AI Tokens to Broaden Access to Artificial Intelligence Models

Artificial Intelligence (AI) is poised to become one of the most revolutionary technologies of this century. A recent report from ResearchAndMarket.com anticipates that the global AI market will reach an estimated value of approximately $1,057.47 billion by 2030.

This potential has understandably driven significant growth in AI-related stocks, including microchip leader Nvidia, whose stock has surged by nearly 1,900% over the last five years.

Nvidia $NVDA just closed the trading day above a $2 Trillion market cap for the first time in its history pic.twitter.com/FHGIa5E0TP

— Evan (@StockMKTNewz) March 1, 2024

Decentralization Enhances AI Accessibility

Despite these advancements, experts in the field have noted that AI remains highly centralized, supported by a very intricate underlying infrastructure.

Dan Thomson, CEO and Founder of Sensay – a blockchain-based AI initiative – informed Cryptonews that the current AI environment is characterized by significant entry barriers, including the necessity for considerable computational resources, specialized expertise, and concerns regarding data privacy.

“These obstacles restrict the capacity of individuals and smaller organizations to utilize AI technology,” he stated. “Furthermore, the concentration of AI development among a few dominant corporations raises issues related to monopoly, bias, and a lack of diversity in AI applications.”

Thomson emphasized that decentralized AI solutions incorporating cryptocurrency are essential to address these challenges.

“AI tokens offer a means to democratize access to AI technology, promoting innovation and inclusivity in its development and application,” Thomson remarked.

AI Tokens for Democratization

Thomson explained that AI tokens are assets linked to AI services or platforms. These cryptocurrencies are frequently utilized to facilitate transactions, access services, or incentivize behaviors within AI-driven ecosystems.

To illustrate this, Thomson described how Sensay’s AI token will enable users to access the Sensay platform, pay for services, and serve as incentives to advance the development of Sensay’s AI models.

Thomson highlighted that Sensay is employing blockchain technology alongside an AI data layer to create human-like replicas aimed at assisting individuals with dementia and terminal illnesses.

“This provides a deeply personal and therapeutic tool for those facing difficult circumstances,” he noted. “We also plan to expand our technology to empower individuals, particularly those with substantial social media followings, to effectively monetize their digital presence.”

In contrast to centralized AI models, Thomson clarified that Sensay token holders will have a voice in the future development paths of the platform.

“The token serves as a means of accruing value from both engaging with Sensay replicas and enabling the replicas to operate on your behalf, benefiting from their productivity,” Thomson stated. “The Sensay ecosystem is democratically driven and community-oriented.”

AI Token Rewards for User Participation

John Arrow, Co-Founder of FreedomGPT – an app store for artificial intelligence projects – conveyed to Cryptonews that AI tokens also function as utility tokens to reward users for contributing to AI ecosystems.

“This could encompass activities such as incentivizing users to provide Real Life Human Feedback (RLHF) for a new LLM, or rewarding users who make their computers available for running AI inference,” Arrow explained.

He elaborated that FreedomGPT’s token – referred to as the “freedom network token” – will support the platform’s operation on a fully decentralized computing network.

“FreedomGPT previously had its centralized web hosting terminated due to some of our AI models providing unbiased responses,” Arrow stated.

To address this issue, Arrow mentioned that FreedomGPT needed to create an entirely decentralized computing network that compensates users for their computing power with a token. He noted that there are currently 2 million users utilizing FreedomGPT, and the platform has surpassed 7 million desktop downloads.

“These millions of machines possess substantial computing power, so the freedom network token allows users to be compensated for granting us access to that power for the decentralized network. We utilize the token to reward those node operators,” Arrow clarified.

He added that FreedomGPT opted for a cryptocurrency instead of fiat to reward users to ensure anonymity.

“Additionally, most of our node providers are located in other countries, making crypto more convenient for these micro-transactions,” he remarked.

Surge in AI Tokens Underway

As AI projects gain traction, Arrow anticipates that more AI tokens will be developed.

“We predict that as AI continues to progress, the traditional finance ecosystem will be pressured to permit payments for most censor-free and private AI companies,” he stated.

In the interim, some cryptocurrency exchanges are reporting significant increases in trading volume for AI tokens.

For instance, Bitget reported a 361% rise in weekly trading volume for its listed AI tokens, along with a 136% increase in the number of participants.

OpenAI CEO Sam Altman’s Worldcoin (WLD) has also experienced notable gains over the past month. However, WLD has also seen a rapid decline following broader market trends affecting AI tokens.

Greg Osuri, Founder and CEO of Akash Network – a decentralized compute marketplace – informed Cryptonews that AI tokens with fundamental utility are likely to experience the fastest growth in terms of adoption and usage.

Reiterating this, Thomson expressed his belief that there is considerable synergy between AI and blockchain technology.

“It appears logical for rapid, low-cost transactions to enable AI to achieve its objectives more swiftly and easily with a global transactional layer, thus AI projects can be effectively represented by tokens or linked to a token’s value,” he stated.

In light of this, Thomson also envisions a future where AI tokens facilitate decentralized AI markets, allowing all individuals and businesses to securely and transparently buy, sell, or trade AI services and data.

“I anticipate that AI tokens will evolve and progress more rapidly than any other type of token currently available in the market,” he remarked. “The landscape will transform so quickly in the coming months that I doubt the top five AI tokens in the market today will remain in the top five in a year.”

Challenges May Create Slow Adoption

However, Arrow pointed out that for AI tokens to fully develop, these models will likely need to supplant the economic role of advertisers.

“Currently, if you are using a service for free, it’s because someone is attempting to sell you something,” he stated.

Additionally, regulatory issues surrounding AI and cryptocurrency projects may hinder adoption. Recently, United States Senator Elizabeth Warren underscored the necessity for a legal “level playing field” in the cryptocurrency and AI sectors.

Nevertheless, as more users voice concerns regarding existing AI models, Arrow noted that there is a strong possibility that AI tokens will eventually offer a means to pay for AI services without compromising the privacy or objectivity of certain AI models.

The post AI Tokens to Democratize Access To Artificial Intelligence Models appeared first on Cryptonews.