Why Artificial Intelligence (AI) Will Power the Next Generation of NFT Marketplaces

Non-fungible tokens (NFTs) were the most discussed crypto assets in 2021, taking the “word of the year” according to the Collins Dictionary.

This growing cryptocurrency niche has seen over $23 billion in trading volumes according to the latest DappRadar report. Currently, active NFT-related wallets account for nearly 50% of total crypto industry usage, a statistic that will likely increase given continued interest in 2022.

Before jumping into the developments and outlook, it is worth understanding why NFTs are gaining momentum across the board. Well, there are many factors behind this sudden increase, but the most important is the indistinguishable nature of NFTs. Each NFT token has a unique value, making it a suitable on-chain asset to represent digital collectibles such as game items or off-chain assets like property and tokenized stocks.

While most early NFT innovations were on Ethereum, the trend has spread with decentralized exchanges such as Binance and Crypto.com, both of which launched NFT marketplaces last year. Today, an artist can leverage one of these exchanges to create their own NFTs and trade them on the featured marketplace. So far, Binance has supported the creation and listing of over 2 million NFTs while Crypto.com boasts over 220 NFT drops.

Integrating NFTs with Artificial Intelligence (AI)

At the rate at which NFTs have exploded in 2021, it’s no secret that this market still has plenty of upside potential. Developers in the emerging technology field are currently working to integrate blockchain technology with artificial intelligence (AI), a move that will improve the efficiency of smart contracts used to create NFTs.

AI harnesses computer systems to replicate human intelligence. The concept, which is largely inspired by Alan Turing’s seminal work “Computing and Machinery Intelligence”, has found its way into modern products, including self-driving cars (Tesla), recommendation systems (Amazon and YouTube) and voice recognition (Siri). .

With blockchain and cryptocurrencies emerging as the future of finance, AI is once again a fundamental technology to improve the underlying infrastructure. At their core, blockchain ecosystems are designed to operate on-chain, leaving a huge void in access to off-chain data or advanced technologies such as AI.

Fortunately, this problem is solved by decentralized oracle API providers such as Oraichain. This platform is designed to link NFT smart contracts with external APIs, with a marketplace where developers can access and integrate the best API services. The Oraichain ecosystem also includes an NFT generation platform dubbed aiRight.

Unlike existing NFT marketplaces, aiRight uses artificial intelligence to improve its capabilities. Creatives using this platform can automatically generate NFTs, as well as copyrights on the aiRight database. The AI ​​functionality can also be used to verify the authenticity of listed NFTs, tracking user behavior to avoid potential attacks from fraudulent bots.

In addition to the aiRight NFT marketplace, Oraichain offers a decentralized data hub. The project recently launched an annotator qualification campaign, allowing whitelisted annotators to earn ecosystem rewards for labeling data (label-to-earn).

Although most of these integrations are in their infancy, the combination of smart contracts with AI will be a game changer in the NFT ecosystem. Stakeholders will not only be able to mint and sell digital collectibles, but integrate complex algorithms such as machine learning to improve the current state of the NFT market.

The Holy Grail of Crypto Adoption

Cryptocurrencies, in general, have been around since 2009; however, the space has only recently begun to attract people from other industries. NFTs are the digital assets driving this spike in adoption, a sentiment echoed by Dallas Mavericks owner Mark Cuban. Speaking at the recently concluded North American Bitcoin Conference, the billionaire Recount Miami Mayor Francis Suarez that NFTs are what completely immersed him in the crypto ecosystem,

“I’ve always been careful about bitcoin, pricing, tokens and [crypto]currencies, but what really got me was about a year ago when I minted my first NFT.

Even big brands like Adidas have joined the crypto industry, thanks to the NFT hype. The multinational sportswear manufacturer has purchased a virtual plot of land on the Sandbox metaverse, not to mention collaborating with NFT projects such as Punk Comics and the Bored Ape Yacht Club.

With AI integrations now in sight, the NFT marketplace is expected to open new opportunities for users in decentralized marketplaces. The integration will likely trigger a shift from proof-of-concept NFT innovations to smarter, user-friendly blockchain-oriented solutions.

“NFTs, although they’re hot right now and everyone’s talking about them, are really just a proof of concept of what you can do with smart contracts and decentralization” – Mark Cuban .

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