Fetch.AI: Everything You Need to Know
Fetch.AI is a blockchain-based platform that aims to connect devices, data, and services using artificial intelligence (AI) and machine learning (ML). Fetch.AI enables users to create, deploy, and manage autonomous software agents that can perform tasks such as data acquisition, analysis, and monetization. Fetch.AI also has its own native token, FET, which is used for payments, transaction fees, staking, and governance. In this article, we will explore what Fetch.AI is, how it works, who is the team behind it, and what are the use cases for this cryptocurrency.
What is Fetch.AI?
Fetch.AI is a software running on Ethereum that aims to incentivize a distributed network of computers to operate a traditional money market1. A money market is a type of financial market where participants can lend or borrow short-term loans, usually with a maturity of less than one year. Money markets are typically used by individuals, businesses, and institutions to manage their liquidity and cash flow needs.
Fetch.AI is different from traditional money markets in several ways. First, Fetch.AI is decentralized, meaning that it does not rely on any intermediaries or centralized entities to facilitate the lending and borrowing process. Instead, Fetch.AI uses smart contracts, which are self-executing agreements that run on the blockchain, to enforce the rules and terms of the loans. Second, Fetch.AI is transparent, meaning that anyone can view the code, data, and transactions of the platform on the blockchain. Third, Fetch.AI is permissionless, meaning that anyone can participate in the platform without needing to register, verify, or trust anyone else.
How does Fetch.AI work?
Fetch.AI operates on two main roles: suppliers and borrowers.
Suppliers are users who want to lend their cryptocurrency on Fetch.AI in order to earn interest. Suppliers can do so by sending their tokens to an Ethereum address managed by Fetch.AI. In return, they receive cTokens that represent their share of the pool and accrue interest over time. Suppliers can redeem their cTokens for the underlying asset at any time, plus the interest earned.
Borrowers are users who want to borrow cryptocurrency from Fetch.AI in exchange for paying interest. Borrowers can do so by depositing some collateral (another cryptocurrency supported by Fetch.AI) into the platform. The amount of collateral required depends on the collateral factor of each asset, which is a percentage that determines how much one can borrow relative to their collateral value. For example, if the collateral factor of ETH is 75%, then one can borrow up to 75% of their ETH value in other assets. Borrowers can repay their loans at any time, plus the interest accrued.
The interest rates on Fetch.AI are determined by a supply and demand model that adjusts dynamically based on the utilization ratio of each asset pool. The utilization ratio is the percentage of the total supply that is currently borrowed. For example, if the total supply of DAI is 100 million and the total borrowed amount is 50 million, then the utilization ratio of DAI is 50%. Generally speaking, the higher the utilization ratio, the higher the interest rate for both suppliers and borrowers.
Who is the team behind Fetch.AI?
Fetch.AI was founded by Toby Simpson, Humayun Sheikh and Thomas Hain in 2017. Humayun Sheikh is the current CEO of Fetch.AI. He is also the CEO and founder of Mettalex and the founder of uVue and itzMe. Toby Simpson is the former COO of Fetch.AI, now a member of the Advisory Board. He was also the CTO at Ososim Limited, as well as Head of Software Design at DeepMind. Thomas Hain is the former Chief Science Officer of Fetch.AI. Before that, he was a co-founder and director of Koemei.
Fetch.AI also has a team of engineers, researchers, designers, and community managers who are working on developing and improving the platform. Fetch.AI has received funding from several investors and partners, including Ripple’s Xpring fund4, Digital Currency Group (DCG), Kenetic Capital (KC), CoinFund (CF), LD Capital (LD), cFund (cF), Borderless Capital (BC), Arrington XRP Capital (AXC), NGC Ventures (NGC), DeFi Capital (DFC), Wave Financial Group (WFG), among others.
What are the use cases for Fetch.AI?
Fetch.AI aims to enable new use cases and monetization models for data and services that do not have native access to decentralized finance (DeFi) or artificial intelligence (AI). By integrating these data and services with Fetch.AI’s platform, users can create and deploy autonomous software agents that can perform tasks such as data acquisition, analysis, and monetization. Some of the use cases for Fetch.AI include:
Data marketplaces: Users can create or join data marketplaces that allow them to buy or sell data using smart contracts on Fetch.AI. For example, a user can create a data marketplace that sells weather data from various sources to other users who need it.
Smart mobility: Users can create or join smart mobility networks that optimize transportation and logistics using AI and ML on Fetch.AI. For example, a user can create a smart mobility network that connects drivers, passengers, parking spaces, and traffic signals using autonomous software agents that negotiate and coordinate the best routes and prices.
Smart energy: Users can create or join smart energy grids that optimize energy consumption and production using AI and ML on Fetch.AI. For example, a user can create a smart energy grid that connects producers, consumers, and storage devices using autonomous software agents that balance supply and demand and reduce costs.
Smart health: Users can create or join smart health networks that improve health care and wellness using AI and ML on Fetch.AI. For example, a user can create a smart health network that connects patients, doctors, pharmacies, and insurers using autonomous software agents that provide diagnosis, treatment, and payment solutions.
Fetch.AI is also compatible with existing DeFi protocols and applications, which means that users can leverage the composability and interoperability of the Ethereum ecosystem to create more complex and innovative financial products and services.
Conclusion
Fetch.AI is a blockchain-based platform that aims to connect devices, data, and services using artificial intelligence (AI) and machine learning (ML). Fetch.AI enables users to create, deploy, and manage autonomous software agents that can perform tasks such as data acquisition, analysis, and monetization. Fetch.AI also has its own native token, FET, which is used for payments, transaction fees, staking, and governance. Fetch.AI is backed by a team of experienced engineers, researchers, and investors who are working on developing and improving the platform. Fetch.AI is one of the leading AI platforms in terms of total value locked (TVL), which is a measure of how much crypto assets are deposited in the platform. As of September 2023, Fetch.AI has over $1 billion worth of assets locked in its platform.
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