How AI brings intelligence to NFTs

Source: Cryptonews

NFTs (non-fungible tokens) have evolved at a dizzying pace since their inception. Originally launched as static images that appealed to relevant enthusiasts, they have since expanded into much more lucrative offerings such as videos, music, artwork, and more. Its growing popularity caused buyers to spend millions to become part of the NFT market. Today, NFTs seem destined to play a crucial role in emerging technologies and early iterations of the metaverse and Web 3. We are all familiar with first-generation NFTs, which focus on properties like authenticity, ownership, and the singularity. The use of AI (Artificial Intelligence) in the blockchain space has been around for a considerable time. Projects like AIWORK have been using AI to address issues facing the online video space, so its application in the NFT space is no surprise. With AI thrown into the mix, a new type of NFT or intelligent NFT (iNFT) could signal the next evolution of NFTs, unlocking new capabilities and use cases. But what are they and how do their characteristics differ? More importantly, how does AI relate to them?

What are NFTs?

Before moving on to iNFTs, it is essential to understand what NFTs are and how they work. An NFT is a cryptographic token that can be used to represent ownership of unique items, enabling the tokenization of assets such as art, collectibles, real estate, digital assets, and more. Because NFTs are unique, they cannot be shared or traded. The identifying information of each NFT is stored in smart contracts, and it is this information that makes each asset unique. NFTs have been around since the early days of cryptocurrencies, since 2014 when rough concepts were introduced. However, they really started to gain traction in late 2020 or early 2021, with top collections like Bored Ape Yacht Club and CryptoPunks leading the mass adoption.

Definition of iNFT and the role of AI

We understand that AI refers to machines that have the ability to mirror human intelligence and perform specific tasks. This technology can perform various cognitive functions, such as learning, problem solving, and reasoning; because of this, it has seen significant progress over the last decade, finding applications in the crypto and NFT ecosystems. Smart NFTs are next-generation assets that have interactive features. and intelligent skills built into them, allowing them to learn, adapt, and interact with information and users. From a more technical standpoint, iNFTs are integrated with something known as Generative Pretrained Transformer 3 (GPT-3). The GPT-3 is a deep learning tool that produces a language message, allowing machines to interact with people. In iNFT, the GPT-3 is built into the NFT smart contract, allowing it to learn from interactions. As a result, iNFTs can combine AI-powered features and avatars with smart contracts, resulting in engaging technology that can be used in a variety of ways to entertain and educate.

Characteristics of iNFTs

iNFTs have created quite a buzz in the NFT space, primarily due to several unique features: Self-Learning: iNFTs can learn from interactions and unlock new intelligence available to owners, creators, and the network at large. Embedded intelligence: iNFTs are embedded with a GPT-3 flag in their smart contract, helping to create generative possibilities in interactive conversations. permissionless: iNFTs are universally usable and censorship-resistant. Valuable and Fractionable: iNFTs accumulate value that can be accessed by the owner and creator of the NFT.

Possible use cases for AI and NFT

AI is being used to generate original art, music, and virtual wearable devices such as metaverse assets. In fact, AI art NFTs have been tagged as the potential next big wave in the crypto space. We have also seen the rise of AI-based art galleries and various AI artists, where projects attempt to transition into the metaverse by using AI to create interactive 3D avatars using user portraits. Smart NFTs can independently create new content and integrate dynamic experiences into their smart contract, thanks to their self-learning ability. The more an iNFT interacts with a given environment or user, the more it can learn from their interactions and build a knowledge base. Imagine an NFT capable of reacting to your interactions and adapting to your moods. One of the most prominent projects involving iNFT is Alethea AI, which allows users to incorporate interactions, AI animations, and speech synthesis capabilities into NFTs. Alethea also sold her first iNFT, an AI-powered avatar named Alice, for astaggering $478,800 . Alice is capable of simulating human speech and interactions. Fuzzle, another clever NFT project on Ethereum, can chat with holders on various topics, including politics and cryptocurrencies. There are several other ways that AI and NFTs could influence each other, such as: NFT avatars: We already have AI companions in our homes, like Alexa, who can help us with basic tasks. If AI-based avatars are created for this technology, we could see NFTs incorporated into the technology. The implementation of NFTs in this space could allow specific avatars for AI companions. Smart NFT Markets:AI can also bring an intelligent and adaptive approach to NFT markets, which can be used to spot trends in the NFT market, adjust prices and listings, and other market parameters in real time.

Great potential

AI has various use cases, and as mentioned above, it is being used in the blockchain space by projects like AIWORK. Thanks to AI, we were able to see iNFTs become the next evolution of NFTs, providing a glimpse of what the future holds if blockchain technology and artificial intelligence are used together. Smart NFTs are only in their early stages, but as more projects realize the potential of these new iNFTs, we could see more innovation in the space, signaling a rise in crypto and AI applications. The future of this space has huge potential and can change everyday life in the blockchain and NFT spaces. Disclaimer: This is a guest post. Coinpedia does not endorse and is not responsible for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any action related to the company.