Among recent tech innovations, blockchain and AI (artificial intelligence) might be the biggest and most popular. The two have been transforming quickly, which leads to many industries and sectors adopting both technologies.
Recently, AI and digital tokens have been working together to further revolutionize the way users can interact with both. The two combined to produce AI tokens. This innovation has the potential to significantly change and improve how people interact with blockchain systems and AI platforms.
Some people might confuse token use in generative AI with AI tokens, but they’re two completely different things. Generative AIs use NLP and tokens to generate a small piece of text. Meanwhile, AI tokens are digital tokens made for the AI ecosystems. In short, they’re cryptocurrencies that are specifically used for AI-based platforms or networks.
So, what are AI tokens, and do they have a future in the crypto market? Will they shift things even further for digital token users? Let’s take a deeper dive into AI tokens.
Understanding AI Cryptocurrencies
AI tokens or AI cryptocurrencies work differently from regular cryptocurrencies. Regular cryptocurrencies like Bitcoin were created as digital money. On the other hand, AI tokens were made to power AI services and systems. They help run and manage AI technologies.
AI tokens have three main uses:
1. Funding AI Resources and Services
The first purpose of an AI token is to fund AI resources and services. It’s like how regular money can buy cloud computing time from services like Google and Amazon. These tokens allow users to access AI data, computing power, and models. The difference is that everything works automatically, and it’s run by blockchain without any middleman handling the payment process.
This system improves efficiency because users can access resources whenever they want. It’s like how people choose to enjoy bingo at off-peak hours to avoid congestion and a smoother loading time. AI tokens help distribute demand in the same way.
2. Creating Decentralized AI Networks
AI tokens are assisting in the creation of decentralized AI networks. Instead of relying on the computing power of one company’s data center, AI cryptocurrencies provide networks that can connect thousands of computers across the world to train and run AI models. Anyone with spare computing power can lend it to anyone who needs it, and they’ll get AI tokens as payment.
3. Enhancing Data Security
AI tokens also work in ensuring data security during management and transfer. AI requires a massive amount of data to work well. When they’re backed by these AI cryptocurrencies, users can track the owner of the data, who can use it, and ensure that payments are dispensed fairly when data is used for AI system training.
Buying AI Crypto Coins
AI crypto might sound much more complicated than regular tokens. However, users can still buy them as easily as they buy other cryptocurrencies.
Users can find their favorite crypto exchange platform and make an account if they haven’t. Once they’ve completed their onboarding verification process, they can start funding their newly registered account. Then, like buying other cryptocurrencies, users should search for the AI cryptocurrency they’d like to buy.
Many crypto platforms are already aware of the existence of these AI coins, so they ensure users can find and buy them as easily as buying other tokens. They allow users to exchange their fiat currencies or other cryptocurrencies for their preferred AI token. Some platforms also offer simplified trading, where users can quickly buy or sell their crypto without navigating a complicated orderbook system.
Once they purchase an AI token, they can choose to move it to their non-custodial crypto wallets. However, users must note that not all non-custodial crypto wallets support AI crypto coins.
Examples of AI Crypto Coins
There are many AI cryptocurrencies that users can buy, sell, or trade in the current market. Here are some of the examples that are available on many crypto platforms.
The Graph (GRT)
GRT is an open-source software that gathers, organizes, and stores data taken from various apps. The software’s goal is to ensure information can be easily searched and retrieved later by the blockchain. The Graph organizes blockchain data into smaller, more structured indexes (Subgraphs). Apps can then use the Subpraghs to get instant answers.
Injective (INJ)
Injective is a decentralized exchange (DEX) offering margin trading, forex futures, and derivatives across several different blockchains. The token uses an order book model similar to crypto exchanges and centralized stocks to achieve fast trade execution efficiency and decentralized exchanges.
Fetch.AI (FET)
Fetch.AI is a platform that blends blockchain and artificial intelligence. It runs on smart contracts for automated actions through AI agents. The AI agents can then interact and learn from one another to improve their capabilities.
The main feature of the Fetch.AI network is micro-agents (uAgents). It allows users to create their digital versions that can help them do things automatically, such as booking travel.
Use Cases
Users who aren’t yet familiar with AI crypto coins might be unsure of how they can be beneficial for them. They mainly contribute to AI technologies’ advancement and growth, such as:
- Incentivizing participation: Users who contribute computing power, data, and expertise to AI projects can be rewarded with AI tokens. These tokens create a decentralized model that allows participants to benefit after contributing to the development of AI technologies.
- Monetizing AI services: AI cryptocurrencies have opened a path for AI services to get a payment method. This may be for personalized recommendations, predictive modeling, and data analysis. It gives a new way to connect consumers and providers in AI services while eliminating the need for centralized intermediaries.
- Governance and decision-making: Some projects may give voting powers via governance tokens. Holders will then get to participate in the project’s decision-making process. These may be for research and development funds allocation, changes to incentive structures, and protocol upgrades.
- Decentralized AI marketplaces: AI tokens as a currency can facilitate decentralized marketplace creation. Contributors can then sell, buy, or license AI algorithms, computer power, datasets, and models on the marketplace.
What Might Come Next
The merging of AI and blockchain can be a strategic imperative and an opportunity, especially for enterprise leaders. AI tokens are still in early development, but it’s the perfect time for organizations to prepare for their further integration into AI operations.
Users who are interested in contributing should do more research and further observe how the AI cryptocurrencies are growing. Technology leaders especially need to study how the system can impact their AI infrastructure. Other components, such as competitive positioning and governance requirements, can also be affected by the growth of AI crypto.
There’s a potential for companies to get specialized platforms for business use alongside AI tokens. They might switch focus to enhanced security and control, while implementing flexibility and decentralization. It’s also likely that the government and regulators will make clearer rules for these cryptocurrencies, especially in strict industries like healthcare and finance.
Systems will likely be more compatible with the technologies that are already commonly used in various industries for more accessibility. However, there are still many challenges that AI cryptocurrencies need to overcome. Aside from regulation, it still needs to improve its scalability and energy efficiency.