What are cryptocurrencies with artificial intelligence

The popularity of neural networks follows the path of development of digital currencies. The technology, inexplicable at first, began to be mentioned more and more often in the media, blogs, and collaborations of well-known fintech companies. At the start of 2023, the peak of interest and the influx of a large number of users was caused by the emergence of the ChatGPT project – a self-learning service for creating texts. The potential of artificial intelligence excites the minds not only of the community, but also of developers and large investors. One of the promising trends is the convergence of crypto- and AI-technologies for mutual development. In this piece, readers will learn how artificial intelligence can connect with digital currencies, blockchain and Web3-space. Also presented are the top 5 most promising coins of the segment in May this year.

How artificial intelligence complements cryptocurrencies

To understand the role of AI technologies in Web3 developments, you need to know the new terms. The list is compiled from general to specific:

• Data Science (DS). Translated into Russian, it means “data science.” The term means the field of computer research, which includes several areas: analyzing arrays of information, creating mathematical and statistical models, as well as software algorithms and networks capable of self-learning. As a rule, the English version of the name is used.
• Data arrays. This is the amount of information to analyze. For example, the ChatGPT project has studied 5.7 billion pages of texts on the Internet. Neural networks for creating digital graphics use existing pictures and photos, and video content generation uses real clips and movies.
• Artificial Intelligence or Artificial Intelligence (AI). This is the ability of algorithms and computers to perform tasks previously only available to humans. For example, they can draw a picture or write thoughtful, interesting text.
• Machine Learning. This is one of the elements of creating AI. Mechanized way helps computer algorithms to search and analyze data on a super large number of parameters. The same ChatGPT service uses 175 billion conditions to evaluate information.
• Neural network (or neural net). In English-language sources it is referred to as Artificial Neural Networks (ANN). Neural network is considered not an algorithm, but a model that is formed by analogy with the human nervous system. The technology provides a fundamentally more advanced level of machine learning and can not only get results from a sample of data, but also learn from them. In other words, add them to an array to analyze in the future and use its own experience as a living being.

Blockchain primarily helps to distribute data. It is in the array interaction part that the intersection of both the technologies is where the developers are emphasizing on. AI steps in the crypto space are in the initial stages of development.

At their core, neural networks remain in the Web2 space for now. However, they are already looking to take advantage of decentralized information storage. In this application, blockchain helps self-learning models to create algorithms with more capabilities.

However, the application of artificial intelligence in data analysis has been explored for years. Cryptocurrencies can also gain bonuses from collaborating with AI. The synthesis of technologies helps better utilize big data, among them:

• Smart contracts.
• Networks and transactions within them.
• Application functionality and protocols.
• News background around the industry and private projects.
• Information about cryptocurrency quotes.
• Various trading tools and trading strategies.

Artificial intelligence can index this data, and neural networks can draw conclusions based on it at the user’s request. In this manifestation, AI is already becoming part of Web3.

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Technology of cryptocurrencies working with artificial intelligence

A single AI-based project cannot evaluate the entire amount of data in the industry at once. Therefore, teams narrow down the scope to a specific segment. For example, it is possible to adapt the potential of neural networks to predict price movements. For this purpose, it is important to utilize and consider:

• News background.
• Changes in the price of Bitcoin as a flagship asset.
• The level of trading volumes.

This is the first step. On it, AI utilizes the array of data collected from the blockchain. On the other hand, we need to additionally package the collected and analyzed information into open source code, and then create the ability for users to form personal queries in the neural network.

In the end, the direct result search takes place in the form of creating a smart contract and recording it on the blockchain. This process is activated by users in 2 steps: sending a request and paying for the transaction.

In the end, the result becomes part of the network and is added to the array of already existing information. It will also be used by the neural network to analyze it during future requests.

The third area of focus was blockchain workload estimation. It determines at peak times more efficient connections and protocols for transactions.

The fourth and most obvious of the applications of any innovation in cryptocurrencies is to assist in trading. Artificial intelligence is able to analyze and form a strategy in real time.

Some projects are also working on creating AI trading bots.

Top 5 currencies with artificial intelligence

In May 2023, the sector of koins related to the use of AI, there are about 200 projects. The total capitalization of the sphere is $4.8 billion. It should be noted that the degree of AI participation in crypto-processes sometimes remains uncertain. Nevertheless, individual startups were able to convince the community and investors of the prospects and break through. The top 5 leading solutions of the segment are presented in the table.

Graph (GRT)

Heading the rating is a project that has been under development since 2018. The goal of the creators of The Graph is to implement a system for indexing information in the blockchain (simply put, to find the desired result using a search engine). Artificial intelligence helps to carry out the technical part of creating the database, and the neural network – to get a more accurate answer to a request made in chat.

The protocol architecture is supported by other users. They suggest sources for indexing and determine their importance. By May 2023, more than 31 thousand subgraphs have been deployed in The Graph, among which major platforms are represented: Synthetix, Uniswap, Gnosis, Ethereum, L2-networks, Moonbeam, NEAR and others.

GRT token is actively used at every stage of the project. The users who made the request are paid to write the information with results to the blockchain. Other participants receive native tokens for fulfilling various roles – indexers, curators or delegates.

The Graph project ranks 42nd in the ranking of all cryptocurrencies by capitalization. The main trading data of the GRT token:

• Listed on exchanges in December 2020.
• The All-Time-High (ATH) level was fixed at $2.86 in February 2021.
• The current price is $0.116.

Render Token (RNDR)

The second line in 2023 was occupied by a token of technology that came from Web2. The authors of Render Token are developing a cloud rendering system for digital content production. Their application OctanRender is on the ear of most representatives of gamemade, video production and 3D modeling, including those not related to digital currencies. In 2020, an Ethereum-based native network was launched. It made it possible to deploy a successful service in the blockchain, which makes it possible to use the video cards of other users of the protocol.

AI’s involvement in the blockchain solution is rather modest – influencing the scaling process and branching rendering requests. However, one of the company’s products helps to supplement 3D graphics with the help of neural networks. Experts of the sphere highly appreciated the service’s capabilities.

The popularity of the token earlier this year led to a 5.39-fold increase in value – from $0.44 to $2.37. By May, the capitalization of the project rose from $104 million to $637 million, which moved the asset to the 2nd line in the segment. Other cryptocurrency performance:

• RNDR’s appearance in crypto trading lists occurred in 2020.
• The ATH level was marked in November 2021 and amounted to $8.73. Over the next 12 months, the price dropped to $0.28 amid the global recession.
• The current value is $1.76.
• The daily trading volume is higher than the rest of the sector and stands at $130 mln.

Injective (INJ)

The third project focuses on the financial sector. The extent of AI involvement is not disclosed. However, Injective’s DeFi protocol, according to the authors’ statements, contains elements of artificial intelligence at its core. The peculiarity of the technology is considered to be the architecture of “smart” smart contracts based on CosmWarm. This makes it easy to deploy dApps compatible with Ethereum, Cosmos and other members of the extensive ecosystem.

In the ranking of the top 5 tokens of the segment INJ appeared only at the beginning of 2023. The main indicators of the cryptocurrency:

• The start of trading operations on crypto exchanges occurred in December 2020.
• The maximum quote was recorded at $24.82 (April 2021).
• The current rate is $4.07.

SingularityNET (AGI)

The platform was announced in 2017 and became the forefather of artificial intelligence projects in the crypto industry. Experts call the idea one of the most ambitious in the segment. SingularityNET allows creating decentralized AI-powered applications for external developers.

With the help of AI solutions on the basis of the project make robotics, DeFi tools, games, digital content, generative art, as well as respond to corporate requests.

Partners include China’s leading insurance service provider Ping An and crypto network Cardano. In collaboration with Hanson Robotics, SingularityNET recently launched a development called Awakening Health. It is a humanoid assistant for the healthcare industry named Grace.

The project has been considered the face of the AI segment in the crypto world for years. The main indicators of the digital currency AGI:

• Appeared on trading lists in January 2018 at a price of $1.49, which also remains an ATH mark.
• The current value is $0.24.

Oasis Network (ROSE).

The creators of the L1 blockchain initially planned to make a network with special privacy protection. Developments started in 2018. However, quite quickly the network began to focus on databases (Big Data). Among the first investors Andreessen Horowitz, Binance Labs, Pantera were noted. Oasis Labs also cooperates with the BMW automobile concern and Meta Platforms holding.

At its core, Oasis Network is built for the B2B sector and does not use AI directly. Its role is to be a platform for hosting blockchain communities related to information processing, machine learning and artificial intelligence.

The price of ROSE is characterized by stability – the exchange rate has not shown sharp spikes in volatility since June 2022. The chart moves in the range from $0.04 to $0.08. Other indicators of Oasis Network native token:

• The listing date is November 19, 2020.
• The ATH mark is fixed on January 15, 2022 at $0.60.
• The current price is $0.052.

AI cryptocurrencies outlook

Artificial intelligence gives more opportunities for global information analytics. AI integration is the future, comfort and nativeness of technology with distributed data storage. It can automate trading processes, increase bandwidth and encryption security, and make the use of mechanisms more convenient and faster. However, the application part largely remains outside the daily use of ordinary people and serves for internal innovations of blockchain infrastructure. Therefore, it is very difficult to assess the prospectivity of AI projects at a glance. By 2023, only established ecosystems that have been in development for 5 years have succeeded.

Nevertheless, the sector attracts most of the venture capital funding in Q1 2023. This can be considered an indirect sign of innovative solutions and next high-profile takeoffs coming soon. The top 5 will probably consist of brand new names in the near future.

In conclusion, the query “bitcoin” was searched 1.285 million times last month, and “neural network” – 3.284 million. Technologies with artificial intelligence remain at the peak of interest. The AI component has already defined its development vector in blockchain. However, self-learning models are still too young a tool. The areas of their direct application are still only being explored.

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