Artificial intelligence (AI) is a rapidly growing technology with enormous potential to revolutionize global business, fast-track new technologies, and create new types of social and financial networks, previously non-existent. It is a breakthrough technology of the next decade and is attracting a large market in cryptocurrency. According to Cortex, the demand for AI algorithms could soon be worth as much as $1 trillion, with Fetch already achieving a market cap of over $76 million.
Blockchain technology and artificial intelligence have independently evolved into leading technologies fostering innovation and revolutionizing almost every industry. Each tackles some of the biggest global challenges, from blockchain’s application in supply chain management to the integration of AI in various facets of the healthcare system.
When combined, Blockchain and AI effectively increase efficiency, building and organizing immense databases, strengthening cybersecurity protocols, and performing tasks in a fraction of the time it takes humans.
The AI revolution is currently happening in the crypto world. This guide briefly explains AI crypto and highlights some top AI crypto projects.
AI Crypto Explained
AI crypto is a relatively new classification of crypto projects that concentrates on integrating AI and blockchain technologies.
A Blockchain is an immutable, publicly distributed ledger that simultaneously provides an immediate and transparent exchange of encrypted data to multiple parties. Immutability and public sharing enhance confidence and trust in transactions, creating new efficiencies and opportunities.
Artificial intelligence refers to leveraging computers, data, and machines to mimic the cognitive functions of the human mind, such as learning, problem-solving, and decision-making. AI offers automation of repetitive tasks, improved decision-making, and a better customer experience.
AI crypto projects may directly incorporate AI into blockchain validation mechanisms or enable an AI-as-a-service marketplace for dApp developers.
Importance Of AI In The Crypto Market
Artificial intelligence is widely applicable in analyzing traditional financial markets, and
accordingly, similar tools apply in crypto-trading. The crypto industry’s high volatility not only heightens the risks of crypto investments but also increases potential profits. Prices frequently fluctuate, allowing traders to earn a stable income with well-calculated patterns. Obtaining and calculating the patterns of such a dynamic market requires processing vast amounts of data, made possible by artificial intelligence and its other aspects, machine learning (ME). The main advantages of AI are:
- AI analyzes large amounts of data.
- Learning ability.
- High work speed.
- Accuracy.
Incorporating AI into blockchain technology has the potential to enable dynamic smart contracts, automated transactions, faster processing speeds, and more.
Top AI Crypto Projects
Fetch (FET)
Considered one of the best-emerging cryptocurrencies of 2022, FET, with a Market Cap of $257.3M, was recently listed on eToro, a reputable and well-regulated crypto exchange. Fetch.ai is a blockchain-based platform using AI and machine learning to create autonomous economic agents, such as crypto bots on decentralized exchanges, which act on behalf of individuals to generate profits. These agents also share data between devices and automatically process transactions earning fees.
Due to its flexibility, Fetch is quite powerful, with its autonomous economic agents forming the basis of future decentralized marketplaces and aiding in connecting devices in the Internet of Things.
Fetch.ai’s blockchain combines proof of work and proof of stake validation mechanisms. Miners earn FET tokens for validating transactions, and these tokens pay for using autonomous agents.
Numeraire (NMR) A Crypto AI Hedge Fund
Numeraire is a unique AI crypto project that powers Numerai, a hedge fund that relies on NMR token holders to make predictions about the stock market rather than using professionals.
NMR holders make weekly stock predictions using choice metrics and submit ticker symbols and target prices to Numerai. Numerai analyzes all the forecasts using AI and makes real-world bets on the best ones.
Users must stake NMR on their prediction and earn newly minted NMR tokens on the correct prediction, while their staked NMR is burned on wrong predictions. Additionally, NMR holders access the platform’s AI prediction models to see what stocks are being bet on and potentially use Numerai to inform their stock trades. The staked models form the Meta Model, which controls the capital of the Numerai hedge fund.
SingularityNET (AGI) – A Marketplace for AI Algorithms
SingularityNET is an online marketplace for trading AI algorithms, and its native crypto AGI is one of the best ERC20 tokens. This decentralized marketplace connects creators of AI apps who wish to monetize them with businesses that integrate AI algorithms.
SingularityNET supports AI algorithms in cloud robotics, biomedical research, and cybersecurity but intends to add more categories, including the use of AI to match buyers and sellers automatically.
SingularityNET depends on human agents to broker transactions, who must stake the AGI crypto. AGI is the governance token. It is also used to pay for transactions on the platform.
dKargo (dKA) – AI Crypto for Logistics
dKargo is an AI crypto for enhancing efficiency in supply chains globally launched in 2020 during the COVID-19 pandemic. Like other crypto projects is a decentralized platform that leverages AI to make logistics more efficient and cost-effective.
dKargo token holders buy and sell logistics services in a trustless environment, making engaging services from multiple logistics providers easier. It enables custom supply chains that are almost unattainable using existing shipping networks.
Logistics Service providers on the dKargo platform must stake the DKA crypto token, the governance token for the dKargo network, and pay for logistics services on the platform.
Velas (VLX) – Crypto Coin on an AI-Blockchain
Velas is a Solana blockchain cryptocurrency that integrates AI into the validation mechanism for transactions on the blockchain. Velas uses Artificial Intuition Delegated Proof of Stake (AIDPoS), which enables up to 30,000 transactions per second without compromising security, making it one of the fastest blockchains.
The Velas blockchain hosts Ai-based crypto projects, dApps and Web 3.0 applications, making VLX tokens among the best Web 3.0 coins. VLX token is the network’s native coin, the payment medium, and a governance token staked through the AIDPoS validation system, yielding returns for token holders.
Cortex (CTXC) – AI Crypto Coin for AI-Smart Contracts
Cortex is another Ethereum-based crypto project bringing AI’s functionality to smart contracts. Cortex users buy AI models and incorporate them into smart contracts enhancing the functionality of existing smart contracts on the blockchain. Cortex’s AI dApps have many use cases ranging from Play-to-earn crypto games and crypto lending to AI-governed stablecoins.
The Cortex Virtual Machine, which runs the AI functions, is powered by GPU processors instead of CPU processors to enable more processing power. Developers build AI algorithms with Cortex and sell them for CTXC tokens. The rise in the value of CTXC tokens incentivizes developers to join Cortex and create diverse AI models for dApps.
Conclusion
AI crypto projects have immense potential, and AI is revolutionizing the cryptocurrency ecosystem, as evidenced by the highlighted projects, which are essential in facilitating AI development on the blockchain.
Despite their enormous potential, they are still in their infancy, and investors ought to be cautious when evaluating cryptocurrency AI projects. Investors must consider whether a project is likely to succeed and whether the token offered is a long-term crypto investment. AI crypto Projects need a strong development team consisting of developers with a background in AI and extensive data management. There also should be a clear need for the solutions offered by the AI project.
More information is needed to limit the widespread use of AI technologies. The cryptocurrency ecosystem is relatively new compared to the traditional stock market, and the available information often limits the knowledge of AI. Additionally, highly accurate and complex machine learning algorithms require powerful and sophisticated computing hardware, only affordable to giant companies. However, this is solvable by learning and strengthening AI and ML fundamentals.