How can Fetch.ai (FET) create an automated digital economy on a blockchain?

New platforms that utilize AI technologies and machine learning can solve various tasks instead of the user and create and develop an automated digital economy. In this article, we will discuss one project that makes it possible to realize all of the above: Fetch.ai. Let's find out what this project is, how and where it can be applied, and how extensive its prospects are.

What is Fetch.ai?

Fetch.ai is a decentralized blockchain network based on artificial intelligence that uses machine learning technology. This platform is designed to create and develop a digital economy without human intervention.

The Fetch.ai project was founded in 2017 by a team from Cambridge. The team's idea was to create an autonomous digital environment with artificial intelligence, connecting people, companies, devices (IoT), and services. Fetch.ai's core network (mainnet) was launched in 2020.

The Fetch.ai platform provides users with various AI-based applications and services to automate various tasks and transactions. AI agents trained for specific tasks do this. In addition to using existing agents, users can create and train their agents for a wide range of tasks.

How does Fetch.ai work?

The distinctive feature of this platform was intelligent smart contracts capable of self-learning — a novelty until now.

The Fetch.ai platform combines several technologies, such as:

directed acyclic graphs (DAGs) used in networks such as Avalanche, Fantom, Hedera Hashgraph and IOTA;
blockchain;
smart contracts;
artificial intelligence (AI);
machine learning (ML).

The test network (testnet) was powered by the Proof-of-Work (PoW) consensus mechanism. Still, after the leading network went live, the platform began using an improved version of the Proof-of-Stake (PoS) algorithm based on Cosmos Tendermint technology — a fail-safe consensus mechanism known as Byzantine Fault Tolerant or BFT and used to scale PoS-based public blockchains.

Application options for Fetch.ai technology

One of the main features of Fetch.ai lies in the platform's multiple use cases. Thanks to artificial intelligence-based smart contracts, Fetch.ai allows you to automate almost any task that people usually perform manually, such as:

buying airline tickets,
paying for subscriptions,
searching for travel packages,
selecting and ordering groceries or non-food items, and so on.

The test network (testnet) was powered by the Proof-of-Work (PoW) consensus mechanism. Still, after the main network went live, the platform began using an improved version of the Proof-of-Stake (PoS) algorithm based on Cosmos Tendermint technology — a fail-safe consensus mechanism known as Byzantine Fault Tolerant or BFT and used to scale PoS-based public blockchains.

All these tasks are performed by so-called AI agents, essentially a digital copy of a real user with unique characteristics. The trick is that all agents in the Fetch.ai network can interact with each other, relieving the user from excessive routine.

With the help of Fetch.ai tools, it is possible to close complex tasks. For example, a user can fully delegate the search and purchase of airline tickets to an automated bot. The user's AI agent will independently interact with the airline agent to solve this task. The agents themselves are capable of learning and can also cooperate for the same purpose. For example, if you want to teach your AI agent to trade on the crypto market, then it can be "befriended" by the agent of an experienced trader.

Let's consider a more complex case — grocery shopping. A smart home can receive information about what products are missing and pass this information to the AI agent Fetch.ai, which will already order the missing goods to the house. The same applies, for example, to breakdowns — agents can call a handyman on their own, even when the owner is absent and far away from home.

Fetch.ai cryptocurrency.

The Fetch.ai platform uses its cryptocurrency for all settlements within the ecosystem, such as commission payments, validator rewards, AI app payments, and online signup fees. Fetch.ai's native cryptocurrency is abbreviated as FET.

As of March 2024, 1.152 billion FETs had been issued, of which about 840 million (~37%) are already traded on the crypto market. FET is an inflationary cryptocurrency with no maximum quantity (issuance) limit. This means that in order to maintain the cryptocurrency's exchange rate in the long run, it will be necessary to ensure an ever-increasing demand for it.

FET is ranked 51st in capitalization, which exceeds $2.6 billion, and ranks 6th among all AI-based blockchain platforms, slightly behind Theta Network.

Outlook

Similarweb analysts predict that the AI market will grow to $407 billion by 2027, and Precedence Research predicts that it could reach $594 billion by 2032.

Given the growing interest in blockchain technologies in general and AI solutions in particular, Fetch.ai has every chance of remaining among the industry leaders.