The Future is Here? A Look at AI Crypto

Written by

Eddie Mitchell

Cryptocurrency Writer

AI crypto encompasses a broad set of tools, applications and companies that use artificial intelligence (AI) and machine learning (ML) algorithms to enhance many aspects of Web3. Though AI crypto technologies are very popular amongst crypto traders, AI-related crypto will play various roles within digital ecosystems. 

AI crypto introduction

AI crypto has many applications specific to cryptocurrencies and other uses. This includes creating an AI crypto bot for automated trading, market speculation, AI tool development, data indexing, fraud detection, robotics, 3D rendering, and cybersecurity.

By the end of this article, you’ll see how pairing decentralization with the highly analytical decision-making capabilities of AI can have many incredible outcomes.

Key features:

  • Automation: Trading, smart contracts, DeFi, governance, DAOs
  • Data analytics: Real-time, predictions, insights, backtesting. 
  • Efficiency: Faster, customizable, 24/7 monitoring.
  • Security: Fraud detection, anti-money laundering (AML), identity verification, enhanced cyber security, smart contract auditing.

What is AI crypto used for? 

A good way to introduce AI crypto would be with one of the earliest use cases. Since the most basic AI bots can rapidly analyze data whilst trading across multiple currencies and exchanges simultaneously, they’re immensely popular tools for traders and investigators alike.

  • Trading bots: There are freely available open-source crypto AI trading bots that vary in depth. It is worth exploring the free-to-use options, but many do require some knowledge to get started with and use to their full potential. Paid platforms are simplified and user-friendly. They are often intuitive and feature-rich, allowing users to deploy dozens of bots with preset strategies in a few clicks. 
  • Market analysis: AI is extremely effective at analyzing gigantic amounts of real-time and historical data to generate trends and gauge market sentiment, giving investors tools to make better decisions. AI can be trained to simulate strategies based on historical data analysis – this helps users optimize and refine their trading strategies before deploying them into live trading.
  • AML/fraud: Blockchain already provides new data sources and methods of monitoring suspicious activity to AML/fraud efforts. AI-backed solutions strengthen this area with powerful real-time analytics, updates, and more accurate assessments amongst other useful tools for investigators and analysts. This application of crypto AI will be essential in preventing scams, fraud, and other illicit crypto activity. 

Top AI crypto coins

  • Render (RNDR): Distributed AI computation and GPU rendering

The Render Network combines blockchain with AI to bring decentralized computing power to users. Users are incentivized with crypto tokens to contribute idle graphic processing unit (GPU) power to the ecosystem, which is then purchased by customers seeking to render/stream digital content such as 3D models and virtual assets.

At present, there is a proposal to use the network’s computational power for AI and ML tasks, opening up even more avenues for Web3 users and creators to leverage AI.

  • SingularityNET (AGIX): AI marketplace

SingularityNET is an AI ecosystem and marketplace. Users are able to develop AI tools and services, trade, and share them with aspirations to create human-level AI intelligence. SingularityNET works to develop Artificial General Intelligence (AGI) and nurture the alignment of AI technologies with the ethos of decentralization.

The project is also famed for its partnership with Hanson Robotics which resulted in the creation of Sophia the robot.

  • Fetch.ai (FET): Decentralized automation

The concept behind Fetch.ai is to use decentralization, AI, and ML technologies to automate transactions. This platform allows users to create and launch Autonomous Economic Agents (AEAs) that operate across numerous apps and devices for various purposes.

Here’s a very simple example. You could be looking to buy a new car. Within parameters set by you, the agent can search, negotiate, and even complete the trade for you. AEAs can also learn from what you do by interacting with other agents you have created for similar purposes.  

  • The Graph (GRT): Data indexing and querying

Often referred to as 'the Google of blockchains', The Graph serves as a protocol for indexing and querying blockchain data, just as Google does for Web2. On The Graph, data is compiled into 'Subgraphs', and it employs AI technologies to improve query optimization, automate several processes, and so on.

Similarly to Wikipedia, The Graph is required to pass through several checks and balances upheld by volunteers to maintain data authenticity and integrity. Contributors are incentivized to provide good data, and users such as Web3 platforms and developers pay to query this data. 

The Graph is also working to leverage its data to train new AI models. As its data is verifiable, it can bring greater accuracy to AI systems such as ChatGPT. 

  • Alethea AI (ALI): AI-generated NFTs

This is a decentralized AI network where users can create AI-generated content such as art and digital avatars. It features a protocol that lets users create intelligent non-fungible tokens (iNFTs) that can learn, evolve, interact with their environments, and much more. 

It also includes CharacterGPTT, which lets users create unique animated characters with their own personalities simply through text input. Its AI protocol also offers a number of tools to develop, build, test, and launch AI-powered decentralized applications (dApps).

The project has the aims of combining NFTs with AI-generated personalities, which it hopes will preserve and evolve our culture and history.

  • Ocean Protocol (OCEAN): Tokenizing data and AI

Launched in 2017, Ocean is an open-source protocol where users can monetize and exchange data/data-based services. With a founding team that has extensive experience in AI and big data, Ocean positions its data marketplace as one that is particularly helpful for data-intensive technologies such as AI.

More specifically, it connects data providers with consumers. Providers create Ethereum-based (ERC20) “datatokens” which are purchasable with the platform’s native crypto, OCEAN. 

Additionally, datatokens can also grant access to compute-to-data, a popular means of training AI models. The OCEAN crypto also allows users to participate in governance, as well as validate the data within datatokens.

  • dKargo (DKA): AI logistics

Leveraging AI and blockchain to remedy structural issues within the logistics industry, dKargo (DKA) is building a network that connects scattered industry participants such as shippers, carriers, and consignees in a decentralized cooperative network where users can fairly provide and share data.

dKargo aims to raise transparency and efficiency standards through its use of AI and blockchain technology, both of which serve to provide participants with credible and trustworthy data.

  • Cortex (CTXC): AI-powered dApps

This is a rather unique project that specifically focuses on merging AI and blockchain technologies, especially in the realms of smart contracts. It brings both AI and ML technologies to blockchain, so that developers upload, test, execute, and monetize their models or dApps on an open-source decentralized platform. 

By integrating AI with smart contracts, Cortex could be transformative for any platform that uses them as it allows smart contracts to leverage real-world data without needing to rely on off-chain sources.

Other AI crypto uses

Let’s move on to a few other examples of AI crypto that aren’t centred around trading and market analysis.

  • Governance: DAO community members decide their future. There are many projects, proposals, bids, and other processes to filter in accordance to the rules and guidelines of the DAO. AI crypto can quickly analyze and select the best submissions, flag malicious proposals, and vastly speed up the overall governance processes. 
  • Treasury automation: The sum of a Web3 platform’s wealth is held here. Whether a DeFi marketplace, crypto exchange, or DAO, AI crypto can improve budgeting and expense management, aid in risk management, and optimize resource allocation amongst other benefits.
  • Smart contract audits: Smart contracts are a vital component for establishing trust and automating Web3/decentralized systems. Unfortunately, they are frequently attacked or fail due to buggy code, resulting in costly losses. AI analytics and auditing capabilities can ensure smart contracts are of a higher quality.

Why is crypto AI important?

A key tenet of future technologies is automation, which just so happens to be a principal philosophy of blockchain and decentralization. If the objective of creating decentralized protocols is to shift power away from centralized decision-makers, the integration of AI crypto into the foundations of Web3 will boost automation efforts.

As you can see from the crypto AI projects we’ve listed, there is a myriad of applications and use cases that can be applied to almost every industry and sector we have today, and it can be safely presumed that the crypto AI market will continue to grow substantially over the years.

With so much untapped potential, the combination of AI, blockchain, and cryptocurrencies could soon become a mainstay within Web3.

Frequently Asked Questions

What is AI crypto?

AI crypto is a broad set of tools, applications, and companies that leverage artificial intelligence and ML to enhance many areas of Web3 and decentralized protocols. 

 

What is the best AI crypto?

There are many incredible AI projects to discover. Some of the most popular are The Graph (GRT), Fetch.ai (FET), SingularityNET (AGIX), and Render (RNDR).

 

Where to buy AI crypto?

Top AI crypto coins and AI-related crypto are available to purchase on major crypto exchanges such as Binance, Coinbase, and Kraken.