In recent years, the combination of AI and crypto has become a new hotspot in the crypto market. Innovations in this cross-field have driven the development of decentralized artificial intelligence, enabling data privacy, security, and decentralized decision-making. The integration of AI technology and blockchain has shown tremendous potential not only in the financial sector but also in areas such as smart contracts, dApps, and data tokenization. Particularly in data privacy and security, blockchain technology provides an immutable distributed ledger, offering a more secure and reliable environment for AI model training. Additionally, the decentralized execution of AI algorithms helps reduce single points of failure and enhances system robustness.

To further promote this trend, Fetch.ai, Ocean Protocol, and SingularityNET will complete their merger to form the Artificial Superintelligence Alliance (ASI) on July 15, 2024. This merger aims to create a decentralized AI infrastructure, reducing the dominance of large tech companies in AI development. The existing FET, AGIX, and OCEAN tokens will continue to trade independently on exchanges. Once third-party integration is complete in the future, the ASI token will be launched, and FET, AGIX, and OCEAN will cease independent trading and merge into the ASI token.

The initial announcement of the token merger was made on June 13, but it was postponed to July 15. Fetch.ai stated that the delay was due to logistical and technical dependencies to accommodate exchanges, validators, and broader ecosystem collaborators.

The total value of the merged ASI token is estimated to be around $7.5 billion, making it one of the top 20 cryptocurrencies globally. This valuation will increase the value and liquidity for token holders. Moreover, the merger simplifies interactions within the ecosystem, lowers the participation threshold for users and developers, and increases engagement and usage frequency. This, in turn, drives application development and user adoption, especially in the AI field, as the simplified multi-token system will be more accessible to new users and developers.

Fetch.ai: Intelligent Agent Technology

Fetch.ai is a decentralized platform built on the Cosmos blockchain, aimed at creating an open and scalable network for AI-driven services and applications. The platform focuses on integrating AI and blockchain technology to enable autonomous agents to perform tasks such as data sharing, IoT device coordination, and supply chain optimization. Fetch.ai’s native token, FET, supports network governance, payment of transaction fees, and the use of AI services. The platform has also partnered with leading companies like Bosch to optimize industrial processes and supply chain management, driving digital transformation across multiple industries.

Core technologies and functions:

1. AI Agents: Fetch.ai’s AI Agents are small computer programs that can perform specific tasks on behalf of individuals or companies. These agents can analyze their environment, make decisions, and adapt to changes, enabling automated tasks and personalized experiences. For example, AI Agents can be used in supply chain optimization, IoT device connectivity, and DeFi, among other areas.
2. Fetch Compute: This $100 million infrastructure project provides developers with advanced computing power using Nvidia GPUs to facilitate the creation of complex AI models and solutions. Users can stake Fetch.ai’s native token, FET, to receive Fetch Compute Credits, which can be used to pay for GPU usage.
3. DeltaV: DeltaV is a search-based chat interface similar to ChatGPT, helping users accomplish tasks through natural conversation. DeltaV can integrate with chat applications and calendar apps, acting as an AI travel agent, scheduler, or other roles to simplify users’ daily tasks.
4. Fetch Wallet: Fetch Wallet is a universal wallet for interacting with the Fetch blockchain network and other ledgers built with the Cosmos SDK. It supports Fetch.ai’s native token, FET, as well as IBC token transfers, and is compatible with Ledger hardware wallets to enhance security.

Fetch.ai facilitates various automated tasks and data sharing through its AI agents, advanced computing resources, and feature-rich wallet. For example, Fetch.ai collaborates with companies across multiple industries to leverage AI technology for optimizing industrial processes, supply chain management, and urban infrastructure. However, Fetch.ai’s infrastructure involves a complex integration of AI agents, blockchain, and decentralized data systems. This complexity may pose a high entry barrier for new users and developers. Additionally, despite utilizing the Cosmos SDK and an improved Tendermint consensus mechanism to enhance performance and interoperability, the network still faces challenges in scalability and handling large-scale applications.

Ocean Protocol: Data Monetization

Ocean Protocol is a decentralized data exchange protocol designed to enable data sharing and monetization through blockchain technology while protecting privacy. The project was founded in 2017 in Singapore by Bruce Pon, Trent McConaghy, and other co-founders. Its core team currently consists of 25 blockchain technology experts and entrepreneurs, with operations spanning the globe.

The OCEAN token is the native cryptocurrency of the Ocean Protocol platform and serves several key functions: 1) Medium of Exchange: Used to purchase data services and access data. 2) Governance: OCEAN token holders can participate in platform governance, voting on major updates, upgrades, and policy changes. 3) Staking and Liquidity Provision: Users can stake OCEAN tokens in specific data asset pools to support data asset liquidity and earn corresponding rewards.

Core technologies and features

1. Data NFT and Data Tokens: Data NFTs (ERC721) are used for publishing and managing datasets and data services. Data providers can use NFT technology for self-custody, encrypted storage, and access control to ensure data privacy and security. Data tokens (ERC20) provide access rights to data services. Each data NFT can generate one or more data tokens, which can be configured with whitelists, pricing, promotion strategies, and expiration dates. Through data tokens, data providers can flexibly manage and monetize their data assets.
2. Compute-to-Data (C2D): Compute-to-Data is an innovative feature of Ocean Protocol that allows data computation while preserving data privacy. Computational tasks occur locally where the data resides, ensuring the data itself does not leave its local environment; only the computed results are visible to data consumers. This mechanism not only protects data privacy but also offers new monetization opportunities for data providers. For instance, companies can provide data for analysis by other organizations without concerns about data leaks or unauthorized access. This approach reduces privacy risks associated with data sharing and promotes the development and application of data-driven AI models.
3. Ocean Market: Ocean Market is a decentralized data marketplace where data providers can publish their datasets, and data consumers can purchase and use these datasets. The marketplace operates using $OCEAN tokens, creating an open and transparent data economy. Data providers profit by selling data, while data consumers gain access to datasets needed for training and optimizing AI models. The design of Ocean Market aims to facilitate data sharing and monetization through token economic incentives, enabling data to flow and be utilized more widely.
4. Data Challenges and Data Farming: Ocean Protocol organizes regular data science competitions known as Data Challenges. Participants design AI models and analytical tools to compete for rewards. These competitions not only incentivize data scientists and developers to participate but also drive advancements in data analytics technology. Additionally, Data Farming uses incentive mechanisms to encourage active participation from both data providers and consumers within the platform’s ecosystem. For example, data providers can earn rewards by participating in Data Farming, while data consumers can earn rewards through analyzing and using data. This model increases platform activity and promotes the circulation and utilization of data.

Ocean Protocol aims to provide a secure and efficient trading platform for data providers and consumers by integrating blockchain and AI technologies. However, as a data exchange platform, Ocean Protocol must comply with strict data privacy regulations such as GDPR. Maintaining its decentralized nature while ensuring compliance adds additional complexity. Despite its Compute-to-Data approach designed to protect data privacy, continuous development is necessary to meet regulatory standards and mitigate privacy risks.

SingularityNET: AI as a Service

SingularityNET is a decentralized AI platform dedicated to creating an open market where anyone can create, share, and monetize AI services. Founded in 2017 by Ben Goertzel and David Hanson, the platform aims to advance Artificial General Intelligence (AGI) with broad adaptability and self-improvement capabilities.

SingularityNET is led by an experienced team including scientists, researchers, engineers, and entrepreneurs. Co-founder Ben Goertzel holds a PhD in mathematics and has authored numerous scientific books and technical papers in the fields of artificial intelligence and robotics. David Hanson is the founder of Hanson Robotics, known for creations like the Sophia robot.

AGIX is the native utility token of the SingularityNET platform, supporting multiple critical functions. It is primarily used for transactions on the marketplace, voting on governance proposals, and providing liquidity through staking. AGIX tokens can be used across various blockchains such as Ethereum and Cardano. Users can utilize AGIX tokens to pay for AI services, participate in platform governance, and earn rewards through staking. AGIX tokens also facilitate communication among AI agents and interaction with external protocols.

Core functions

1. AI Market: SingularityNET’s AI Market helps users browse and utilize available AI services. The market reads data from on-chain registries and pairs it with off-chain metadata, allowing users to search, filter, and discover AI services. Each service undergoes auditing to ensure data privacy and user safety. Payments and service calls are handled through smart contracts, integrating multi-party escrow functionalities. Users can pay for services and rate the services they use. AI service providers can showcase custom UI components, gather inputs required for service execution, and display results. Users can make payments using Metamask or regular wallets and test services through the platform’s free trial versions. After exhausting free call limits, users need to pay new service call fees through their wallets.
2. OpenCog Hyperon: OpenCog Hyperon aims to realize a comprehensive, scalable open-source general artificial intelligence system. It combines various AI methods such as neural-symbolic AI, evolutionary learning systems, economic attention allocation, and machine learning, collaborating based on a shared knowledge graph.
3. SingularityNET Bridge: SingularityNET Bridge is a cross-chain conversion tool that allows users to transfer their tokens between supported blockchains. Currently, it supports the seamless conversion of AGIX and NTX tokens between Ethereum and Cardano blockchains. When tokens are transferred from Ethereum to Cardano, the tokens on Ethereum are destroyed within the smart contract, while an equivalent amount of new tokens is minted on Cardano, and vice versa.

SingularityNET’s primary goal is to create a decentralized AI service network and has introduced the concept of “AI-as-a-Service (AIaaS).” The platform employs smart contracts to implement decentralized logic, aiming to accelerate AI development and ultimately achieve Artificial General Intelligence (AGI) systems. AGI systems, akin to humans, can perform diverse tasks and possess self-improvement capabilities.

However, SingularityNET’s platform involves complex technologies like OpenCog Hyperon and AI-DSL. These technologies are still in development and have not been fully deployed in practical applications, limiting the realization of their full technical potential. Additionally, as a decentralized platform, SingularityNET relies on community governance and multi-party collaboration. Yet, decentralized governance models may exhibit lower efficiency in coordinating large-scale projects and strategic decisions, which can impact project progression.

Possible Impacts of Token Mergers

To support the ASI token exchange mechanism, Fetch.ai has minted an additional 1,477,549,566 FET tokens to facilitate the conversion for AGIX and OCEAN token holders into ASI tokens. The specific exchange ratios are as follows:

• AGIX： ASI exchange ratio is 0.433350:1, supported by the minting of 866,700,367 additional FET tokens.
• OCEAN： ASI exchange ratio is 0.433226:1, supported by the minting of 610,849,199 additional FET tokens.
• FET： ASI exchange ratio is 1:1, supported by the existing 1,152,997,575 FET tokens.

The fixed conversion rates ensure a fair and predictable exchange process for users, reducing uncertainty among token holders. Furthermore, the exchange mechanism for converting OCEAN and AGIX into ASI will remain open indefinitely. This allows long-term holders the flexibility to convert tokens at their convenience, without facing immediate pressure or deadlines.

With the addition of new FET tokens, the total supply will reach 2,630,547,141 tokens. Currently, Fetch.ai has a market capitalization of approximately $1.8 billion, Ocean Protocol around $518 million, and SingularityNET approximately $1.144 billion. The combined token ASI is estimated to have a total value of about $7.5 billion post-merger, positioning it significantly within the top 20 cryptocurrencies. This substantial valuation could potentially increase the value and liquidity of token holders.

Greater market depth post-merger will help mitigate the impact of large trades on prices, providing a more stable trading environment and attracting more institutional investors.

Post-merger, users, and developers no longer need to separately hold and manage multiple tokens. This not only lowers the barrier to entry but also enhances user and developer engagement and frequency of use. A unified token system will lead to a more intuitive user experience, fostering the development of more applications and user adoption. This change is particularly crucial in the AI sector, where complex multi-token systems can hinder new users and developers from entering. The combination of Fetch.ai’s smart agent technology, Ocean Protocol’s data monetization mechanisms, and SingularityNET’s decentralized AI services will create synergies that enhance the competitiveness of the entire ecosystem. Users will have access to a more cohesive AI-driven ecosystem as a result.

Summary

After the completion of the Artificial Superintelligence Alliance (ASI) merger, increased user engagement and market liquidity are expected, which will enhance resource integration and foster the development of decentralized AI. However, there are certain risks and challenges to consider. These include potential compatibility issues during the technical integration process, user adaptation to the new token system, and the inherent market volatility risk. Additionally, uncertainties in regulatory environments could impact the merged tokens, necessitating ongoing monitoring and responses. Given the rapid evolution of AI and blockchain technologies, prudent management of technological and market uncertainties is crucial.

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