Artificial Intelligence & Cryptocurrencies - A New Narrative?
- 5 minute read
There has been a lot of hype around ChatGPT-3 in recent weeks. Many are extremely optimistic about the (future) possibilities of artificial intelligence. Developments follow each other at lightning speed and more and more seems to be possible every day. Artificial intelligence is also starting to play a role in cryptocurrencies. Some projects are pushing to combine these technologies. CryptoTwitter also seems to have found its salvation using ChatGPT. Is this the beginning of a new hype? Or will the enthusiasm soon blow over?
Table of Contents
- What is ChatGPT?
- Artificial Intelligence (AI) Coins
- The Graph (GRT)
- Fetch.Ai (FET)
- Ocean Protocol (OCEAN)
- iExec RLC (RLC)
- SingularityNet (AGIX)
- Numerai (NMR)
What is ChatGPT?
ChatGPT is a large language model developed by OpenAI using artificial intelligence. OpenAI was founded in 2015 by Elon Musk, Sam Altman, and Peter Thiel. Funding was done through Elon Musk and Microsoft, among others. In 2018, the first generative pre-training (GPT) language model was developed. An improved, extended version was launched in 2019. About two months ago, ChatGPT-3 was released to the general public.
Chat GPT can be used to delegate all kinds of language tasks such as text generation or for translations. It is based on the largest language model currently available. Because of this language model, ChatGPT can deliver human responses, making it capable of an enormous amount of work. Creating content, gathering general information, detecting language errors, and, even writing code. For example, we can ask ChatGPT the question below, to which we could not give a better answer ourselves!
Artificial Intelligence (AI) Coins
In recent weeks - perhaps due to the potential that has become apparent and the optimism surrounding ChatGPT-3 - coins that deal with artificial intelligence has risen in value. If we visit CoinMarketCap and take a look at the AI and Big Data coins, we see very high weekly returns. These AI and Big Data coins somehow use artificial intelligence algorithms in their design. We will now discuss some of these coins.
The Graph (GRT)
The Graph is a network dedicated to indexing and retrieving data from Ethereum's blockchain. Through this network, developers can easily access all kinds of data coming from decentralized applications (dApps) without having to run nodes themselves. The associated cryptocurrency of the network is GRT. GRT can be used to pay for using the network. There is a maximum supply of more than 10,000,000,000 GRT. Of these, about 82% are freely tradable on the market at the time of writing.
Fetch.Ai, with its associated FET coin, seeks to create a decentralized platform on which users can access the potential of artificial intelligence and automation. By processing large amounts of data, this data can be used efficiently. This allows, for example, DeFi trading to be optimized, predictions to be made or complex decisions to be taken.
FET is the token that can be used within the Fetch.Ai ecosystem. Various services can be paid for with FET. Besides paying, one can also stake FET to earn returns. When staking, coins are delegated to one or more validators. These validators have a role in securing the network.
Ocean Protocol (OCEAN)
Ocean protocol is a decentralized protocol for exchanging data. By using Ocean, users can exchange data in a secure and transparent way. The developers aim to ensure privacy, security, and laws and regulations through the protocol. Ocean facilitates all kinds of data: structured and unstructured, as well as composite, usable, and not (yet) usable data. Built on the Ethereum blockchain, the Ocean protocol seeks to bridge the gap between decentralized and centralised systems.
The $OCEAN coin is used to facilitate transactions on this network and to encourage users to make data available on the platform. One can then get rewards for making this data available while ensuring their privacy and control. These rewards are paid out in the Ocean coin. In addition, the tokens can also be staked to receive returns on them.
iExec RLC (RLC)
iExec RLC is a decentralized platform for cloud computing. This protocol uses blockchain to securely share private data through a decentralized collection of nodes. The platform allows users to buy and sell resources such as computing power, storage, and data sets. These payments can be made using the RLC coin, of which there are more than 80,000,000 in circulation. In this way, users can make their excess hardware capacity tradable. This can support all kinds of platforms active in big data and artificial intelligence in a Web3 way.
SingularityNet is the foundation of artificial intelligence (AI) and artificial general intelligence (AGI). Their vision is to become the decentralized marketplace for artificial intelligence, based on blockchain. Their goal is to build a decentralized network that everyone can access, regardless of resources. With this, they want to market artificial intelligence, while larger (tech) companies may prefer to keep the technology to themselves. One way they want to accomplish this mission is by applying governance in a decentralized autonomous organization (DOA). Through the associated coin - AGIX - services can be bought on the marketplace.
Numerai, with its associated token Numeraire (NMR), is also one of the coins where price has climbed in recent weeks. Numerai is an Ethereum-based platform where developers are experimenting with artificial intelligence through machine learning. With this protocol, the aim is to bring decentralization to the research field of artificial intelligence. NMR is one of the first coins created by a hedge fund. The coin is used to let researchers contribute to Numerai's AI model and pay for Numerai's data.
The developments around artificial intelligence and crypto-currencies are - to put it mildly - interesting. But, as we have seen in our previous blog, hypes can turn quickly (Gartner's Hype Cycle). Where prices are high one day and expectations are good, they can turn around the next day and it may be clear that they still require a lot of development. Although a new hype seems to be (cautiously) emerging around AI coins after the price pumps in recent weeks, in the long term it remains important that there are good, sustainable economic models behind the coins to ensure (price) development. So do your research on coins well when you want to start investing.