In a blockchain world where the possibilities are almost endless, NFTs or non-fungible tokens can take all sorts of shapes. Thanks to even more advanced artificial intelligence (AI) technology, NFTs can even be born out of AI.
Advanced AI capabilities could change how we think about NFTs and their capabilities. These AI-created or AI-embedded NFTs can hold a conversation, change the background based on the weather or execute dynamic functions like unlock bonus content.
Building on the capabilities of regular NFTs, smart NFTs or AI NFTs are a growing trend with exciting potential beyond just the crypto industry.
As a result, interest in smart NFTs is on the rise. Google searches for “smart NFT” have been up to over 2100-percent since March 2020, and smart NFTs are regarded as the future of NFTs because of their capability for creating complex tokens.
What are Smart NFTs?
Smart or AI NFTs refers to any tokens that use AI technology to power the token. With artificial intelligence tech built into the code of the NFT, a smart NFT can adapt over time and carry out more complex tasks to benefit the owner.
One kind of AI NFT is relatively common and comprises big names like Bored Ape Yacht Club and CryptoPunks.
Rather than having a human select each characteristic by hand, these NFTs use algorithms to generate the unique combination of traits for each NFT.
These computer algorithms, or step-by-step computational procedures, are crucial to computer science, AI, and multifunctional products. In this emerging NFT industry, the sky is the limit in finding ways to use algorithms and machine learning technology to add to what NFTs can do and be.