Grayscale Unveils New Decentralized AI Fund
Grayscale Investments, a well-known digital asset manager, has launched a new digital asset fund focused on investing in tokens with an artificial intelligence (AI) focus. The Grayscale Decentralized AI Fund was designed to capture the growth of protocols at the intersection of blockchain and AI, and is available to accredited investors.
About the Fund
The Fund aims to introduce investors to protocols in the developing crypto ecosystem’s artificial intelligence market. As of July 16, 2024, the Fund comprises a variety of Decentralized Artificial Intelligence (AI) crypto protocols, including Bittensor (TAO), Filecoin (FIL), Livepeer (LPT), Near (NEAR), and Render (RNDR). The fund will rebalance every quarter to ensure optimal performance.
How the Fund Works
Each coin in this basket has a distinct function in the decentralized AI ecosystem. Bittensor, backed by Pantera Capital, provides an AI model marketplace. Filecoin allows for decentralized storage of AI training datasets. Livepeer transcodes videos on the Ethereum blockchain, improving the quality of video broadcasting. Render, based on Solana, provides the GPU power required for demanding AI tasks.
Why is the Grayscale AI Fund Important?
The intersection of blockchain and AI is one of the most revolutionary technologies of the modern era. The new fund from Grayscale leverages this intersection to provide a range of services, including chatbots, picture creation, authenticity checks, decentralized data storage, and GPU computing.
According to Rayhaneh Sharif Askary, head of product and development at Grayscale, the potential of these protocols is significant in mitigating the risks associated with the rapid advancement of AI. She emphasized how decentralization, accessibility, and transparency are embodied in blockchain-based AI systems, allowing the company to maximize rewards while balancing risk.
Decentralized AI and its Benefits
Decentralized AI uses blockchain technology to spread ownership and governance over AI services, making AI more transparent and accessible. This permissionless access allows users to use or develop AI technology without restrictions.
Types of Decentralized AI Assets
The Grayscale fund includes three main types of decentralized AI assets:
- Decentralized AI services, such as chatbots and image-generating services, built using protocols.
- Protocols that create defenses against deep fakes, bots, and false information, among other issues connected to centralized AI.
- Decentralized markets for data storage, GPU processing, 3D rendering, and streaming services, essential for advancing AI technology.
Conclusion
The Grayscale Decentralized AI Fund is a significant step forward in the development of decentralized AI, providing investors with access to a range of protocols and services at the intersection of blockchain and AI. As the AI industry continues to evolve, this fund has the potential to provide significant returns while mitigating the risks associated with this rapidly advancing technology.
FAQs
Q: What is the Grayscale Decentralized AI Fund?
A: The Grayscale Decentralized AI Fund is a new digital asset fund focused on investing in tokens with an AI focus.
Q: What is the goal of the fund?
A: The fund aims to introduce investors to protocols in the developing crypto ecosystem’s artificial intelligence market.
Q: What are the main types of decentralized AI assets in the fund?
A: The fund includes decentralized AI services, protocols that create defenses against AI risks, and decentralized markets for data storage, GPU processing, 3D rendering, and streaming services.
Q: Who is eligible to invest in the fund?
A: The fund is available to accredited investors.
Q: Will the fund rebalance?
A: Yes, the fund will rebalance every quarter to ensure optimal performance.
