What are AI Tokens?

“AI Token” is the latest buzzword in crypto. The trend started in late 2022 when ChatGPT, OpenAI’s chatbot, gained massive popularity. Many people then realized that artificial intelligence is no longer just a movie concept. It’s a reality and is already proving to be a disruptive force in various industries, crypto included.

The AI fever has also affected institutional giants. Google, for example, recently announced that it would start developing its own AI chatbot, Bard. Also, Microsoft made the news with its $10 Billion acquisition of OpenAI and proposed integration into its Bing search engine. This sustained mainstream interest in AI technologies led to an explosion in the market value of various AI tokens, with some gaining as much as a 1600% increase!

Thus, many believe AI tokens to be the future of crypto technology. Is that the case? What are AI tokens, and how do they expand the crypto scene? We discuss this topic in this article.

What is Artificial Intelligence (AI)?

Artificial Intelligence is the development of computer systems that can perform tasks usually expected of a human. These tasks include learning, decision-making, perception, and so on. The advanced level of intelligence is accomplished through algorithms or rules that shape the computer’s learning process.

Therefore, a program imbued with AI technology can adapt better to current conditions and make independent decisions. These attributes make the technology applicable in various situations, from self-driving cars to medical diagnosis and image recognition.

While AI is a ground-breaking technology, it also brings some controversy. For example, many are worried that AI models will make them lose their jobs. There are also privacy and security concerns and potential bias due to compromised datasets. An ethical concern arose when Sophia, a humanoid robot developed by Hanson Robotics, said it wanted to destroy humans.

What are AI Crypto Tokens?

AI tokens are crypto assets that incorporate the principles of artificial intelligence into blockchain technology. Their AI element allows them to develop better-automated strategies that solve specific problems. This gives them an edge over other crypto assets as their intelligence makes them better at adjusting to market conditions.

However, an AI token does not necessarily have to center around artificial intelligence. Instead, AI could be used to improve specific features of the crypto token, like scalability, security, user experience, speed, and more. Developers can also train AI to identify crypto investment opportunities and decide accordingly. Some AI tokens are active elements in these processes, while others may be used as governance and payment tokens on AI-based crypto platforms.

Top AI Tokens to Watch

SingularityNET $AGIX

Source: SingularityNET

SingularityNET is a cryptocurrency platform that leverages the intelligence of AI technology to create decentralized marketplaces. The platform has the long-term vision of developing Artificial General Intelligence (AGI), an improved version of AI, in various industries.

Thus, besides providing an AI marketplace, the SingularityNET team is also developing AI spin-offs in the DeFi, biotech, entertainment, gaming, and robotics industries. The aim is to build a technological singularity, an all-in-one platform where AI reigns supreme. Even though it currently sits on the Ethereum blockchain, the platform will eventually be interoperable across various blockchains.

The $AGIX token is the native token of the SingularityNET platform. The platform uses it as a payment, governance, and incentive token. It is also a transactional token that facilitates interactions between agents on the SingularityNET network.

Fetch.ai $FET

Source: Fetch.ai

Fetch.ai is a decentralized blockchain platform that enables autonomous interactions between machines without human interaction. It was launched in 2019 and aimed to become an AI network for blockchains. It has developed multi-agent systems that operate on three pillars - an open economic framework, autonomous economic agents, and smart contracts.

This three-pillar system is all the Fetch’s ecosystem needs to build and maintain constant communication among autonomous agents. The FET token powers the ecosystem and serves mainly as a payment currency on the platform.

Numerai

Source: Numerai

Numerai is an interesting AI blockchain system that helps users make investment decisions using machine-learning algorithms. Apart from selecting assets to invest in, the platform also helps manage risks and re-balance portfolios when necessary.

Numerai has a unique approach to building its trading algorithms. It outsources the prediction work to various data scientists worldwide, who get rewarded with Numerai (NMR) tokens if they make correct predictions. The anonymity and decentralization enable data analysts to work more effectively, allowing for greater diversity and creativity.

Thus, Numerai is a decentralized hedge fund and a bridge between the stock market and the crypto world. NMR can also be staked. Data analysts stake NMR to certify their uploaded predictions and prevent tampering, while users stake NMR on prediction models and get rewarded when those predictions turn out correct.

Oraichain

Source: Oraichain

Oraichain is a decentralized platform launched in 2020 to create a conducive environment for the growth and expansion of the AI industry. As such, it strives to solve some critical problems of AI technology in the crypto industry, like model interpretability and data bias.

One of the most exciting features of Oraichain is its unique AI oracle system, which favors AI-based sources of information when connecting blockchains with external systems. Therefore, developers can build AI-based decentralized applications that connect seamlessly with the real world. It also has an AI marketplace where developers can buy and sell AI models, data, and computational power.

The native token of the Oraichain ecosystem, ORAI, is actively used to run AI requests on the platform. It is also used as a governance token and for staking.

Alethea AI

Source: Alethea AI

Alethea AI is a blockchain platform that uses AI technology to generate images from user inputs. It is at the forefront of some innovations in the AI and blockchain industries. One is the CharacterGPT, an interactive AI system that enables Text-to-Character creation. Another is the iNFT, short for Intelligent NFT, which is an NFT imbued with AI abilities.

Alethea utilizes the Artificial Liquid Intelligence (ALI) token to generate, monitor, and upgrade the iNFTs. The ALI token is also used for governance and incentive purposes.

Conclusion

AI technology has only just begun to attract considerable interest. In 2022 alone, the global AI market was valued at about $136 Billion. Various market analysts have also predicted it will surpass $1 Trillion by 2030. Thus, we are still early to crypto and AI’s integration with crypto. It will be interesting to see how these two sectors will be integrated in the coming future.