4 Must-Have Factors for The Best AI Crypto Projects

AI (Artificial Intelligence) was probably the hottest trend
in 2023 and the buzz continues as we step into 2024. Blockchain products like
crypto, NFTs, DeFi, and Metaverse have been on the trend leaderboard in the
past years. Both and crypto are transformative technologies that can redefine
how we use tech and take it to the next level.

I see more people talking about AI than crypto or anything
else on the social media platform and this is not a fad that will pass with
time.

AI is here to stay and get mature over time. Graph, Injective,
Oasis Network, Bittensor, Render, Fetch.ai, SingularityNET, and Ocean
Protocols are some of the projects that combine both AI and blockchain
technologies.

As an investor or user, if you want to pick one of the projects,
there should be a benchmark to do so. There are dozens of projects that claim
to use AI Crypto symbiosis to solve different problems and even more are
emerging every year.

Our goal is to make AI accessible, transparent, and
democratic, with an inclusive approach to innovation and diversity.

Out of this crowd of many AI crypto projects, what factors
determine that this is the best AI crypto project? Well, there are four main
factors on the basis of which we can categorize them.

4 factors That Elevate Crypto AI Projects

1. Blockchain Technology:

• Immutable records enhance credibility
• Decentralization mitigates risks and monopolies

Blockchain technology is known for its immutability and
security features. The crypto projects that use decentralized AI with blockchain
to ensure that data and transactions are stored in a secure and immutable way.

The AI crypto projects must use the full functionality of
the blockchain by including features like proof of data origin, performance and
quality of the projects, and credibility. Blockchain technology can empower AI
to become decentralized – providing an environment where AI distributes power
to the community through a peer-to-peer network. Power concentration in a few
hands is the major drawback of projects that do not utilize blockchain
technology.

2. Decentralized Mixture of Experts (MoE) Model

• Combines strengths of multiple expert models
• The dynamic exchange of expertise on blockchain

A sound crypto AI project requires to conquer all fields and
thus requires experts for every specific domain. Sound tokenomics, expert
development teams, experienced marketers, and a thriving community are what
take a project to the next level.

Therefore, the projects must follow a Mixture of Experts
model which is decentralized at its core.

The model allows a collaborative approach to address
problems and a dynamic exchange of expertise.

To be on the top, the best crypto project would be the one
that has both blockchain and AI experts on board with the MoE model to enhance
the performance and efficiency of AI models, by leveraging the collective
intelligence and diversity of the network.

This can be achieved through a working DAO model and
improvement proposals.

3. Smart Contracts

• Automate collaboration between AI models
• Govern rules of engagement transparently

Smart contracts play the role of constitution and policy for
a blockchain-based project as they have a predefined set of rules to govern a
project.

An AI-based crypto project aimed to lead the crowd must use
an intelligent smart contract protocol that connects users with the blockchain
and AI.

Smart contracts play a key role in defining the basis for an
AI crypto project.

An AI-empowered crypto project can be smarter in rewarding
the community based on their contribution to the project and their activities.

Smart contracts can also facilitate the coordination and
interoperability of AI models, by enabling them to communicate and exchange
data and value with each other.

4. Decentralized Applications (dApps)

• Gateways for users to interact with AI models
• Empower users to contribute to AI's evolution

Between the complex model of blockchain, extensive AI logic,
and the end user, the only communicating object is a slick application with
user-friendly AI. Since we are combining AI and blockchain for a crypto
project, the users expect more than a centralized application with
vulnerabilities.

Decentralized Applications that are built using smart
contracts can be a major plus to a crypto project as they let users explore the
features without being worried about censorship or data security.

With users’ permission, the application should also be able
to record the users’ experience and use it to evolve over time.

DApps can also enable users to benefit from the capabilities
and insights into AI models and access them directly or indirectly, depending on
their needs and preferences.

Overall, in my opinion, the best AI crypto projects are the
ones that work on the above-mentioned factors and address the following
problems:

• Data vulnerability
• AI accuracy
• AI decentralization
• AI neutrality
• AI interoperability

Concrete Examples:

Based on the benchmark we have set, there are many projects
that come closer to fulfilling all the requirements.

Some projects have focused on decentralization
and security, while the others focused on scalability and interoperability.

However, based on your personal preferences, you might
prefer one over the other. Here are some of the promising AI crypto projects in
2024:

The Graph (GRT):

• Blockchain: Ethereum
• Smart Contracts: Yes
• dApps: Indexing and querying blockchain data
• Team: Experienced team with advisors from Google, Facebook, and Stanford

Graph ($GRT) is the second largest AI token by marketcap
with a $1.83 billion cap. It is an indexing protocol that uses AI and
blockchain to empower many DeFi and Web3 ecosystems.

Want to build a dApp for your project? Use GraphQL, blockchain API, to
retrieve blockchain data.

The Graph's token, GRT, is used to pay for indexing services
and participate in network governance. There are a total of ~10.8 billion GRT
tokens with each trading at $0.20 at the time of writing this.

Injective (INJ):

• Blockchain: Cosmos
• Smart Contracts: Yes
• dApps: Decentralized finance (DeFi) applications
• Team: Experienced team with backgrounds in finance and technology

Injective uses AI to implement “Auto-Executing Smart Contracts” for increased efficiency and smart trading.

INJ-built dApps can utilize AI algorithms to offer smart
trading on decentralized exchanges where users can benefit from optimized
trading experience and real-time optimum pricing.

INJ leads with a marketcap of $3.4 billion and the INJ token
is currently trading at $34.5 with 100 million total tokens.

Conclusion:

AI and blockchain blend is the most futuristic combo of
technologies that enhance capabilities and offer democratized access to
multiple solutions.

These projects can overcome centralization, data security, and monopolies. Offering an inclusive and smart environment, the best AI crypto
project is the one that offers ultimate security, usage of blockchain smart
contracts, and a fully decentralized ecosystem owned by the community.