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    Are iNFTs and AI Tokens The Future of Web3?

    The world has witnessed an artificial intelligence mania ever since Microsoft invested more than $10 billion dollars into the startup behind the famous ChatGPT, OpenAI. Web3 projects have soon joined the AI craze by pumping new technologies that integrate artificial intelligence with Web3’s decentralized tech. Artificial intelligence is believed to act as the backbone of all future Web3 development, as it builds on its core values and ethos. We can already witness a surge of this fusion manifesting in AI cryptocurrencies and iNFTs, which are a smarter version of fungible and non-fungible tokens respectively. 

    The question that unfolds itself is, will AI technologies become a catalyst for the development of digital assets, or will be used as an instantaneous hype mechanism to deliver returns, only to fade out later on? One thing we know for sure is that integration of AI won’t bring the apocalypse, or will it? Keep reading to find out everything you need to know about AI tokens and iNFTs and their new rise in value.  

    AI’s Hype and Web3 Implementation 

    Artificial intelligence has been the talk of the century. Literally. The first person who thought about machines using the same logic that humans use to perform problems was back in the 1950s. However, the real BOOM of artificial intelligence happened only last year in 2022, when AI-powered chatbot ChatGPT and image search generator DALL-E became available to the general public. 

    One of the key building blocks of the Web3 era is the implementation of AI technologies. Web3 search engines are already trying to enhance web recommendations by deploying semantics. The use of Natural Language Processing NLP, machine learning, computer vision, and other AI-powered technologies can be seen infused in blockchain technology, Metaverse, and most recently, cryptocurrencies and iNFTs. Therefore, as the two biggest technological innovations of our time, Web3 and artificial intelligence can aid each other up the scale of groundbreaking technological advancements. 

    The Rise of AI Cryptocurrencies 

    It’s already known that artificial intelligence can help with automation, making many tedious tasks easier and with little margin of error. No wonder why many cryptocurrencies have emerged to the market with an AI-powered infrastructure. AI tokens have been in the market for a while, however, the recent mass adoption of ChatGPT and DALL-E softwares, and the massive $10 billion fund urged investors to bet on the AI sector. 

    This has amounted to the idea of AI-based cryptocurrencies being the next growth sector within the digital tokens realm. And by a consequence, many AI-focused tokens shot up in value as seen in CryptoSlate. Fetch (FET) has shot up by 133% in the last 30 days, while SingularityNET (AGIX) skyrocketed by a 416%. Famous AI tokens like Alethea’s Artificial Liquid Intelligence (ALI) increased by 70% in value in the last 7 days.  

    But, What Does AI Token Even Mean?

    Artificial intelligence can become a great infrastructure for tokenomics mechanisms. AI doesn’t only make smarter iNFTs, it also creates a great asset in crypto trading, research, and selection. AI tokens often work as native tokens for Web3 projects that use AI technologies, tools, and services.

    What type of services? Well, for starters AI can assist with market predictions and analysis. Intelligent technologies can point investors to which tokens might become huge in the market. AI also helps with fraud detection. That means any fraudulent or buggy smart contract tied with an AI token can be detected beforehand. In addition, AI can help by deploying sentiment detections. That means that AI technologies can estimate public sentiment on a particular token.

    Here are some notable AI-based projects with their own native AI cryptocurrency: 

    Fetch.ai (FET) 

    Fetch Ai

    Fetch.ai is a machine-learning blockchain-based network that facilitates the development of the digital economy through autonomous systems. It also connects devices to the Internet of Things and aims to make AI tools accessible for all. Fetch offers scalable and secure infrastructure, as well as intelligent smart contracts. 

    Fetch’s native token FET act as the main payment method on the platform, and is used to enable and reward node operators. According to CoinGecko, FET witnessed a 50% rise in value in the last 30 days with over $440,000 in market cap. 

    The Graph (GRT)

    The Graph

    The Graph is a crypto project for querying data for the Ethereum blockchain with a native GRT token. The token currently holds the number one spot in market cap value with over $1 billion. Anyone who wants to query data on the Graph to find data on a blockchain must pay in GRT. The Graph token has recently increased to 122% in value in the last 30 days. 

    SingularityNET (AGIX)

    SingularityNet

    SingularityNET is a platform for AI development and algorithms open for all individuals who are trying to build AI infrastructure. Its native token AGIX has recently witnessed a surge in value by 400% with over $300 million in market cap.  

    iNFTs: Smart Non-Fungible Tokens

    Of course, when talking about artificial intelligence and Web3, NFTs are the first thing to pop into mind. NFTs are non-fungible digital tokens that act as certificates of ownership over specific assets. Until now, NFTs have been linked to static media files such as art, music, gifs, games, and other digital assets. However, now with the boom of artificial intelligence trends, many Web3 projects are trying to embed NFTs with interactive capabilities to create intelligent NFTs or iNFTs. 

    According to Alethea, a research and development studio in generative AI and blockchain technology, an iNFT is “an intelligent NFT that is embedded with a GPT-3 prompt as part of its immutable smart contract.” That means an iNFT is a dynamic asset that is capable of creating or adding new content on its own. As well as evolving as a result of its self-learning capabilities. 

    Imagine having a non-fungible token, an immutable blockchain, that can react or change depending on the mood of its owner. Or an NFT that can have conversations or even sing to you. Remember the apocalypse mentioned before? You might be thinking about it right now. However, having a smart NFT won’t haunt your dreams. It will only create more complex types of tokens that users could transfer interchangeably on a digital ledger. 

    iNFTs Characteristics

    Embedding AI capabilities into NFTs opens up a new type of non-fungible token that possess enhanced characteristics on top of their blockchain-based characteristics. Let’s see what are the main features of an iNFT: 

    • Embedded Intelligence: iNFTs are embedded with a GPT-X prompt that is written into its smart contract, which creates generative capabilities. 
    • Evolving: AI technologies have self-learning capabilities that keep the NFT dynamic as it learns from past experiences.

    Alethea AI

    Acting as one of the first iNFT initiators, Alethea AI is a Web3 project that allows users to embed AI animations, voice recognition, and generative AI capabilities into NFTs. In fact, Alethea is the first project that coined the name of iNFTs to smart non-fungible tokens. The platforms believe that their intelligent Metaverse, Noah’s ark, will create the perfect place for users to connect their NFTs with AI capabilities.

    In a medium post, Alethea gave examples of how an iNFT would actually work. One example mentioned the ability to have rap battles with a Cryptopunk NFT, and another one talked about the ability to cultivate land you purchased in Decentraland

    Alethea has already managed to launch its first-ever iNFT, called Alice, and even sold it for a whopping $478,000 at Sotheby’s auction. The owner of the Alice iNFT can speak and interact with this dynamic token as much as they like. 

    Moreover, Alethea even has its own AI native token dubbed Artificial Liquid Intelligence (ALI) which also made headlines by shooting up 300% due to the rise of AI popularity. 

    Is AI the Next Big Step in the Crypto World?

    The incorporation of artificial intelligence in Web3 is bound to be a game changer. One of Web3’s ethos is transforming consumers into creators of content by making the internet more interactive. This will be implemented as more AI technologies such as machine learning, cognitive computing, and computer vision. We might see an influx of AI projects that are based on blockchain technology whether AI tokens or iNFTs. We might not know whether the surge in interest will continue after the hype of AI dials down. However, considering where technological advancements are taking us, the future looks smart. 

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