AI tokens will play a significant part in implementing machine learning models on the blockchain. The cryptocurrency industry is no exception among industries transformed by artificial intelligence (AI). Blockchain technology and artificial intelligence have created a new type of digital asset called AI crypto tokens.
In this beginner’s guide to AI tokens, we’ll explain what they are, what they do, and some of the AI-powered cryptocurrencies available on the market.
Understanding AI Crypto Tokens
AI tokens are coins that support AI-based projects and applications on the blockchain. They perform three key functions, one of which is facilitating transactions.
Unlike blockchain, AI tokens are not used to make or receive payments; they are a medium of exchange on the intelligent AI platform to pay for services, access data, and participate in various events.
Additionally, these tokens play an essential role in the protocol’s governance. The protocol may grant some of its holders governance rights, allowing them to vote on choices regarding the AI project or platform.
Third, they encourage users to participate in developing an AI project. Users can also earn tokens as a reward for providing data, computing resources, and AI applications.
How Do AI Tokens Work?
All AI-based cryptocurrency tokens usually work according to the principles described above.
Token Creation: Projects such as cryptocurrency exchanges and travel apps use tokens to power their platforms.
Brilliant Contract Creation: Smart contract creation describes self-executing contracts that define how tokens will be used in AI-related services.
Token Issue: The AI Crypto Token Project will issue tokens during the token sale or Genesis Block stage.
Token Usage: Users can acquire tokens through trading, staking, or participating in the platform ecosystem. They can then use these tokens to access services, pay fees, and participate in governance.
Integration with AI platforms: The project integrates tokens with AI service platforms. Owners of these tokens can use them to contact machine learning models, conduct data analysis, or perform other AI functions.
Decentralization: Some AI token projects focus on devolution. The distributed governance model allows all token holders to participate in critical decisions.
Incentive: Some projects use tokens to attract resources, such as computing power or data, to the network from people who add them.
It is important to note that the project details will vary significantly, as each AI token system is built with a different set of rules and goals.
Top 5 AI Tokens
The AI landscape in crypto is rapidly changing as more projects enter the crypto space. The top five AI tokens are based on market cap, and popular crypto platforms recommend the top five AI tokens.
1, Injective (INJ)
Injective Chain’s native coin is INJ, which is used on derivatives trading platforms and layer-2 decentralized exchanges. It provides advanced trading features such as boundary and leverage trading and uses AI to give the best order execution, backtest trading strategies, and predictive analytics. INJ is the most significant AI token by market cap, at $1.418 billion.
2. The Graph (GRT)
Graph (GRT) indexes blockchain data in a way (indexing protocol) that makes queries against that data trivial for AI analysis. At the time of writing, GRT is the second-largest AI token by market cap at $1.379 billion.
Staked GRT is used to power indexers, a decentralized network of nodes controlled by a network of nodes called indexers that “earn” the right to collect and serve application data.
3. Render (RNDR)
Render Token is a decentralized GPU-based cloud computing network that provides in-demand training and rendering services in artificial intelligence and machine learning. To use the GPU, users can stake and lock RNDR tokens.
The project offers providers compensation or farming services, such as renting out their GPU computing power, by distributing RNDR tokens. RNDR currently has a market cap of $1.22 billion.
4. Theta Token (THETA)
The Theta token (THETA) powers the decentralized video distribution network Theta. It is the fourth-largest token in the AI and significant data sector, with a market cap of $960 million at the time of writing.
As AI and machine learning innovations advance, Theta aims to improve video streaming quality while becoming more cost-effective for its users. By sharing users’ bandwidth resources, users can earn THETA tokens for users and relay nodes.
5. Oasis Network (ROSE)
In the case of privacy-preserving blockchain-based AI computing, Oasis Network used a token incentive architecture. At the time of writing, ROSE has a market cap of about $567 million. The protocols act as coordination protocols for the network of nodes. The technologies used in this setup can protect computation, including differential privacy, federated learning, and Intel SGX.
Final Words
As blockchain platforms become more widespread, AI will play a significant role in developing new topographies and increasing efficiency. Specialized AI tokens coordinate the incentives and cooperation needed to support AI in a decentralized context. They are fascinating, given that the tokenization of ML processes is evolving on the blockchain.
Most cryptocurrency categories are complex and volatile, and they will remain so. In this regard, due diligence of investors before making a decision remains very important.