4 Must-Have Factors for The Best AI Crypto Projects

Muhammad Naeem

Blogger

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.