The Rise of AI in Crypto: Key Projects and Future Potential
Discover how Artificial Intelligence (AI) is paving the way for innovation in the crypto industry and explore the main AI-driven projects in the crypto market.
Introduction
Artificial Intelligence (AI) has come a long way, from simple virtual assistants like Alexa and Siri to advanced technologies such as ChatGPT and self-driving cars. These advancements have not only changed how we live but have also greatly impacted many different areas. The fast growth of AI and its ability to understand and generate text and images has recently caught the attention of millions of users worldwide, leading to the widespread use of AI-powered technologies.
To put things into perspective, ChatGPT, which is the tool that brought the hype back to AI towards the end of 2022 and the first half of 2023, reached the mark of 1 Million users in only 5 days, completely beating other successful tech companies!
In this article, we’ll take a look at the impact of AI in the crypto industry, understanding its possible advantages, challenges, and ongoing projects that are seeking to establish dominance in the crypto market.
The AI x Crypto Intersection
It is no surprise that the buzz surrounding AI has also made its way into the crypto market. However, as with every other wave of excitement surrounding new technologies, it’s essential to question the significance of the intersection between AI and crypto. Is it merely hype, or does it hold the potential for genuine innovation?
In our view, this intersection is undeniably fascinating and has the potential to generate innovative tools and projects. Still, it’s important to exercise caution when considering the multitude of projects being launched. Many of them, or perhaps the majority, may not be truly necessary and are simply capitalizing on the hype.
With that in mind, let’s take a look into some of the key positive aspects and challenges that AI brings to the blockchain industry.
Positive
- Enhanced Efficiency: AI can contribute to improving the development of projects within the blockchain industry, making processes more efficient and effective.
- Automated Smart Contract Audits: By leveraging AI, smart contract audits can be automated, helping to identify vulnerabilities and weaknesses in the underlying code of a protocol.
It is important to note, however, that while AI facilitates this process, it does not replace human audits. AI cannot achieve the same level of accuracy as humans, but it greatly improves and speeds up the auditing process.
- Data Authenticity: The blockchain can solve the problem of data authenticity by establishing a transparent and immutable record of information. This prevents AI-generated deep fake images and other forms of content from manipulating the public.
- Democratizing AI Development: The intersection of AI and crypto can democratize the development of AI applications by providing access to decentralized AI platforms and resources. This allows a broader community to participate in AI innovation.
Negative / Challenges
- Utility: The practical application of AI in the crypto industry is still an ongoing challenge. While the potential is high, finding real-world use cases that effectively leverage AI technology can be a complex task.
- Technical Challenges: Integrating AI algorithms into the blockchain encounters hurdles related to hardware requirements. The current infrastructure is not well-suited for training AI models on-chain due to limitations in network capacity and data transfer speeds.
The main AI-Crypto Projects in the market
As we can see from the chart above, AI projects in the crypto market have gained a lot of traction since the launch of ChatGPT. Now, let’s take a closer look at the main projects that are worth paying attention to!
Fetch.AI
Fetch.AI is an AI-focused foundation that aims to merge blockchain, machine learning networks, and the crypto economy through its native token called FET. By combining these technologies, Fetch.AI creates a new generation of advanced applications that can be useful in our daily lives.
The primary goal of Fetch.AI is to optimize sectors such as the Internet of Things (IoT), energy industry services, automotive, logistics, tourism, and decentralized finance (DeFi). These sectors rely on complex digital systems and large-scale datasets. Fetch.AI enables access to these systems using a “Digital Twin”, which is an autonomous AI agent. These agents utilize Fetch.AI’s global data network to perform tasks and solve problems.
The FET token has shown significant price fluctuations and increased social activity in recent months, particularly during the ChatGPT/AI hype. The chart below shows a substantial price surge from a low of 0.055 in November 2022 to a high of 0.54 in February 2023, reflecting a nearly 10x increase!
SingularityNET
SingularityNet is a crypto project that combines the power of artificial intelligence (AI) and blockchain. It aims to create a decentralized marketplace where AI algorithms can be easily published and monetized. This means that developers can share their AI creations with others and get rewarded for their work.
The project is founded on the idea of Artificial General Intelligence (AGI), which represents the future vision of AI that can solve a wide range of problems. SingularityNet wants to make AGI more accessible to everyone and enable its benefits to be shared by both developers and users.
The SingularityNet platform allows anyone to participate by running an AI agent, which is like a node on the network. These agents can interact with each other, exchange data, and provide valuable results. The platform also uses smart contracts to ensure fair transactions and efficient interactions.
One of the goals of SingularityNet is to create an open and collaborative ecosystem for AI development. It provides tools and infrastructure for developers to build AI-based applications without relying on centralized intermediaries. This means that businesses can access AI services at a lower cost and without depending on big tech companies.
The token AGIX is the currency used in SingularityNET. It helps AI agents communicate with each other and other systems, allows for payments on the AI Marketplace, rewards people who support the platform, and lets token holders participate in decision-making processes.
The price movement on AGIX was very similar to FET, being highly incentivized by the hype around ChatGPT and AI, as you can see in the chart below.
NeuroChain
NeuroChain is a decentralized network for AI applications that aims to address concerns about AI tools controlled by private corporations. By creating a network where the community participates in data validation and is rewarded with NCN tokens, NeuroChain provides secure and open-source AI tools accessible to everyone. Consumers who contribute to the validation process through gamified activities, app interactions, social media, and sharing initiatives are rewarded with NCN tokens.
In return, companies gain access to a vast pool of validated intelligence. By decentralizing AI, NeuroChain makes it more accessible to a wider audience, encouraging broader participation in AI research and development. This inclusive approach can lead to more diverse ideas and perspectives, ultimately resulting in innovative and effective solutions. Additionally, the platform provides a variety of Software Development Kits (SDKs) and pre-trained AI models, streamlining the development process for developers. It also features an AI marketplace where developers can showcase and monetize their pre-trained models, earning royalty fees.
Final Thoughts
Incorporating AI into the crypto industry brings new possibilities and alternative solutions to existing challenges. However, it’s important to recognize that AI and crypto projects have not yet gained widespread adoption. While the potential use cases are intriguing, these projects are currently seen as “nice-to-have” rather than essential. Nonetheless, as technology progresses, these projects are expected to overcome obstacles and improve.
It’s worth noting that the market cap of crypto projects directly developing AI models on the blockchain or applying AI to decentralized applications is still relatively low, accounting for only 0.2% of the total market cap across all tokens. This indicates that the AI sector within the crypto market is still in its early stages and has ample room for growth. While the current size of the AI sector in crypto may be modest, it will likely expand over the long term as more entrepreneurs and developers recognize the opportunities at the intersection of AI and blockchain.
Originally published at https://www.heimdall.land.
