The intersection point between Artificial Intelligence (AI) and Web3 – AI tokens are cryptocurrencies that are tied to AI projects and protocols. Over the past few days, the AI token category has emerged as a topic of discussion among members of the global tech community. This comes after tech giants like Apple and Nvidia reportedly started discussions about investing in OpenAI. Venture firm Thrive Capital also invested $1 billion (roughly Rs. 78.70 crores) in OpenAI, helping bring the topic of AI tokens into the spotlight.
Dive deeper into AI token use cases
AI tokens, which are associated with artificial intelligence projects, perform a variety of functions. Similar to traditional altcoins, these tokens are often created on blockchain platforms like Ethereum and Cardano.
Developers in the AI space are increasingly combining AI with cryptocurrency technology to increase transaction speed, transparency, and cost-efficiency – key elements needed to support the development and operation of their protocols.
AI tokens give their holders the power to participate in decision-making of the AI projects to which the tokens are linked. Additionally, these cryptocurrencies act as the native payment currency for AI projects, allowing holders to access services offered by the AI ecosystem, Dubai-based blockchain development firm Rock’n’Block said in a recent Explained via post on LinkedIn.
AI tokens could become essential components for initiatives such as AI-powered marketplaces, AI-powered trading algorithms, and decentralized autonomous organizations (DAOs) that leverage artificial intelligence. Injective (INJ), RENDER (RENDER), Theta Token (THETA), Oasis Network (ROSE), SingularityNET (AGIX) have been named among the popular AI tokens by Crypto.com.
What does the future of AI tokens look like?
VanEck, an investment manager who received approval to launch an ether ETF in the US earlier this year, has offered an optimistic outlook on the AI-powered cryptocurrency. In a detailed report published in February, Matthew Siegel, VanEck’s head of digital assets research, and Patrick Bush, senior investment analyst for digital assets, explored the potential future of AI and cryptocurrency integration.
“There is a significant possibility that public blockchains are the key to widespread adoption of AI and that AI applications will be the raison d’être (reason for being) of crypto. “This is because crypto provides the critical fundamental elements AI requires, such as transparency, immutability, clearly defined ownership properties, and an adversarial testing environment,” the report said. “We emphasize the base case for AI-focused crypto projects to garner $10.2 billion (roughly Rs. 85,635 crores) in annual revenue by 2030.”
AI tokens, which serve as incentives for developers and users of AI projects, are emerging as the key driver that could attract more people to explore new solutions and protocols in the future.
According to Zebpay, the potential of AI in the crypto world is huge as AI-powered crypto tokens can be programmed with capabilities to detect illicit activities, analyze market trends, and identify investment opportunities.
Cryptocurrency is an unregulated digital currency, not legal tender and subject to market risks. The information provided in the article is not intended to constitute financial advice, trading advice or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV will not be responsible for any loss incurred from any investment based on any speculative recommendation, forecast or any other information contained in the article.
