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2021 saw a boom in the popularity of non-fungible tokens (NFTs). It caused consumers worldwide to spend millions of dollars in the booming cryptocurrency market. Some NFT development solutions include the integration of NFTs into various technologies, including metaverse and Web3. Now, this integration is expanding with artificial intelligence (AI) involvement. It is opening up additional levels of business possibilities in the form of intelligent NFT.
Understanding Intelligent NFTs
NFTs are distinctive and authentic digital assets similar to music, visual arts, and films. These assets are non-fungible, meaning no one can switch them with another NFT. Additionally. one can utilize them to represent things like exclusive identities, property rights, and more.
On the other hand, AI is the ability of a computer to mimic human intelligence and carry out complex activities like problem-solving, decision-making, and learning. Over the past ten years, this technology and other related technologies have experienced exponential expansion.
An intelligent NFT is a tokenized asset with a GPT-3 (Generative Pre-trained Transformer-3) AI model encoded in its smart contract. This AI model uses deep learning to enable writing that resembles human speech.
Now, many projects have begun implementing AI models within NFTs. We are already witnessing NFT-AI convergence in the form of generative art. The potential, though, is considerably greater.
Developers can create new types of intelligent ownership by integrating AI functionalities into the NFT cycle.
Check It Out: Dynamic NFTs | Understanding the Dynamics of dNFTs
How an Intelligent NFT is different from a Traditional NFT
First-generation NFTs have basic characteristics like being indivisible, unchangeable, and digitally rare. These NFTs serve as digital ownership certificates for the underlying item they represent. So, these tokens make it possible to prove the asset's legitimacy and provenance.
Despite these advantages, traditional NFTs are still primarily linked with static assets or virtual objects that cannot change, such as photos and audio files.
Contrarily, intelligent NFTs can communicate with people through user inputs. Additionally, these NFTs may have animation, making them more dynamic than traditional NFTs.
These NFTs can build dynamic experiences and fresh content on their own because of their learning capacity. These digital assets can gather and produce more content with more exposure to specific environments or users.
The Properties of an Intelligent NFT
Below we have curated a list of properties of an intelligent NFT:
- Token-based
- Permissionless
- On-chain personality traits
- Valuable and fractionable
- Acquires new level of knowledge over time
Also, Visit: NFT Integration for Remodelling Supply Chain Processes
Intelligent NFT Benefits
The following are the benefits of intelligent NFTs:
Wider Ecosystems
Developers can continuously update underlying technological structures by merging AI and blockchain technologies.
AI technology has the potential to offer users more ways to connect with their NFTs. Additionally, it provides a more flexible and adaptable way to manage an NFT marketplace.
AI can improve the NFT browsing experience by instantly altering various factors while dynamically adjusting prices and listings and identifying market trends.
Advancement in Digital Art
Although NFTs are useful in many fields, digital artwork remains among the most common applications. NFT technology has revolutionized the way we produce and collect digital art by enabling us to own and exchange digital art similarly to physical art.
In the generative art field, AI models learn how to generate creative artwork by studying a database of human-made artwork. It benefits project teams or creators who want to release numerous NFT collections without hand-creating each component.
Enhanced Interactivity
Intelligent NFTs can use machine learning techniques, including speech recognition, computer vision, and natural language processing to make a token more engaging and dynamic.
Creators or developers can build an intelligent NFT that can respond to certain stimuli. They can also make designs following user input. It enables the continuous evolution of intelligent NFTs.
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Fundamental Categories of Intelligent NFTs
Improvements in language, vision, and voice intelligence can increase the potential of NFTs. The value unleashed with the convergence of AI and NFTs will have an impact on numerous aspects of the NFT ecosystem.
The introduction of AI capabilities can directly reinvent three essential categories in the current NFT environment:
AI-generated NFTs
This aspect of the NFT ecosystem appears to stand to gain the most from recent developments in AI technology. Utilizing deep learning techniques in areas like computer vision, language, and speech can enhance the experience for NFT creators.
Nowadays, you may observe examples of this development in fields like generative art. But they are still very limited in terms of the AI techniques they employ and the use cases they address.
NFTs’ embedded-AI
Another market dimension resulting from combining these two exciting technology trends is the native integration of AI capabilities into NFTs.
Imagine NFTs with language and speech skills that can engage in conversation with users, respond to inquiries about their meaning, or interact with a particular setting. Platforms like Alethea AI and Fetch.ai are just beginning to make inroads in this area.
AI-first NFT Infrastructures
Deep learning methods for NFTs will be valuable for the entire NFT ecosystem and specific NFTs. Building blocks like NFT markets, oracles, or NFT data platforms can incorporate AI capabilities. So, they can lay the groundwork for gradually enabling intelligence throughout the whole lifecycle of NFTs.
Consider NFT marketplaces that utilize computer vision techniques to provide consumers with intelligent suggestions or NFT data APIs or oracles that offer intelligent indicators taken from on-chain statistics. The market for NFT will increasingly depend on data and intelligence APIs.
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Intelligent NFT Projects
Alethea AI is a project backed by Mark Cuban. It enables users to embed AI animation, interactivity, and voice synthesis abilities into NFTs.
Alethea describes its intelligent NFTs, also known as iNFTs, as a mechanism to develop interactive and intelligent NFTs. It can build communities and intellectual property around their favorite characters and democratize access to powerful Synthetic Media technologies.
With the emergence of notable AI-based art galleries and artists, such as Eponym and Botto, crypto development experts have labeled AI art NFTs the next big thing.
Some initiatives are transitioning into the metaverse by employing AI to transform people's photographs into interactive 3D avatars in virtual environments.
Also, Read: A Definitive NFT Launchpad Development Guide
Conclusion
Intelligent NFTs are currently more of a testing ground than a finished virtual product. Yet they are already giving us a preview of what artificial intelligence and blockchain technology can accomplish in the future. The convergence of NFTs and AI seems to have a bright future.
If you want to get into more details or get started with the emerging concept, contact our blockchain developers.
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