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Artificial intelligence meets blockchain and where to find opportunities
Nvidia isn’t the only AI investment platform out there, not by a long shot (even if its stock price suggests otherwise). And what caught my attention now is in the cryptocurrency space. You see, blockchain will eventually integrate with AI and there will be some good opportunities when it does.
First of all, what does blockchain have to do with artificial intelligence?
Artificial intelligence, of course, allows machines to do things that typically require a human brain, such as making decisions, recognizing patterns, and learning from experience. But AI needs tons of data to thrive, and blockchains can be (among other things) a way to store and manage that data, working on a decentralized computer network without a central entity keeping everything under control.
This is actually one of its defining features. Look, most AI today runs on central servers like Amazon Web Services or Google Cloud. This makes AI data requests quick and easy to handle, and with cutting-edge security. Blockchains, meanwhile, are still a little behind in terms of speed and usability, but they could be much better for privacy, without a central authority holding the keys to the kingdom. Additionally, blockchains do not have a single point of potential failure like those central servers. And once the data is entered into the blockchain, it becomes immutable, meaning it cannot be changed in any way.
That’s what makes all this intriguing. THE Big Ideas 2024 A report from Ark Invest by Cathie Wood says that the convergence of disruptive technologies will define this decade, and that the convergence of blockchain and artificial intelligence will be part of that story. When I asked ChatGPT for its assessment, it said there’s a “high probability” that AI will run on a combination of central servers and decentralized blockchains in the future.
So where is the opportunity here?
If you agree with me (and Ark Invest) and see a future between blockchain and AI, then you will want to invest in crypto projects that are positioning themselves as AI leaders. And instead of trying to pick a single winner, we recommend spreading your bets across a few. Here are the five I would consider.
1.Solana (G)
According to a recent survey by CoinGecko, Solana is now the fastest blockchain in the world in terms of transactions per second (TPS). This speed could come in handy if it supports AI data requests and applications. Plus, Solana might get even faster after this Firedancer updatewhich should be completed by the end of the year.
The fastest blockchains by transactions per second (TPS). Source: CoinGecko.
2. NEAR Protocol (NEAR)
NEAR protocol it’s not as fast as Solana, but it makes life easy for developers who are looking to build AI projects on its blockchain. The project actually started as an AI business in 2017 and now processes over five million blockchain transactions per day. It uses “Nightshade” technology to divide its blockchain into smaller parts. So, in theory, it can scale to handle a lot of data without any problems. Keep in mind, however, that NEAR’s market value is only about a tenth of Solana’s, so the token may be more volatile (both up and down).
3. Rendering (RNDR)
Nvidia’s
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has exploded due to AI-driven demand for its GPU (graphics processing unit) chips. GPUs are like car batteries for handling AI calculations and data: the more powerful the battery, the better the car performs. Render is essentially a decentralized network of GPUs all working together to lighten the load. If you’re looking for more GPU power, hand over some RNDR tokens. And if you’re looking to rent your GPU power, you earn RNDR.
4. Arweave (AR)
Arweave is a blockchain-based data storage solution that could work well with artificial intelligence. The bottom line is that Arweave keeps your data protected forever through its “permaweb” network. AI applications can easily recover such data, but it cannot be modified or tampered with. This is useful for AI models that rely on historical data for training. And AR tokens are the currency you pay to store data on Arweave.
5. Jersey (LINK)
Last, but not least, there is Chain shirt, which brings accurate and reliable data to the blockchain. It uses a network of “oracles” (pieces of software that connect blockchains to the Internet) to find the best data available on the market. Since AI needs quality data and Chainlink is the market leader in the oracle niche, it is natural to include it in this list.