Artificial intelligence (AI) is one of the most innovative and forward-looking technologies today, with a wide range of uses and potential in various fields. Blockchain is a decentralized, transparent, and secure distributed ledger technology that can provide more value and opportunities for data. AI Token is the combination of blockchain technology and artificial intelligence technology. They are designed to provide users with more services and incentives, as well as to realize data monetization and transactions.

This article will analyze five mainstream artificial intelligence projects, namely Fetch.ai (FET), The Graph (GRT), Render Network (RNDR), Ocean Protocol (OCEAN) and Oasis Network (ROSE). This article will discuss the following aspects:

• Background: Encrypted data provider Kaiko said in a report recently released that the total market value of the five mainstream AI Tokens plummeted from US$170 million earlier this year to US$60 million in August.

• Introduce the development history of five mainstream AI projects: FET, GRT, RNDR, OCEAN and ROSE.

• Analyze the reasons for the shrinkage of market value of five mainstream AI projects: FET, GRT, RNDR, OCEAN and ROSE.

• Methods and criteria for evaluating the value and potential of an artificial intelligence project or token.

• Predict the future market share and transaction status of AI Token.

Background

According to a report released by Kaiko, an encrypted data provider, five mainstream AI Tokens: FET, GRT, RNDR, OCEAN and ROSE experienced ups and downs in the first eight months of this year. These five tokens are all native tokens of artificial intelligence projects developed based on blockchain technology. They each have different goals and functions, but they are all committed to providing users with more data services and incentives.

The report shows that these five AI Tokens reached a peak total market value of approximately US$170 million in January this year. Among them, GRT Token occupies the largest share, approximately US$120 million, followed by OCEAN Token, approximately US$30 million. However, in the following months, all five AI Tokens experienced sharp declines, and by August, their total market value was only $60 million. Among them, GRT Token has the largest decline, about 80%, followed by OCEAN Token, about 60%.

Kaiko analyst Dessislava Ianeva believes that the decline of artificial intelligence tokens is due to a shift in global risk appetite. She pointed out that since May this year, the crypto market has experienced a sharp correction, mainly due to countries’ increased regulation of cryptocurrencies. These events have led to a decline in market confidence and investors’ risk aversion. rise. Because artificial intelligence tokens are still at an earlier stage of development compared to other more mature and popular tokens (such as Bitcoin, Ethereum, etc.), they are more susceptible to market fluctuations.

However, the report also shows that some projects have indeed gained attention, especially Fetch.ai (FET) and Ocean Protocol (OCEAN). Fetch.ai is a platform designed to connect Internet of Things (IoT) devices with artificial intelligence agents, while Ocean Protocol is a protocol designed to unlock the value of data and monetize it through data tokens. Reports show that open interest in FETToken surged nearly 90% in August, from $10 million to $19 million. This may be because FETToken launched a series of technology updates and partnerships in August, such as a blockchain-based collective learning protocol, cooperation with Bosch, etc. Likewise, OCEANToken’s open interest also increased in August, from $7 million to $9 million. This may be because OCEAN Token launched some new data markets and data products in August, such as DataUnion.app, Ocean Academy, etc.

While open interest has fallen sharply recently, weekly trading volume for AI-related tokens increased significantly in August: after falling to a yearly low of $570 million in late July, it jumped to $870 million last month. This shows that artificial intelligence-related tokens still have a certain degree of market activity and liquidity, as well as some loyal users and supporters.

Introduction to five mainstream AI projects

1. FET: Fetch.ai

FET is the native token of Fetch.ai, a platform designed to connect Internet of Things (IoT) devices with artificial intelligence agents. FET can be used to pay for network services such as data storage, computing and machine learning.

The main function of FET Token is to serve as fuel for the Fetch.ai network, providing incentives and value exchange for network participants. Network participants include:

• Devices: These are IoT devices such as sensors, cameras, cars, etc., which can provide or obtain data and services through FET Token.

• Agents: These are artificial intelligence entities that can perform tasks such as search, coordination, negotiation, etc. on behalf of a device or a human. Agents can interact and collaborate with other agents through FET Token.

• Nodes: These are computers running the Fetch.ai software. They are responsible for validating transactions, maintaining ledgers, providing computing and storage resources, etc. Nodes can receive network rewards and fees through FET Token.

FET Token also has some other functions, such as:

• Support smart contracts: Fetch.ai supports Ethereum-compatible smart contracts written using Solidity, and Cosmos-compatible smart contracts written using CosmWasm. This allows FET to be used to build decentralized applications (DApps) and cross-chain interoperability.

• Support privacy protection: Fetch.ai uses technologies such as multi-party computation (MPC) and zero-knowledge proof (ZKP) to protect the data privacy of users and devices, while allowing third parties to operate and analyze the original data without exposing it .

• Support governance participation: Fetch.ai implements a governance mechanism based on liquid democracy, allowing FET holders to vote and delegate on network parameters, upgrades, proposals, etc. This allows FET to be used to achieve decentralized and democratic network governance.

2. GRT: The Graph

GRT is the native token of The Graph, a decentralized protocol for indexing and querying blockchain data. Just like Google indexes the network, The Graph indexes blockchain data from networks like Ethereum and Filecoin. GRT can be used to incentivize network participants, such as indexers, curators, delegators, etc., to provide and curate high-quality data sources.

The main function of GRT Token is to serve as fuel for The Graph network, providing incentives and value exchange for network participants. Network participants include:

• Indexers: These are the computers running The Graph nodes, which are responsible for indexing blockchain data and serving queries. Indexers can obtain query fees and indexing rewards through GRT Token.

• Curators: These are the people who provide high-quality data sources for The Graph and are responsible for creating, managing, and maintaining subgraphs. Subgraph is an open API for organizing and accessing blockchain data. Curators can bet and sponsor sub-pictures through GRT Token.

• Delegators: These are the people who delegate GRT Tokens to the indexer and are responsible for helping the indexer improve its credibility and security. Delegators can share the income and rewards of the indexer through GRT Token.

• Consumers: These are people who use The Graph query service and are responsible for paying for queries and using subgraphs to get blockchain data. Consumers can access various decentralized applications (DApps) and Web3 applications through GRT Token.

GRT Token also has some other functions, such as:

• Support cross-chain interoperability: The Graph supports multiple blockchain networks, such as Ethereum, Filecoin, Polkadot, etc. This allows GRT to be used to build cross-chain data layers and application layers.

• Support governance participation: The Graph implements a governance mechanism based on a decentralized autonomous organization (DAO), allowing GRT holders to vote and supervise network parameters, upgrades, proposals, etc. This allows GRT to be used to achieve decentralized and democratic network governance.

3. RNDR: Render Network

RNDR is the native Token of Render Network, a distributed GPU rendering network based on the Ethereum blockchain, designed to connect artists and studios in need of GPU computing power with miner partners willing to rent their GPU power. RNDR can be used to pay for rendering services and reward GPU providers.

The main function of RNDR Token is to pay for rendering services and reward GPU providers. RNDR uses a combined manual and automated proof-of-work system, or in this case called proof-of-render, to verify that all artwork has been successfully rendered before payment is distributed and published.

Leveraging the inherent security properties of the Ethereum blockchain, proprietary assets are hashed upon upload and sent to nodes in shards for rendering. All RNDR payments are held in escrow during the rendering process and released to the node operator after the entrusted artist manually verifies the work successfully.

To protect against malicious actors within the user base, all assets rendered on the network are watermarked until a payment is successfully distributed, at which point unwatermarked rendered images can be downloaded, and all payments are held in escrow until manually verified as correctly rendered.

4. OCEAN: Ocean Protocol

OCEAN is the native token of Ocean Protocol, a blockchain-based ecosystem that allows individuals and businesses to easily unlock the value of their data and monetize it through the use of ERC-20-based data tokens. Through Ocean Protocol, publishers can monetize their data while maintaining privacy and control, while consumers can access previously unavailable or hard-to-find datasets. These datasets can be discovered on Ocean Market and can be purchased and later consumed or sold. OCEAN can be used to buy and sell data, stake data sets and participate in network governance.

The main function of OCEAN Token is for community governance and data pledging, as well as serving as the basic unit of exchange for data purchase and sale on the Ocean Market. The OCEAN-data token AMM pool adjusts the price of data tokens based on supply and demand.

Ocean Protocol provides the tools needed to build and launch your own data marketplace, either forking Ocean Protocol directly, or using the provided Ocean Protocol React hooks.

Ocean Protocol uses technologies such as multi-party computation (MPC) to protect the privacy of users and data, while allowing third parties to operate and analyze the original data without exposing it.

5.ROSE：Oasis Network

ROSE is the native token of Oasis Network, a blockchain platform that supports scalable and privacy-protecting smart contracts. ROSE can be used to pay network fees, stake validators, and participate in network governance. By staking ROSE, users can protect the security and stability of the Oasis Network and receive network rewards and fees.

Oasis Network is a layered blockchain network that separates the consensus layer and execution layer, improving flexibility, scalability and future compatibility. The consensus layer is a proof-of-stake (PoS)-based blockchain maintained by a decentralized set of verification nodes. The execution layer is a ParaTime Layer that allows the creation of a dynamic computing environment, where all smart contract execution is performed, providing the network with amazing scalability.

Oasis Network also supports privacy-preserving smart contracts, using secure computing technologies (such as trusted execution environments) to protect the privacy of users and data, while allowing for secure and trustworthy analysis and processing of data.

Analysis of the reasons for the shrinkage of market value of AI projects

According to a report released by Kaiko, the five mainstream AI Tokens: FET, GRT, RNDR, OCEAN and ROSE experienced ups and downs in the first eight months of this year. The total market value of these five tokens reached its peak in January this year, which was approximately US$170 million. However, in the following months, all five AI Tokens experienced sharp declines, and by August, their total market value was only $60 million. Among them, GRT Token has the largest decline, about 80%, followed by OCEAN Token, about 60%.

So what is the reason for the total market value of these five AI Tokens to shrink? We think there are the following aspects:

• The decline of artificial intelligence tokens was affected by the entire crypto market. Since May this year, the crypto market has experienced a sharp correction, mainly due to factors such as countries increasing their supervision of cryptocurrencies and Tesla Inc. selling off its Bitcoin holdings. These events have led to a decline in market confidence and an increase in investor risk aversion. Because artificial intelligence tokens are still at an earlier stage of development compared to other more mature and popular tokens (such as Bitcoin, Ethereum, etc.), they are more susceptible to market fluctuations.

• The decline of artificial intelligence tokens also reflects some of their own problems and challenges. For example, FET Token reached its highest price in history in April this year, but has been on a downward trend since then. This may be because the usage scenarios of FET Token are not widespread and practical enough, and the collaboration and coordination mechanism between its network participants (such as devices, agents, nodes, etc.) is not complete and efficient enough. Similarly, GRT Token also reached its highest price in history in February this year, but has been declining since then. This may be because there are some imbalances and inconsistencies in the distribution mechanism of GRT Token.Fairness issues have led to conflicts of interest and incentive failures among some network participants (such as indexers, curators, trustees, etc.).

• The decline of artificial intelligence tokens may also be a temporary phenomenon, indicating their future growth potential. Although artificial intelligence tokens currently face some difficulties and challenges, they are still highly innovative and forward-looking, providing new possibilities and opportunities for the combination of blockchain technology and artificial intelligence technology.

To sum up, we believe that the total market value of the five mainstream AI Tokens has shrunk for many reasons, including market factors and their own factors, but they still have a lot of room for development and potential.

Methods and criteria for assessing the value and potential of AI projects

Evaluating the value and potential of an artificial intelligence project or token is not an easy task because it involves many factors and criteria, such as technology, market, team, governance, etc. However, we can conduct preliminary analysis and evaluation of an artificial intelligence project or Token based on some commonly used methods and standards. Here are some possible methods and standards:

• Problems and solutions: What problem is an AI project or Token trying to solve, and how does it solve it in a novel and effective way? Is this issue important and relevant, and does it meet the needs and demands of the current and future markets and society? Is the solution feasible and scalable, has a clear competitive advantage, and can it withstand existing or potential alternatives?

• Technology and innovation: What technology is used or developed by an AI project or Token, and how does it leverage the advantages and potential of blockchain technology and AI technology? Is this technology innovative and cutting-edge, and does it have a strong scientific and technological foundation and support? Is the technology safe and reliable, with high levels of performance and efficiency?

• Team and vision: Who are the people behind an AI project or token, and what kind of background, experience, skills and reputation do they have? Do they have a clear and compelling vision and mission for this AI project or token, and do they share the passion and commitment to make it happen? Do they have strong networks and partners such as investors, developers, users, regulators, etc.?

• Market and Attraction: What is the market size and potential of an artificial intelligence project or Token, and how does it adapt to current and future industry and social trends and developments? How much traction and adoption has this artificial intelligence project or token achieved so far, and how does it measure its progress and impact? How does this AI project or token differentiate itself from its competitors, what are its unique value propositions and benefits, and what does it offer its users and customers?

• Governance and incentives: What is the governance model and mechanism of an artificial intelligence project or token, and how does it ensure a fair and transparent decision-making process among its network participants? What kind of incentive system is designed for this artificial intelligence project or Token, and how does it coordinate the interests and motivations among its network participants? How does this artificial intelligence project or token strike a balance between efficiency and decentralization, and between innovation and regulation?

These are some methods and criteria that can be used to evaluate an artificial intelligence project. Of course, there is no definite or formulaic answer or method to conduct this evaluation, because different projects may have different advantages and disadvantages, opportunities and challenges, and risks. and returns, so it is important to do adequate research, analysis and due diligence.

Forecast of the future market of AI Token

What will be the future market share and transaction status of AI Token? We believe there are several possible trends as follows.

First, the market share of AI Token is likely to grow with the development and application of artificial intelligence technology. Artificial intelligence technology is one of the most innovative and forward-looking technologies today, and it has a wide range of uses and potential in various fields. For example, artificial intelligence can be used to improve the efficiency and quality of data analysis, financial forecasting, digital art, asset management, etc. Therefore, as a combination of artificial intelligence technology and blockchain technology, AI Token can provide users with more value and opportunities, thereby attracting more attention and investment.

Secondly, the trading situation of AI Token may fluctuate with changes in the market environment and network governance. Because AI Tokens are still in an earlier stage of development compared to other more mature and popular Tokens (such as Bitcoin, Ethereum, etc.), they are more susceptible to market fluctuations.

Finally, there may be some new innovations and breakthroughs in the future of AI Token. Since AI Tokens are highly innovative and forward-looking, they may continue to explore and try new technologies and models to improve their competitiveness and attractiveness. For example, FET Token is developing a blockchain-based Collective Learning Protocol that allows multiple devices or entities to share data and models and conduct collaborative learning while protecting data privacy and ownership. Likewise, RNDR Token is leveraging blockchain technology and GPU rendering technology to provide an efficient and low-cost platform for digital artists and creators. We believe that the future market share and transaction situation of AI Token are uncertain and changeable, with both opportunities and challenges.

(Disclaimer: This article does not constitute any investment advice)

FlerkenS is a decentralized personal AI application platform, a collector and converter of new assets in the digital economy, and provides users with borderless digital and intelligent services.

FlerkenS builds an AI market, an AI publisher, and an open and scalable general artificial intelligence (AGI) system. AI-DSL enables AI applications and services of different types and fields to collaborate and interact with each other, through personal vectors Database (Personal Vector Database) + Langchain Technology Solution (Langchain Technology Solution) + large-scale model technology implementation path, allowing users to obtain personalized AI services, and realize point-to-point with service providers under AI technology in a distributed network environment The connection to build a distributed AI intelligent business and a distributed AI economy.

PoppleWorld is an AI application of the Yuanyuan Beast platform. It uses AI technology to help users manage their emotions and social products to deliver emotional value. It uses Web3 distributed technology to build a set of collection of user emotional data and incentives through TOKEN Aggregate to form a vector database in the vertical field of emotion, and use it to train a large model that specifically solves user emotion management, and at the same time implant social elements in the product that assist users in deep interaction and provide emotional value, according to the deeper needs of users Deal with accurate insights and matching needs, help users make confident purchase decisions and provide products and services based on the source of consciousness, and establish a value system that guides our emotions and reactions. This is an emotion management Dapp application based on human cognition and behavior patterns for ordinary people.