AI tokens will be important in the blockchain implementation of machine learning models. The cryptocurrency space is no exception to industries transformed by artificial intelligence (AI). Blockchain technology and AI have created a new type of digital asset, which we can call AI crypto tokens.
In this beginner’s guide to AI tokens, we will explain what they are, what they do, and a few AI cryptocurrencies available in the market.
Understanding AI Crypto Tokens
AI tokens are currencies that support AI-based projects and applications inside the blockchain. They play three crucial roles, one of which is facilitating transactions.
Unlike blockchain, AI Tokens are not used to make or take payments. Instead, they are used as the medium of exchange on an AI smart platform to pay for services, access data, and participate in various activities.
In addition, these tokens play a major role in the protocol’s governance. The protocol may grant some of its holders governance rights, allowing them to vote on their decisions for the AI project or platform.
Third, they encourage users to participate in developing the AI project. Users may also receive tokens as rewards for supplying data, computational resources, and AI applications.
How Do AI Tokens Work?
In general, all AI crypto tokens usually work following the line of work mentioned above.
- Token creation: Projects such as cryptocurrency exchanges and ride apps use the tokens to power their platforms.
- Creation of smart Contracts: Smart Contract Creation describes these self-executing contracts that outline how the tokens would be used in AI-related services.
- Token Issuance: The AI crypto token project will issue the token during the token sale or in the Genesis block.
- Token utilization: Users can acquire tokens via exchanges, staking, or engagement in the platform’s 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 services platforms. Holders of these tokens can use them to access machine learning models, perform data analysis, or perform other AI functions.
- Decentralization: Some projects in the AI token realm focus on devolution. The distributed governance model enables all token holders to engage in crucial decisions.
- Incentive: Some projects employ tokens as an incentive to attract resources, such as computing power or data, to the network from individuals who add them.
It is important to note that the project details will change immensely since every AI token system is created with a different set of rules and objectives.
Top 5 AI Tokens
The Crypto AI landscape changes quickly as more projects follow the crypto space. The five leading AI tokens are based on market capitalization, and popular crypto platforms recommend the top 5 AI tokens.
1, Injective (INJ)
The native currency of the Injective Chain is INJ, which is used on layer 2 decentralized exchanges and derivatives trading platforms. It provides advanced trading functions such as margin and leverage trading and uses AI for best order execution, testing of trading strategies, and predictive analytics. INJ is the largest AI token in market capitalization: $1.418 billion.
2. The Graph (GRT)
The Graph (GRT) indexes blockchain data in a way (an indexing protocol) that makes querying that data trivial for AI analytics. 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 the Indexers, a decentralized network of nodes operated through a network of nodes called Indexers, which ‘earn’ the right to collect and provide application data.
3. Render (RNDR)
Render Token is a decentralized GPU cloud computing network serving high-demand AI and machine learning training and rendering tasks. To use a GPU, users can stake and lock up RNDR tokens.
The project provides payback to the suppliers or renders farm services, such as leasing their graphics processing capacity, by dispensing RNDR tokens. At present, RNDR has a market capitalization of $1.22 billion.
4. Theta Token (THETA)
The Theta token (THETA) powers the Theta decentralized video delivery network. It is the fourth largest token in the AI and big data sector, with a market capitalization of $960 million at the time of writing.
As innovations in artificial intelligence and machine learning continue to grow, Theta aims to improve video streaming quality while being more cost-effective for its users. Sharing users’ bandwidth resources can earn them THETA tokens for users and relay nodes.
5. Oasis Network (ROSE)
In the case of privacy-preserving AI computation on the blockchain, Oasis Network leveraged a token incentive architecture. At the time of writing, ROSE’s market capitalization is around $567 million. The protocols act as coordination protocols for the network of nodes. The technologies used in this setup can secure computing, including differential privacy, federated learning, and Intel SGX.
Final Words
As blockchain platforms emerge into large-scale adoption, AI will make all the difference in developing new functionality and efficiencies. Specialized AI tokens coordinate incentives and collaboration needed for pushing AI in a decentralized context. They are particularly interesting given that the tokenization of ML processes is now developing on the chain.
Most of the crypto category is complex and volatile, and it remains so. In this regard, investor due diligence before adoption is still very important.
