AI tokens seem to have the potential to offer sustainable growth and high demand. Notably, experts in the crypto space are already projecting constant expansion for AI tokens. Most of these tokens are already living up to their potential by recording massive upside movements. Illustratively, since the launch of OpenAI’s ChatGPT, AI tokens have gained value, and their market Capitalization has surpassed $4 billion.
ChatGPT gave some incredible responses to what it would do with money and crypto. Interestingly, the chatbot said it would invest, get more resources, and execute other tasks. This means there is the possibility of an AI making investment decisions to suit human goals. Hence, developers can train AI to do anything, including detecting illegal activities.
Advancements in technology never stop; you blink, you miss out. Hence, the period that we are living in is already known as the digital age. The inception of artificial intelligence (AI) is the latest technology trend that has come with full force while concurrently integrating cryptocurrency.
The AI industry is quickly expanding with the possibility of revolutionizing the whole world, including our work orientation, way of living, and the way people interact. There have been multiple comments on how AI may replace human workers. One of the most recent trends in the AI sector is AI tokens.
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AI Tokens Overview
Normally, AI tokens are digital tokens that are used to access AI technology by means of payments and get available artificial intelligence services and products on the blockchain. They are ideally designed to power AI-based projects like investment protocols, decentralized exchanges, text or image generation services, and a lot more.
AI tokens support artificial intelligence projects and the use of AI to enhance scalability, security, user experience, and market predictions. Generally, AI-powered tokens provide governance to their holders.
Most crypto enthusiasts have their fingers now crossed on AI-based tokens with the confidence that they might help spearhead the next bull market cycle. That projection is not far-fetched, mostly with the incredible performance of the tokens.
Use Cases
The use cases and application of AI tokens vary depending on their types. Some of the most popular use cases of AI include portfolio management, marketplaces, image generation, predictions, pathfinding, and more.
The normal use cases of AI tokens within the artificial intelligence space include:
- Decentralized AI marketplaces – they are accessible to everyone interested in selling and buying AI-related products using AI tokens. But, the marketplaces are decentralized, which prevents a specific entity from controlling the platform. Notably, the only type of payment in the marketplace is AI tokens.
- AI-backed image generation – the artificial intelligence-powered image generator generates images that answer the users’ input.
- AI tooling and infrastructure – artificial intelligence infrastructure integrates nearly all the stages of the machine learning workflow. It features hardware, software, computing resources, data, and other tools needed in the development of AI systems. The networks are also responsible for the deployment and sustainability of these systems. All talents working on AI technology, including data analysts, DevOps, software engineers, and data scientists, use AI networks to train, test, and deploy AI algorithms.
- AI-based portfolio management – this is optimizing and managing investment portfolios using artificial intelligence algorithms and strategies. This act features portfolio rebalancing, asset selection, risk management, and other activities. Data scientists get paid using AI tokens as incentives to reward them for the submission of accurate predictions to the platform. Interestingly, the same token is used to access services offered on the platform.
- Private data for developing AI models – private data can enhance research and business outcomes. Despite being considered the most valuable model, there are access hiccups related to control and privacy. An AI token addresses this challenge since it monetizes data and guarantees data privacy.
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AI Tokens Examples
Various AI tokens have different use cases. They include:
- AGIX – it is the SingularityNET decentralized platform’s native token that lets holders sell and buy different products and services that are related to artificial intelligence.
- NMR – is a token linked to the Numerai AI-based decentralized hedge fund. This platform rewards its contributors with NMR tokens.
- FET – notably, it is the acceptable medium of exchange on the Fetch.ai system.
- ALI – the token is used to generate character nonfungible tokens and is utilized for transactions, upgrades, and incentivizing on the Alethea AI.
- Hera – the token gives its holders all governance rights on the Hera network.
Pros And Cons
A significant advantage of AI tokens is their built-in decentralization and security. These features make them useful in building AI applications needed to guarantee the privacy and protect sensitive data. What’s more, the current position of AI tokens in the market proves that their integration with blockchain technology proves the potential for an AI-backed DAO and other innovative solutions.
AI tokens offer users access to AI-based services and products, including AI-powered investment protocols, decentralized marketplaces, and text or image generation services. These tokens give users a sense of inclusion in the budding sector.
Just like cryptos, a major challenge affecting AI tokens is regulatory issues. Concurrently, most people still understand the idea of some form of a token backed by artificial intelligence and supporting artificial intelligence.
The term ‘AI’ is still settling with most people – both old and young. The different AI projects might also be hard to understand, even for people with previous knowledge of the crypto industry.
Related: We Are Beginning The Age Of AI
Conclusion
AI tokens have the potential for sustainable growth and massive demand. The in-built AI coins arrived with a bang and have managed to gain extensive ground. Analysts and experts already project continued growth for AI tokens, with most of them already living up to the upside momentum forecasts.
