In front of a noticeable and clear progress witnessed in the technological arena in the field of artificial intelligence since the beginning of the year, especially with the emergence of ChatGPT in late 2022, other applications of artificial intelligence, and more recently, the emergence of the strong competitor to ChatGPT, Bard, which is affiliated with Google. Launching in March 2023.
What do you expect the impact of artificial intelligence on the Cryptocurrency environment to be? Before we start answering this question, let’s learn what artificial intelligence is first.
What is artificial intelligence?
Artificial intelligence, in its simplest concept, can be defined as the ability of machines and programs to simulate human behavior, as they can be fed with data and taught to reach very accurate results that may exceed human performance at a lower cost and time.
Artificial intelligence and Cryptocurrencies
Cryptocurrencies represent a decentralized system based on blockchain technology, and the digital currency market is considered a volatile and rapidly developing market.
At a time when smart artificial intelligence tools and applications appeared, digital currencies based on artificial intelligence appeared to improve the performance of digital currencies and blockchain applications.
These currencies are called tokens based on artificial intelligence (AI Tokens), which are known as artificial intelligence currencies.
What are AI-based tokens?
AI tokens are, in short, digital assets that are transacted in AI-based projects in the blockchain and Web 3.0 environment.
To make the picture clearer, we will review the most important of these projects and the role of artificial intelligence currencies in them.
The most famous tokens based on artificial intelligence
1. GRT Token
GRT is used on The Graph, a decentralized platform designed to query networks, such as Ethereum and the InterPlanetary File System (IFPS) network, whose projects typically use complex smart contract systems such as Uinswap.
The Graph platform uses a decentralized protocol based on artificial intelligence technology to achieve the highest query performance on decentralized networks.
2. FET Token
FET is the token used within Fetch.ai, a decentralized AI and blockchain platform that enables decentralized transactions and smart contracts.
The main goal behind creating the Fetch.ai platform is to create decentralized autonomous organizations (DAO) without any human intervention, and the AI-based FET token is used to pay transaction fees on the platform.
3. OCEAN Token
The OCEAN token represents the primary digital currency for the Ocean Protocol platform, which is a decentralized platform for exchanging big data, that uses artificial intelligence (AI) and blockchain technologies to share big data with high security and privacy.
OCEAN token helps facilitate transactions, buying, and selling on the platform and generate profits through mining on the platform.
Why are AI currencies increasing in popularity?
Those who follow the movement of artificial intelligence currencies in the Cryptocurrency market will notice the real impact behind their appearance and even the main contribution to their very noticeable rise.
The progress in artificial intelligence applications and their launch in the market has influenced the emergence of new types of projects based on artificial intelligence and their digital currencies (AI Tokens).
Especially since this type of project has become very attractive to investors since the beginning of the current year 2023, so much so that many projects and currencies based on artificial intelligence have received millions of dollars before their launch, through pre-sales, such as the AIDoge token and the yPredict token.
We can see through the following chart the extent to which artificial intelligence currencies have risen since their inception, during the period between November 2022 and February 2023, and the extent to which they have been affected by the artificial intelligence systems that were launched such as Google Bard and GPT Chat.
How has AI been invested in the Cryptocurrency environment?
Artificial intelligence has created great opportunities for blockchain and Web 3.0 projects, and this is what we see from the nature of the projects that have been launched based on AI technology.
This new technology constitutes a fundamental support in the digital currency space, as it has provided promising possibilities that are expected to take this space to a completely different area.
These opportunities can be listed as follows:
- Trade digital currencies in a professional way based on accurate and successful trading strategies issued by platforms such as Fetch.ai, which can make decisions according to artificial intelligence algorithms. The Graph project, which can provide the best statistics using artificial intelligence, and the yPredict project, which is designed specifically for traders in the crypto market.
- Managing digital assets and building the best profitable strategies without human intervention, such as the Synthetix project, which provides services for creating and mining digital assets of various types, including currencies, commodities, and others, based on artificial intelligence technology.
- Managing digital portfolios according to strategies created by artificial intelligence to achieve maximum benefit without human follow-ups, such as MarginFi’s chatbot, which represents an addition that works with artificial intelligence technology to manage an individual’s portfolio and facilitate its transactions, but it is still under development.
- Managing DAOs, such as the Fetch.ai project, which contributes to providing the best performance of DAO services.
- Smart contract management, such as the Cortex project, offers AI add-ons that can be added to smart contracts and improve their performance.
- To detect fraud and predict their behavior, such as the Velas project, which provides algorithms supported by artificial intelligence to verify transactions on the network, especially the Solana network.
- Promoting decentralization and controlling governance processes while preserving users’ privacy, such as the Oasis Network project, which supports decentralized transactions without access to users’ sensitive data.
- Analyzing market indicators and sentiments and providing accurate reports on expected prices and others, such as the Numerai project, which works with artificial intelligence in a decentralized environment to provide the best predictions to investors in the stock market.
From the projects we mentioned above, we see the diversity and multiplicity of solutions that artificial intelligence technology can provide to greatly support the environment of digital currencies and blockchain applications.
This makes us wonder whether the combination of blockchain and artificial intelligence technologies in implementing decentralized projects based on artificial intelligence that is processed with AI Tokens will have a broader horizon than it seems now?
So are we facing a revolution and a qualitative shift in the digital currency space due to AI technology?
Note: This is not an invitation to trade and invest in AI coins, so you should do your own research as the market is always volatile and people’s investment goals are different.
