AI crypto coins are the new buzz in the cryptocurrency industry, promising innovative solutions to improve decentralized applications and enhance blockchain networks.
This new category of tokens born from the integration of blockchain technology with Artificial Intelligence shows immense potential to revolutionize the ecosystem by taking it to a whole new level.
It is expected that the AI cryptocurrency market will grow to $31.2 billion by 2017 and will slowly take over the majority market share.
What are AI crypto coins?
AI crypto coins are currencies that make use of Artificial Intelligence technology to increase their value while improving their performance.
They are also known as smart cryptocurrencies. They incorporate AI to improve existing aspects of blockchain technology and its applications.
AI crypto coins serve as a platform where developers and researchers can build new models and applications.
The platform integrates Machine Language and Natural Language Processing, making it easier for them to test newly developed models and help investors study market patterns, forecast price fluctuations, and execute automated trades.
AI crypto coins: features
There are things that make AI crypto coins a better option than traditional tokens. Certain features are unique to them or are enhanced versions of already existing ones.
Enhanced performance
Machine Learning and Natural Language Processing integrated into the platforms help bring automation and predictive analysis that will make the platform more efficient with improved performance.
The networks they operate get smarter enough to support advanced applications and optimize consensus mechanisms, which in turn will reduce costs.
Improved security
AI-incorporated platforms offer a great deal of security by enhancing required measures within the network. They could used for anomaly detection in the system, threat analysis, and fraud prevention.
They can not only be used to identify the issues but also eliminate potential vulnerabilities and even protect against cyberattacks.
Transparency
Although blockchain technology is capable of recording every transaction happening within the network, the integration of AI brings it to a more sophisticated level, auditing and verifying transactions in real-time.
This ensures the transparency as well as the integrity of the network and the transactions.
Growth potential
Compared to traditional tokens, AI crypto coins can solve real-world problems better, which will increase their value.
The technology can be leveraged to analyze big data that can be used for trend prediction, sentiment analysis, risk management, decision-making, and strategic planning by investors.
Potential challenges
Complexity
AI-enhanced coins might be difficult to comprehend for regular users.
Integration of Machine Language into the protocols can complicate the blockchain network and lead to challenges in the implementation and maintenance of the system, as well as its cross-chain interoperability.
Security risks
Even though AI-integrated systems are expected to provide enhanced security, sometimes they pose new threats introducing unfamiliar security vulnerabilities and attack vectors.
Such attacks could compromise the security, reliability, and integrity of blockchain networks and lead to the collapse of the entire system.
Regulation
Traditional cryptocurrencies, if decentralized, are difficult to regulate.
When it comes to AI-enhanced tokens, the difficulty increases and may raise concerns in terms of privacy, transparency, and compliance with financial regulations.
Ethical issues
Since AI models are capable of automating the entire process including investment decisions and governance, and can easily influence financial transactions, it raises ethical concerns about algorithmic bias, fairness, and accountability.
Best AI crypto coins to invest
As per certain parameters like market capitalization, long-term viability, and the technology used, the best AI crypto coins currently existing in the industry are below listed.
The Graph
This is the best Artificial Intelligence cryptocurrency presently, based on the above parameters. The market capitalization of The Graph stands at $3.88 billion and has a volume of $247.54 million.
Injective
The second-best AI crypto coin, Injective, has a market capitalization of $3.64 billion and a volume of $194.63 million.
Oasis Network
Oasis Network stands in the third position with a market capitalization of $982.63 and $70.30 million in volume.
Render
The market capitalization of Render amounts to $4.42 billion and its volume is $363.46 million.
Fetch.ai
In the fifth position, Fetch.ai is valued at 2.76 billion USD in terms of market cap and has a volume of 936.35 million dollars.
Conclusion
In order to realize the full potential of AI-enhanced crypto coins, it is important to address the challenges mentioned.
However, they hold great promise for revolutionizing and inspiring various aspects of the industry, providing more sustainable and viable blockchain networks and applications.
