At the start of 2023, the buzz around ChatGPT was undeniable. The emergence of AIGC in the public eye garnered attention, leading to a surge in AI concept stocks and project tokens. This development is poised to revolutionize the creation mechanism of human society and the business world’s ecological landscape.
Looking at Web3’s development history, NFTs have proven to be a catalyst for widespread discussion and public attention. They hold significant potential to bridge the gap between Web2 and Web3, as demonstrated by the celebrity endorsements of Bored Ape Yacht Club avatars and the release of NFTs for digital products by various brands.
As we seek out the next big story to drive the bull market in the face of a modest market recovery, the question remains: can AI technology bring NFTs into a new realm? With AI making its way into various industries, it’s not hard to envision the fusion of these two technologies creating a powerful force for innovation and growth.
Re-evaluating NFTs: What does NFT mean to us?
Looking at the four main application directions of NFT from a historical perspective
Although the trading market for non-fungible tokens (NFTs) has experienced mixed ups and downs, we cannot dismiss the practical application value and significance of this technology. To truly understand the potential future value of NFTs, we must first understand their origins and development process.
- Originated as digital collectibles: from Crypto Trading Cards to CryptoPunks
In 1993, cryptographer Hal Finney introduced a fascinating idea: the various sophisticated encryption algorithms in cryptography are a form of art in their own right, and each encrypted signature is unique. If these encrypted signatures were packaged as “Encrypted Transaction Cards” and sold to cryptography enthusiasts, they could become exquisite works of art. Though it may have been a casual remark by Finney, he unknowingly laid the foundation for the emergence of non-fungible tokens (NFTs).
As a continuation of Hal Finney’s vision, the launch of CryptoPunks in 2017 was a true realization of his idea — it became the world’s first NFT project. The only difference was that CryptoPunks was presented in a more visually intuitive way, as it consisted of groups of pixel images and was protected by the uniqueness of the blockchain. This project served as an inspiration for the creation of various other NFTs, which have been used by countless artists and project participants to produce and curate digital collections. In China, the function of digital collecting has become one of the largest factors driving the adoption of NFTs.
- Empowering financial transactions: DeFi
A token similar to NFT called “coloured coin” was introduced in 2012, shortly after the launch of Bitcoin. It is composed of small amounts of Bitcoin, with the smallest unit being one Satoshi. Due to its anchoring to Bitcoin, this NFT-like token has more practical value than just being a digital collection — it can represent a variety of assets, including but not limited to real assets, coupons, company stock, etc., and facilitate asset transactions. Although Coloured Coin has various technical flaws, it allowed people to see the possibility of on-chain real assets, which laid the foundation for the development of NFT. Since then, countless financial tools and assets using NFT as a medium have emerged one after another, and NFT has found new application scenarios.
- Applied to game operation: GameFi
The groundbreaking CryptoPunks project gained widespread attention on the Ethereum blockchain, and its non-fungible token (NFT) format sparked a new way of thinking. Building on this concept, the Dapper Labs team introduced the ERC721 token standard to create non-fungible tokens, and later launched a game called CryptoKitties. In this game, each digital cat is unique and cannot be duplicated, creating scarcity and maximizing its value. CryptoKitties’ innovative approach to creating and presenting value quickly made it popular and mainstream, demonstrating the successful application of NFTs in game development.
- Exploring community operations: SocialFi
In April 2021, the Bored Ape Yacht Club (BAYC) was launched, which is another milestone project based on CryptoPunks. BAYC was designed with a variety of different features for apes, and the program generated 10,000 unique images by combining these features. At the time, each BAYC was priced at 0.08 ETH and available to the public. Many celebrities, including Tom Brady, Justin Bieber, and Steph Curry, own BAYC and use it as their avatar on social media platforms like Twitter and Instagram.
The main feature of BAYC is that it uses NFT to create a social connection between users. When consumers buy this NFT, they also get tickets to enter the private social circle of BAYC. This unique feature sets BAYC apart from other NFT projects and has contributed to its sustained high prices. Nowadays, more and more project parties and traditional brand parties are starting to use NFT technology to strengthen their private domain communities. Even Starbucks and Budweiser are using NFTs to attract new members to their loyalty programs.
We have identified four main application directions for NFT through a brief history of its development. We believe that NFT is best applied in the following ways.
- Uniqueness guarantee: NFT is based on blockchain technology, which can ensure the uniqueness of NFT through digital signature and encryption algorithm. This kind of guarantee is of great significance to the high-value single product industry, such as art collections, and can also effectively empower the membership system.
- Non-tamperable modification: NFT is stored in a distributed manner. Once recorded on the blockchain, it can not be modified in any way. Because of this, once it involves credit transactions or industries related to credit guarantees, NFT can always have rich application scenarios.
- Ownership verification: The ownership information of NFT is stored on the blockchain, and the ownership change history can be traced through the blockchain.
- Transaction security: NFT transactions are realized through smart contracts on the blockchain, which can ensure the fairness and security of the transaction process. Therefore, NFT also has broad application prospects in financial transactions and other fields.
The shackles of NFT development: technology and creation
Despite the numerous application scenarios for NFT, it remains a distant concept for the general public. This is mainly due to the dual constraints of technology and creation, which have hindered the development of NFT.
On the one hand, ordinary users and enterprises are faced with the challenge of understanding and familiarizing themselves with various technical steps such as content creation, design, code development, smart contract deployment and on-chain implementation, in order to create an NFT. This technical complexity and cost exclude most users and companies from participating in the NFT market.
On the other hand, NFT creators and project parties must invest a lot of time and manpower to conceive, design and create NFTs. The requirements for creation have expanded beyond simple paintings to more specialised creative processes such as programming and 3D modelling. This raises the threshold for NFT creation, making it difficult for many creators to participate in the market.
To materialize the value of NFT’s large-scale application, there needs to be a “savior” who can overcome these barriers and revitalize the NFT ecosystem.
When NFT encounters AIGC
The application prospects of NFT are still very wide with the advancement of technology and the innovation of creators. Under such circumstances, we can predict that in the near future, the production and distribution of NFT will be extremely easy, efficient, and inexpensive, and there will necessarily be a variety of NFT production and distribution tools that can fully meet the needs of both the different NFT needs of individuals and enterprise project parties. At that time, NFT will be the herald of a new round of prosperity.
The future of NFTs may not be too far away, as advancements in technology and innovation by creators are expanding its potential applications.
AI is expected to play a major role in this future.
AIGC: Your AI Creation Assistant
AIGC, or Artificial Intelligence Generated Content, is a technology that utilizes artificial intelligence algorithms to create various forms of content automatically, including images, text, audio, and more. It offers excellent reproducibility and readability, acting as an “intern” to assist with content creation. While it may not provide inspiration, it can help individuals with ideas and incomplete works to create a more polished and complete product, even without a background in the arts or literature. This technology has the potential to revolutionize the NFT market by making NFT creation more accessible to a wider audience, reducing the technical and creative barriers that currently exist.
Application advantages of AIGC:
- Automatic content generation: Large language and image AI models can be used to automatically generate content, such as articles, blogs, or social media posts. For professionals who create content on a regular basis, this can be an invaluable time-saving tool. In early 2022, Disco Diffusion was expected to have a significant impact on the industry due to its improved generation speed, effectiveness, and richness of entry content. Midjourney, a platform set up on Discord, has gained a lot of attention due to its user boundaries and relatively good effects.
- Improve content quality: AI-generated content is likely to be of higher quality than human-created content because AI models are able to learn from large amounts of data and identify patterns that humans may not see, which can result in more accurate and informative content.
- Increase content diversity: The AIGC model can generate various types of content, including text, images, audio and video, 3D content, etc., which can help businesses and professionals create more diverse and interesting content, thereby attracting a wider audience crowd.
- Low content production cost and low threshold: Based on AIGC, the cost of content production is significantly reduced and the efficiency is significantly improved. It can be achieved at a tenth of the cost and at a production speed of hundreds of times and thousands of times, creating content with unique value and independent perspectives. Moreover, AIGC has also lowered the threshold for users to create content. Even users who have no drawing foundation can use AIGC tools to draw high-quality works.
- Personalized content generation is possible: AI models can generate personalized content based on individual user preferences, which can help businesses and professionals create content that their target audience is more likely to be interested in, and therefore more likely to be read or shared.
The emergence of AIGC has brought great convenience to content production, content distribution and content consumption, and also provided new ideas and opportunities for the development of many industries. The continuous development of AIGC technology will help improve content quality, increase production efficiency, reduce costs, and help promote the promotion and application of artificial intelligence in more fields:
How AIGC Empowers NFT: One-stop service from design to production and distribution
The extremely high threshold for creation and production is one of the key factors limiting the development of the NFT market. In addition, NFT itself is a kind of content creation. Ordinary programs cannot meet users’ personalised production needs for NFT. Typically, in order to create and publish an NFT, the following process is required:
- Determine the NFT type: You need to select one or several types of digital content for creation, such as images, music, videos, etc.
- Select the blockchain that supports NFT: You need to choose a blockchain that supports this type of NFT, such as Ethereum, BNB Chain, Polygon, etc.
- Register a blockchain wallet and prepare digital currency: The wallet needs to be able to support NFT storage on the blockchain, such as MetaMask, TrustWallet, etc.
- Choose an NFT marketplace: There are various online marketplaces where you can list and sell your NFT, such as OpenSea, Rarible, SuperRare, etc.
- Content Creation: Professional creators and tools are required to develop digital content.
- Store NFT and its Metadata in IPFS: It is necessary to store the NFT digital content itself and the Metadata describing specific characteristic information in IPFS, which can ensure the persistence and security of NFT storage.
- Development and deployment of NFT smart contracts: It is necessary to develop a smart contract to define the characteristics, restrictions and operations of NFT; and deploy smart contracts on the blockchain to mint and manage NFT.
- Mint NFT: NFT content and corresponding data will be created on blockchain.
Indeed, one of the biggest advantages of AIGC technology is its ability to increase efficiency and reduce costs in content creation and production. With the help of AIGC, we can generate rich and creative content automatically, which can potentially save a significant amount of time and resources. This means that as long as AIGC is smart enough, everything from content creation to final NFT release can be handed over to AI to solve:
- Determine the type of NFT
- Complete the whole process of NFT Mint using AIGC tools
This is the power of AIGC tools.
Market Map: Generative AI for NFTs
At present, there are many tools, products and projects that combine AIGC and NFT in the market:
The integration of AI and NFT has opened up new possibilities for the entire life cycle of NFT, from content generation to application and interaction. By using AI to lower the threshold for content generation, improve production efficiency, and enhance security, the NFT market has become more vibrant and diverse. With the addition of AI, the gameplay and interaction of NFT applications have become more enriched, and the integration of AI and NFT is becoming an irreversible trend.
MuseBot.AI: A Powerful one-stop Text-to-NFT tool & platform
Choosing the right tools and platforms is indeed an important decision when it comes to applying AIGC to NFT. Among the various options available, MuseBot.AI stands out as a potential top choice due to its impressive service and technical capabilities.
MuseBot.AI aims to build a next-gen NFT engine powered by AIGC and provide strong support and connectivity for the mass adoption of Web3.
MuseBot.AI redefined generative art by giving NFT creations unlimited possibilities. Unlike the “code-generated artist + real-time interaction with user” model of Art Blocks, MuseBot.AI’s “AIGC artist + user input” approach provides a “shortcut” for more people to become art creators with “controllable randomness”. This leads to more unique and personalized NFT creations, forming a more revolutionary creation ecosystem.
As the first all-in-one NFT platform powered by AIGC, MuseBot.AI reduces the barriers to creating NFTs by using AI technology, making it easier for more people to create and publish their virtual content. This simplifies the process of turning creativity into NFTs and enables more people to showcase their creativity and bring it to life. MuseBot.AI platform not only provides a creation tool for artists, designers, and other creatives, but also provides a community for the exchange of virtual art and other virtual items for collectors and investors, driving the growth of the entire NFT market.
As the first AIGC NFT generation service toolkit, MuseBot.AI uses AI technology to assist Web3 businesses in project integration, allowing Web3 teams to easily integrate AI-generated content into their own projects, improving the quality and appeal of the projects and publishing them as NFTs. This will enable projects to interact better with the community and gain more attention in the decentralized market. The MuseBot.AI toolkit is a very powerful tool that can help Web3 businesses more conveniently and quickly participate in the NFT market, display creativity more efficiently, and turn it into sustainable user participation and liquidity.
From a technical point of view, MuseBot.AI has achieved the ultimate in the industry. In the production of image content, MuseBot.AI applied the most efficient diffusion algorithm model, designed a solution that weighs diversity and authenticity, and established a new AI architecture. In the process of AI cluster generating visual content, MuseBot.AI has made deep optimization and adjustments to the algorithm, emphasizing more on AIGC’s painting aesthetics, not just those high-simulation images, which means that everyone This algorithm can be used to produce works of art with a very personal design style.
MuseBot.AI not only offers technical capabilities but also provides excellent one-stop operational service capabilities for NFT issuers. While ordinary AIGC production tools are primarily used for NFT production, users need to manage subsequent NFT issuance and operation on their own. With MuseBot.AI, when a user generates an NFT, the platform also supports adjustments to the producer’s application requirements for the NFT. This means that MuseBot.AI offers a comprehensive solution that covers the entire NFT life cycle, from production to issuance and beyond, which can save users a significant amount of time and effort.
DAO: Visualize DAO members’ devotion by inventing AIGC NFTs as proof of contribution.
- Personalized Membership AIGC NFT: Member generates personalized DAO identity NFTs according to his community contribution.
- DAO SBT: Exclusive and untransferable.
GameFi: Customize players’ in-game AIGC NFTs assets based on unique interests.
- Customized Game Characters.
- Customized in-game Assets.
DID: Generate exclusive AIGC NFTs according to users’ on-chain labels.
- Personalized DID NFTs.
AIGC POAP: Mint users’ digital moment as special AIGC POAP with personal traces.
- AIGC POAP is a customized POAP that records users’ on-chain experience.
Brands: Implement the Web3 transformation and membership system for traditional brands.
- Both newly launched and rapidly growing brands can gain entry into the Web3 world through low-cost and efficient NFT generation and display on MuseBot.AI, engage in frequent and extensive cooperation with the Web3 community, and quickly establish and efficiently manage a blockchain-based membership system.
Artist cooperation: Customize co-creation works
- Artists can facilitate co-creation and cooperation through MuseBot.AI, and use their own styles and prompts to customize exclusive collaborative works.
Bluechip NFT fan-art: Maximize the derived value of IP
- For existing NFT projects, especially blue-chip projects, the activity of community members will be further improved based on MuseBot.AI, and the existing content will be derived and created to expand the value of project IP.
Indeed, in the early days of the Web3 application market, MuseBot.AI stands out as one of the few tools that provides an excellent user experience for the integration of AIGC and NFT. With its advanced AIGC technology and comprehensive operational services, MuseBot.AI has the potential to become a leading player in this emerging field.
The future has come: AI will bring change and vitality to the NFT market
The NFT market is experiencing a continuous wave of innovation and transformation, and the recent emergence of AIGC applications has further fueled this trend. Despite the ongoing excitement in the NFT market, the potential of AIGC to revolutionize content creation, production efficiency, and overall user experience cannot be overlooked. As we move towards the popularization of Web3, the combination of AI and NFT is expected to become a key driver of growth and innovation.
In this context, industry leaders such as Binance founder CZ and Tron founder Justin Sun have expressed their support for the integration of AI and NFT in their ecosystems. As the excitement around AIGC and NFT continues to grow, we can expect to see new developments and opportunities emerge in the market, driven by the power of these technologies.
With the integration of AI technology into NFTs, we have the chance to act as both innovators and evangelists. MuseBot.AI provides a platform that makes this integration accessible to everyone. By empowering NFTs with AI, we can enhance content creation, improve production efficiency, and strengthen security, while also enriching the application layer and enhancing interactions.