At the end of 2022, ChatGPT caused a sensation with its innovative use of artificial intelligence (AI). You can ask this AI chatbot to write anything by simply entering a simple text prompt and it will do so in seconds.
Breakthrough technology is so powerful Microsoft (MSFT 0.07%) It is currently investing billions of dollars.
With so many people trying to figure out how to harness the power of ChatGPT, is it any surprise that innovators in the cryptocurrency industry are also experimenting with ChatGPT? There may be more examples in the coming months, but here are the ones that stand out right now: polygon (matic -4.59%) AI technology experimentation for the Non-Fungible Token (NFT) market.
NFT and AI Revolution
What Polygon has in mind is the release of AI-powered avatars using a new technology called CharacterGPT. Once these avatars are created, they can be converted into NFTs on the Polygon blockchain.
There is a lot to unravel, but the essence can be summarized as follows. Just type in a text prompt about what kind of avatar you would like to interact with online, and an AI system that supports CharacterGPT will instantly create that avatar for you.
In CharacterGPT’s sample scenario, which can be found on YouTube, you can type in “a gray-haired, miner-like old man who wants to retire” and the AI will instantly create a digital representation of an 1850s man dressed in Western gear. This avatar can answer your questions from the perspective of a California prospector looking to retire.
What’s interesting is when you consider how this technology could completely reshape the NFT market. Since the launch of CryptoPunks in 2017, the NFT market has gone through two basic phases.
Stage 1 was NFT as digital art. Basically you bought a very expensive JPEG file. Phase 2 was the rise of utility NFTs, with buyers receiving additional value from NFTs, such as joining online VIP clubs.
Phase 3 of the NFT market could be the introduction of AI-powered avatars. Added value to this is the ability of this intelligent avatar to answer any question from any source from a specific perspective. Imagine characters from your favorite sci-fi movies that you can customize according to your specifications and interact with in the metaverse.
There are people far more creative than me, so this is probably just scratching the surface of what’s possible. It could dramatically change the game for NFTs and transform Polygon into the undisputed NFT market leader.
People often ask me why I would want to buy an expensive digital image of Bored Ape. You may be more interested in intelligent NFTs that can answer questions about your favorite topics.
What Investors Need to Know
This project by Polygon is very exciting because this cryptocurrency has already partnered with several very creative brands, including: Starbucks (SBUX 0.24%) And Nike (NKE)Both can probably think of many interesting applications.
Another Polygon partner walt disney (DIS -0.15%). Imagine what Disney can do with this type of AI technology, the types of immersive experiences it can create for families, and the new digital experiences it can create for people around the world.
Moreover, Alethea AI, the company behind CharacterGPT, is backed by billionaire investor Mark Cuban. In the past, Mark Cuban had invested in Polygon and was the man to build popular support for AI-powered NFTs.
ChatGPT was just the beginning. Based on the initial acclaim and success, we can easily see more applications of AI technology. For Polygon this is not the case overtaking ChatGPT. It is about creating new uses for generative AI technology.
AI and cryptography can make a very powerful combination. I’m bullish on any cryptocurrency that finds a way to do this, and I’m especially bullish on Polygon, which has the partnerships and technology to do it in a very large way.
Dominic Basulto works for Polygon. The Motley Fool has seats and endorsements for Microsoft, Nike, Polygon, Starbucks, and Walt Disney. The Motley Fool recommends the following options: A Jan 2024 $145 buy on Walt Disney, a Jan 2025 $47.50 buy on Nike, a Jan 2023 $92.50 sell on Starbucks, a Jan 2024 $155 sell call on Walt Disney. The Motley Fool has a disclosure policy.