They built CryptoGPT (GPT) to cash in on artificial intelligence by monetizing AI data.
The phrase GPT stands for Generative Pretrained Transformer. A GPT is an autogressive language model that uses deep learning to produce human-like text or conversation.
The success of OpenAI’s ChatGPT chatbot is popularizing the term GPT. I know of no connections between OpenAI and CryptoGPT. Therefore, I suspect the name ChatGPT is an effort to cash in on the ChatGPT fad.
What is CryptoGPT?
CryptoGPT is a ZK Layer-2 built to monetize AI data. To explain, Zero-knowledge rollups (ZK-rollups) are Layer 2 scaling solutions that increase throughput on the Ethereum Mainnet by moving computation and storage off the blockchain.
Layer 2 is an extra layer of blockchain they add to Ethereum (ETH) to increase its capacity. Throughput refers to the amount of data a blockchain can process. Hence, they add a ZK Layer-2 to increase an Ethereum application’s processing capacity.
For example, CryptoGPT allows an Ethereum app to process and store enormous amounts of data AIs gather. Such data includes chatbot conversations and chatbot results.
How CryptoGPT Monetizes data
AI data is valuable because they use data to teach AI. To elaborate, AIs learn by studying enormous amounts of data and mimicking it. For example, ChatGPT learns to “write” by scanning written material on the internet and imitating it.
This is deep learning, or machine learning, and it is becoming big business. CryptoGPT’s business model is to harvest such data and sell it. They claim, CrytptoGPT can help you monetize everyday tasks, such as searching the internet, by collecting data.
Data is valuable because the more data AI gets, the more capable it becomes. ChatGPT is a capable writer because it analyzing writing all over the internet.
CryptoGPT monetizes AI data by creating unique on-chain NFTs that store the data. They call these data storage units AI capsule
How CryptoGPT Makes Money
The CryptoGPT (GPT) token is a multi-value gas token. Hence, GPT serves as fuel for network transactions.
Those transactions power CryptoGPT’s Global Data Marketplace. They claim CryptoGPT offers several sources of income. Those sources are:
- Gas or transaction fees that users pay to access CryptoGPT’s ecosystem.
- Core apps are applications they build to make money in the CryptoGPT ecosystem.
- The GPT Data Market allows users to sell data to buyers in specific businesses such as construction, logistics, medicine, tourism, advertising, education, manufacturing, and biotech.
- Data Capsules are the nonfungible tokens (NFTs) that contain users’ data. Data capsules make data mining better.
- Users can generate cash flow by staking the tokens. GPT stakers can use treasury funds for constant burns of GPT tokens. GPT stakers govern the CryptoGPT DAO by voting. Voting gives access to treasury funds they can use to buy GPT tokens on the market. Ideally, this will provide a Staking yield.
- GPT token holders can vote to use treasury funds to buy seed and private investments in AI companies and projects. Hence, CryptoGPT acts as a Venture Capitalist.
- GPT Token stakers can unlock discounts. They claim GPT can provide liquidity for data miners using gas fees.
- Stakers validate the network and run network nodes.
They call CryptoGPT a blockchain protocol “that establishes data as an asset class for the AI economy.”
CryptoGPT’s builders bet that the AI boom will make data more valuable as more builders need data for deep learning and machine learning. In particular, designers need that data to train algorithms.
The hope is that AI developers will buy that data from CryptoGPT’s Global Data Market in Data Capsule NFTs. GPT could gain value because buyers will pay for Data Capsules with CryptoGPT (GPT).
They claim CryptoGPT’s app ecosystem has two million users and attracts 150,000 users each day. CryptoGPT connects to some large blockchain protocol, including Arbitrum (ARB), Optimism (OP), and Polygon (MATIC).
They claim CryptoGPT automates AI data mining with a Software Development Kit (SDK) which connects protocols to CryptoGPT’s ecosystem.
CryptoGPT’s ecosystem consists of the zkRollup Layer-2 blockchain and a Data-to-AI engine. The Data-to-AI engine collects, processes, encrypts, and packages data for commerical applications. Users make money selling that data in Data Capsules.
The zkRollup records, encrypts, and anonymizes user data. The Data-to-AI Engine packages the data. Users sell the data through the Global Data marketplace.
What Value can CryptoGPT Achieve?
Analysts think AI could add enormous value to the world’s economy. For instance, PricewaterhouseCoopers (PWC) claims AI could add $15.7 trillion to the world economy by 2030.
PWC estimates AI can boost nations’ gross domestic product (GDP) by up to 26%. In particular, PWC claims AI will add $3.7 trillion to North America’s economy and $7 trillion to the Chinese economy by 2030.
Conversely, Statista estimates the global market value of AI marketing at $27.37 billion in 2023. Statista estimates AI in marketing grew from $15.84 billion and $20.82 billion in 2022. Statista projects AI’s value in marketing could grow to $35.99 billion in 2024, $47.32 billion in 2025, $62.21 billion in 2026, $81.79 billion in 2027, and $107.54 billion in 2028.
Hence, analysts think AI could experience enormous growth. However, these claims are theoretical. Yet CryptoGPT (GPT) has a plan to monetize data in a growth industry.
Thus CryptoGPT is a Big Data solution. Big Data can generate enormous amounts of money. Statista estimates Big Data’s worldwide revenues grew from $56 billion in 2020 to $64 billion in 2021 to $70 billion in 2022. Plus, Statista forecasts Big Data revenues could grow to $77 billion in 2023, $84 billion in 2024, $90 billion in 2025, $96 billion in 2026, and $103 billion in 2027.
CryptoGPT is trying to monetize a commodity for which there is a growing demand. Thus I think CryptoGPT could make money from AI data.
What Value Does CryptoGPT (GPT) offer?
Mr. Market has a strong interest in CryptoGPT (GPT). For instance, GPT was CoinMarketCap’s eighth most trending cryptocurrency on 11 April 2023.
However, CryptoGPT was CoinMarketCap’s 2,635th ranked cryptocurrency with a 7.31₵ Coin Price on 13 April 2023. CoinMarketCap gave CryptoGPT a $13.176 million Market Capitalization, a $219.153 million Fully Diluted Market Cap, and a 24-Hour Market Cap of $8.411 million on 13 April 2023.
CryptoGPT had a $7.994 million Centralized Exchange (CEX) volume and a $421,217 Decentralized Exchange (DEX) volume on 13 April 2023. There was a self-reported Circulating Supply of 180 million GPT and a Total Supply of Three Billion GPT on 13 April 2023.
I think CryptoGPT (GPT) is an interesting blockchain protocol with a business plan that could make money. If you are seeking a token that could make money from artificial intelligence, CryptoGPT is worth examining.