2021 saw a boom in the popularity of non-fungible tokens (NFTs). It caused consumers worldwide to spend millions of dollars in the booming cryptocurrency market. Some NFT marketplace development include the integration of NFTs into various technologies, including metaverse and Web3. Now, this integration is expanding with artificial intelligence (AI) involvement. It is opening up additional levels of business possibilities in the form of intelligent NFT.
Understanding Intelligent NFTs
NFTs are distinctive and authentic digital assets similar to music, visual arts, and films. These assets are non-fungible, meaning no one can switch them with another NFT. Additionally. one can utilize them to represent things like exclusive identities, property rights, and more.
A computer's ability to replicate human intelligence and do complicated tasks like problem-solving, making decisions, and learning is known as artificial intelligence (AI). This technology has grown exponentially during the last 10 years, as have other related technologies.
An intelligent NFT is a tokenized asset with a GPT-3 (Generative Pre-trained Transformer-3) AI model encoded in its smart contract. This AI model uses deep learning to enable writing that resembles human speech.
How an Intelligent NFT is different from a Traditional NFT
Basic traits of first-generation NFTs include being indivisible, immutable, and digitally uncommon. As digital ownership certificates for the underlying object they represent, these NFTs are used. Therefore, these tokens enable the ability to demonstrate the legitimacy and provenance of the asset. Despite these advantages, traditional NFTs are still primarily linked with static assets or virtual objects that cannot change, such as photos and audio files.
The Properties of an Intelligent NFT
Below we have curated a list of properties of an intelligent NFT:
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Token-based
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Permissionless
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On-chain personality traits
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Valuable and fractionable
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Acquires new level of knowledge over time
Also, Visit: NFT Integration for Remodelling Supply Chain Processes
Intelligent NFT Benefits
The following are the benefits of intelligent NFTs:
Wider Ecosystems
Developers can continuously update underlying technological structures by merging AI and blockchain technologies.
AI technology has the potential to offer users more ways to connect with their NFTs. Additionally, it provides a more flexible and adaptable way to manage an NFT marketplace.
AI can improve the NFT browsing experience by instantly altering various factors while dynamically adjusting prices and listings and identifying market trends.
Advancement in Digital Art
Although NFTs are useful in many fields, digital artwork remains among the most common applications. NFT technology has revolutionized the way we produce and collect digital art by enabling us to own and exchange digital art similarly to physical art.
In the generative art field, AI models learn how to generate creative artwork by studying a database of human-made artwork. It benefits project teams or creators who want to release numerous NFT collections without hand-creating each component.
Enhanced Interactivity
To make a token more interesting and dynamic, intelligent NFTs can leverage machine learning techniques such as speech recognition, computer vision, and natural language processing.
Creators or developers can build an intelligent NFT that can respond to certain stimuli. They can also make designs following user input. It enables the continuous evolution of intelligent NFTs.
Explore More: Game Development with NFT | Things You Must Know
Intelligent NFT Projects
Alethea AI is a project backed by Mark Cuban. It enables users to embed AI animation, interactivity, and voice synthesis abilities into NFTs.
Alethea describes its intelligent NFTs, also known as iNFTs, as a mechanism to develop interactive and intelligent NFTs. It can build communities and intellectual property around their favorite characters and democratize access to powerful Synthetic Media technologies.
With the emergence of notable AI-based art galleries and artists, such as Eponym and Botto, crypto development experts have labeled AI art NFTs the next big thing.
Some initiatives are transitioning into the metaverse by employing AI to transform people's photographs into interactive 3D avatars in virtual environments.
Also, Read: A Definitive NFT Launchpad Development Guide
Conclusion
Intelligent NFTs are currently more of a testing ground than a finished virtual product. Yet they are already giving us a preview of what artificial intelligence and blockchain technology can accomplish in the future. The convergence of NFTs and AI seems to have a bright future.
If you want to get into more details or get started with the emerging concept, contact our blockchain developers.
Hire blockchain development company, to design the software for your NFT marketplace development, which will facilitate NFT transactions and offer a transparent, secure Web3 environment.
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