Bankless Four Cryptocurrencies Worth Paying Attention to in the AI Integration Direction

Unbanked Four Cryptocurrencies to Keep an Eye on for AI Integration

Authors: William M. Peaster, Jack Inabinet, Bankless; Translator: Songxue, LianGuai

A new crypto bull market has begun, and the thriving field of artificial intelligence in the crypto economy seems ready to break this cycle.

Artificial intelligence could be a groundbreaking technological innovation that drives development in various fields. Therefore, it’s not surprising that investment narratives surrounding this technology have generated great excitement.

Due to perceived synergies, more and more people in the crypto economy are optimistic about the intersection of artificial intelligence and blockchain, and they are accordingly betting and working on it. Many projects today may seem rudimentary or hype-driven, but now we are seizing real opportunities and focusing on the four key “crypto + artificial intelligence” categories that you should pay attention to.

• SharkTeam Analysis of the OKX DEX attack event and on-chain asset tracing
• Interpreting the Digital Asset Anti-Money Laundering Act initiated by five US senators, including Elizabeth Warren.
• Analysis of Mantle LSP Dual-channel yield aggregator supported by RWA and ETH PoS

Artificial Intelligence Currency Agents

Cryptocurrencies have always had bots. With the emergence of artificial intelligence, these bots are expected to evolve from simple task managers to autonomous currency agents capable of executing complex financial operations on the blockchain.

Of course, AI agents can use funds outside of cryptocurrencies, but the mainstream financial system is decentralized and inefficient. In contrast, blockchains like Ethereum are always online, borderless, and full of composable, fully owned “money Legos,” which allows AI agents to go further on the blockchain.

This scenario is still in its very early stages, but we are already seeing some experiments pointing to the future. For example, the experimental Rocky AI trading bot created last year relied on zero-knowledge cryptography to prove its off-chain operations on the blockchain and made profits while active.

This experiment is just a glimpse of the future, but it’s evident that the combination of AI’s analytical capabilities and blockchain’s immutable infrastructure could lead to explosive growth in innovative financial applications, reshaping the way we think and interact with money.

Although cryptocurrencies may become the preferred transactions of the AI layer, the high computational requirements of AI algorithms and blockchain gas limitations do not mix well! The computational needs for AI-powered crypto applications must be executed off-chain.

Cryptocurrency companies like Modulus, the developer behind Rocky AI trading bot, are using zero-knowledge technology to verify these off-chain computations, thus preserving the trustless nature at the intersection of cryptography and artificial intelligence.

Decentralized AI Computing

Creating AI models, especially advanced ones like GPT-4, requires a significant amount of GPU (Graphics Processing Unit) computing.

Decentralized marketplaces like Akash Network and Render Network are helping democratize access to computing, making it possible for anyone to create AI models! You don’t need to have your own large GPU to achieve this, just pay to utilize the existing computing networks of Akash and Render.

Through these networks, individual developers and smaller organizations gain the ability to participate in high-level AI model creation, fostering a more inclusive and diverse development environment. As the demand for specialized AI continues to grow, decentralized computing networks are poised to play a role in a new gold rush by “selling shovels” (metaphorically speaking, as a supplier of demand).

The AI computing market has successfully created markets on various types of GPUs. Decentralized marketplaces allow anyone to offer any amount of computing resources at any price, meaning Akash and Render can provide users with the latest chips that haven’t been obtained through centralized providers. However, these networks still struggle to gain adoption among users with the most abundant resources and fully utilize today’s top-level chips.

Native tokens are used to incentivize computing resource providers. The distribution of these tokens helps align the pricing of decentralized networks with centralized alternatives and keeps the incentives for computing resource providers in line with the incentives of the network.

AI Output Market

While massive venture-backed startups like OpenAI are causing a sensation with their large language models (LLMs) and attracting the attention of tech giants, there are also some cryptocurrency projects dedicated to training their own models in a decentralized manner.

While blockchains like Ethereum and Bitcoin sell immutable block space, projects like Bittensor focus on creating decentralized intelligence markets that aim to collaboratively train a decentralized and incentivized language model to improve over time.

It’s important to emphasize that the advantage of such projects is that they can democratize and open up the demand for AI services over time, while utilizing their token to incentivize the flow of resources to their own model.

OpenAI has been ahead of its tech giant competitors for years, so the question is whether decentralized options have a chance in a market that many believe could be a winner-takes-all.

The market clearly has confidence in Bittensor’s TAO token, currently valued at $8.1 billion, but it remains to be seen whether this is an indicator of future prospects or simply investor speculation. However, ambitious products launched in the hot industry often receive rewards from crypto investors.

Smart Entertainment

When it comes to the synergy between cryptocurrency and artificial intelligence, it’s not all work and no play. Another area ripe for innovation is AI + entertainment. And when this interaction takes place on the blockchain track, I call it the foundation of an intelligent open metaverse.

With the increasing complexity and costs of mainstream games like “Grand Theft Auto VI,” it’s likely that even the largest game publishers themselves will start funding AI-driven environments. Web3 developers putting these experiences on the decentralized track will be able to utilize the decentralized networks to plan and implement quality control.

This fusion can and will elevate the interactivity and personalization of the entertainment virtual space to new levels. These are becoming places where AI can create autonomous, dynamic, and responsive characters and environments, offering each user a unique experience. It’s like parallel colonies, a new breed of “1.5-player games.”

The shift towards AI-driven characters marks a significant transformation in the entertainment field from static, pre-designed virtual worlds to ever-changing, intelligent, memory-filled and emotionally-rich ones. This revolutionary approach paves the way for more immersive and captivating virtual experiences.

Conclusion

As we delve deeper into the AI-driven crypto economy in the coming years, the fusion of AI and cryptocurrency is not just a novelty but a potential harbinger of systemic transformation.

It goes against the grain of mainstream tech centralization and top-heavy dynamics, hinting at a more democratized and decentralized future for AI. This fusion will redefine industries from finance to entertainment, challenging traditional paradigms and empowering individuals and small entities.

For multiple reasons, betting on incentivized transparency and decentralized control over the technologies reshaping our world is worth it.

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