EXPLAINER: How is Generative AI making its presence in the NFT market – Digital Transformation News
It seems to not be a secret anymore that artificial intelligence (AI) has a part to play in the digital assets sector. In the current era, the two most talked about technologies are believed to be Generative AI and non-fungible tokens (NFTs). While Generative AI gives rise to new content through the usage of machine learning (ML) techniques, NFTs help represent proof of ownership and are changing the digital art landscape. In that context, the amalgamation of those technologies is considered to have the potential to offer something extra for the future. “I think Generative AI in the field of NFTs is turning the canvas into a playground of possibilities! Artists can input specific parameters into the AI systems to generate unique digital creations and immersive experiences. AI-generated NFTs seem to be exhibiting growth potential that could eventually challenge the traditional art world!” Saravanan Jaichandaran, co-founder and chief data scientist, bitsCrunch, an AI-enhanced NFT data network, told FE TransformX.
It is believed that the integration between Generative AI and NFTs can develop Web 3.0-based digital ownership. Generative AI-induced Generative Adversarial Networks (GANs) can help grow NFT-oriented art, with blockchain as the supportive mechanism. Understandably the correlation between AI and NFTs has given rise to AI NFT generators, which can provide benefits to both artists and collectors associated with the NFT industry. With regard to AI-based NFT marketplaces, artists can receive advantages such as new monetisation sources, showing of artworks’ to a global audience, and the ability to innovate with artworks. As far as collectors are concerned, the marketplaces can supply investment avenues, avoidance of frauds through authenticity, access to unique NFTs, and personalisation of NFT experience for users.
From what it’s understood, Generative AI-based NFTs can offer benefits such as non-replication of original content, development of large amounts of content in limited time, increased reach to worldwide users, usage as collectibles in blockchain-backed games and other virtual reality (VR) experiences, and customisation based on users’ preferences. Market-based research has shown ways through which Generative AI is ensuring an upward trend for NFT adoption, them being the development of distinctive and limited NFTs, coining new ideas for NFTs’ creation, NFTs created specifically for the metaverse, more business-oriented NFT use cases, among others. “I believe that Generative AI is making contributions to the NFT sector. Firstly, it can play a role in generative art, where AI algorithms create unique digital artworks, fostering innovation and originality. Additionally, AI can enhance the verification and validation processes in NFT transactions, ensuring the authenticity and provenance of digital assets. Moreover, AI-driven marketplaces can utilise smart algorithms for personalised recommendations, improving user experience and engagement,” Kiran Rudrappa, co-founder and CEO, Posspole, an NFT-based private company, mentioned.
Reportedly, platforms which are making a mark in the AI-based NFT landscape include RunwayML, Artbreeder, DALL-E, DeepArt, and DeepDream. For example, RunwayML is an AI project that can supply applications for designers and artists, as it permits users access to AI-based animations and designs. Using Artbreeder, customers can make use of AI-oriented content for utilisation in NFTs, through methods of deep learning and neural networks. OpenAI has also played a part in this context through the development of DALL-E, which makes images from textual descriptions that can be put to use in AI-based NFTs. As far as DeepArt and DeepDream are concerned, the former allows for conversion of photos into artworks using AI algorithms and the latter has been created by Google that makes use of neural networks to develop psychedelic images.
Moreover, analysts indicate that the future of Generative AI-oriented NFTs is dependent on factors such as Generative AI-based advancements, cross-industry applications, environment standards, increase in standardisation and interoperability, among others. Overall, AI’s effects on the NFT landscape change the ways of generating revenue from digital art, keeping in mind the originality factor. “The future of AI in the NFT market seems to be dependent on technological progress, regulatory developments and societal acceptance. Continued innovation in AI algorithms can lead to sophisticated and realistic generative models. The adoption of AI in the NFT space could contribute to the growth and diversification of the digital asset market,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, concluded.
