Generative AI has created a lot of buzz and discussion on social media after the release of OpenAI's chatbot ChatGPT-4. 

The buzz about ChatGPT's potential has also made its way to the Web3 community. Despite the fact that many shady new Web3 projects are hyping their native cryptocurrency token with AI concepts, several projects do seem to be truly serious about combing blockchain technologies with artificial intelligence.

For example, the cryptocurrency exchange and Web3 technology company OKX announced on March 31 that it would launch a new integration from EndoTech, which uses AI algorithms to capture volatility in the cryptocurrency market.

The algorithms utilize machine learning and other complex techniques in an effort to assess data and trade possibilities in real time.

The cryptocurrency exchange also twitted about how it creates functions of crypto wallet by using ChatGPT-4 like generative AI.

Likewise, others like fetch.ai, a decentralized marketplace for AI-based services and products. It enables users to pay for the automation of numerous functions, from peer-to-peer communication to energy usage control, using the native token FET. As its white paper suggests, it can employ smart contracts to carry out actions on behalf of AIs, which may be essential for merging ChatGPT-style bots with blockchain and cryptocurrency.

In addition to the existing AI models, more developers are deciding to concentrate their work on training new generative AI models.

Blockchain video delivery network Theta Labs has partnered with the artificial intelligence (AI) platform FedML to focus on the collaborative training of large-scale generative AI models. The partnership enables the Theta TV community to contribute personal preferences and compute resources in training and to deploy AI models to enhance personalized recommendations and advertisements.

The incorporation with EndoTech.io is just one illustration of how AI is discovering several applications in the cryptocurrency sector. It is also used for tracking blockchain transactions, deploying autonomous economic agents for trading, and more, in addition to identifying real-time market volatility.

ChatGPT can be integrated into the AI marketplace as a conversational interface to assist users with trade executions, providing market information and analysis, and handling account-related queries.

An example of such an application is SingularityNET. SingularityNET is a decentralized marketplace for AI tools. Developers can produce and distribute solutions to businesses, and other platform users can utilize via APIs.

A user of ChatGPT shared their experience with the tool on Twitter, demonstrating how the tool used Pine Script, a programming language used by the financial software TradingView, to develop a basic trading bot from a straightforward prompt.

A different user gave ChatGPT instructions to build a trading terminal. Using the API of the cryptocurrency exchange Binance, ChatGPT wrote code to show the current orders for the Bitcoin BTC and USDT trading pair (API).

AI can also help developers to write smart contracts for Web3 projects.

Smart contracts are coded using programming languages such as Python, JavaScript, and Solidity, which are designed for writing smart contracts on blockchains such as Ethereum.

However, smart contract programming remains a difficult task for developers because even minor errors in the code can have major repercussions.

The ability of ChatGPT to process natural language is helpful in this situation. Developers can write smart contract code in natural language using ChatGPT's AI, which can decrease errors and increase coding productivity.

For instance, ChatGPT's AI may assist developers in finding possible problems with their code by evaluating natural language inputs and making suggestions for enhancements or fixes. This can decrease the likelihood of expensive errors and increase the code's accuracy.

Another use case of generative AI is nonfungible tokens (NFTs). Since 2021, NFTs have been widely regarded as social identities by users. Companies like Yuga Labs have taken things a step further by enabling customers to access a metaverse environment using their Bored Ape Yacht Club NFT avatars.

The use of NFTs as digital avatars will increase as the metaverse development progresses. Today's digital avatars in metaverses, however, are neither intelligent nor resemble the user's expected personality in the least. With AI, NFT avatars will be able to learn from their users when intelligent NFTs are built.

Photo by Shubham's Web3 on Unsplash