What is an iNFT and how does it work?
Alethea AI, an open AI developer company, has teamed up with London-based artist Robert Alice to bring a virtual being to life, and they’re auctioning it at Sotheby’s as the “first intelligent nonfungible token” (iNFT).
In collaboration, they have created a virtual being named Alice using AI technology. She can have conversations with people, based on the personality that Robert Alice made, and they used NFT technology, which is based on the transparent and secure blockchain digital ledger, to ensure that she is a unique, one-of-a-kind creation.
“We’re venturing out into new creative terrain, considering that now we’re in a unique position where iNFTs can work to produce new iNFTs, and I think that poses very interesting questions to both the art world, and the idea of ownership.” said Robert Alice, the artist behind the piece, in an interview with The Fintech Times.
“We have a reasonable amount of creative steer over Alice’s capabilities, but not total control. And I think that raises some quite interesting questions in terms of ownership,”Alice continues. “At the moment, a lot of AI and machine learning technologies remain unregulated. There’s not much oversight into it, and it’s happening with a large number of big bodies that utilise Open AI where we don’t know about the biases involved. There may be some biases analysis, but we’re going to start to find them out, and that’s really interesting.”
At Alethea AI they believe that NFTs will eventually become intelligent NFTs (iNFTs), embedded with interactive, intelligently generative capabilities and capable of sense-making and possibly human-level intelligence in the coming decades.
What is an iNFT?
According to Alethea AI, an iNFT is an intelligent NFT that is embedded with a GPT-3 prompt as part of its immutable smart contract. The iNFT generated is not only perceivably intelligent, but has both interactive and animation capabilities as carefully crafted prompts are stored at the smart contract layer. The hardcoded prompts call upon a state-of-the-art Transformer Language model to facilitate generative possibilities only possible through recent breakthroughs in few-shot and single-shot learning.
Characteristics of iNFTs
- Embedded Intelligence: A pre-defined or evolving prompt in GPT-X embedded as part of it’s immutable architecture creating generative possibilities in interactive conversation
- Self-Learning: Accrues knowledge and Unlocks new forms of Intelligence available to the owner, creator and eventually, the network
- Permissionless: universally usable and censorship resistant
- Metaverse Agnostic: open and available to the internet and integrative with multiple platforms
- Valuable and fractionable: accrues value which is accessible to the owner and creator and its communities through fractional ownership
- Token-based: An Ethereum-based ERC 721 or ERC-1155 Non-Fungible Token (NFT)
AI and the future of global trade
Artificial intelligence (AI) is becoming entrenched in our daily lives, but the technology is still surrounded by misconceptions and skepticism. Ask the public and they may jump to dystopian scenarios where robots have taken over the world.
While this makes for a good sci-fi blockbuster plot, the reality is different and more benign. Those products that Amazon suggested you buy? AI. That TV series you were recommended to watch on Netflix? AI. That self-driving Tesla car you crave to take for a spin? You guessed it: AI.
There is no single industry that is not being re-shaped by technology. Until recently, however, there was one noteworthy exception: global trade. Fortunately, that is slowly changing.
The mechanism that underpins global trade – trade finance – is an industry that remains largely paper-based and reliant on manual processes. This US$18tn a year industry is now being influenced by a new wave of technological innovation, including AI.
Exploring the potential of AI in Trade Finance
AI refers to the use of computer-aided systems to help people make decisions or make decisions for them. It relies on large volumes of data and models to make sense of information and draw intelligence.
In trade finance, AI is helpful in analysing quantitative data, and the repetitive nature of trade finance means that there is a lot of non-traditional data at our disposal.
This means that when trade finance providers need to assess the risks of funding a transaction, AI models can be a very efficient tool for data analysis and reveal intelligence and risks relating to small companies.
AI helps the industry move beyond traditional credit scoring processes, which are often outdated and remain reliant on historical accounting entries – a barrier that prevents small companies from accessing trade finance and has resulted in a $1.5tn global shortfall.
Overcoming the barriers
AI can tackle this shortfall by creating accurate credit scoring models. This can include a company’s payment history, measure the risks of funding a transaction, identify supply chain risks, and benchmark them against their peer group.
Trade finance providers can use this information to communicate effectively with their SME clients, ultimately helping establish better business relationships.
Towards a technological utopia?
The adoption of AI has the potential to do a lot of good in the industry, and the industry is in the early stages of radical transformation.
Advances are driven by fintechs as well as a willingness to change. The industry is working together to create new infrastructure for distributing trade finance assets to other investors in a transparent, standardised format.
The creation of infrastructure is possible due to improvements in technology and integrated across the trade ecosystem in cooperation with banks, insurers, and other industry participants.
It’s collaboration at its best: together, the industry is using technology to re-shape global trade as we know it.