Artificial intelligence cryptocurrency prospects

Alyona Shevtsova
3 min readFeb 27, 2023

Cryptocurrencies and artificial intelligence are technologies that are on the minds of everyone. And they have more in common than meets the eye. The combination of blockchain and AI developments, where data analysis and machine learning improve the functionality and use of cryptocurrencies, is a new direction in developing digital currencies. Each new invention, such as the OpenAI chatbot, only accelerates the process of their integration into society. We can even recall how artificial intelligence predicted the price of Bitcoin.

The launch of ChatGPT made the world think about the prospects of artificial intelligence, and leading companies entered the technological race. The situation turned out to be so tense that even Google started working on a competitor to the “smart chat” service, Anthropic. Earlier, it became known that Microsoft would invest more than $10 billion in OpenAI products for further AI research. Microsoft is already integrating ChatGPT into its Bing search engine, and the company will apply the developments to the well-known PowerPoint, Word, and Outlook products.

It may be hard for some to imagine the combination of AI and cryptocurrency. Artificial intelligence cryptocurrencies are tokens that power blockchain-based platforms using artificial intelligence. Examples of such platforms include The Graph, SingularityNET, Oasis Network, and others. Each platform with its token has its properties, and users spend the tokens of this platform to take advantage of all the benefits of artificial intelligence. Later, platforms can use the digital currency for other AI-based projects, including improving the performance of their platform.

In the next few years, we expect AI to become the innovation that will significantly impact investments and the world. Today, several AI cryptocurrencies on the market already provide unique features to their users.

The Graph and its token (GRT) provide a new approach to indexing blockchain queries. It allows each developer to determine how to retrieve information from the database independently. This technology will enable specialized applications in decentralized finance and the Web3 ecosystem. SingularityNET (AGIX) provides access to creating, transferring, and monetizing artificial intelligence services. The platform is a vast marketplace where users can browse and test the latest AI services using the AGIX token. The Ocean Protocol, with its token (OCEAN), allows data exchange based on an open-source blockchain. It will enable developers to create applications for specific groups of people. The platform also allows to estimate and monetize detailed data’s value.

Like any technology, AI cryptocurrencies have their strengths and weaknesses. The advantages include the following:

  • automation of repetitive processes to reduce the time required to complete tasks;
  • independence due to the decentralization of cryptocurrencies;
  • improved protection against fraud and fraudulent activities thanks to the latest technologies.

The weaknesses of artificial intelligence cryptocurrencies include the following:

  • technological complexity, which requires more resources and effort to implement;
  • unpredictability, as the dynamics of new technologies are not yet fully understood;
  • excessive dependence on infrastructure and its updating to meet modern requirements.

AI cryptocurrencies can become a widely used product with proper funding and resolution of the problems that may arise, as the risks still need to be sufficiently understood due to the novelty of the technology. However, with the development of digital currencies, we should also expect AI to bring many benefits to finance, banking, and other industries. AI cryptocurrency tokens are growing in value because other AI products, such as ChatGPT, are gaining popularity. We should expect this trend to continue soon.

--

--

Alyona Shevtsova

CEO of the international payment system LEO, the shareholder of IBOX Bank