Analysis: AI-generated art is expected to be the next trend in the NFT space

Sales of non-fungible tokens (NFTs) reached $25 billion in 2021, showing that the industry is one of the most popular markets in the crypto space. Art NFTs, in particular, had a big impact last year, with Christie’s reporting over $93 million in non-fungible token sales at the 4th Art+Tech Summit last August.

Notably, much of the crypto art scene appears to be dominated by cartoons and memes, with projects like CryptoPunks and Bored Ape Yacht Club taking center stage. While these projects are some of the most successful to date, new subsets of NFTs based on advanced technology and human imagination are emerging.

AI-generated NFTs emerge as a new genre of art

Non-fungible tokens, dubbed "AI-generated NFTs," are gaining popularity in the art community and with those interested in emerging technologies like AI, blockchain, and the metaverse. To create the NFT generated by AJ, we usually use a Generative Adversarial Network (GAN). These are algorithms that use computers to use data to train models to produce art-like machine-made images.

AI co-artist Claire Silver told Cointelegraph that AI-generated NFT art is a relatively new genre of art, noting that the basic principle is that art is created with something similar to AI, such as a GAN:

"There are tons of coding options and completely no-code tools that anyone can use. I use the latter at work. It's a unique experience to be able to work with artificial intelligence and bring your ideas to life, It enhances creativity in a way that feels like freedom, a game you haven't experienced since you were a kid."

To create the AI-generated NFT, Silver explained, she leveraged a text-to-art generator called "Eponym." The Eponym tool, developed by AI-generated art company Art AI, allows users to create art based on text of their choice, and then mint those creations directly to OpenSea, the largest NFT marketplace.

"Cassandra Ex Machina" Source: Claire Silver

In an interview with Cointelegraph, Art AI co-founder Eyal Fisher said that Eponym allows any phrase to be transformed into a unique NFT piece of art that will forever be inscribed on the Ethereum blockchain as a visual representation.

Fisher explained that Eponym is built on algorithms for personalized generative art, which allows people to create art by interacting with computers. "Eponym is a collaborative NFT project. Users can use it by going to the website and entering any phrase or word in the text box. The artificial intelligence will then generate an image based on the text entered." Fisher added that each text prompts Can only be generated once. "There is only one Eponym named 'Bitcoin,'" he said.

"$btc" by Eponym Image credit: Eponym

Although AI-generated art is a fairly new concept, Fisher shared that the first Eponym project sold out overnight on OpenSea, making it one of the largest collaborative art projects ever created by 3,500 different artists. He said: “This is an experiment in decentralizing art. People who own Eponym are the creators of this art and want to manage it.”

Eponym lets users create their own artistic NFTs, while Metascapes is another project developed by three photographers who want to combine human expression with computer algorithms. Ryan Newburn, one of the photographers behind Metascapes, told Cointelegraph that the project consists of 3,333 rare AI-generated NFTs based on photos taken around the world. Like Eponym, Metascapes leverages AI algorithms to create nature-inspired NFTs. According to Newburn, the first Metascapes series is scheduled to be cast by the end of this month or early February.

"Ice Journey" Source: Metascapes

Versus Labs, the artificial intelligence team behind Metascapes, explained that the artwork in each series was created using training data to recognize real-world images:

"We have images and labels for photographs, which is called 'training data'. When the output model is generated, we put labels on it that tell the model what type of image it should post. For example, ice caves and volcanoes are things photographers used to do. There are two types of work that have been done, but that's not the main input data, so we want to make sure that the output includes examples of ice caves and volcanoes."

Versus Labs added that Metascapes' AI learns over time, noting that the generator of the output data gets better over time because the two modes of learning are used simultaneously. "The generator starts out outputting random noise, and the discriminator model tells the generator how to improve the output, so it looks more like the training data. This cycle continues, ensuring that both models improve over time."

Iurie Belegurschi, another photographer behind Metascapes, told Cointelegraph that, as a photographer, the Metascapes team chose to partner with artificial intelligence to generate images because everything related to NFTs and Web3 is about machines, computers and code:

"We decided to team up with the machines to create a whole new world in the metaverse. Everyone is buying PFP characters right now, but in our case, people will get a unique land in the metaverse."

The Impact of Artificial Intelligence on Artists and NFT Collectors

Although AI-generated NFTs are still an emerging concept, the model is already starting to impact artists and NFT collectors. For example, a digital artist called “Kami was Here” told Cointelegraph that working with artificial intelligence has fundamentally changed the role of the human artist:

“Humans need algorithms, and algorithms need humans. For me, this new role means data collection, code writing, curation, inspiration for creative topics, and most importantly, “training” algorithms. The process is dynamic and the result is Collaborative."

"The Cartographer" Source: Kami was Here

Regarding the difference between generating art NFTs and other non-fungible tokens, "Kami was Here" explained that each result is completely unique because it is generated by an algorithm. "Generative art will explore the future of a society that is closely connected with human-computer interaction," the artist mentioned.

Additionally, Fisher pointed to accessibility and a newfound desire to own NFTs as a result of AI-generated imagery. “Many of our users are creating NFTs for the first time, while NFT collectors and buyers are creating their own creations. This is unusual as most of our community are not professional artists.”

Dr. Alex Alter, Chief Artificial Intelligence Scientist at Altered State Machine, a company that uses NFT intelligence to create intelligent AI agents, further told Cointelegraph that AI-generated NFTs not only look unique, but also give individuals a deeper sense of abstraction. protocol. "These NFTs are truly unique in the sense that there isn't a single area with similar pixels in any AI work. And, in the future, people will be able to create AI art through DAO and chatbot technology products. This is far beyond what other NFTs can do today.”

"Abyss" Source: Dr. Alex Alter

Can artificial intelligence create meaningful NFTs?

While the potential of AI-generated NFTs is clear, there remains a concern about whether AI can credibly generate high-quality images based on text or photos.

As a result, Newburn mentioned, Metascapes curated each of their collections. "Our artificial intelligence team has generated tens of thousands of images. Not all of them will be shown in our casting. If we are not satisfied with the category, we develop strategies to retest which categories work well with each other. We AI has learned from multiple tests."

It’s also important to note that there are different ways to generate AI-based NFTs. For example, Fisher mentioned that Eponym has two versions of its generator available to the public, one that runs as a chatbot on the company's Discord channel, and another as a private link that incorporates more sophisticated algorithms capable of creating more advanced images. "Kami was Here" further notes that some AI artworks take just a few minutes to generate, while others take longer:

"Now there are free apps like Wombo that can easily generate images. It's easy for people to create. On the other hand, AI art also takes months to build and train your algorithm, collect input data and Payment processing power. AI art can also be very resource-intensive and personalized.”

Technology aside, artificial intelligence-generated NFTs are bound to become a disruptive trend in the future. According to Dr Alter, AI-generated art has seen huge sales on OpenSea, noting that this market will continue to grow this year. He mentioned that this will be thanks in part to the capabilities of AI-generated NFTs. "In the future, people will be able to have their own 'artificial intelligence artist' NFT (artificial intelligence capable of generating art), or use DAO AI to create art with an AI artist."

Additionally, the rise of the Metaverse should boost the development of AI-based NFTs. For example, Fisher said Eponym's next project will feature interactive virtual identities, where users can create 3D characters in their likeness and animate them using artificial intelligence. "Our idea is to use AI to make characters have different shapes and be compatible in metaverse environments such as Sandbox. In February this year, the company will introduce additional algorithms to enable users to generate personalized characters."

Cointelegraph Chinese is a blockchain news information platform, and the information provided only represents the author's personal opinion, has nothing to do with the position of the Cointelegraph Chinese platform, and does not constitute any investment and financial advice. Readers are requested to establish correct currency concepts and investment concepts, and earnestly raise risk awareness.