With projects at the intersection of artificial intelligence (AI) and cryptocurrencies popping up everywhere, let’s take a look at which ones really deserve your attention.
This guide explains how you can benefit from the simplest AI-powered means to deepen your understanding of the cryptocurrency market and launch your Web3 career in development and marketing.
Using AI in Cryptocurrency: Highlights
AI and blockchain are among the most impressive emerging technologies for data processing and transfer. Therefore, there are many opportunities to integrate them with each other.
- The use of artificial intelligence in cryptocurrencies has gained traction since the launch of OpenAI’s ChatGPT in Q4 2022 and the GPT-4 model in 2023.
- Multiple altcoins advertise themselves as “AI crypto,” but only a few actually use AI and ML in their underlying projects.
- Cryptocurrency enthusiasts should be extremely careful when investing in “AI cryptocurrencies” as virtual currencies are becoming increasingly volatile.
- In addition to trading, Web3 beginners can also learn how to create smart contracts and audit smart contracts in an automated way.
- AI chatbot based on GPT-4 Models are good at writing content in plain English. Even if you’re new to Web3, you can easily learn about key blockchain technical concepts and even start creating content on your own.
For users with different backgrounds and levels of computer science knowledge, learning the basic techniques of using AI in cryptocurrencies may be a wise choice. At the same time, the concept of crypto AI remains greatly exaggerated. Many tokens are actively using crypto AI in their marketing campaigns to lure new retail investors.
What is AI?
Artificial intelligence or AI is a technology that allows computers to simulate the processes of human intelligence. AI also represents a specific research field in computer science (CS) that develops and analyzes the behavior of intelligent machines and their use in problem solving. In some cases, “AI” is also used to describe these calculators.
For non-CS users, the AI sphere is interconnected with a neural network, an advanced machine learning model designed to emulate the interactions between neurons in the human brain.
Artificial intelligence can facilitate a vast number of use cases, both in the digital and “real world” realms. His ChatGPT by Sam Altman’s OpenAI, which utilizes GPT’s large-scale language model, is a chatbot that represents a textbook example of an AI tool that is accessible even to users without coding expertise.
What is OpenAI’s ChatGPT?
ChatGPT is a new generation language model developed by OpenAI, co-founded by Sam Altman. This is part of OpenAI’s GPT-3.5 architecture, which is designed to understand and generate human-like text based on the input it receives. Chat GPT It leverages deep learning technology to provide natural language processing capabilities. This makes it extremely versatile for a wide range of uses, from answering questions and generating creative content to supporting research and automating tasks.
ChatGPT is the brainchild of Sam Altman, a prominent figure in the technology industry.Altman played an important role OpenAI We’re on a mission to advance artificial intelligence and make it more accessible.
The public launch of ChatGPT in late 2022 dominated media headlines and sparked the first phase of AI excitement in retail.
What is AI Crypto?
AI Cryptocurrency or AI Crypto is an altcoin that is somehow related to the development of artificial intelligence. Based on the market situation in Q4 2023, we can see that there are three categories of what is called “AI cryptocurrencies” in the media.
- AI Cryptography: Technology. There are several blockchain systems that combine the use of AI/ML with decentralization. For example, SingularityNET, associated with Cardano, launched AI cryptography AGIX and SOPH as part of an experiment with Sophia The Robot.
- AI Crypto: Fundraising. Other projects are using cryptocurrencies as a way to raise funds to fuel research and development activities in the field of AI. Vectorspace AI (VXV) is an example of a token in this category.
- AI Crypto: Marketing. The majority of AI tokens only use AI narratives in their marketing strategies. For example, IMGNAI and other beneficiaries in Q1 2023, AI tokens will come together.
Cryptocurrency enthusiasts can easily find AI cryptocurrencies on large trackers. On CoinGecko, these currencies can be found on the “Top Artificial Intelligence (AI) Coins by Market Cap” dashboard.
You can also see the overall segment dynamics in the Categories section. On CoinMarketCap, the related category is called “Top AI and Big Data Tokens by Market Capitalization” and displays a broader number of assets.
AI in Cryptocurrency in 2024: How to Best Use It
Here we explain how AI-powered protocols, instruments, and platforms can benefit crypto users with varying levels of technical skill.
AI Cryptocurrency Trading
Buying and selling cryptocurrencies that are somehow associated with artificial intelligence is the easiest way to profit from the AI crypto mania. As with other types of altcoins, users need to open positions at the right stage of hype. Also, traders should not get too greedy as AI crypto is very volatile.
Market capitalization, million USD
Down from ATH, %
In Q1 2023, during the first and hottest crypto frenzy, some AI cryptocurrencies rose 1,500% in a matter of days. Bad Idea AI (BAD) is the Shiba Inu (SHIB) community’s favorite AI cryptocurrency and is the latest coin that has managed to rise in this space.
To start trading AI cryptos, you should check the corresponding category in your tracker (“Top Artificial Intelligence (AI) Coins by Market Cap” on CoinGecko or “Top AI and Big Data Tokens by Market Cap” on CoinMarketCap) ). Then, after selecting the cryptocurrencies you want to buy, you can select the most relevant trading pairs on centralized and decentralized exchanges in the “Market” dashboard.
Master Web3 with ChatGPT
Instead of using search engines or information portals to find information about Web3, you can always ask ChatGPT about all things cryptography. As of Q4 2023, its dataset is well-trained to provide comprehensive, detailed, and correct answers to basic questions.
For example, Cardano (ADA), the second largest proof-of-stake L1 blockchain, is described as follows:
Cardano is a blockchain platform founded by Charles Hoskinson, one of the co-founders of Ethereum. We focus on scalability, sustainability, and interoperability. Cardano employs a unique proof-of-stake consensus mechanism called Ouroboros that enhances energy efficiency and security. It aims to provide a secure and transparent infrastructure for smart contracts and decentralized applications (DApps). His two layers of Cardano separate the payment layer (ADA cryptocurrency transactions) from the computation layer (smart contracts), allowing for flexibility and preventing network congestion. Additionally, Cardano emphasizes peer-reviewed research and academic rigor to improve the robustness and reliability of blockchain technology, making blockchain technology a promising platform for future applications such as decentralized finance (DeFi). I’m doing it.
We asked ChatGPT to explain the basics of Cardano in 100 words.
However, when it comes to modern developments, the answer may be too vague or imprecise due to the use of legacy data. In some cases, ChatGPT will provide a corresponding disclaimer. For example, when I asked about Ethereum’s deflationary state, the chat provided outdated information such as:
When I last updated my knowledge in September 2021, Ethereum (ETH) was not deflationary. In other words, there was no maximum supply limit like Bitcoin’s 21 million coins. Ethereum operated with a different issuance mechanism, using a combination of block rewards and transaction fees to incentivize miners and secure the network.This meant that the total supply of Ether could continue to increase over time
Therefore, we strongly recommend that you use ChatGPT only for learning basic concepts and not for developing processes or trends.
Creating a smart contract
At the same time, in software engineering, ChatGPT provides accurate and detailed answers. For example, here’s how it can help you master smart contract engineering for EVM-compatible blockchains.
To see this feature, we asked ChatGPT to demonstrate a sample of the Polygon blockchain’s ERC-20 token (the most common token standard in EVM). “Write her ERC-20 token sample on the Polygon blockchain.”
In this sample, My token is the name of the ERC-20 token. MTK A token symbol or ticker. The constructor function initializes the tokens with an initial supply up to 1,000,000 tokens and assigns them to the deployer’s address. This contract is a successor to his ERC20 contract from OpenZeppelin, a widely used library for ERC-20 tokens.
This sample can be deployed to testnet or mainnet via modern development tools such as Remix, Truffle, and Hardhat.
Create content with cryptocurrencies
Last but not least, ChatGPT allows you to express yourself and reap the benefits as a cryptocurrency marketer. Ideal for writing rational texts on various topics such as cryptocurrencies, blockchain, decentralization, Web3, etc.
To become a master of AI-generated content about cryptocurrencies, you need to learn prompts, standardized commands designed to create articles that are more detailed, sophisticated, and accurate than those generated with simple questions. there is.
For example, ask ChatGPT to explain the basics of Ethereum Virtual Machine (EVM): Please mention BSC, Tron, and Polygon. ”
Think of the Ethereum Virtual Machine (EVM) as a big computer in the sky. It’s not a real machine, but it’s like a super smart computer that exists on the internet. This computer can run programs called “smart contracts.” These contracts are like little computer programs that follow the rules and take care of things automatically when you send cryptocurrencies like Ether.
Currently, Binance Smart Chain (BSC), Tron, and Polygon are like Ethereum’s neighbors. They also have their own smart contract computers, but they work a little differently. People build and run smart contracts on these platforms, just like his EVM on Ethereum.
As such, ChatGPT only demonstrated the benefits of EVM and explained the basics of cross-blockchain compatibility in blockchains like Ethereum.
Artificial intelligence can be used in cryptocurrencies in a variety of ways. This eliminates the need for specific technical skills for marketers, content creators, and even junior developers and auditors. Also, with its high volatility, AI tokens should not be ignored by spot or futures traders.