In recent months, artificial intelligence has been buzzing with ChatGPT. This new trend was quick to spread to the world of cryptos. The use of Artificial Intelligence (AI) in cryptos is an emerging area that is attracting more and more interest. AI cryptos are digital assets that use AI to improve security, user experience, scalability, or other factors. Discover in this article the essentials to know about AI cryptos.
Brief reminder: what is AI?
Artificial intelligence is a branch of computer science and engineering. It focuses on creating intelligent machines, capable of reproducing tasks that basically require human intervention. AI systems evaluate large databases using statistical models and algorithms. They then base their forecasts and choices on these analyses.
We can apprehend Artificial Intelligence through two categories which are weak AI and strong AI. The first category focuses on specific tasks, while strong AI aims to replicate human intelligence in general.
Another categorization of AI allows for rule-based systems, machine-learning and the deep-learning. Rule-based systems make judgments based on a set of rules. THE machine-learning meanwhile, learns from data and is able to improve as it receives new data. Finally, the deep-learning relies on a group of algorithms to perform more complex tasks.
AI is used in many fields like healthcare, banking, transportation, entertainment, etc. It improves process efficiency, automation and precision in each of these areas.
So what is an AI crypto?
An AI-based crypto is a form of digital currency stemming from the use of AI to enhance different aspects of the blockchain. Examples include security, scalability, efficiency, and user experience.
AI cryptos have the ability to use machine learning algorithms. This allows them to be able to predict market trends, perform automated trades and even adjust their operation, taking into account market conditions. Some AI cryptos may even use technologies like facial recognition to enhance blockchain security.
AI cryptos can also be used to power AI-based applications and projects. This is for example the case of decentralized markets, investment protocols, image or text generation services, and more.
It is, however, important to note that these cryptos are still in development. Their use in decentralized financial systems is therefore not without risks. Specialists recommend to remain vigilant and fully understand the implications of using this technology in the context of cryptos.
How does an AI crypto work?
The operation of AI cryptos relies on several key steps.
First of all, AI cryptos collect data from various sources like social media, news or market trends. Then, this data is analyzed by the machine learning algorithms to find trends and predict market behavior.
Based on this analysis, the AI develops a trading plan that takes into account the buying and selling periods of the currency. This decision-making process is done automatically without any human intervention.
After the trading plan is developed, it uses smart contracts to execute transactions on the blockchain network. Thus, when the pre-specified conditions are met, the contracts execute automatically without human intervention.
AI cryptos are also designed to continuously improve, thanks to machine learning. Machine learning algorithms analyze the results of past trades to improve their strategies. This therefore increases their efficiency for future transactions.
Top 5 Crypto AI Projects
Here are five interesting AI crypto projects that caught our attention.
It is a decentralized data exchange protocol that allows vendors to sell data to buyers in a secure manner.
To facilitate transactions on the platform, the project uses the OCEAN token. This protocol allows data providers to stay in control and decide how their data is used. This allows them to ensure ethical use of data.
To ensure data security and privacy, Ocean Protocol uses advanced encryption techniques. It thus manages to prevent any unauthorized access or misuse.
SingularityNet is a decentralized marketplace for AI algorithms. It allows developers to buy and sell AI services on the platform using the AGIX token. Companies can also access AI solutions developed by experts in the field.
The goal of this project is to build a large network of AI algorithms that can work together to solve complex problems.
Through SingularityNet, developers can access a broad category of AI for their work. Companies can also rely on the best AI solutions available on the market without having to develop them themselves. This creates some competition on the platform and then stimulates innovation.
Additionally, SingularityNet is designed to be decentralized. It is therefore not controlled by a single entity. This ensures its fairness and transparency for all users.
It is a decentralized artificial intelligence platform. It uses blockchain technology to allow intelligent agents to perform tasks on behalf of users. To facilitate transactions on the platform, Fetch.ai uses the FET token.
One of the main features of Fetch.ai is the use of intelligent agents which are nothing more than software powered by AI. These software have the ability to perform tasks and make decisions on behalf of users.
Fetch.ai is therefore an innovative platform that uses AI and blockchain to create an easier and more efficient way to perform tasks.
Artificial Liquid Intelligence
Artificial Liquid Intelligence is interested in artificial intelligence and the quality of information. Its goal is to build a decentralized ecosystem for data, applications and algorithms. To do this, it gives developers the ability to create and sell AI products and services in complete safety. This is for example the case of chatbot applications, lane recognition, etc.
Its protocol offers Artificial Intelligence tools that can be used in many decentralized applications. In addition, the team that drives Artificial Liquid Intelligence develops many other useful products for the community. This is for example the case of CharacterGPT, an application that allows you to generate very realistic 3D avatars. The project has the support of industry giants such as Binance, Crypto.com and Polygon.
Numeraire is a crypto designed to develop the field of quantitative finance. One of the main features of this platform is its use of the proof-of-intelligence mechanism. This mechanism rewards data scientists who contribute accurate and predictive models. This ensures that the company uses good quality models and is part of a continuous improvement process.
In addition to its use in the financial sector, it can also be used in many other fields, including predictive modeling and data analysis. This is the case of the health sector in which Numeraire would make it possible to develop better treatment plans. It can also be used in the energy sector, to promote the optimization of resource allocation.
Although AI cryptos can offer certain advantages for investors, it is important to note that any investment in crypto involves risks. It is recommended to conduct thorough research before making an investment decision in this direction.
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