AI and Blockchain: A Partnership Reshaping Crypto

How AI and blockchain overlap

AI and blockchain complement each other, boosting their potential and transforming industries. For example, IPwe, with IBM's support, pioneered the Global Patent Registry (GPR), the world's first of its kind. This innovative platform combines AI and blockchain to automate and streamline patent record management, providing transparency and enabling smart contract creation for assets.

The combination of AI and blockchain offers several synergies:

• Integrity of data 

The integrity of data in  blockchain tech is ensured through its immutable nature, which prevents unauthorized changes to transactions. Once data is recorded on the blockchain, it cannot be altered or deleted without consensus from the network participants, maintaining the integrity and traceability of data over time. This immutability allows AI systems to trust the data they use, making AI recommendations more reliable.

• Audit trail

Blockchain's transparency enables the traceability of AI decisions back to their origins, boosting trust in data integrity. This audit trail guarantees that AI recommendations are dependable and can be authenticated.

• Enhanced automation 

Incorporating AI models into smart contracts on the blockchain allows them to offer informed suggestions and execute transactions independently according to predefined criteria. This automation not only streamlines operations but also improves efficiency by cutting down the obstacles while making decisions. 

For instance, a smart contract could automatically trigger a trade when specific conditions are fulfilled, such as a fluctuation in the market price. By employing AI to analyze market trends, the smart contract can provide recommendations on which trades to execute, enhancing the decision-making process.

• Improved decision-making

AI algorithms can detect fraud and associated risks in transactions and applications. Meanwhile, blockchain can help improve the accuracy of data used in fraud prediction by providing a secure and straightforward data auditing process. Together, these technologies can facilitate better decision-making and risk management.

• Decentralised autonomous organisations (DAOs): 

The integration of AI and blockchain offers a significant advantage: the advancement of decentralised autonomous organisations (DAOs). DAOs are a new way of managing organisations - operating solely through software without the need for human involvement. AI-powered decision-making can further bring complete decentralised governance. 

AI in crypto

Blockchain serves as the bridge between AI and crypto. It securely stores transaction data, enabling AI developers to train algorithms on large datasets and ensuring data security and reliability, which are essential in finance. AI's assistance speeds up crypto transactions and automates complex procedures within crypto components, enhancing efficiency.

This integration of AI with crypto has the potential to drive mass adoption of cryptocurrency and pave the way for a more secure, transparent, and decentralised financial system, replacing the centralised traditional system with intermediaries.

AI crypto ecosystem and use cases

The AI crypto ecosystem is witnessing the emergence of various projects that either combine or ease the process of combining the power of artificial intelligence and blockchain technology.  Recently, this convergence has led to a surge in interest and investment from retail crypto investors, who have poured hundreds of millions of dollars into AI cryptocurrencies and making significant gains. 

Some of the notable AI crypto projects today are listed below, along with their market performance as of late April 2024.

Render (RNDR)

The Render network leverages the Ethereum blockchain for its operations, tapping into idle GPU computing power from crypto miners to connect them with creators for rendering and streaming digital content, including AI projects. In July 2023, Render implemented "RNP-004—Open Compute Clients" to broaden its scope to include AI and machine learning tasks.

RNDR, the network’s native token, has seen a growth of more than 430% growth in the past year. 

The Graph (GRT)

The Graph is a blockchain indexing and data querying protocol utilising AI technology to improve data accessibility in decentralised networks. However, it goes beyond simplifying data access through subgraphs, enabling anyone to develop said subgraphs to provide applications with indexed blockchain data.

In 2023, The Graph announced its largest upgrade plan, introducing AI-based querying as part of its New Era roadmap.

The native token, GRT, has seen a 113% yearly increase. 

Bittensor (TAO)

Bittensor is a decentralised blockchain network functioning as an open peer-to-peer (P2P) ecosystem for creating, training, sharing, and trading artificial intelligence and machine learning (ML) models.

The protocol creates a global ecosystem where AI models unite to establish a borderless neural network-like hive mind. Its goal is to make AI and machine learning a public good, relying on collaboration and peer-to-peer interactions for advancement.

Bittensor’s native token TAO has grown by 933% in the past year. 

Fetch.ai (FET)

Fetch.ai is an Ethereum-based blockchain and AI platform that streamlines task automation through decentralised machine learning applications, including flight booking or parking space reservation. It provides an ecosystem equipped with tools for creating and deploying AI services across four layers: AI Agents, the Agentverse, the AI Engine, and the Fetch Network, powered by the ERC-20 token FET.

FET has seen a yearly increase of more than 600%. 

SingularityNET (AGIX)

SingularityNET is a decentralised AI marketplace enabling users to develop, share, and monetise AI services, with a focus on advancing Artificial General Intelligence (AGI) to achieve human-level intelligence. 

Do you recall Sophia, the robot? The SingularityNET team members created it as part of Hanson Robotics.

AGIX’s 1 year rally has clocked over 185%. 

Numeraire (NMR)

Numeraire (NMR) is the cryptocurrency token linked with Numerai, an Ethereum-based platform aimed at inspiring data scientists and developers to innovate and refine machine learning models. Numerai's core goal is to inject decentralisation into data science and nurture competition in the development of proficient machine learning prediction models.

Numeraire powers Numerai, a hedge fund utilising crowd-sourced artificial intelligence for investments across major stock markets globally. In fact, Numerai states itself as the first ever hedge fund to launch a crypto, as well as use machine learning to a heavy extent in their investment strategy. 

NMR is the native token of the platform, with over 55% yearly gains. 

Near Protocol (NEAR)

NEAR Protocol is a sharded, proof-of-stake blockchain that highlights scalability with Nightshade sharding. It enables efficient dApp deployment and operation without creating infrastructure. The NEAR token powers transactions and smart contracts, driving mainstream dApp adoption. While AI is not the primary focus of NEAR Protocol, it has been integrated into the platform to enhance its functionalities.

The NEAR token has recorded an increase of over nearly 270% in the past year.

Injective (INJ)

Injective is a layer one blockchain tailored for finance-focused decentralised applications (dApps) on Web3. Injective integrates AI technologies to improve trading decisions and market efficiency, providing users with intelligent algorithms for transparent and efficient trading strategies. It also offers an on-chain decentralised exchange (DEX), bridges, oracles, and smart contracts for holistic finance dApp development.

Injective facilitates token swaps, margin trading, and forex futures trading across various blockchains, promoting cross-chain interoperability with Ethereum, Cosmos, and Solana.

The native INJ token has seen a 1-year rise of over 275%.

The Internet Computer

Internet Computer is a decentralised network serving as a global computing platform, hosting smart contracts securely and at scale. It's particularly advantageous for AI development, as it is capable of processing large data volumes and complex calculations essential for AI training and decision-making.

By distributing AI tasks across its network, the Internet Computer enhances processing speed and security, democratising access to powerful computing resources similar to Golem.

The native token ICP has risen by over 160% in the past year. 

Wrapping up

The combination of AI and blockchain isn't merely a passing trend; it's a transformative force with the potential to reshape entire industries. This convergence has created new opportunities for innovation and disruption across sectors. As new use cases emerge, expect to see continued expansion in both the scope and scale of AI and blockchain applications. 

Stay tuned to the world of crypto and blockchain with India Crypto Research!