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- Artificial Intelligence (AI) tokens have been on the rise in the cryptocurrency market, outperforming leading cryptocurrencies in the past 30 days.
- AI tokens are cryptocurrencies that utilize AI to improve various factors such as security, scalability, and user experience. These tokens power AI-related projects such as decentralized AI marketplaces, AI-powered portfolio management, and autonomous organizations.
- Examples of AI platforms and their tokens include Fetch (FET), SingularityNET (AGIX), Hera (HERA), Numerai (NMR), Oraichain (ORAI), Alethea AI (ALI), and Ocean Protocol (OCEAN).
Although the cryptocurrency market is still having its winter phase, Artificial Intelligence (AI) tokens are currently on the rise where it even outperformed the leading crypto Bitcoin and Ethereum in the last 30 days.
Following the increased popularity of ChatGPT in industries such as the business, education, crypto, and other sectors especially by the end of 2022, optimistic views towards AI have been going around. ChatGPT is a chatbot developed by OpenAI designed to generate human-like prose and perform a variety of linguistic tasks, like information processing, question answering, and more. Through this hype, the crypto world has renewed its interest in AI technology.
According to the data from Cryptoslate, AI tokens have increased in value by 65.71% in the last seven days. Moreover, its current market capitalization totals to $4.46 billion.
What are AI tokens?
AI tokens are cryptocurrencies that utilize AI to improve security, user experience, scalability, or a variety of other factors. These tokens are designed to power AI-related projects such as decentralized AI marketplaces, AI-powered portfolio management, predictions, image generation, path finding, autonomous organizations, and more. AI tokens may also give their holders governance rights, or may be leveraged as fee for transactions on an AI platform.
Is the occurrence of AI Tokens a good thing?
Like any other innovations and novel technology, AI tokens also come with pros and cons.
Although the occurrence of this new type of cryptocurrency poses an uncertain future of the industry’s market regulation as well as rivalry from both AI initiatives and digital tokens, the new technology also brings advantages into the space; including the inherent decentralization and security of blockchain networks, as well as the endless potential for new applications and use cases.
Current AI platforms, its Tokens, and their Use cases
Launched in June 2019, Fetch.ai system is a decentralized platform used to build intelligent, autonomous software and tools which allows builders to launch data analytics, decision-making, and prediction bots.
FET, its token, is the main medium of exchange within the Fetch.ai ecosystem–FETs are used to pay for the services provided by Fetch.ai.
SingularityNET is a platform that provides an open-source, decentralized blockchain market which allows its users to buy and sell a wide variety of AI-related products and services. The platform also serves as a marketplace that allows trades of models, data, and other tools used to improve AI through training. SingularityNET was launched in December 2017.
Through its token AGIX, AI developers can offer their services and users can access those services as well as buy and sell AI-related goods on SingularityNET’s open-source, decentralized blockchain market.
Hera, launched in 2022, is an AI-powered pathfinder–an algorithm or system that helps users find the most efficient and profitable trade path when trading on Decentralized Exchanges (DEX). To execute its utility, it uses machine learning algorithms that analyze prices, liquidity, trading volumes, and other data.
Hera tokens allow its users to participate in the project’s governance and to split protocol earnings.
Released in 2015, Numerai is a decentralized AI-based portfolio management protocol which utilizes machine learning algorithms to make investment decisions. To evaluate potential investments, the hedge fund uses a set of crowdsourced forecasts from data scientists around the world. Then, Numerai uses these predictions to drive its own trading algorithms.
For making accurate predictions, contributors are rewarded with its native token NMR. The token is also used as a means of accessing the platform’s services.
Orichain is an Oracle Solution for AI data which allows smart contracts to get data and information from the outside world apart from the data within their own blockchain.
Launched in 2020, Oraichain was released as a blockchain-based ecosystem for decentralized AI, and uses AI and blockchain to create a secure, transparent, and decentralized infrastructure for building and deploying AI applications.
The platform and its architecture–designed to focus more on AI data sources–allows the integration of AI data and services into smart contracts. This feature enables the creation of decentralized applications (dApps) that utilize AI capabilities and the creation of a wider range of AI-based services, such as natural language processing, computer vision, and predictive analytics, and enables the exchange of these services among the participants in the ecosystem.
Its native token ORAI is used for staking and governance. It is also required to run an AI request sent to the Oraichain network.
Alethea AI (ALI)
Alethea image generator, basically uses AI to create images based on input from users. It was launched in 2021 and became known through ChatGPT.
ALI token, standing for Artificial Liquid Intelligence, is used in the generation of character NFTs as well as for upgrades, incentives, and transactions.
Ocean Protocol (OCEAN)
Ocean Protocol was launched in November 2018, and it pursues to make data sharing seamless and monetize data while ensuring data privacy. Ocean allows the data owners to approve the use of AI algorithms on their data which trains AI models that can lead to improved predictive accuracy of models and other benefits without compromising the privacy of the data.
Its utility token, OCEAN, can be used for staking on data curation and for buying and selling data on the Ocean marketplace.
This article is published on BitPinas: AI Tokens Soar Above Bitcoin and Ethereum: What You Need to Know
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.