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Cryptocurrencies are no longer only used for sending “digital money” like Bitcoin across the internet. They can be used to track supply chains, access flash loans and fractionalise larger, illiquid assets.
To match the industry’s constant evolution, developers work tirelessly to implement new tech that helps improve the capabilities of the blockchain.
Some of the newest integrations present exciting opportunities for the crypto world.
What are crypto’s hottest new technologies?
Artificial Intelligence (AI)
Unless you’ve been living under a rock, you’ve probably come across artificial intelligence in some form.
Ignoring the science fiction, AI promises to change our lives for good.
As new, revolutionary technologies, there is a clear link between artificial intelligence and crypto.
The market has taken notice, with significant investor and developer interest popping up over the past 24 months. As a result, several exciting new projects have started to gain traction.
Decentralised Physical Infrastructure Networks (DePIN)
Decentralised Physical Infrastructure Networks (DePINs) are a bit of a mouthful – but present one of the best real-world use cases for blockchain technology.
DePINs are basically a way to crowdsource (decentralise) physical and digital resources. Think unused computing power, energy, storage space and data.
Those who contribute their, for example, unused computer bandwidth to a DePIN, are rewarded with cryptocurrency.
How can AI transform crypto?
Despite the possibilities of artificial intelligence, its challenges are well documented. Issues with computational resources and data quality can all potentially be resolved by blockchain tech.
Decentralisation helps ensure transparency and data ownership.
This can be useful for AI projects that require sorting through data – such as back-tracking a defective product through a supply chain.
Artificial intelligence often needs permissionless access to computing power for training purposes, something that blockchain tech can provide.
And let’s not forget the significant storage space required to run AI learning models – something that blockchain, specifically DePIN, brings to the table.
As the two sectors are so tightly linked, when AI does well, so too do AI crypto projects.
How can DePIN be used in the real world?
DePIN has all sorts of uses outside of AI too.
A great example is live traffic data. A DePIN can source information from participating devices to create a decentralised map showing congestion and road emergencies.
In exchange for their data, the provider receives a set amount of cryptocurrency.
This is the technology that underscores Hivemapper (HONEY), which uses cameras to create 3D maps of every corner of the globe.
DePIN tech can apply to all sorts of important tasks – such as providing internet coverage, converting data types and renting out GPU/bandwith.
AI crypto projects to keep an eye on
Render
Render (RNDR) allows users to distribute idle GPU processing power to content creators and AI applications.
The project uses Ethereum’s blockchain to power its ecosystem.
L1 Blockchains
If cryptocurrency becomes the default settlement method for big AI projects, it’ll be the major blockchains that benefit the most.
Firstly, crypto projects that gain traction will approve transactions on a Layer 1 blockchain – for example, note how Render’s community relies upon Ethereum.
Secondly, AI learning models would likely prioritise reputable networks known for cheap and efficient transactions. This would put blockchains like Solana (SOL), Avalanche (AVAX) and Sui (SUI) in the driver’s seat.
DePIN crypto projects to keep an eye on
Filecoin (FIL)
Filecoin (FIL) is one of the earliest examples of a DePIN, having been born in 2018.
Users can “rent” unused storage space to others in exchange for FIL tokens, and vice versa.
Helium
Helium (HNT) is a decentralised wireless network intending to bring 5G coverage to rural parts of the world.
Participants are encouraged to run a Helium hotspot, in exchange for MOBILE tokens.
The project’s official mobile service, Helium Mobile, has already secured 100,000 subscribers.
Swyftx: Start your crypto investing journey
Swyftx is an Australian-based crypto exchange with over 750,000 users. Start your investment journey off with $20 of free Bitcoin when you sign up and verify.
We’ll be back next week with Part 3, looking at community-driven and entertainment crypto.
Disclaimer: The information provided by Swyftx is for general educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any assets.
It has been prepared without regard to any particular investment objectives or financial situation and does not purport to cover any legal or regulatory requirements. Customers are encouraged to do their own independent research and seek professional advice.
Swyftx makes no representation and assumes no liability as to the accuracy or completeness of the content. Any references to past performance are not, and should not be taken as a reliable indicator of future results.
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