The ubiquitous integration of artificial intelligence into our daily lives is steadily increasing, and the technology is impacting many industries and activities. One of the drivers of the AI field has been OpenAI, which has a variety of products such as GPT, ChatGPT, Sora, and DALL-E. AI is used in many industries, from personal assistants such as Siri and Alexa to AI algorithms in social media - AI's presence is ubiquitous and continues to expand.
In the field of cryptocurrencies, AI has been no exception. The convergence of AI and blockchain technology has led to a surge in the development of AI-based cryptocurrencies and applications. These projects utilize AI and machine learning to empower blockchain networks, improve security, and create new use cases. AI is used in cryptocurrency for various purposes, such as automating trading strategies, improving market analysis, and making blockchain networks more efficient. Even some AI-enabled cryptocurrencies have emerged, looking to capitalize on the growing interest in both AI and cryptocurrencies. However, the use of AI in cryptocurrencies should be approached with caution. While AI can potentially empower blockchain networks and improve user experience, it poses new risks and challenges. For example, AI algorithms can be susceptible to manipulation or exploitation, and the security of AI-based cryptocurrency systems can be jeopardized. AI has become an essential part of our lives, and its integration into the cryptocurrency world is no exception. As AI evolves and improves, its role in cryptocurrency will likely expand, offering new opportunities and challenges for developers and users alike.
AI Market today
The AI sector of the cryptocurrency market is currently experiencing a period of significant growth and development. According to the latest data, the total market capitalization of AI-related cryptocurrencies is $32.8 billion. AI-related crypto assets have performed well after major developments in OpenAI:
The sector has seen significant growth over the past year, with high-profile projects such as AAKT, FET, and PPRIME significantly increasing their market value. The artificial intelligence sector in the cryptocurrency space is seen as a strong contender for becoming the following big narrative, and the continuous development of AI technologies is expected to drive further growth. Projects such as The Graph (GRT), Fetch.ai (FET), and SingularityNET (AGIX) are among the most successful in the AI cryptocurrency space, offering unique value propositions that utilize AI to enhance the functionality of blockchain and cryptocurrencies. The convergence of AI and cryptocurrencies is seen as a significant trend: AI is used to analyze the vast amounts of data generated by cryptocurrency markets. Such analysis helps to understand market trends, predict price movements, and improve the security of digital transactions. The use of AI in crypto trading and market forecasting is a crucial area, with projects such as Ocean Protocol (OCEAN) and Numeraire (NMR) leading the way. However, it is essential to note that the artificial intelligence cryptocurrency sector is still at an early stage of development, and while it offers excellent opportunities, it also carries risks. The speculative and volatile nature of the cryptocurrency market means that it is difficult to predict which particular AI cryptocurrency will show significant growth.
The AI sector of the cryptocurrency market is a dynamic and rapidly evolving space. A wide range of projects utilize AI technologies to enhance the functionality of blockchain and cryptocurrencies. As AI evolves and integrates into the cryptocurrency market, we can expect to see more sophisticated and efficient solutions for trading, security, and compliance.
Example of AI in DAO
AI at the edge of DAO - autonomous agents act as token holders. Decision-making in the DAO is democratic and decentralized. This means that every member of the DAO has the right to vote. In theory, the democratic nature of the DAO has several advantages. However, in practice, the requirement to vote on every single proposal can be overwhelming for members. Many DAO members do not have the time to vote or even the ability to understand each proposal. The lack of voter participation in the DAO limits the efficiency of decision-making within the DAO and could be a potential risk of centralization if only a tiny fraction of DAO members participate in the voting process. If autonomous agents act as delegates for token holders, voter participation in the DAO could increase, the speed of decision-making would accelerate, and decentralization could become feasible.
Promising projects
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MASA
The MASA project is a decentralized AI data and LLM (Large Language Model) network that aims to enable users to own, share, and earn from their data and computations, thereby facilitating the development of AI applications. The MASA token serves as a utility and management token for the Masa network and operates as a standard ERC20 token on Ethereum Mainnet.
The MASA token has several options for use in the Masa network: Users can submit their data to the Masa network and receive MASA tokens as rewards. This incentivizes data sharing and helps build a robust AI data ecosystem. Businesses and developers can pay for MASA tokens to access and utilize the data, products, and services available on the Masa network. Users pay for MASA gas on the Masa Avalanche subnet to mine and manage their zkSBT (zero-knowledge Soulbound Token), an encrypted repository of personal data. Some of these gas payments are burned, contributing to the token's deflation. Masa Oracle node operators use MASA tokens to manage Masa zk-oracle nodes. This helps secure the network and maintain its integrity. Through community management, MASA token holders can participate in the Masa network's decision-making process. This ensures that the network develops in a decentralized and democratic manner. Overall, the MASA project is a promising initiative in the field of decentralized AI data and LLM. It offers users the opportunity to contribute to the development of AI applications while being rewarded for their data. The MASA token is vital in encouraging data sharing, securing the network, and facilitating community management in the Masa ecosystem.
Parsiq
Parsiq is a comprehensive data network that powers the dApps backend and Web3 protocols. Its APIs provide real-time and historical data querying for blockchain protocols and clients, facilitating the creation of various Web3 data products.
The platform is designed to connect blockchain to various ecosystems or off-chain devices and applications, allowing users to control and secure DeFi applications, create custom event triggers, and automate real-time operations. Parsiq has made significant strides in its growth, including more than 50 strategic partnerships in 2021. These include well-known projects and service providers such as AAVE, OKEx, Solana, Chainlink, Polkadot, UnoRe, Mysterium Network, PancakeSwap, and deBridge. The project's technology is linked to many famous projects and protocols in the cryptocurrency space, allowing it to be used in increasing use cases, including AML and KYT processes, DeFi, and TradFi. In 2023, Parsiq introduced its Reactive Network, designed to bring the concepts of ReactEVM (rEVM), reactive smart contracts (RSC), and Relayer Network to the blockchain world. The Relayer Network extends the functionality and capabilities of RSCs by bringing their abilities to the entire blockchain and allowing the whole network of blockchain ecosystems to be tracked, analyzed, and responded to through a single, smart contract. The REACT token plays a vital role in the Reactive Network, paying for gas and post-blockchain RSC transactions and rewarding participants who maintain consensus in the event log. Parsiq's evolution of rEVM leverages all aspects of its past and accumulated experience to bring its most revolutionary and industry-impacting solutions to the future to date. The VM reactive brilliant contract standard, combined with the cross-chaining capabilities provided by the Relayer Network, will enable current and future developers to build the next generation of Web3 applications. Parsiq is a promising Web3 data networking project that offers innovative solutions for connecting blockchain to off-chain applications and facilitates the development of advanced Web3 applications. Introducing the Reactive Network and the REACT token further expands the platform's capabilities, making it a significant player in the blockchain ecosystem.
EMC
EMC (Edge Matrix Computing) is a cryptocurrency project that aims to create a decentralized network of AI computing power applications. It focuses on efficiently connecting and collaborating tens of thousands of idle or clustered GPU computing power nodes through Proof of Work (POW). The unique value of the EMC project is that it is the only project in the Web3 space that directly links GPU computing power to AI applications, delivering them to everyday developers and users at low cost and convenience.
The project was launched with the first RWA (Real World Assets) product based on GPU hardware computing power for AI on December 6, 2023. This product is based on GPUs, the most valuable manufacturing tools of the AI era, and represents standardization, high value, and high technical added value. The release of RWA increases asset liquidity for nodes and the network and ensures the continued growth of EMC's network value within the RWA product. EMC is actively under construction and has attracted the crypto community's attention, as evidenced by its strong social media presence and ongoing discussions about its airdrop. The project is considered large-scale and has the potential for significant growth in the future.
Forta
Forta is a project aimed at improving the security of smart contracts on the blockchain. It has a token called FORT, which incentivizes network security. The project was launched with a $23 million fundraising led by Andreessen Horowitz (a16z) and has gained attention for its efforts to secure smart contracts on various blockchain networks.
The project aims to detect and mitigate cybersecurity, financial, operational, and governance threats through a community of developers who build and run bots to monitor these risks. Forta's decentralized approach to security is seen as a critical step in securing smart contracts and the entire blockchain ecosystem. FORT owners can vote on governance proposals, contributing to the decision-making process that guides the network. This democratic approach ensures that the community can influence the direction and development of the Forta network. This way, the FORT token is central to the Forta project's Web3 security mission, incentivizing the developer community to build the tools needed to secure their projects. The token's value is tied to the success and growth of the Forta Network, making it an essential component in the ecosystem's efforts to improve blockchain security.
Alethea AI
Alethea AI is a cutting-edge project combining generative AI and blockchain to democratize AI ownership and governance. It is at the forefront of the cryptocurrency revolution to decentralize the ownership and management of AI by leveraging the combined capabilities of these technologies.
The project attracted significant attention and support, with a total funding of $30.4 million, and the ALI token was an integral part of the project. The project introduced the concept of intelligent non-fungible tokens (iNFTs), which are NFTs capable of learning, evolving, and interacting with the environment. These icons can be created using the AI Protocol, which offers developers tools for creating AI-enabled DApps. The native ALI token plays a fundamental role in the decentralized operations of the iNFT protocol and the DApps built on top of it. The primary mission of Alethea AI is to provide decentralized ownership and democratic governance of artificial intelligence, which is achieved through the use of blockchain technology. The project also introduced CharacterGPT V2, which allows the creation of realistic characters with unique voices and personalities through text input.
Openfabric AI
Openfabric AI is a Tier 1 protocol that aims to revolutionize artificial intelligence (AI) by creating an ecosystem where innovation is highly valued. It provides a platform for people with different backgrounds to contribute and utilize AI solutions to solve complex problems. Open fabric has been developed through extensive research and testing, ensuring it is built on a solid and reliable foundation.
Openfabric architecture encourages communities to unite, monetize their intellectual property, and compete or collaborate to pave the way for the Internet of Artificial Intelligence. It abstracts the technical complexity of artificial intelligence systems, enabling improved user experience and business integration. By utilizing a trusted execution environment and advanced cryptography techniques, the underlying framework ensures scalability, data privacy, and intellectual property protection. Critical features of Open Fabric include decentralization to avoid centralized control, usability to simplify interaction with AI, security to protect privacy and intellectual property, smart economics to ensure fair transactions, interoperability for collaboration between AI agents, and scalability by leveraging the computing power of network participants. The Openfabric platform offers several tools and resources for developers and users, such as the Openfabric Store, Openfabric Toolkit, Openfabric SDK, and Openfabric Daemon. It also supports creating new AI applications and aims to stimulate fair market competition. It is a promising projims to create an inclusive and cohesive community and marketplace for AI resources, developers, and companies, making AI and blockchain technology more accessible and efficient for users.
Conclusion
The artificial intelligence sector is experiencing rapid growth and is expected to continue expanding significantly in the coming years. According to Precedence Research, the global artificial intelligence (AI) market was valued at $454.12 billion in 2022 and is projected to reach around $2,575.16 billion by 2032, growing at a compound annual growth rate (CAGR) of 19.7% from 2023 to 2032.
This growth is driven by the increasing demand for AI in various fields, including medical, banking and finance, manufacturing, and others. One of the key factors driving the growth of the AI sector is the development of new technologies and the widespread adoption of AI across various industries. For instance, the healthcare AI market is expected to grow at a CAGR of 37.5% from 2023 to 2032, driven by the use of AI for drug discovery, medical imaging, and patient care. Similarly, the AI market in the automotive industry is expected to grow at a CAGR of 35.5% from 2023 to 2032, driven by the development of autonomous vehicles and advanced driver assistance systems. Apart from these industry trends, the AI sector also benefits from the increasing availability of data and the development of new algorithms and computing platforms. As available data increases and computing power grows, AI systems become more functional and versatile, enabling them to address an ever-wider range of tasks and applications. Overall, the future of the AI sector looks bright, with significant growth and innovation expected in the coming years. As AI technologies continue to evolve and become more widespread, they have the potential to change many aspects of our lives and drive economic growth and development. In the future, adopting AI will lead to innovation and success, while resistance to it could lead to stagnation and obsolescence.