AI is no longer a futuristic point of view - it’s already here, and with each new day, its progressive development infiltrates more industries. We are witnessing how it becomes an integral part of our lives, reshaping the way we use and communicate with the technological advancements of the 21st century.
Web3 is not left behind, and at the intersection of AI and crypto, we find AI tokens. These tokens represent a distinct category of digital assets whose value is tied to AI projects.
<aside> 🔒 A type of cryptocurrency that supports AI-based projects, applications, and services within the blockchain ecosystem.
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Built upon both AI and blockchain technologies, the purpose of these AI tokens is to facilitate transactions and interactions within decentralized AI networks. Users can utilize these tokens to pay for various services, such as data access and participation in the platform’s activities. Additionally, AI tokens confer protocol governance rights, enabling users to participate in the project or platform's ongoing development through joint decision-making processes. Moreover, AI tokens can be used to incentivize users contributing to the growth of AI-related projects, including data contribution, computational resources, or the development of AI applications.
The use-cases of AI tokens expand even further with decentralized AI marketplaces, where users can exchange tokens, eliminating middlemen and promoting transparency and collaboration among users.
<aside> 💡 The inaugural AI token is **SingularityNET,** featuring its native AGIX token issued in January 2018. Functioning as a decentralized marketplace, SingularityNET allows users to monetize AI algorithms, services, and data. As of January 2024, the current market cap of AGIX is $307,441,119.
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AI tokens leverage blockchain technology and infrastructure to strengthen the decentralized aspect and incentivization elements for the development, adoption, and use of AI.
<aside> 🔒 AI tokens operate on blockchain technology to facilitate transparent and secure transactions. The AI algorithms are responsible for automating processes, governing, and optimizing various tasks within the network.
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The typical scenario of how AI tokens operate involves the creation of the token itself, accompanied by smart contracts that define how tokens will be utilized in AI-related services. Following creation, the token is issued during a token sale or genesis block. Users can then employ the token for various purposes, including exchanges, participation, or staking within the platform’s ecosystem.
The AI token is intricately linked to the platform offering AI services, enabling users to access its offerings, govern the project through key decision-making processes, or receive incentives for contributing resources such as computing power, data, or development efforts. Moreover, AI tokens serve as a new source of capital for the project, allowing AI token holders to directly invest in the project utilizing blockchain technology.
<aside> 🧠 Each AI token has its unique rules and processes, making the token design specific to and dependent on the particular project.
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AI tokens are a ~$20 billion market as per Coinmarketcap (mid-January 2024). Some of the most popular AI tokens include: