Blockchain and AI: What’s Behind the Hype? Explanation

Blockchain and artificial intelligence have been converging for more than five years with the first blockchain projects to leverage AI appearing in 2018.

While most of these included only rudimentary AI technologies, recent innovations have enabled a new wave of more suitable projects that leverage the latest blockchain and AI technologies to provide a great deal of utility to cryptocurrency investors world wild.

Currently, generative NFTs are by far the most popular cross-over of AI and blockchain, with there now being dozens of NFT collections that were created using AI algorithms. These algorithms are generally trained on various styles and techniques and then used to produce output NFTs that resemble a consistent art style that let most investor, Pereles.
One of the first examples of a generative NFT collection is Autoglyphs by Larva Labs. This is a collection of 512 glyphs that were created by an AI generator using only simple ASCII symbols. Since its release in 2019, the NFT market has seen an explosion of generative NFT collections, including Art Blocks, Lost Poets and Solvency, and more.
Beyond this, Alethea was one of the first projects to create what it describes as ‘intelligent’ and interactive NFTs. The platform recently introduced CharacterGPT which uses multi-modal AI to generate 3D characters from simple text prompts by investors.

Besides generative NFT collections, a number of blockchain projects are leveraging AI for more practical applications. One of the most common is using AI to power a new range of decentralized financial products and applications.
Several projects and firms are now using AI to find spot trading opportunities, as well as automate investment and trade decisions. This includes DefiLabs, which trains AIs using blockchain-based data to automatically manage assets and improve farming yields, as well as Zoidpay, which is building AI-based loan and risk management products.
Other projects are looking to integrate AI on a deeper level. This includes Velas, which is working on a technology known as “AIDPOS” to automatically optimize for performance and security while keeping fees down, and Bit Tensor, which is building a blockchain-based machine learning network that will power a decentralized marketplace for AI.

AI-Powered Crypto Projects

The AI + blockchain landscape is currently dominated by just a handful of large players, the largest of which have a market capitalization of over $100 million during bear market. As it stands, just three of the top 100 cryptocurrency projects by market capitalization have AI elements.

List of Crypto project that Powered AI

1. The Graph (GRT)
2. Ocean Protocol (OCEAN)
3. Fetch.AI (FET)
4. TRON
5. VAIOT
6. SingularityNET (AGIX)
7. SingularityDAO
8. RDN
9. Numerai (NMR)

Upcoming AI-Powered Crypto Projects

• Bittensor
• HyperCycle
• Rejuve Network
• PLAI Labs
• AI Arena