Sales of non-fungible tokens, or NFTs, reached $25 billion in 2021, proving that the sector is one of the most coveted markets in cryptocurrencies. Art NFTs, in particular, made a big splash last year, with Christie’s reporting over $93 million in non-fungible token sales during its fourth annual Art+Tech summit last August.
Although notable, much of the cryptocurrency scene seems to be dominated by cartoons and memes, as projects like CryptoPunks and Bored Ape Yacht Club have taken center stage. Although these projects are some of the most successful to date, a new subset of NFTs based on advanced technologies and human imagination is emerging.
AI-generated NFTs become a new art genre
Known as “NFT-generating AIs,” these non-fungible tokens are becoming increasingly popular within the arts community, along with those interested in emerging technologies such as artificial intelligence, blockchain, and the Metaverse. To create AI-generated NFTs, generative adversarial networks, or GANs, are often used. These are algorithms that harness data from computers to train models that produce machine-made images that look like art.
Claire Silver, an artist who collaborates with AI, told Cointelegraph that AI-generated NFT art is a relatively new genre, noting that the basic principle is that the art is created in conjunction with some form of artificial intelligence, such as GANs:
“There are code-heavy options and completely code-free tools that anyone can work with. I use the latter in my work. Being able to work with an AI to bring your ideas to life is an unparalleled experience, it increases creativity in a way that that feels like freedom, a kind of game you haven’t experienced since you were a kid.”
To create AI-generated NFTs, Silver explained that he takes advantage of a text-to-art generator called “Eponym.” Developed by AI-generated art company Art AI, the Eponym tool allows users to create art based on the text of their choice and then minister these creations directly to the largest NFT marketplace, OpenSea.
Eyal Fisher, co-founder of Art AI, told Cointelegraph that Eponym allows you to transform any phrase into a unique piece of NFT art that will be forever etched on the Ethereum blockchain as a visual representation.
Fisher explained that Eponym was built on algorithms for custom-generated art that allow people to create art by interacting with a computer. “Eponym is a collaborative NFT project. Users access it by entering the website and typing any phrase or word in a text box. AI then generates artwork based on the text entered.” Fisher added that each text sentence can only be generated once. “There’s only one eponym called ‘Bitcoin,'” he said.
Although AI-generated art is a fairly new concept, Fisher shared that Eponym’s first project sold out overnight at OpenSea, making it one of the largest collaborative art projects created by 3,500 different artists. “This is an experiment in decentralizing art. People who own Eponyms are creators of that art and they want to curate it,” he said.
While Eponym allows users to create their own art NFTs, 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 consists of 3,333 rare AI-generated NFTs based on photographs taken around the world. Like Eponym, Metascapes leverages AI algorithms to create nature-inspired NFTs. According to Newburn, the first Metascapes collection is scheduled to be minted later this month or early February.
The AI team behind Metascapes – going by the name of Versus Labs – explained that the artworks in each collection are created by training data to recognize real-world images:
“We have images and labels for our photos, which are called ‘training data.’ When it comes time to generate the output model, we put a label that tells the model what kind of images to output. Ice and volcanoes were two categories that photographers had worked on in the past, but they weren’t the majority of the input data, so we wanted to make sure the output contained examples of ice caves and volcanoes.”
Versus Labs added that Metascapes’ AI learns as it goes, noting that the generator that outputs the data improves over time as two learning models are used in tandem. “The generator emits random noise at first, and the discriminator model tells the generator how to improve the output, to make it 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 photographers, the Metascapes team chose to work with AI to generate images because everything related to NFTs and Web3 is about machines, computers, and code:
“We decided to collaborate with a machine to create a whole new world in the Metaverse. Now everyone buys PFP avatars, but in our case, people will get a unique piece of land in the Metaverse.”
The impact of AI on NFT artists and collectors
Although AI-generated NFTs are still an emerging concept, this model has started to impact both NFT artists and collectors. For example, the digital artist known as “Kami was heretold Cointelegraph that working with AI has fundamentally changed the role of the human artist:
“The human needs the algorithm and the algorithm needs the human. For me, this new role has involved data collection, writing code, curation, inspiration to create a topic, and most of all, ‘training’ a algorithm. The process is dynamic and the result is collaborative.”
As for the difference between generative art NFTs and other non-fungible tokens, “Kami was Here” explained that each result is totally unique as it is born from an algorithm. “Generative art explores the future of a society that is connected to the interaction between human and computer,” the artist mentioned.
Additionally, Fisher noted that the accessibility and newfound desire to own NFTs has been a result of AI-generated images. “Many of our users are creating NFTs for the first time, while NFT collectors and buyers are making their own creations. This is unusual, as most of the people in our community are not professional artists.”
Dr. Alex Alter, Principal AI Scientist at Altered State Machine—a protocol that uses the intelligence of NFTs to create intelligent AI agents—further told Cointelegraph that AI-generated NFTs not only look unique, but are they also bring a deeper abstract feeling to people. “These NFTs are really unique in that there is no area in any of the AI works that has similar pixels. Also, in the future, people will be able to create AI works of art through DAOs and chatbot technology.” This is much more than other NFTs can do today.”
Can AI be trusted to create meaningful NFTs?
Although the potential of AI-generated NFTs is clear, the question of whether artificial intelligence can be trusted to generate quality images based on text or photographs remains a concern.
For this reason, Newburn mentioned that Metascapes carefully selects each of its collections. “Our AI team has generated tens of thousands of images. Not all of them will be displayed in our mints. If we are not satisfied with the category, we strategize and retest which categories will work against each other. Our AI has learned from multiple tests.
It is 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 on the company’s Discord channel that works as a chatbot, and the other as a private link that contains more complex algorithms capable of creating more advanced images. “Kami was here” further noted that some pieces of AI art may take only a few minutes to generate, while others may take longer:
“There are now free apps like Wombo that can easily generate images. It’s easy for people to create. On the other hand, AI art can also take months to build and train its algorithms, collect input data, and pay for processing power.” AI art can also be very resource-intensive and highly personalized.”
Technology aside, AI-powered NFTs are set to be a disruptive trend in the future. According to Dr. Alter, AI-generated gear has already seen high volumes on OpenSea, noting that the market will continue to grow this year. He mentioned that this will be so in part due to the functionality of AI-generated NFTs. “In the future, people will be able to own their own NFT ‘AI artist’ (AI that can produce art) or use an AI DAO to create art together with that AI artist.”
Additionally, the rise of the Metaverse should fuel the growth of AI-based NFTs. For example, Fisher said Eponym’s next project will include interactive virtual identities in which users can take their own portraits to create 3D avatars and animate them using artificial intelligence. “Our idea is to use AI to make the avatars take different forms that are compatible in metaverse environments like Sandbox.” In February, the company will introduce additional algorithms that will allow users to generate custom avatars.”