The cryptocurrency market is known for its explosive trends, in which a group of projects takes off and does much better than the rest of the market.
There have already been a few of these in 2023, but one that stands out is a trend that seems to involve projects that have been working on AI-based solutions.
When you look more closely at AI-related crypto projects, you can see that many of them have done much better than the rest of the industry, increasing their value by a large amount.
In the next section, we'll look more closely at why this happened, what caused it, and what some of the most well-known crypto projects have to do with it.
AI stands for "artificial intelligence."
First of all, artificial intelligence has been around for a long time in the world of technology. It's also important to keep in mind that nobody agrees on what AI is, which makes it hard to find a single-sided use case.
Many people think that artificial intelligence (AI) is a very important piece of technology that has the power to change our society.
In everyday language, artificial intelligence is when computer systems or other types of machines try to act like humans. There are many uses, such as expert systems, machine vision, machine learning, speech recognition, processing of natural language, and so on.
AI systems at their current level tend to work by taking in a lot of labeled training data, looking for patterns and correlations in this data, and then using these patterns to make predictions and come to certain conclusions.
One of the most popular AI programs, ChatGPT, the OpenAI chatbot that recently took the world by storm, also works this way.
The ChatGPT craze
Even though a lot of companies are working on their own AI-related products, OpenAI's ChatGPT blew up in popularity a few months ago, especially in the cryptocurrency industry.
ChatGPT was all anyone could talk about. Everyone was also talking to ChatGPT. What is it then?
OpenAI trained a chatbot model that is meant to have conversations with the user. ChatGPT is set up in a way that makes it easy and possible for it to answer follow-up questions. It even admits to making mistakes, questions false premises, and turns down requests that aren't right (a point of contention for many).
Tech Giants Spend Big Bucks
Most of the time, outside events start crypto trends. In this case, ChatGPT and other AI-based models were catching up with the big names. One of them was Microsoft, a big company in technology.
Bloomberg reported on January 23, 2023, that Microsoft had put a huge $10 billion into OpenAI, the company that makes ChatGPT. It's important to note that Microsoft already supported OpenAI at that time, having put $1 billion into it in 2019.
OpenAI also said that it trains all of its models using Azure, a cloud-based service from Microsoft. One of the main reasons for the investment was to help the company do more research on its own.
Top 5 AI-based digital currencies
1. The Chart (GRT)
The Graph is an indexing protocol that was made so that networks like Ethereum and IPFS can be queried.
In other words, projects like Uniswap and even the Bored Ape Yacht Club NFT collection that have complicated smart contracts store information on Ethereum's network. This makes it hard to read anything but the most basic information from the blockchain itself.
Without getting too deep into the details (which you can find here), The Graph solves the problems with a decentralized protocol that is designed to index network data and make it easy to search for it.
Many reports say that The Graph uses artificial intelligence to do for the internet pretty much what Google did.
Its own currency, which has the ticker GRT, has grown a lot since the beginning of 2023.
2. SingularityNet (AGIX)
SingularityNet is more of an ecosystem than a single-minded cryptocurrency project, but at its core is artificial intelligence.
In essence, it is an open and decentralized platform of AI services that have been made available through blockchain-based technology. Developers put their services on the network so that anyone with internet access can use them. Developers can also charge for their services by using AGIX, the native cryptocurrency of the ecosystem.
The team's main goal, though, is to make an "Artificial General Intelligence" (AGI) that will lead to a good technological singularity.
It's also important to know that the platform is built on two smart contract networks: Ethereum and Cardano.
AGIX is now one of the most successful companies in 2023.
3. Fetch.ai (FET)
Fetch.ai (FET) is a blockchain platform that uses artificial intelligence to help people automate tasks they do every day. It is made by FetchaiI.
Fetch.ai wants to be a completely open and permissionless network that uses AI to make a decentralized system that uses machine learning to run tasks on the blockchain.
It's a protocol for connecting chains, and it basically uses artificial intelligence to make P2P applications run automatically without any help from a person. It was released in February 2019 on the Binance Launchpad through an Initial Exchange Offering (IEO).
The native token, called FET, is the key to the whole ecosystem. FET is the main way that people in the ecosystem trade goods and services. It is set up as a digital currency. If you want to use one of Fetch.ai's paid services, you'll have to pay for it with FET.
4. The Oasis Network (ROSE)
The Oasis network is a layer 1 blockchain that is made to be flexible, scalable in a unique way, and also focused on privacy.
Without going into too many technical details, the following are the most important parts of the technology stack:
- There is a divide between the consensus layer and the execution layer. This means that more than one ParaTime can handle transactions at the same time.
- The ParaTime layer has no central point of control. This means that anyone can make their own ParaTime.
- The claim is that Oasis Network is built to be more efficient than both para chains and sharding. They call the layer that does the work the "ParaTime layer."
ROSE is the name of the local currency. It grew a lot at the beginning of 2023, just like most AI-related projects.
In an official blog post, the team said that they are building "responsible AI primitives" and that they are working with "industry leaders across multiple sectors to design and implement robust primitives for responsible AI."
5. Ocean Protocol (OCEAN)
Ocean Protocol is last but not least on our list. This is a platform that was made to connect data providers and data users in a marketplace based on blockchain.
Its business model is based on a number of new technologies, such as artificial intelligence (AI) and tokenizing certain datasets and data services so that data providers can quickly, easily, and effectively make money from their data. On the other hand, consumers have easy access to an ecosystem of useful information.
OCEAN is the name of the cryptocurrency that runs the ecosystem.
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