Glossary

AI Coins

Moderate

AI coins are designed to streamline AI-related transactions and interactions, all while upholding transparency and security through blockchain technology.

What Are AI Coins?

AI Coins, also known as artificial intelligence coin, power projects at the intersection of AI and blockchain technology. They are designed to streamline AI-related transactions and interactions, all while upholding transparency and security through blockchain technology. 

Why Do AI Coins Matter?

AI coins harness the power of AI and blockchain to drive advancements that would previously not have been possible. They serve multiple critical roles from increasing community incentivization to funding the future of decentralized AI. 

AI cannot be successful without humans. At the center of ecosystems, AI coins bring community members closer together with projects and their fundamental values. They are a form of incentive to increase community participation and reach new audiences. Communities are especially significant as they bring the human element that is much needed for every AI project, whenever it is having members rate AI chatbot responses or give feedback on the protocol’s accuracy. 

AI is a controversial industry by nature, with its own set of unique challenges including privacy, trust, accuracy, etc. However, the combination of AI and blockchain can help address these various concerns, particularly censorship and data bias. Decentralized technology eliminates having one central power and creates a trustless environment, avoiding any malicious use of AI that limits information. By building open-source protocols and eliminating the need for intermediaries, decentralization offers solutions that prevent any centralized powers from controlling AI and access to open knowledge. Furthermore, AI coins empower users to voice their opinions and generate diversity in AI applications. Everyone in the ecosystem will determine the algorithm together, fighting machine learning bias and prioritizing inclusivity for all. 

AI coins are key to the sustainability and success of AI projects, as they fund ecosystems and technological advancements. It is a factor of motivation for builders to continue building and innovating. 

What Are the Similarities and Differences Between AI Coins and Traditional Tokens?

Given that both are digital assets that exist on blockchains, the underlying technology behind AI coins and traditional tokens remains the same. Through the use of smart contracts, both their values are closely tied to their native projects and their current developments. 

Despite their similarities, AI coins and traditional tokens are more different than they are similar. On the technology front, AI coins require greater processing power and additional storage to successfully scale and integrate with blockchain networks. The complexity of AI coins might also be harder for the average user to understand. 

Ultimately, the diverse use cases of AI coins are what sets them apart from traditional tokens. With the intersection of AI and blockchain technology, these coins have much greater potential to change the lives of everyday users. 

AI adds an extra layer of trust and transparency to Web3, potentially helping to fix crypto’s damaged reputation. A valuable asset of AI is its power to process large amounts of data swiftly and efficiently. AI-generated data analyses can make predictions and conduct risk assessments, supporting users in making informed decisions. The data processing skill also strengthens smart contract optimization. This technology has the potential to automate smart contract audits and detect vulnerabilities that reduce the risk of exploits and hacks, making blockchains even more immutable. Moreover, it reinforces cross-chain interoperability with the efficiency of transactions and data transfer. 

AI Coin Use Cases

Access to AI Services

Just like utility tokens, AI coins open up a new world of possibilities with what users can achieve. These coins can serve as payments for Machine Learning Model (MLM) predictions, generating analytic reports, or creating curated responses when given prompts. AI coins are a way for users to conveniently access these exclusive new AI services. Similar to how IQ (IQ) token stakers get exclusive access to IQ GPT, an AI search engine built for advanced access to blockchain knowledge before it is available to the public. 
Incentivizing Participation
Besides the use of data, projects can appoint community members to contribute to training AI models. AI coins are financial incentives that encourage the community to contribute more. 

Governance

Most AI crypto projects are DAO governances that utilize AI coins as voting rights. It is the most common way to directly involve token holders to make decisions and discuss potential issues regarding the project. This democratic process is crucial to holding the project accountable, promoting transparency and avoiding any unethical practices with AI. In addition, AI’s ability to predict trends and give data-driven insights could assist the overall governance process.

Author: Navin Vethanayagam, is the Chief Brain of the IQ.wiki (formerly Everipedia) the leading blockchain encyclopedia and AI-driven knowledge-sharing platform. He first joined IQ.wiki as a founding team member, gaining experience over the years in community management, marketing, press and international business. He was previously the Chief Community Officer of Everipedia where he focused on growing the site's traffic by focusing on its community, social channels, and press relations. He is also the Galaxy Brain of BrainDAO, which manages the IQ token.