data. This reduces the quality of data and, in some cases, renders it completely useless. Numerai intends to solve this problem by employing artificial intelligence, which makes predictions based on current data. Platform users can make trades based on more relevant and up-to-date data by utilizing machine learning. It offers applications for 2 types of traders. Which are
SIGNAL (This is an application that stores stock market predictions and market strategies) and TOURNAMENT (This platform allows users to compete in a weekly trading algorithm contest by submitting trading algorithms. This promotes competition and allows anyone to place a wager on the most likely outcome). It should be noted that Numerai is the platform, and Numeraire is the token.
CORTEX (CTXC)
Cortex is a public blockchain infrastructure that supports the execution of AI algorithms and AI-powered dApps. The Cortex platform aims to facilitate AI democratization by making models easily integratable into smart contracts and decentralized applications (DApps). Smart contracts are similar to regular contracts; however, instead of being written on paper, these contracts run as protocols on the blockchain. Cortex has introduced a mechanism that incentivizes AI developers to store models on the blockchain. Blockchain developers have access to the best AI models available worldwide and can choose from them. Cortex’s ultimate goal, according to the whitepaper, is to become a better token that supports all AI models.
SINGULARITY NET (AGIX)
SingularityNET (AGIX) is a blockchain-powered platform that allows anyone to easily “build, share, and monetize” Artificial Intelligence services. SingularityNET’s marketplace encourages users to browse, evaluate, and purchase AI services using SingularityNET’s native token, AGIX.
SingularityNET provides an automated process that enables any business to associate existing Artificial Intelligence tools with the production of the solution it requires. Furthermore, the platform optimizes for customization and usability.
VELAS (VLX)
Velas (VLX) is a cryptocurrency founded by a diverse group of intellectuals, engineers, researchers, cryptographers, and results-oriented business leaders. According to the Velas platform, it is creating an open-sourced ecosystem of blockchain products and services. Velas aims to bring together the best features of both decentralized and centralized solutions. The process entails researching cutting-edge cryptography, developing consensus protocols, and designing user interfaces that are simple to use. These interfaces aim to enable enterprises, developers, and individuals worldwide to create and join a transparent, easily accessible, and community-governed Web3 ecosystem. The platform is being developed to become a blockchain that can support the development of hundreds of services and applications. As a result, it is intended to be among the quickest and most secure platforms in the market. The platform’s goal is to create and combine game-changing technological services and goods in order to enhance people’s lives all over the world and restore the internet-free state of the world that existed previously. The developments and technologies contribute to the creation of a future that is autonomous and decentralized, run by the collective intelligence of the people.
OCEAN PROTOCOL (OCEAN)
The interoperable decentralized app (DApp) Ocean Protocol (OCEAN) is built on Ethereum and intended to speed up data exchange services. The Ocean Market, the open-source data marketplace for the Ocean Protocol, connects dataset vendors with users looking to access this data. The data token serves as an access token for the data by representing its value while the data NFT acts as a representation of the data’s copyright on the blockchain. An NFT is produced on the blockchain when a data asset is released via the Ocean Protocol.
HOW AI CRYPTO WORKS
This is a detailed description of how AI cryptocurrency works.
Data gathering
A wide range of information sources, such as news articles, social media, and market trends, are gathered by cryptocurrencies powered by AI. Finally, using machine learning algorithms, this data is reviewed to spot trends and predict market behavior.
Trading tactics
Based on the study, the AI system creates a trading strategy, including when to buy, sell, or hold the cryptocurrency. This decision-making process is carried out automatically without human involvement.
Execution
The AI system employs smart contracts to execute trades on the blockchain network after deciding on a trading strategy. These automatic agreements self-execute and operate independently when certain conditions are met.
Continuous learning and advancement
AI cryptocurrencies use machine learning algorithms to continuously learn and improve their performance. The system can analyze the results of previous transactions and adjust its strategies as needed to improve future success. Because of this ongoing learning and development, the AI crypto tokens hope to become more efficient.
Also, there are few advantages and disadvantages of the Ai crypto. The advantages are
Decision making
AI can analyze massive amounts of data, detecting patterns and trends that human analysts would miss. Using this research, traders can make more informed decisions about when to buy, sell, or hold cryptocurrencies.
Improved risk management
AI can help traders manage risk better by analyzing data and identifying potential pitfalls. This can help traders make more informed decisions about which assets to invest in and how much money to invest.
The disadvantages are
Volatility
AI cryptocurrencies, like all cryptocurrencies, experience high levels of volatility. Government regulations, hacking, and investor sentiment can all have an impact on the market. This volatility has the potential to cause significant losses for investors.
Inadequate regulation
Artificial intelligence cryptocurrencies are still a relatively new technology, and there is a lack of regulatory oversight in the market. This can contribute to an environment conducive to scams and fraud.
ARE AI CRYPTO SAFE?
A variety of factors influence the security of AI cryptocurrencies, including hacking, technical issues, lack of regulations, volatility, market sentiment, government regulations, the technology used, and the security procedures in place. While using AI in the cryptocurrency industry can increase efficiency and decision-making, it does not imply safety. Therefore, investors should also consider the risks associated with the specific cryptocurrency and the security measures in place.
