Artificial intelligence (AI) refers to machines’ capability to perform tasks that require human intelligence, such as learning, reasoning, and problem-solving. AI cryptos are cryptocurrencies that are directly or indirectly associated with artificial intelligence. Artificial Superintelligence Alliance (FET), Bittensor (TAO), Akash Network (AKT), and Numeraire (NUM) are well-known AI cryptos.
The AI crypto sector will significantly increase market value in the coming years.
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What does artificial intelligence mean?
Artificial intelligence (AI) refers to machines’ capability to perform tasks that require human intelligence, such as learning, reasoning, and problem-solving. Rather than being explicitly programmed for every task, AI systems are trained to perform functions using large datasets.
Today, most AI applications are based on machine learning (ML), a subset of AI. Machine learning allows AI systems to learn from data and make decisions or predictions without being explicitly programmed for each scenario. As these systems process more data, they “learn” to improve their performance, adapt to new inputs, and make more accurate decisions over time.
A more advanced branch of machine learning is deep learning (DL). Deep learning uses complex structures called neural networks inspired by how the human brain processes information. These neural networks are highly effective at tackling complex problems, such as image and speech recognition, natural language processing, and autonomous driving.
Everyday examples of artificial intelligence:
- Search engines
- E-mail spam filters
- Map applications
- Typing error detection
- Translation tools
- Social media feeds
- Voice assistants
Self-driving cars, which have received extensive media coverage, are a well-known application of artificial intelligence. The computer of a self-driving car is trained to recognize driving lanes and traffic signs, after which it learns to operate correctly in traffic and avoid accidents.
Although artificial intelligence has been used for years in various sectors, the topic rose to the mainstream in 2022-2023. The reason for this was ChatGPT (Chat Generative Pre-trained Transformer), published by OpenAI. ChatGPT is a chatbot that allows you to ask anything about any topic.
The most significant uproar arose from ChatGPT’s ability to generate text and program code. ChatGPT can write an article or poem with specific specs and create code in different programming languages. It can tell jokes and develop a million other answers to any question.
ChatGPT’s popularity is notable for being the fastest-growing application in history. In just five days, ChatGPT gained 1 million users! For comparison, Instagram gained a million users in 2.5 months, Facebook in 10 months, and Netflix in 3.5 years.
In addition to ordinary users, the possibilities of artificial intelligence have also aroused great interest among tech companies. In January 2023, Microsoft invested as much as $10 billion in the OpenAI company, which shows its commitment to the development of AI. Google also reacted quickly and launched its artificial intelligence system, Gemini.
Other large technology companies, like Meta and Amazon, are also actively developing their artificial intelligence projects. This has been expected to lead to the explosive growth of AI applications in various industries, and there is currently a race to utilize AI.
Artificial intelligence has quickly become one of the biggest megatrends of the 2020s. It offers an exceptional opportunity to create innovations, including in cryptocurrencies.
What are AI cryptos?
AI cryptos are cryptocurrencies that are directly or indirectly associated with artificial intelligence. As even the term artificial intelligence cannot be defined precisely, there is no precise definition yet for AI cryptos.
In the crypto world, artificial intelligence also includes data processing, which is why the AI crypto category includes projects that index and process blockchain data.
The most well-known example of data indexing is called The Graph. It provides an infrastructure that allows developers to retrieve and organize blockchain data efficiently in a decentralized manner. Although The Graph’s connection to traditional AI is limited, it offers excellent tools for data management and thus supports several different AI solutions.
AI cryptos are bringing revolutionary opportunities to many fields by enabling new ways to analyze and utilize data. Combining artificial intelligence and blockchain technology enables more efficient, data-driven decision-making models and the automation of services, which can significantly improve quality and cost-effectiveness.
Although AI cryptos offer significant potential, the concept of AI cryptos is still quite vague. Many crypto projects are trying to capitalize on the AI boom by attaching themselves to the AI category, even if their connection to AI is minimal.
Examples of AI cryptos
Artificial Superintelligence Alliance (FET), Bittensor (TAO), Akash Network (AKT), and Numeraire (NUM) are well-known AI cryptos. In addition to these, The Graph is considered by many to be an artificial intelligence crypto. The Graph is a protocol that makes retrieving data from the blockchain easier. Because of this, it can be seen as an essential piece, especially in infrastructures related to artificial intelligence.
Next, let’s review the most well-known AI tokens. These examples give you an idea of what projects and use cases fall into the AI category.
Artificial Superintelligence Alliance (ASI)
The Artificial Superintelligence Alliance (ASI) is a joint project of three prominent artificial intelligence crypto projects: Fetch.ai, Ocean Protocol, and SingularityNET. ASI aims to create a decentralized alternative to AI projects dominated by large technology companies. ASI develops artificial intelligence and data sharing in an open and decentralized environment.
ASI, Fetch.ai, Ocean Protocol, and SingularityNET have combined their research, technology, and products. This enables the development of new-generation AI solutions and better technology scaling. The alliance’s founders, Ben Goertzel, Humayun Sheikh, and Trent McConaghy, see ASI accelerating the development of artificial intelligence.
ASI is a significant step towards a decentralized, artificial intelligence-based infrastructure that utilizes the strengths of different projects. After the merger, all the projects in the ASI began to operate under Fetch.ai’s native token (FET), which has replaced the previous native tokens (AGIX and OCEAN).
With the FET token, users can use ASI’s platform by paying for its services and participating in network maintenance work through staking.
Bittensor
Bittensor connects developers of AI models and providers of computing power. Bittensor’s TAO token plays a vital role in this, as it acts as an incentive system for network administrators and participants who offer resources to develop AI models. Bittensor’s Proof of Stake consensus enables everyone to participate in maintaining the network by staking TAO tokens.
Bittensor aims to democratize the development of artificial intelligence by providing a decentralized platform where even small players can participate in creating AI solutions. Bittensor’s network consists of subnets that can specialize in specific AI tasks, such as natural language processing or image recognition. This structure enables the scalability and versatility of AI solutions.
The value of Bittensor’s TAO token and the ecosystem’s growth have attracted attention from investors and developers. The TAO token’s supply is limited to 21 million, which is no accident. The number in question comes from Bitcoin.
The limited supply and the regular halving of inflation create scarcity that can increase the TAO token’s price in the future. The platform’s ability to combine blockchain technology and the decentralized development of AI has made it one of the most promising and popular artificial intelligence cryptos.
You can learn more about Bittensor from our comprehensive Bittensor guide.
Akash Network
Akash Network is a decentralized cloud service platform that offers a cheaper and more efficient alternative to traditional cloud services such as Amazon AWS, Google Cloud, and Microsoft Azure. It is a marketplace where users rent computing power from different providers.
Akash has been calculated to reduce the cost of cloud services by up to 80% at best, making it an attractive option for companies and developers who need large computing capacity affordably and flexibly.
Speaking of artificial intelligence, Akash Network’s most significant innovation is its GPU marketplace, which enables efficient hosting of applications that require AI and machine learning. The development of artificial intelligence requires massive computing power, which the Akash marketplace offers flexibly and affordably.
Akash Network’s AKT token is used as a means of payment for renting computing power and as an incentive for network operators. By providing access to powerful GPU resources, Akash Network democratizes the use of resources required by AI. This enables faster development and deployment of AI models even for smaller operators who would otherwise not have access to similar resources.
In addition, Akashi’s environmentally friendly operating model efficiently uses existing computing resources, reducing the need for data centers and, at the same time, the carbon footprint.
Numeraire (NMR)
Numeraire is an investment fund guided by artificial intelligence. It combines two hot trends: trading and AI. The project aims to create the world’s largest hedge fund. Established in 2015, Numeraire is one of the oldest AI crypto projects on the market.
Numeraire is an ecosystem built on the Ethereum platform. Anyone can create their artificial intelligence algorithm and upload it to the Numeraire’s system for competition. The better the model predicts the development of the stock market, the better reputation it gets. Other users can then place, i.e., stake, Numeraire tokens on behalf of a specific AI algorithm.
Numeraire’s ticker is NMR. The NMR token serves as an incentive for developers of AI algorithms. In addition, the NMR token is used to invest/stake on behalf of these AI models. The developer of weak models will lose the staked NMR tokens, which will be burned.
The future of AI cryptos
The AI crypto sector will significantly increase market value in the coming years. Although many popular projects have been on the market for years, AI cryptos have received little attention. The AI crypto category resembles how the DeFi category looked in 2020.
The first significant boom in AI cryptos was seen at the turn of 2023 when ChatGPT began to receive widespread media attention, bringing the potential of artificial intelligence to the general public’s attention. In addition, the substantial price increase of several AI cryptos showed that the potential of AI cryptos is enormous.
The sector will likely proceed in a boom-and-bust fashion, just like the DeFi and NFT markets (as well as meme coins) in recent years. Investors should be cautious with such cryptocurrencies. Most join the market when professionals start to sell, which means newbies often become exit-liquidity for the whales.
The best opportunities are found when the market is quiet and interest in the sector has temporarily decreased. Don’t get caught up in the hype when a potential investment target has risen hundreds of percent in a few weeks.
Although the AI crypto sector is subject to short-term volatility and speculation, its long-term growth potential is promising. Artificial intelligence is already one of the biggest trends in the technology industry. It and its applications, such as machine learning, robotics, autonomous systems, and data analysis, will change almost all industries.
Combining artificial intelligence with blockchain opens up new opportunities, especially in distributed computing, data trading, and the creation of intelligent autonomous systems. The AI-crypto sector is constantly growing and developing, so new projects and innovations appear regularly.
