Blockchain's Future with Artificial Intelligence

Hello everyone. A lot of people who read my newsletter come from a background in crypto and are interested in artificial intelligence. In this week’s newsletter, I will break down the fundamental use-cases for AI on the blockchain. There are so many AI coins out there and I feel like there is a lack of understanding when it comes to their actual purpose. Therefore, I will do my best to research this sector and tell you what you need to know.

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Tweet of the Week:

Crypto and AI

The integration of Artificial Intelligence with blockchain was inevitable as it actually has some pretty solid use-cases. The whole point of having blockchain technology is to have an immutable, public ledger that provides data on every transaction done on chain. Being that crypto does not have much regulation, there is a ton of fraudulent activity. AI can be used to detect fraud and will probably pick up on transaction patterns that a human would not. Most of the Ethereum blockchain, and now many other chains, are built on smart contracts. AI has already been proven to be efficient at creating code and correcting it. This makes it likely that AI will be used to create smart contracts efficiently and make sure they are correct before deploying them to the blockchain. From the trader side of things, AI will be able to detect market trends and predict future patterns to help improve your investments. As good as you may be at trading, AI will probably detect something that you won’t. Security is a huge issue when it comes to storing your crypto personally or massive cyber attacks on entire blockchains. Just like it can detect market trends and fraud, AI will be able to detect cyber attacks and help keep sensitive data more secure. With time I believe we will see many more examples of how it can be used with blockchain, but instead of speculating on the future, let’s look at a list of projects that are already utilizing AI to create innovation.

(Never financial advice, just a breakdown of each projects utility)

Fetch.AI

ChatGPT sparked a giant wave of hype in the technology sector. It was destined for coins like Fetch.AI to pump given the news. However, if you do some digging, you find that Fetch was actually founded in 2017 and has been working on their tech for over 5 years now. So what do they do? Fetch.AI aims to bring together Artificial Intelligence, Machine-Learning, and Distributed Ledger Technology to create an autonomous “Economy of Things”. On their website, they state, “As an autonomous machine-to-machine ecosystem, Fetch.ai’s agents work as a network of independent parties and interact with each other directly via the blockchain network.” Their agents use negotiation to interact with one another and it is all fully automated. This helps remove intermediaries and reduce costs on chain. After negotiation, Fetch’s agents upload transactions to the blockchain using their native token, FET, where agents will also be paid the same token as a reward. FET is an Ethereum native token, following the ERC-20 standard. The Fetch agents are able to interact with real-world data in order to solve complex problems, allocate resources in a decentralized way, and help provide good insight. If something is super complex, the agents can be programmed to achieve one certain thing, or turn to other agents to collaborate. Developers are able to create autonomous agents with Fetch.AI’s agent framework, or the smart contract platform. To ensure the blockchain is running smoothly, Fetch.AI utilizes “Proof of Stake” consensus. As far as real world use-cases, because Fetch.AI’s agents are able to handle complex processes, the blockchain will be ideal for automating supply chain management, energy management, finances, and healthcare. Overall Fetch.AI has a ton of potential and can potentially benefit thousands of users and business’s.

SingularityNET

Just like Fetch.AI, SingularityNET is not new to the scene. They were founded in 2017 by Dr. Ben Goertzel, but you are probably just now hearing of this project because of the recent buzz around AI and it’s innovation. Goertzel is well-versed in AI and Robotics and aims to take his passion for AI to the masses with this project. The mission is to provide AI services through a decentralized marketplace. There is a true emphasis on decentralization as Dr. Goertzel says the AI should not be controlled by one central entity and will not be dependent on the narrow vision of any one single corporation. The SingularityNET platform is built on the Ethereum blockchain where developers are able to provide AI services to users across the world in a secure and immutable manner. This platform also offers different tools for developers to build and train AI models. Instead of selling one single AI product, SingularityNET focuses on an “AI as a service” model. This means developers will be compensated when others use their tools. Therefore, the more a tool is used, the more revenue will be generated. A true decentralized model. In conclusion, SingularityNET exemplifies a perfect integration of crypto and AI to bring AI to the masses using blockchain technology.

Vectorspace AI

Yet again, we have another project that has been building AI and crypto integration since 2017. If you are a crypto investor, this one may pique your interest. Vectorspace AI uses natural language processing and machine learning on a decentralized platform to pick up on potential trends between cryptocurrencies and other kinds of data. It is run on the Ethereum blockchain as an ERC-20 token to ensure proper security and immutability. As an investor, it is obviously impossible to find every correlation for every coin as to why it is pumping or dumping. Vectorspace’s technology sorts through data such as social media, news outlets, blockchain data and even the stock market to find links to cryptocurrency trends. The technology is still very new and complex but in the future this could serve as a very powerful tool to give investors the early alpha.

Artificial Liquid Intelligence (Alethea AI)

Alethea AI was founded in 2019 by Arif Khan and “is a decentralized protocol powering a growing metaverse of intelligent and interactive NFT’s.” This one is a little freaky as you are able to use “CharacterGPT” to give a description and create an interactive AI character through natural language. These characters have voices, personality, a real-life look to them, and are tokenized so the owner can train it’s intelligence and use it across other dApps on the AI protocol. Crazy. The characters are NFT’s to make sure ownership is verified without a trusted third party. The digital labor of the characters benefits their rightful owner. You can trade other AI assets on the protocol using your character. The characters can be trained to evolve and upgrade their intelligence. These characters are also interoperable across all dApps on the AI protocol. The Artificial Liquid Intelligence token is ERC-20 and is used across the protocol and the decentralized apps on it to incentivize, regulate, and reward participants. Of all of the projects I covered, this is most definitely the ambitious of the bunch but has the potential to pioneer in uncharted territory.

Where is this headed?

As you can see there is a lot being done to push the integration of these two technologies. Even if you are scared of the future of AI, its potential is very fitting to innovate blockchain technology. All of the use-cases listed above have a bright future for making blockchain more accessible and easier to use. In addition, there will be many more possibilities created for blockchain using AI.

Links to the Project’s Websites:

Alethea AI

Fetch.AI

Vectorspace AI

SingularityNET

Weekly Book/Podcast Recommendations:

• The Untethered Soul by Michael Singer

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