Here’s why AI companies are betting on Cardano for long-term gains

The Cardano network’s heightened development over the past few months has been marked with several important partnerships. Among them is also the field of Artificial Intelligence (AI), a sector that can benefit greatly from blockchains.

According to AI researcher Dr. Ben Goertzel, Cardano’s development arm IOHK is ‘very thorough and careful’ when it comes to software testing and implementation. Despite it not being ‘the fastest in the industry.’

Leveraging the Cardano blockchain

Goertzel’s company SingularityNET, which works at combining AI and blockchain technology, is leveraging the Cardano blockchain to develop an ERC-20 convertor. It will aid the migration of ERC-20 tokens from Ethereum to the Cardano blockchain. Noting the reason behind choosing Cardano as its partner, the researcher noted,

“Looking through Hydra math and code definitely reminds me why we’ve chosen Cardano as a partner. This stuff is built like a spacecraft that has to keep running smoothly with only minor adjustments in harsh and unpredictable conditions … whereas some other well-known blockchains, I’d have to say, are built more like a 1971 Ford Pinto”

He did note that the testnet converter ‘is not optimal in all ways’ as it has continued to have some issues related to centralization. However, a fully decentralized Plutus-based converter is also in the pipeline, Goertzel added.

Grace-full

Another innovative AI-related project that Cardano has dipped its toes in is called Grace. It is a humanoid nurse designed to cater to both eldercare and general healthcare. This project too has been in collaboration with SingularityNET, which hopes that using Cardano for the humanoid’s functioning will boost its performance and reduce the time to process biodata.

Recently, Cardano has made raves in multiple arenas, including the speed of its development. According to data by Santiment, Cardano’s GitHub submissions over the past few months have been one of the highest in the industry. It was second only to its rival ‘3rd generation blockchain’ Solana, which has been making headlines of its own. Interestingly, the scale of development has greatly picked up since the beginning of 2022, which is also the time around which the network started rolling out its first decentralized applications.

🧑‍💻 Development activity continues to play a vital role in the growth of major #cryptocurrencies and their abilities to thrive.

Notable #github submissions rates for $SOL, $ADA, & $DOT are key leaders. More on how we track here. https://t.co/vWQCE4r4pvhttps://t.co/3FbBNzrOiq pic.twitter.com/Rc7Jc5amD5

— Santiment (@santimentfeed) February 16, 2022

Focusing on these developments, a recent research report Kraken noted,

“Cardano’s values have noticeably directed the project’s developments and design decisions, and as a result, the blockchain looks like it has been designed with the purpose and standards of providing decentralized, global, financial infrastructure rather than only focusing on providing a Web3 experience.”

Curiously, analysts have recently started to point out that ADA is severely undervalued at its current price. At the time of writing, it stood just above $3 at press time, having lost almost 10% of its valuation in the past week.

#Cardano hasn't been this undervalued since the COVID crash in March 2020!

The MVRV 365D (measures the P/L of addresses that acquired $ADAin the last 365 days) suggests that #ADA holders sit at an average loss of -26%. pic.twitter.com/HZMWf70EBf

— Ali (@ali_charts) February 9, 2022