With the highly anticipated NVIDIA GTC 2024 Conference approaching, interest in the convergence of artificial intelligence (AI) and cryptocurrency has surged. This sector, often referred to as AI x Crypto, is rapidly evolving, driven by advancements in blockchain technology and AI capabilities.
As we look ahead to the conference, several significant developments have taken centre stage, highlighting the growing momentum of decentralised AI solutions within the crypto ecosystem. DWF Ventures breaks down the latest trends in AI x Crypto.
AI x Crypto Projects Join NVIDIA Inception Program
One of the most notable recent developments in the AI x Crypto space is the inclusion of several blockchain-powered AI projects in the prestigious NVIDIA Inception Program, an initiative that supports startups by providing access to resources, technical expertise, and market exposure. Projects such as AIOZ Network, Aethir Cloud, MyShell AI, and Virtuals.io have joined the programme, reflecting the increasing recognition of blockchain-based AI solutions by industry leaders.
This partnership is expected to significantly bolster innovation within the sector, enhancing the capabilities of decentralised AI networks by leveraging NNVIDIA’s cutting-edge hardware and AI research. As these projects continue to expand, they will likely attract further investment and collaboration, accelerating the adoption of AI-driven blockchain applications.
Growing Demand for Decentralised Computing Resources
As decentralised AI projects scale, their demand for computing power is growing exponentially. Despite their decentralised ethos, many AI x Crypto projects still rely on centralised cloud providers due to the lack of decentralised, reliable, and cost-effective alternatives. However, this reliance may shift with projects like Fetch.ai, which is investing heavily in NVIDIA GPUs to create a decentralised computing infrastructure.
Additionally, Fetch.ai's native FET token introduces a novel utility mechanism, enabling users to stake tokens in exchange for compute credits. This staking model aligns network incentives and provides a sustainable means of accessing decentralised GPU resources, driving wider adoption and reducing dependence on traditional cloud services.
Token Incentives for GPU Networks
In the AI x Crypto space, GPU networks are emerging as a crucial infrastructure layer. Platforms such as io.net and Exabits use blockchain-based incentive models to encourage the provision of GPU resources. These projects leverage native tokens to align interests between compute providers and users, ensuring a more equitable and efficient ecosystem for AI computations.
By offering token-based rewards, these networks aim to scale decentralised GPU availability while maintaining an economic model that sustains long-term participation from both retail and institutional users. This decentralised approach could play a pivotal role in democratising access to AI computation resources, fostering greater inclusivity in the AI development landscape.
Bittensor’s Expanding Role in AI Infrastructure
Among decentralised AI networks, Bittensor has gained significant traction as a leading infrastructure provider. Bittensor's architecture consists of subnets, each designed to perform specialised AI and machine learning (ML) tasks, such as data processing, model training, and inference. However, the cost of creating a subnet has risen sharply, currently priced at approximately 9,900 TAO (~$6.9 million).
In response to this rising cost, discussions are underway within the community to increase the number of subnets through a governance vote. Additionally, the introduction of Dynamic TAO, expected in Q2 2024, aims to enhance decentralisation by adjusting emissions based on demand for subnet tokens. This mechanism is designed to incentivise higher-quality contributions and promote a more decentralised, meritocratic system.
Recent Developments in Bittensor Subnets
Several developments have taken place within Bittensor’s subnet ecosystem, highlighting its growing utility and adoption:
- Akash Network (Subnet 27): Provides affordable and accessible GPU resources for AI applications, lowering the barrier to entry for smaller AI projects.
- Open Kaito by Kaito AI (Subnet 5): A fully composable decentralised search layer, offering AI-driven search functionalities that empower users to access blockchain data more efficiently.
These advancements underline the adaptability and expanding ecosystem of Bittensor, positioning it as a key player in decentralised AI infrastructure.
NEAR Protocol’s Growing AI Involvement
NEAR Protocol has also been making strides in the AI x Crypto space, gaining attention ahead of GTC 2024. The protocol’s founder is set to be one of the key panelists at the NVIDIA conference, further cementing NEAR's commitment to AI integration within blockchain technology.
NEAR’s involvement in AI was also a major topic at ETHDenver, where discussions focused on the potential for AI-driven applications to improve blockchain scalability, security, and user experience. The growing enthusiasm around NEAR’s AI initiatives has sparked speculation about future collaborations and technological breakthroughs within its ecosystem.
Overall
With the NVIDIA GTC 2024 Conference poised to highlight AI advancements, the AI x Crypto sector is experiencing unprecedented attention. From decentralised GPU networks to innovative subnet architectures, blockchain-based AI projects are pushing boundaries and redefining scalability solutions. As industry players continue to refine their approaches and introduce governance enhancements, the potential for AI and crypto to intersect in meaningful ways remains vast and promising.
We are committed to supporting projects working on AI x Crypto solutions. If you are interested in partnering with a crypto venture capital fund, don’t hesitate to contact DWF Ventures.
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