AI in crypto

✔️ AI stands for artificial intellgence and is the acquisition of a form of intelligence by an artificial phenomenon, such as a program or robot.

✔️ There are many forms of AI, from the analytical, human-like, humanized to the strong and weak AI.

✔️ The Turing test has been around since 1936 and tests a machine's ability to resemble a human.

✔️ The goal of AI is to solve problems previously solved by humans.

✔️ AI and blockchain can work together quite easily, although there are still some pitfalls.

✔️ Perhaps this is the best time to invest in AI cryptocurrency.

What is artificial intelligence anyway?

There are many different definitions of AI. For instance, some will say it is about human-like skills acquired by a machine, such as reasoning, learning or planning.

There is also talk of programs that perform tasks previously performed by humans, such as chess (Deep Blue beat Kasparov) or bots of all kinds, such as chatbots, healthcare bots and trading bots.

Artificial intelligence (AI) is the science that deals with creating an artefact that exhibits some form of intelligence. An artefact is an artificial phenomenon.

Definition AI

Kaplan and Haenlein provided a specific definition of what AI is:

"The ability of a system to correctly interpret external data, learn from this data and use what it has learned to achieve specific tasks and goals through flexible adaptation."

Quite catchy, easy to remember!

Forms of AI

According to these two, there are three different forms of AI:

1. Analytical AI. This is based on cognition. This means acquiring knowledge by using the senses and, in the case of AI, sensors. This sensory knowledge should then be used to make a decision, such as a traffic sign that should indicate the maximum speed based on how much traffic has been detected.

2. Human-like AI. This has elements of cognitive and emotional intelligence. Comprehension and human emotions play into the decision-making process of this type of AI.

3. Humanized AI. This is a combination of 1 and 2, but is also self-aware on top of that.

The Turing test

A very famous one in the world of AI is the Turing test from no less than 1936. This test asks a computer whether it can mimic a human being to such an extent that the difference can no longer be seen. This mimicry is widely used today by chatbots, which you often recognize by the fact that they are called "Chatbot". These can ask you for information, to which you have to give the right answer, otherwise such a chatbot will say, "Cannot do that Dave!" For example, they might ask you for your login credentials or wish you a nice day. Many sites already have an automated chatbot that can answer your most likely questions, saving man hours and money.

AI is used for as many things as possible where it surpasses humans. This is mostly found in mathematical problems, or to put it briefly, things where you need to have a lot of computing power. And computers have that to an increasing degree.

You know about AI yourself, although you might not link it to the term right away. These days, for instance, there is ChatGPT, which manages to squeeze out pretty intelligent texts in all sorts of areas.

Nowadays, AI can do all sorts of things in all sorts of areas, such as imitating voices, people and anything you can put in a file. The term DeepFake will also probably look familiar to you. For instance, it allows you to credibly make politicians say things they would never say, write songs with similar lyrics and way of singing as Elvis Presley (is he alive after all!) and write books without ever having read a book.

We will have to admit that it has rather sharp edges at times, this AI.

Within the AI world, another subdivision can be seen, namely strong and weak AI. Strong AI is human-like, it either outperforms a human or it develops its own intelligence, which is non-human. For example, two robots were once brought together that were actually supposed to be human-like, but soon these two robots together started developing a language that was incomprehensible to humans. They shouldn't have done that, because they were turned off soon!

Strong and weak AI

Weak AI is used for algorithmic (procedure for solving a problem), decisions based on sensory information and for expert systems (AI that reasons like an expert in a particular field) and the like. A human also uses algorithms for all events he expects. Pattern recognition allows him to make decisions at lightning speed, so he does not have to think about everything. Only when there is an unexpected event will he have to consciously start thinking about what to do.

One difference between AI and humans is that they have no sensation. A sensor can make them detect heat and cold, but that is different from feeling. This can create unexpected dangers for humans if they make the AI too powerful.

Transhumanists see AI increasing intelligence to such an extent that it will surpass humans in this respect. Through deep learning, it may be that computers will surpass humans in a lot of areas.

The dangers of AI are fairly obvious, although it is difficult to make policy on this, as we have seen recently with all the fake videos, self-driving cars and copyright infringement.

AI has been around for about 50 years.

The purpose of AI

The goal of AI is to let software or machines solve problems independently, which used to require a human or less powerful machine to do so.

How does AI work

If you want a machine or program to solve problems, you will have to give that machine tools to detect reality with. These detectors will have to be programmed to measure or recognize a particular part of reality.

For instance, you have simple temperature gauges, which can then use this sensory information to control all kinds of other devices. If you connect such a machine to the Meteorological Institute, it can pass on these temperatures to the outside world. If it communicates the temperature to the Ministry of Health, it can issue a warning to apply sunscreen.

So you can have all sorts of things detected and turn them into AI. By the way, it only becomes AI when something is done with it. There are a number of forms of applied detection.

If you feed a chess program all the positions that have ever appeared on a board and program it to make the best possible move, it is still a fairly simple program. Pattern recognition is necessary to come up with the best move, but computers are excellent at pattern recognition. It was therefore only a matter of time before the computer had learned to beat a world champion, even though it needed quite a few extra chips to deploy its brute force (excluding all possibilities 1 by 1).

Machine learning

Which brings us to the next point: machine learning. A machine can learn, based on what it has "experienced", to stop doing certain things and do other things. Or it can predict or "reason out" the next step in a sequence based on algorithms. For instance, it is no coincidence that as a suggestion at YouTube, if you have just listened to "Hotel California", the next thing you are presented with is also a song by the Eagles or a song similar to it.

With machine learning, YouTube's algorithm not only provides you with similar songs and artists, but also completely autonomously delivers a playlist of many songs you have played. One drawback of these algorithms is that you run into a kind of trap: you get more and more of the same. The best-known form of this is the Fable Fish Trap. You read about one conspiracy theory and before you know it you are reading one nonsense after the other and start believing in it on top of it!

The purpose of machine learning is to automate decision-making and create value faster through higher productivity, such as on a DAO (decentralized autonomous organization).

You can see this "behavior" on many sites. You will find it on Facebook, Google and on any platform that uses cookies to use your preferences as "fodder" for machines that get to know you as a person. These machines sometimes know better who you are and what you will do next than yourself. There is something intrusive and creepy about that, yes.

The fear of AI

We've seen enough films by now to wrap our heads around it. Should we be afraid of AI? The answer is yes and no, if it is up to us.

No, because humans are smart enough to control AI. At least, for now!

Moreover, AI is darn handy in many ways and can take huge amounts of work off humans' hands.

AI can also grant humanity insights we would never think of.

Yes, because AI can surpass us by far within a very short time. All that is necessary to surpass us in terms of computing power is a larger CPU than us. That's a piece of cake. Well, a piece of a wedding cake, that is.

Surpassing humans as a whole will be a lot harder. Not only computing power, but also feeling, dexterity, intuition and self-awareness make humans more than machines.

But what if, besides higher computing power, we also give a machine legs, make it self-aware, make it self-learning and teach it to link between things? Well, that leaves only sensation, which may really be attributed to living beings after all. You cannot process pain and pleasure mechanically.

As far as we are concerned, you should not build a super machine that can do everything that a human can also do, except feel. Have you ever wondered why we don't hear anything from other civilisations in the universe? This could be one of the reasons.

AI and blockchain

First, let's take a closer look at the good aspects of AI and blockchain working together:

Blockchain has a number of important features that come in handy for AI distribution. For instance, blockchain is decentralized, so there is no centralization of power, the middleman is eliminated. AI can thus become more available to the general public, without a small number of mega-corporations taking all the power.

Blockchain is also trustless, meaning that anyone can participate. Furthermore, it is borderless, blockchains have no nationality. As a result, any AI solution can step into any blockchain.

A blockchain is always online, as validators that maintain the network and have the entire distributed database are spread all over the world. This allows AI to take advantage of this and always be online and working continuously on.

Blockchain is very secure by design and does not use a single point of failure, virtually eliminating corruption or hardware failure. AI can therefore safely continue working on whatever it is doing.

AI can detect irregularities on a blockchain, thus increasing security.

Blockchain is immutable when captured by validators. This can be important for AI in relation to censorship.

There are also some tricky things related to AI and blockchain working together:

Blockchain is anonymous. If AI runs its course on a blockchain, it can run into problems with rule-makers like politicians. If you don't know what those things are doing on a blockchain or they don't like it, politicians may well pull the plug on it.

Blockchain stores data and AI processes it. It is not certain that the processed data will also fit into a blockchain. God knows what AI coughs up when it starts processing data. It also has to be usable and processable. Self-learning AI can make a blockchain huge in a very short time by having to add something every time AI makes a small step. However, all these small chunks of information must be stored on the blockchain. Possibly this could still be solved with sidechains or the like, but with AI these can be quickly full again and stagnate. Another solution is backwards compatible Virtual Machines, but that could get in the way of the blockchain idea.

Blockchain has problems with scalability. Once there is a lot of interaction with validators, the network can get overloaded and become slow and expensive. Since AI wants to be as fast as possible in relation to processing speed, this could cause major application difficulties. This last point in particular is essential for the marriage between AI and blockchain, as it is hard to match the infinity of an AI with the limited scalability of a blockchain.

Another issue is the lack of hardware. AI uses a huge amount of GPU power. There must be enough GPUs on the market, otherwise things will stagnate.

What is AI used for?

AI is used for several sub-areas:

1. Image processing, such as by Render.

2. Statistics, as by ChainLink, among others.

3. Linguistics, as with ChatGPT.

4. Logic, as on the Ethereum blockchain with its smart contracts.

5. Pattern recognition, as with trading bots.

6. Cognitive psychology, as for example by chatbots.

7. Neural networks, such as in speech recognition or handwriting analysis.

8. Sensory input, as for example during Covid, when they measured people's temperature and drew conclusions from it, or in IoT by IoTeX or IOTA.

9. Augmented Realitiy (AR), where the real world is complemented by virtual elements, metaverse.

10. Fraud detection on a blockchain network.

11. DAO. A decentralized exchange like 1Inch, Pancakeswap or Uniswap work with this.

One can imagine that at some point this list will become inexhaustible and we will be living in a kind of Cockaigne Land where AI will take over almost all tasks from humans. Whether life will still be fun then we will leave to your imagination and that of writers.

Important coins working with AI

We won't list them all, as it has already become an extensive list. This can be found in CoinGecko under the categories heading and then under AI.

We will list the highest ranked ones:

Render is a platform for image processing.

Akash Network is a network for cloud computing.

Fetch.AI provides automation for Web 3.0 systems and services.

Singularity.net is a decentralized AI marketplace that aims to create a super brain.

Metaverse networks are also using AI to create an artificial world, such as TheSandbox, Decentraland and Enjin Coin.

Coins like ChainLink and TheGraph use oracles, which retrieve real-time statistics for all sorts of things, such as the price of coins.

IoT (Internet of Things) coins use sensors and are thus part of the AI revolution, such as IoTeX and IOTA.

Just recently, Worldcoin joined this illustrious group. This one wants to use an iris scan to determine whether you are a human and not an AI and reward you for it.

Can you use AI and crypto yourself?

Yes indeed. You can use crypto AI technology yourself. But you have even more options in the field of the crypto AI project.

A big advantage of blockchain in Artificial Intelligence crypto is that you can remain largely anonymous. This is one reason why many people might choose to make more use of Artificial Intelligence crypto coins, because then your entire private life won't be out on the street, as it is with Big Tech (Facebook, Google). With Ocean Protocol, you can even sell data that Big Tech gets from you for free.

Trading bots

You can get started with trading bots, which you can set up yourself to trade for you. Through AI crypto trading bots, you can do a complete analysis of things like market sentiment, price movement, volumes and other technical issues. Based on this, you can give bots commands to use them to make decisions for buying and selling coins.

You can also have an AI crypto trading bot automatically trade based on technical analysis tools like the Bollinger Bands, the Ichimoku Cloud or Moving Average.

Big data can give you a big edge over the competition. Also, an AI cryptocurrency trading bot can give you trading alerts, allowing you to make investment decisions on your own at certain signals.

It is also possible to use AI to manipulate a market. All that is then necessary to be successful is to have enough AI crypto coins from a network to influence the price and artificial intelligence crypto trading to determine momentum.

Lightning Labs

This company wants to use Bitcoin for payments. The name already suggests paying through Bitcoin's Lightning Network. It allows AI systems to start paying each other in BTC for all kinds of things.

Bitcoin is scarce because there is a maximum number of it. Furthermore, it is permissionless, so anyone can use it. Since the network is always online, it is also very useful for Artificial Intelligence crypto technology to automate things.

Getting into an AI technique

For instance, you can join Render and get your GPU to work on rendering images. For this, you get their coin RNDR as a reward.

You can also get into gaming in the metaverse. In some of those games, you get play to earn rewards.

You can participate in linking your IoT devices and work with a blockchain that processes these things.

You can also have your iris scanned and receive a bunch of Worldcoins.

AI and crypto

This is a slightly trickier combination, as cryptocurrency is used for payments on a blockchain. While the payments can be automated, that in itself is the only link between the two.

AI and blockchain are better marriage partners.

Investing in AI cryptocurrency

Blockchain technology and cryptocurrency are the future. AI is also the future. The two are already working together and will increasingly integrate. So the question is not whether it will happen, but to what extent.

If you want to benefit from this and invest in an AI crypto project, you will first have to do solid research. What techniques are actually necessary in this world? Who has a good team? If you read our piece on this you will understand what you need to do to successfully invest in cryptocurrency working with AI. The best Artificial Intelligence coins will then naturally surface.

Will this be a hype that blows over? That is always hard to predict, but we do know that AI, cryptocurrency and blockchain are not going away. You can draw the conclusion for yourself.