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It seems that the latest craze not only in the cryptocurrency industry, but basically all around the world, is artificial intelligence (AI). While AI is definitely not something new, its recent surge in popularity and development has brought countless people into it, wondering how and where it can be used.
And it seems that one of the newest, most creative and innovative solutions is to use AI in combination with NFTs. How does it work, what can it produce and which projects are trying to blend these two technologies together?
Non-fungible tokens (NFTs) are a type of digital asset that are stored on a blockchain, a decentralized, distributed ledger technology that allows for secure and transparent record-keeping. Unlike fungible tokens, such as cryptocurrencies, which are interchangeable and have the same value, NFTs are unique and indivisible.
NFTs are created using smart contracts, which are self-executing computer programs that define the terms and conditions of the asset, including its ownership, transferability, and usage rights. This ensures that the ownership and authenticity of the NFT can be verified and tracked on the blockchain.
NFTs can take many forms, such as art, music, videos, virtual real estate, and other digital assets. These assets are often created by artists, musicians, and other content creators who want to monetise their work by selling ownership rights to their fans and collectors. NFTs allow for the creation of a digital marketplace where these assets can be bought and sold, with the value determined by market demand and the uniqueness of the asset.
NFTs have gained popularity in recent years, particularly in the art world, where they have been used to sell unique digital artworks for millions of dollars. However, the use cases for NFTs extend far beyond the art world, and they have the potential to revolutionize the way we think about digital ownership and intellectual property rights. As the technology and infrastructure supporting NFTs continue to evolve, it is likely that we will see more innovative uses for this exciting new asset class.
Artificial Intelligence (AI) refers to the ability of machines or computer systems to perform tasks that would typically require human intelligence to accomplish. These tasks can range from simple activities, such as recognizing patterns or playing games, to complex ones, such as natural language processing, image and speech recognition, and decision-making.
AI is made possible by machine learning, a subfield of computer science that involves developing algorithms and models that enable machines to learn and improve from data inputs. Machine learning algorithms can be trained on vast amounts of data to detect patterns, make predictions, and classify new data based on past experience.
AI systems can be further categorised into two broad categories: narrow or weak AI and general or strong AI. Narrow or weak AI refers to systems that are designed to perform specific tasks or functions, such as image recognition or natural language processing. In contrast, general or strong AI refers to systems that possess human-level intelligence and can perform a wide range of tasks, such as decision-making and problem-solving, just like humans.
AI is already being used in a wide range of applications, such as healthcare, finance, transportation, and entertainment. In healthcare, for example, AI systems can be used to analyse medical images, diagnose diseases, and develop treatment plans. In finance, AI algorithms can be used for fraud detection, credit scoring, and risk assessment. In transportation, self-driving cars rely on AI to navigate roads and make decisions.
The recent success of ChatGPT or Midjourney only highlighted the improvements of the AI. Their latest updates solved several issues from the previous versions and they are now becoming even more popular than ever before.
Despite the many benefits of AI, there are also concerns about its potential impact on society, such as job displacement and algorithmic bias. As AI continues to advance and become more integrated into our daily lives, it is important to carefully consider its implications and work towards developing ethical and responsible AI systems that benefit society as a whole.
The combination of these two fields and technologies should not be surprising as it offers numerous benefits and possibilities. NFTs and AI are used together to create unique and personalised digital content that is owned and traded on the blockchain.
The use of AI enables the creation of highly customisable and one-of-a-kind digital assets, while NFTs ensure that each asset is uniquely identifiable, verifiable, and owned by its rightful owner. By combining the two technologies, creators and collectors alike can benefit from a more transparent and secure system for creating, owning, and trading digital assets. The use of AI and NFTs also provides a new avenue for creators and developers to monetise their creations and provides a new way for consumers to engage with and own unique digital content.
Here are just some examples how AI and NFTs can work together:
Personalised art generation: AI algorithms can be trained on a particular artist’s style, and then generate new artworks that mimic that style. These generated artworks could be sold as NFTs, with ownership rights and provenance tracked on the blockchain. This would allow for the creation of personalised digital art collections, with each NFT representing a unique artwork generated by the AI algorithm. This could include anything from AI-generated music, pictures, videos to collectibles.
AI-enhanced authentication: The use of AI algorithms can enhance the authentication of NFTs. AI algorithms can be trained to detect and prevent the creation of counterfeit NFTs. Additionally, AI algorithms can be used to analyse the provenance and ownership history of an NFT to verify its authenticity.
AI-enabled NFT marketplaces: AI algorithms can be used to analyse market data and predict trends in NFT sales. This would enable NFT marketplaces to provide personalised recommendations to buyers and sellers based on their preferences and market trends.
NFT-embedded AI: Refers to the use of NFTs as a way of embedding AI algorithms within digital assets. By embedding AI within NFTs, it is possible to create unique and personalised digital content that can adapt and evolve over time. This technology enables creators to mint NFTs that include AI algorithms, which can be trained to perform a wide range of tasks, such as generating personalised content, performing predictive analytics, and more. This opens up new possibilities for the creation of dynamic and interactive digital content.
Clearly, the combination of NFTs and AI offers a lot. It is also possible that we are only scratching the surface of what is actually possible when these two technologies are combined. But some projects are already trying to use them and develop systems that would benefit everyone.
When it comes to NFTs and AI there are two projects that currently really standout. With the advent of AI that we have recently seen one can be more than sure that more crucial projects would make the list, however, as of now, Alethea AI and Fetch.AI are far ahead.
Alethea AI is a project that combines the power of AI and NFTs to revolutionize the world of media and content creation. The platform uses AI algorithms to generate unique and personalised digital content, which is then minted as NFTs on the Ethereum blockchain. This ensures that each piece of content is unique and cannot be duplicated or replicated.
Alethea AI’s AI algorithms are trained on a large database of images, videos, and other media, which allows them to generate a wide range of unique and original content. The platform enables users to customise the AI algorithms by selecting different styles, colors, and other parameters, allowing them to create highly personalised content that is unique to them.
Once the content is generated, it is minted as an NFT on the Ethereum blockchain. This allows users to monetise their creations by selling them on various NFT marketplaces. The use of NFTs also ensures that creators are fairly compensated for their work and that the ownership of the content is transparent and immutable.
The project has several big names behind it. These are companies such as Binance, Polygon, Multicoin Capital or Alliance. Moreover, it was further enhanced and supported by famous US billionaire and investor Mark Cuban.
Overall, Alethea AI’s use of AI and NFTs has the potential to revolutionise the world of media and content creation by democratising the creation and ownership of digital content. The platform provides a new revenue stream for creators and a new way for consumers to engage with and own unique digital content.
Fetch.AI is a project that harnesses the power of AI and NFTs to build a decentralized, intelligent infrastructure for the future. The platform uses a combination of AI algorithms and blockchain technology to create a more efficient, secure, and decentralized internet.
Fetch.AI’s AI algorithms are designed to enable intelligent agents to communicate and transact with each other autonomously. These agents can perform a wide range of tasks, such as predictive maintenance, supply chain management, and personalised recommendations. By using NFTs, Fetch.AI can ensure that these agents are uniquely identifiable and that ownership of them is transparent and immutable.
The platform also enables users to create and sell AI-based services and algorithms as NFTs. This provides a new revenue stream for developers and creators and allows them to monetise their creations in a decentralized and transparent manner.
Additionally, Fetch.AI’s use of NFTs enables the creation of digital marketplaces for decentralized services and data. These marketplaces allow users to buy and sell AI-based services and data in a peer-to-peer manner, without the need for intermediaries.
The ecosystem around Fetch.AI is already increasing in numbers as well. It involves projects such as CoLearn, Axim, Atomix, Mobix or Catena-X. There are several others that are either powered by Fetch.AI directly or are built on or around it, building the cornerstones for the future of Fetch.AI.
Overall, Fetch.AI’s use of AI and NFTs has the potential to create a more efficient, secure, and decentralized internet of the future. The platform provides a new way for developers and creators to monetise their creations and enables the creation of decentralized marketplaces for services and data.
Other projects that one might look up and follow when it comes to NFTs and AI are for instance Botto, Altered State Machine or Bored.AI. The last one is trying to build on its success, as it is created by the same team who was behind one of the most successful NFT collections, Bored Ape Yacht Club.
AI and NFTs are for sure going to produce an exciting blend of tools that mostly content creators are likely to use to their benefit. Yet, the potential of both of these technologies and their merge needs to be more studied and examined as the whole picture is really difficult to paint right at the beginning. However, the trend is clear as it seems that joining NFTs and AI will only continue in the future.
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