Is the key to a decentralized digital revolution in AI-based NFTs
The artificial intelligence (AI) market appears to be key in driving digital asset growth, and non-fungible tokens (NFTs) are expected to benefit from the same. From what is understood, AI-based NFTs have the potential to ensure the long-term development of metaverse and decentralized play-to-earn (P2E) economies.
According to Sensorium, a metaverse and Web3.0 developer, AI-based NFTs are implanted with a Generative Pre-Trained Transformer 3 (GPT 3) language model in conjunction with their smart contract. The platform also stated that this type of NFTs can provide features like interactivity, animation, among others. “I think AI-based NFTs are not only interactive but also create experiences. We can even program these resources by giving commands and can generate different outputs each time. In short, AI can enhance the capabilities of NFTs ,” Toshendra Sharma, founder and CEO, NFTICALLY, a business-to-business (B2B) software-as-a-service (SaaS), told FE Blockchain.
Insights from market studies have shown that AI-based NFTs can enable the formation of a decentralized digital economy. Plain Concepts, a software company, has stated that AI-based NFTs can provide users with unique and personalized experiences. Furthermore, this category of digital assets can ensure the creation of digital communities, manage avatars’ intellectual rights, and democratize the reach of new digital applications. As stated by Binance, a cryptocurrency exchange, AI-based NFTs can be beneficial for understanding databases around human-made artworks. Experts suggest that AI has the potential to ensure a better functioning of an NFT marketplace through factors such as automatic adjustment of prices and spot market trends.
“The combination of AI and NFT has the potential to drive innovation and growth in digital and decentralized economies, creating new opportunities for creators, collectors and investors alike. However, it may take time for this to become mainstream. It is likely that we will see companies and organizations explore and use AI-based NFTs for business purposes,” said Edul Patel, co-founder and CEO, Mudrex, a crypto investment platform.
Reportedly, companies such as Alethea AI, XANA, Terrain.art, among others, have explored use cases for AI-based NFTs. For example, Alethea AI clocked $16 million to establish a framework for AI-based NFTs. Furthermore, future research predicts that AI-based NFTs could shape into a revenue stream for content creators and investors. Data obtained from Start With NFTs, an NFT-oriented platform, showed that AI-based NFTs are likely to play an important role in the entertainment and digital arts industries, which will increase their popularity.
“I think manifestations and projects will start to become refined and systematic, and only give rise to projects that have a practical application for the incorporation of AI in the NFT space. We expect to see early adopters because they would have done their research and worked with the practicality of AI in their NFT ecosystem,” concluded Kameshwaran Elangovan, co-founder and COO, GuardianLink, a decentralized protocol.
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