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How generative AI is transforming the NFT space

Just as NFTs swept the scene in 2021 and 2022, AI is the talk of the town today. We've witnessed the evolution ChatGPT has contributed to copy and content, but what about art and digital collectibles?

It takes a village to build an NFT project. You need to understand how to code, produce art, write compelling storylines, and market your project. Not to mention, understanding the process of redeemables and how your NFT project will live on after its initial launch.

But as AI evolves and helps professionals eliminate mundane tasks, we're witnessing a trend of AI-generated NFTs. So what's it all about?

What are AI-generated NFTs?

AI is about solving complicated tasks and performing human-like cognitive functions like learning and problem-solving.

AI-generated NFTs are unique digital collectibles created using artificial intelligence algorithms. Here, AI performs the role usually taken up by the human creator. Like a traditional NFT, this can be to produce images, music, video, or text.

The AI-generated art concept is based on machine learning algorithms capable of producing original art pieces. To do so, the AI captures and processes enormous amounts of image data using General Adversarial Network (GAN).

Just picture a cartoonist who has spent many years perfecting their drawings and details of characters. The cartoonist can convert those years of experience into data that's fed into the AI to create the perfect masterpiece.

But AI-generated NFTs go beyond artwork. They can also respond to specific inputs or parameters, and this programmability allows for a high degree of customization and personalization of the final product.

GANs: The clever creators behind AI art

GANs can learn to create new images by studying existing examples. It's called an adversarial network because the algorithm comprises two parts that compete against each other – like two tortured digital artists.

The first part of the GAN is called the generator; its job is to create new examples of art, such as images of people or landscapes. The generator will create random images and show them to the second part of the GAN, called the discriminator.

The discriminator's role is to tell whether each image is real (taken from a dataset of actual images) or fake (generated by the generator). The discriminator continues evolving as it learns to distinguish between authentic and generated images.

During this back and forth, the generator is trying to create images that are so realistic that the discriminator can't tell them apart from the authentic ones. But, simultaneously, the discriminator gets better at identifying the fake ones.

Eventually, the generator becomes artistic enough to create new art that looks human-made. And that's how a GAN can be used to develop AI art, intangible from human-made art.

As we've learnt with ChatGPT, when using AI technology, it's essential to be as specific as possible when writing prompts for the AI to generate what you want.

For example, we asked our OKX AI Artwork Generator to come up with the delicious masterpiece found below! Our prompt was: a Bitcoin sign on a doughnut

Bitcoin doughnut

We used the "retro-future" feature, but you can choose over 20 different styles. You can even upload a picture of a particular art style you want the AI to replicate.

Will AI-generated art replace artists altogether? The short answer is no. But it will elevate the capabilities of creators in the space and allow them to craft stunning art faster than before.

Think of it this way, did photoshop replace the need for artists? Absolutely not. Instead, it helped enhance the evolution of digital art and totally transformed the medium of graphic design forever.

Tech tools driving AI-generated NFTs

The NFT space is seeing the arrival of an increasing variety of AI-based tools that are transforming how art is produced and distributed. This includes...👇

Matrix 3.0

Welcome to "The Matrix," seriously. AvI stands for Avatar Intelligence, which brings the scenario from the Matrix films alive by creating a digital avatar identical to a person's real-life consciousness. In other words, the project aims to create a virtual version of a person's mind that can exist within the Matrix.

Matrix 3.0 allows users to upload their brain wave data to the platform, which will then be used to create a digital avatar using distributed computing powered. During an AMA hosted by Matrix in February, the question of how the platform collects brainwave data was posed. The company's CEO Owen Tao and its Chief Marketing Technology Officer (CMTO), Eric Choy, explained that it would be a non-invasive process, like wearing a gadget on your head or hand. The digital avatar is a representation of a person's consciousness, with the same thoughts, emotions, and memories as the individual it is modeled after.

Other sectors like gaming, healthcare and education could benefit from AvI technology. For example, AvI can create a personal and immersive learning experience for students, or provide therapy for individuals with mental health issues.

Alethea AI

Alethea AI is a protocol that enables the creation and distribution of Intelligent Non-Fungible Tokens (iNFTs). iNFTs are a new type of digital asset that combines the benefits of Non-Fungible Tokens (NFTs) and Artificial Intelligence (AI).

Unlike traditional NFTs, which are specific digital assets stored on the blockchain, iNFTs contain embedded AI that can interact with the owner or even with other iNFTs and alter an art piece over time based on various factors.

For example, an iNFT artwork may change its appearance based on the time of day, weather, or even the owner's mood. iNFTs can also be used as avatars on Alethea AI's metaverse, “Noah’s Ark.” iNFTs can be trained to learn from their environment and develop a unique personality, making them more valuable and engaging to collectors.

OKX's generative NFT AI feature

Are you feeling artistic? With the OKX wallet, you can generate your own AI artwork masterpiece for your NFT project, just like we did with the Bitcoin doughnut above.

We offer 20 different artistic styles and an option to upload an image for the AI to replicate that style. Follow our step-by-step guide, and feel free to tweet us what you've created; we would love to see it!

Get started


NOTHING IN THIS BLOG IS A SOLICITATION TO BUY OR SELL DIGITAL ASSETS. OKX DOES NOT ENDORSE ANY PARTICULAR DIGITAL ASSET OR STRATEGY. DIGITAL ASSETS HOLDINGS INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY ON ANY GIVEN DAY, AND MAY EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL CURRENCIES IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. OKX DOES NOT PROVIDE LEGAL, TAX, INVESTMENT, OR OTHER ADVICE. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCES.

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