Analysis: AI generative art expected to be the next trend in the NFT space

NFT art created by artificial intelligence algorithms brings new meaning to non-fungible tokens, but can artificial intelligence produce a new type of art?

Sales of non-fungible tokens (NFTs) will reach $25 billion in 2021, indicating that the industry is one of the most popular markets in the crypto space. Art NFTs, in particular, made 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 are emerging based on advanced technology and human imagination.

AI-generated NFTs become a new genre of art

Dubbed “AI-generated NFTs,” non-fungible tokens are gaining popularity in the art community, as well as those interested in emerging technologies such as artificial intelligence, blockchain, and the metaverse. To create AJ-generated NFTs, we typically use generative adversarial networks (GANs). These are computer-based algorithms that 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 underlying principle is that the art is created with something like AI, such as GANs:

“There are tons of code options and completely no-code tools that anyone can use. I use the latter in my work. Being able to work with AI to bring your ideas to life is a one-of-a-kind experience, It enhances creativity in a way that feels like freedom, a game you haven't experienced since childhood."

To create the AI-generated NFTs, 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 into OpenSea, the largest NFT marketplace.

Analysis: AI generative art expected to be the next trend in the NFT space

"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 piece of NFT artwork that will forever be engraved on the Ethereum blockchain as a visual representation.

Fisher explained that Eponym is built on algorithms that personalize 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, entering any phrase or word in the text box. The AI then generates an image based on the entered text.” Fisher added that each text prompts Can only be generated once. "There is only one Eponym called 'Bitcoin'," he said.

Analysis: AI generative art expected to be the next trend in the NFT space

"$btc" image by Eponym Source: 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 created by 3,500 different artists. "It's an experiment in decentralizing art," he said. "The people who own Eponym are the creators of this art and want to govern it."

Eponym lets users create their own artistic NFTs, while Metascapes is another project developed by three photographers looking to combine human expression with computer algorithms. Ryan Newburn, one of the photographers behind Metascapes, told Cointelegraph that the project was generated by 3,333 rare AIs

Composition of NFTs, which are based on photos taken around the world. Like Eponym, Metascapes utilizes AI algorithms to create NFTs inspired by nature. According to Newburn, the first Metascapes series is scheduled to be cast at the end of this month or early February.

Analysis: AI generative art expected to be the next trend in the NFT space

"Ice Journey" Source: Metascapes


Versus Labs, the artificial intelligence team behind Metascapes, explains that the artwork in each collection is created by training data to recognize real-world images:

“We have images and labels of photos, and this is called 'training data'. When generating the output model, we put labels on it, telling the model what type of images it should publish. For example, ice caves and volcanoes are what photographers used to do Two types of work have been done, but this is 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 learning modes are used simultaneously. "The generator outputs random noise at the beginning, and the discriminator model tells the generator how to improve the output, so it looks more like the training data. This loop continues, ensuring that both modes improve over time."

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

"We decided to work with machines to create a whole new world in the metaverse. Now everyone is buying PFP characters, but in our case, people will get a unique piece of land in the metaverse."

The impact of artificial intelligence on artists and NFT collectors

While AI-generated NFTs are still a nascent concept, the model is already starting to affect artists and NFT collectors. For example, a digital artist named "Kami was Here" told Cointelegraph that working with AI has fundamentally changed the role of the human artist:

“Humans need algorithms, and algorithms need people. To me, this new role means data collection, coding, curation, inspiration for creative topics, and most importantly, “training” algorithms. The process is dynamic, and the results are collaborative."

Analysis: AI generative art expected to be the next trend in the NFT space

"The Cartographer" Source: Kami was Here


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

Additionally, Fisher noted that accessibility and a newfound desire to own NFTs are the result of AI-generated images. “Many of our users are creating NFTs for the first time, while NFT collectors and buyers are creating their own work. This is unusual because most of our community is not a professional artist.”

Dr. Alex Alter, Chief AI Scientist at Altered State Machine, an AI-generated NFT that not only looks unique, but also brings a deeper sense of abstraction to individuals, further told Cointelegraph protocol. “These NFTs are truly unique in the sense that there is not a single area in any AI work that has similar pixels. And, in the future, people will be able to create AI art through DAO and chatbot technology products. This far exceeds what other NFTs can do today.”