Cryptocurrencies that have integrated artificial intelligence (AI) or plan to do so have been soaring in popularity.
The fast-paced expansion and development of AI have generated considerable interest, controversy, and fear among the public, especially tech enthusiasts, investors, and even government officials and politicians. Projects like OpenAI’s ChatGPT, as well as its numerous alternatives, have been making headlines left and right, and this has inevitably impacted the crypto industry.
This can be reminiscent of Bitcoin and the early creation of the decentralized finance (DeFi) market.
But as with the broader cryptocurrency market, AI-focused projects have also increased in their numbers and identifying the legitimate and promising ones can be a bit challenging.
That’s why, in this guide, we take a closer look at the top AI-based crypto protocols that you should have on your watch list.
Quick Navigation
- What is AI Crypto?
- Best AI Crypto Projects to Watch This Year
- Is AI Good for Crypto?
- How to Buy AI Cryptos?
- Best AI Crypto Projects: Conclusion
What is AI Crypto?
Before proceeding, let’s briefly explain AI crypto and why this sector has blossomed in the last few years.
At the forefront of crypto, AI crypto projects appreciated substantially, especially in the first quarter of 2024. The reason is not just hype; the combination of AI and blockchain technology has opened several windows of new use cases and applications for finance, data storage, cloud computing, and much more.
In decentralized finance (DeFi), for example, we can see different types of dApps using AI. Decentralized exchanges (DEXs) can use AI to facilitate trade automation through algorithms (as many automated market makers do).
AI can also improve the screening process for smart contracts, allowing founders to spot potential threats and vulnerabilities. In another example, AI is frequently used to produce generative art NFT projects, such as Interactive Non-Fungible Tokens (iNFTs), which incorporate intelligent traits and reasoning abilities.
There are currently hundreds of AI-based crypto projects, each targeting a specific market within and outside the space.
Fetch.ai (FET)
Fetch.ai is one of the top crypto AI projects boasting billions in total market capitalization.
It allows users to leverage resources and tools to build and monetize their AI-powered crypto apps and services. However, one feature that distinguishes Fetch is autonomous economic agents.
These agents, which can be devices, services, organizations, or individuals, are capable of performing various tasks such as processing and sharing data among IoT (Internet of Things) devices, executing crypto transactions for users, and facilitating trades and swaps on decentralized exchanges like Uniswap through crypto trading bots.
The protocol operates on its own blockchain, powered by its utility token, FET. A unique aspect of its blockchain is its mixed consensus: Proof-of-Work (PoW) and Proof-of-Stake (PoS), in which miners validate transaction blocks and agents earn fees for executing multiple AI-related tasks.
For developers, Fetch offers a comprehensive suite of tools, including AI, Web3, and blockchain infrastructure, resources, and extensive documentation to create decentralized AI projects.
Likewise, Fetch also features the Open Economic Framework (OEF), an AI-driven layer that stores information for agents. This layer allows agents to interact and source information while nodes (miners) are rewarded with FET for facilitating these interactions.
Render Network (RNDR)
Render Network is an Ethereum-based blockchain platform that aims to decentralize GPU cloud rendering by connecting those who need rendering services with owners of high-performance GPUs.
It is one of the top Solana projects.
This system enables artists, individuals, and companies to carry out rendering tasks more affordably and quickly than traditional centralized options.
The platform operates as follows: creators submit rendering jobs, and node operators use their spare GPU capacity to complete these jobs and earn RNDR tokens as compensation. Render Network supports a range of tasks, from basic rendering for gaming and entertainment to complex projects involving AI and machine learning.
The protocol also implements a tiered pricing system based on the reputation of node operators. The highest-rated operators fall into tier 1 and are typically the most expensive but offer more reliable and scalable services,
