The world is undergoing a swift transformation due to the advancements in artificial intelligence (AI), and the cryptocurrency industry is not immune to its impact. AI is revolutionizing the use of cryptocurrencies by introducing novel and inventive applications. Moreover, it is playing a vital role in enhancing the security and efficiency of blockchain networks. We picked 5 exceptional AI cryptocurrencies that integrate data-powered algorithms with blockchain technology:
The Graph (GRT)
The Graph is an AI-based cryptocurrency that has become the industry standard for retrieving data from Ethereum applications. It is widely adopted by prominent users, including Uniswap, Coingecko, and other applications.
This protocol serves as a means for users to verify the authenticity of transactions, ensuring that legitimacy is not determined by a centralized entity with potential biases. Instead, it relies on a trustworthy decentralized network as a reliable third party. The protocol operates on an open-source basis and functions as a decentralized indexing protocol for various types of blockchain data.
Developers benefit from the protocol’s provision of an API, empowering them to construct custom applications on the network.
Fetch.ai (FET)
Fetch.ai is an AI-based cryptocurrency that leverages a unique combination of machine learning and artificial intelligence. This fusion enables the creation of “autonomous economic agents” whose primary objective is to maximize profit for users through the application of AI technology. These agents facilitate the simultaneous processing of transactions across multiple devices.
Autonomous economic agents are regarded as the future of decentralization, enabling efficient transaction processing across devices. Fetch’s blockchain integrates both Proof of Work (PoW) and Proof of Stake (PoS) mechanisms seamlessly. Miners validate transactions on the blockchain and are rewarded with FET tokens, which are essential for operating the autonomous economic agents.
Numeraire (NMR)
The mechanism underlying Numeraire is incredibly unique. Numeraire, an AI cryptocurrency, serves as the fuel for Numerai, a hedge fund based in San Francisco. What sets Numerai apart is that its stock market predictions are not managed by a team of stock analysts. Instead, the hedge fund relies on the token holders of Numerai, who contribute their predictions and technical expertise in stock markets.
The process operates seamlessly. Every week, Numeraire token holders submit their specific stock predictions to Numerai. They are free to utilize any metrics they prefer for making these predictions. However, the predictions must be submitted in the form of a ticker symbol and a target price to Numerai. The AI algorithm, powered by the Numeraire cryptocurrency, aggregates all the predictions and executes bets in the stock market based on these predictions.
To submit a prediction, users must stake their Numeraire tokens. If the prediction is correct, the user earns a profit, but if it is incorrect, the staked tokens are lost. Additionally, users can access Numerai’s AI-based stock prediction models to gain insights into the stocks being wagered upon.
SingularityNET (AGIX)
SingularityNET operates as a dedicated online marketplace with a unique focus on selling AI-based algorithms. The purpose of this marketplace is to provide AI researchers, who develop these algorithms, with a platform to monetize their technology. Presently, the marketplace supports three primary categories of algorithms: cloud robotics, cybersecurity, and biomedical research.
The marketplace is currently in an evolutionary phase, with its creators exploring ways to incorporate new sales categories and transition from a manual approach to a more technical one.
At present, the platform relies on human agents to facilitate transactions. These agents stake the platform’s native cryptocurrency, AGIX. If they receive poor ratings from buyers or suppliers, they risk losing their stake. Additionally, the tokens are used for governance-related processes within the network.
Ocean Protocol (OCEAN)
Ocean Protocol is an ecosystem built on blockchain technology that provides a convenient way for individuals and businesses to unlock the value of their data and generate revenue by utilizing ERC-20 based datatokens. With Ocean Protocol, data publishers can monetize their data while maintaining control and privacy. At the same time, consumers gain access to datasets that were previously difficult to find or inaccessible. These datasets are available on the Ocean Market, where users can purchase and use or resell them.
The utility token within the Ocean Protocol ecosystem is called OCEAN. It serves multiple purposes, including community governance and staking on data. OCEAN is also used as the primary unit of exchange on the Ocean Market for buying and selling data. The price of datatokens is determined by an OCEAN-datatoken Automated Market Maker (AMM) pool, which adjusts the price based on supply and demand as datatokens are traded.
Should you invest in AI cryptocurrency?
The AI-based cryptocurrency sector has gained significant attention within the ecosystem, leading to high valuations. Leading tech giants like Google, Apple, Amazon, Microsoft, and Meta are engaged in an intense competition for AI technology following the success of OpenAI’s ChatGPT. According to PwC, the AI industry could be valued at $15 trillion by 2030.
AI is expected to shape the future direction of the cryptocurrency ecosystem, and the highlighted projects have the potential to drive AI development on the blockchain.
Patiently wait for the bull market to materialize before making significant investment moves.
