CoinMarketCap Academy takes a deep dive into Fetch.ai, a decentralized AI and machine learning protocol.
The vision of Fetch.ai is to enable anyone to access the benefits of AI and ML without needing to have technical expertise or centralized intermediaries. Leveraging blockchain technology allows users to create, deploy, and train their own digital agents that can perform various tasks and services across different domains and industries. These agents can also interact with other agents and data sources on the network, forming a collective intelligence that can optimize outcomes and generate value.
Fetch.ai targets a variety of different use cases for its AI technology:
- DeFi: Find the best trading opportunities, execute trades, provide liquidity and hedge risks across different DeFi protocols and platforms.
- Transportation: Optimize mobility and travel by finding the best routes, modes of transport, parking spaces, and destinations based on their preferences and real-time data.
- Energy: Reduce energy consumption and costs by switching to cheaper or greener energy sources when available, as well as participating in peer-to-peer energy trading and grid balancing.
- Travel: Help with travel plans by finding the best deals on flights, hotels, car rentals, and activities based on their preferences and budget.
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How Does Fetch.ai Work?
Fetch.ai leverages blockchain technology to allow users the deployment of autonomous agents. These programs use artificial intelligence and machine learning to provide Fetch.ai users with value across a range of use cases. Technically, there are several components in the Fetch.ai ecosystem.
Autonomous Economic Agents (AEAs)
Open Economic Framework (OEF)
The OEF is the infrastructure connecting the agents on the network. It provides a decentralized marketplace where agents can discover each other, exchange data, and access services. It also provides a search engine that allows agents to find relevant information and opportunities on the network. The OEF is based on the Fetch.ai Ledger, a blockchain network that enables value transfer and acts as a coordination mechanism for the agents.
Fetch.ai uses a decentralized machine learning protocol called CoLearn to allow autonomous economic agents to share their data and models without compromising their privacy or security. CoLearn is implemented using CosmWasm, a high-performance WASM-based smart contract language that runs on the Fetch.ai Ledger. CoLearn also has a marketplace where users can buy and sell data and models for their agents.
The Fetch.Ai Team and Investors
Fetch.ai is led by a team with backgrounds from leading institutions and companies such as Cambridge University, CERN, DeepMind, Goldman Sachs and Nokia. It consists of over 50 members, including founders, developers, researchers, engineers, designers and marketers. Some of the key members of the team are:
- Humayun Sheikh: Founder and CEO. He is an entrepreneur and investor with over 20 years of experience in technology and innovation. He was one of the first investors in DeepMind before it was acquired by Google.
- Toby Simpson: Founder and CTO. He is a software engineer and game developer with over 25 years of experience in creating virtual worlds and AI systems. He was the producer and lead technical architect of the popular online game Creatures.
- Thomas Hain: Founder and CSO. He is a professor of speech and audio technology at Sheffield University and a leading researcher in machine learning and natural language processing with over 20 years of experience in developing AI solutions for various domains and applications.
Fetch.ai has also attracted several investors and partners, such as:
- DWF Labs: It led a $40 million investment round in Fetch.ai in March 2023 at a valuation of $250 million USD.
- Binance: It hosted an initial exchange offering (IEO) for Fetch.ai in March 2019, raising $6 million.
- Blockwall: It participated in a $20 million private token sale for Fetch.ai in February 2019. It also supports Fetch.ai with strategic advice and network connections.
- Bosch: It joined the Fetch Foundation as a founding member in December 2021. It also collaborates with Fetch.ai to develop autonomous agents for smart mobility and smart cities.
- Governance: FET holders can participate in the governance of the platform by voting on proposals and decisions that affect the development and direction of the project.
- Staking: FET holders can stake their tokens to secure the network and earn rewards. Staking also gives them access to additional features such as collective learning.
- Fees: FET is used to pay for the fees associated with using the platform's services such as creating agents, accessing data, executing smart contracts, etc.
- Incentives: FET is used to incentivize users and developers to contribute to the platform's growth and innovation. For example, users can earn FET by providing data or liquidity to the platform, while developers can earn FET by creating applications or services for the platform.
The token distribution is as follows:
- Foundation: 20.0%
- Founders: 20.0%
- Token Sale (Seed, Private, and Public Sale): 17.6%
- Future Releases: 17.4%
- Mining: 15.0%
- Advisors: 10.0%
The FET token is scheduled to be fully unlocked until 2025:
Besides the functions and uses mentioned above, the FET token also enables various use cases that leverage the power of AI and blockchain on the Fetch.ai platform:
- DeFi: Fetch.ai has developed several DeFi applications that use FET tokens to provide users with better trading services, liquidity provision and risk management. For example, Botswap.fi is a cross-chain liquidity aggregator that allows users to manage and protect their crypto assets across multiple chains using Fetch.ai agents to automate the process of managing liquidity pools and other key elements. Another example is Mettalex, a decentralized exchange that allows users to trade commodities and crypto derivatives with low fees and high leverage using FET tokens as collateral.
- Transportation: Fetch.ai has partnered with several companies and organizations to improve mobility and travel using FET tokens. For example, Fetch.ai has teamed up with Datarella, a blockchain solutions provider, to pilot a smart parking space management program in Germany that uses FET tokens to reward users for providing data or parking spaces. Another example is Mobix, a decentralized travel marketplace app that uses FET tokens to enable users to book hotels, flights, car rentals, and activities using Fetch.ai agents.
- Energy: Fetch.ai has also applied its technology to the energy sector, where FET tokens can be used to reduce energy consumption and costs, as well as participate in peer-to-peer energy trading and grid balancing. For example, Fetch.ai has collaborated with Bosch, a global leader in engineering and technology solutions, to develop autonomous agents for smart mobility and smart cities that use FET tokens to access data and services on the platform. Another example is EnergiMine, a blockchain-based energy management platform that uses FET tokens to reward users for saving energy or generating renewable energy.