What is Fetch.ai? (FET) How does it work? Complete Guides 2024

Fetch.ai is a platform that uses blockchain-based smart contracts to automate tasks using artificial intelligence.Although interest in artificial intelligence (AI) has been increasing in recent years, the public introduction of ChatGPT in November 2022 sparked a frenzy of AI-related efforts in tech, finance, and crypto. In the following months, AI-focused companies like makers of GPUs and computer chips saw spikes in both interest and investment. Although Fetch.ai predated this new widespread excitement surrounding AI, it benefited from a tech-focused crypto community that was further intrigued by the intersection of AI and the blockchain.

Fetch.ai focuses on AI agents, which are pieces of computer code designed to accomplish certain tasks such as scheduling appointments or interfacing with smart home devices. These agents can digitally represent an entity like a person or organization, yet they operate relatively autonomously from that entity. They can also interact and learn from each other through cross-talk, theoretically strengthening the AI and machine learning (ML) models that power them.

Behind every blockchain transaction and operation on Fetch.ai’s network, the FET token serves as a medium of exchange and allows users to pay for AI-based services and fees.

How was Fetch.ai developed?

Fetch.ai was introduced in 2017 by a UK-based team founded by Humayun Sheikh, Toby Simpson, and Thomas Hain. Sheikh is Fetch.ai’s CEO, and he was an early investor in the Google-owned AI company DeepMind before also founding another machine learning/artificial intelligence company called itzMe. With a history in multiple tech companies (including as head of software design at DeepMind), Simpson has served as both CTO and COO of Fetch.ai. Hain is the Chief Science Officer (CSO) at Fetch.ai and has long held a position at the University of Sheffield.

In early 2019, nearly 3000 investors bought FET through an initial exchange offering (IEO) hosted by Binance. Through this token sale, Fetch.ai raised $6 million in funding. It has since raised more financial support through similar token sales (e.g. held through Bitfinex in 2020), institutional investments (most notably from GDA Group in 2021), technology incubators (including $40 million from DWF Labs), and corporate partnerships (including one with trading platform BitGet). With financial support and technological enthusiasm serving as tailwinds,.ai has collaborated on multiple projects including one that would optimize parking in Munich, Germany using its AI agents.

In 2023, it was announced that Fetch.ai would be partnering with the German electronics/tech giant Bosch to create the Fetch.ai Foundation. Leaders from both companies serve on the Foundation’s board, and its stated goal is to support and guide the development of Web3 efforts.

FET AI Company History and Founders

The Fetch.AI Foundation is a non-profit based in the Netherlands, established by Fetch.ai and Bosch representatives. Its mission is to advance AI and distributed systems technology. The foundation is pivotal in developing and governing the Fetch.ai platform.

It aims to create an open and transparent ecosystem with a strong emphasis on data ownership and balanced governance. Its primary objectives are to drive innovation, encourage industry collaboration through joint research and development, and identify sustainable business models in a collaborative environment.

Founders of Fetch.ai

1. Humayun Sheikh

a) Position: CEO and Founder

b) Education: Background in finance and entrepreneurship

c) Previous Experience: Involved in early investments in DeepMind, a pioneering AI company acquired by Google

2. Toby Simpson

a) Position: Chief Technology Officer and Founder

b) Education: Studied at the University of Edinburgh

c) Previous Experience: Developer at DeepMind; played a significant role in the development of popular video games

3. Thomas Hain

a) Position: Chief Scientific Officer and Founder

b) Education: Professor with expertise in machine learning and AI, studied at various prestigious institutions

c) Previous Experience: Extensive academic and research career in artificial intelligence and its applications

How does Fetch.ai work?

Fetch.ai’s main services involve uAgents (micro-Agents), which are relatively simple computer programs that can represent someone (a person) or something (a company) and act autonomously to accomplish tasks. uAgents look out after their owners’ interests, choose different ways to reach their goals based on what would be most successful, and respond dynamically to their environment and other agents.

Agents built with Fetch.ai are meant to be relatively easy to build, without the need for extensive knowledge of computer coding beyond the Python programming language. Agents are registered on the Almanac contract, which is a smart contract housed on Fetch.ai’s blockchain. They are then searchable and accessible to other agents and users. Through this system, agents can be queried, kept up-to-date, and ownership of agents can be verified through the Agentverse Explorer.

Once an agent has been registered, it is accessible to the AI Engine powering Fetch.ai’s operations, achieving objectives by breaking them down into tasks. The engine uses large language models (LLMs) to allow for processing of large amounts of text for clear communication among users and agents on the network. This is also the technology that powers ChatGPT.

Fetch.ai builds a decentralized digital economy powered by artificial intelligence. Here’s a breakdown of the key elements:

AI Agents:

• At the core are Autonomous Economic Agents (AEAs), essentially self-acting software programs. These AI agents can represent individuals, organizations, or even devices.
• AEAs can learn and make decisions based on their programming and the data they collect. Imagine a digital assistant that negotiates flight prices for you or a smart thermostat that optimizes energy use based on your preferences.

Decentralized Network:

• Fetch.ai utilizes a blockchain network to facilitate secure and transparent communication and transactions between AEAs.
• This network doesn’t rely on a central authority, promoting trust and reducing the risk of manipulation.

Key Technologies:

• Smart Contracts: These self-executing contracts define the rules and agreements between AEAs. When certain conditions are met, the contracts automatically execute, ensuring trust and fairness.
• Open Economic Framework (OEF): This layer provides a marketplace where AEAs can discover services, data, and other resources offered by other agents.

The Role of FET Token:

• Fetch.ai Token (FET) is the native cryptocurrency that fuels the network.
• AEAs use FET to pay for services, data access, and other interactions within the network.
• Users can stake FET to participate in network governance and earn rewards.

Benefits of Fetch.ai:

• Efficiency and Automation: AEAs can automate tasks and processes, streamlining operations and reducing human error.
• Improved Decision-Making: AI agents can analyze vast amounts of data to make data-driven decisions, potentially leading to better outcomes.
• Decentralization: The network removes the need for central authorities, promoting transparency and reducing the risk of manipulation.

Use Cases:

• Supply Chain Management: AEAs can track goods, optimize delivery routes, and automate payments.
• Decentralized Finance (DeFi): AEAs can manage investment portfolios, facilitate secure transactions, and enable new financial products.
• Data Trading: Agents can securely buy and sell data, creating a marketplace for valuable information.

Fetch.ai’s technology is still under development, but it has the potential to revolutionize various industries by enabling intelligent and autonomous interactions within a decentralized digital ecosystem.pen_sparktunesharemore_vert

DeltaV

In 2023, Fetch.ai introduced DeltaV, a search-based chat interface that operates similarly to ChatGPT and can help users achieve tasks through natural conversation. Its role highlights Fetch.ai’s goals of bringing AI into the mainstream by streamlining tasks such as booking travel. In fact, prior descriptions of Fetch.ai’s platform have focused on this particular functionality. DeltaV is designed to interface with chat and calendar apps (and more) in order to serve as an AI travel agent, scheduler, or other roles its users may need.

Some Top Projects on the Fetch.ai Ecosystem

Due to its versatile AI and blockchain capabilities, Fetch.ai is a hub for leading projects, including Axim, CoLearn, and Mobix.

1. Axim

Axim is a revolutionary service tool specifically designed to assist businesses in managing and analyzing large datasets. At its core, this innovative project bridges data silos and creates a simplified pathway for businesses to use their data without compromising privacy.

Data has become a crucial asset in the digital age but often requires refinement from its raw form. While machine learning models extract patterns and insights from them, privacy concerns arise.

Axim tackles this issue with its privacy-inclined structures, empowering businesses to seamlessly identify hidden patterns, measure and enhance performance, and navigate diverse datasets without sacrificing privacy.

2. CoLearn

CoLearn is another integral project within the Fetch.ai ecosystem, providing users with the capability to generate, stake, and reap significant benefits from AI models while ensuring data privacy through DabbaFlow’s encryption.

This tool empowers users to create AI models, propose algorithms or configurations, and collect votes on these proposals. When the community recognizes the potential of a proposal, it gets adopted. Additionally, users can explore financial opportunities with CoLearn by staking on AI models, earning rewards from their adoptions, and achieving success milestones.

3. Mobix

Mobix is an exciting pioneering project that drives a paradigm shift in travel. Its intuitive concept centers on ‘micro-mobility,’ focusing on eco-friendly transportation systems like electric scooters, bikes, and walks.

Beyond just promoting the adoption of green transportation alternatives, the platform provides incentives for users to make eco-friendly commuting choices. Users earn ‘Mobix Miles’ for every environmentally conscious commute. These miles can be converted to Mobix tokens, a digital asset that holds value and can be exchanged on various platforms or used as a payment option in e-commerce.

How is the FET token used?

The FET token was originally released as an ERC-20 token on the Ethereum blockchain. The purpose of this was two-fold: first, to bring the crypto community’s attention to the platform, and second, for fundraising through token sales. Fetch.ai now has its own blockchain which uses FET as its native cryptocurrency, but some FET tokens remain on Ethereum. The Fetch wallet software allows users to hold and use their FET.

FET’s primary use is in Fetch.ai’s Proof of Stake (PoS) blockchain based on the Cosmos SDK. As is the case with other PoS chains, FET is staked by the network’s validators to secure the network and grant the opportunity to earn rewards. Fetch.ai’s network also supports delegation which allows holders of smaller amounts of FET to delegate their stake to larger validators and share in rewards. Staking may also give users the ability to vote on project governance proposals. Finally, FET is used to pay for fees on the network.

The FET token serves several purposes within the Fetch.ai ecosystem, acting as the fuel that keeps things running:

• Network Fees: Just like gas on Ethereum, FET is used to pay for transaction fees on the Fetch.ai network. This covers the computational resources required to execute tasks and store data.
• Deploying and Training AI Agents: Whether you’re creating a simple agent or a complex one, FET is required to deploy and train them on the network. This ensures there’s an incentive to maintain a healthy network with sufficient resources.
• Accessing Services and Data: The Open Economic Framework (OEF) within Fetch.ai allows AI agents to discover and access various services and data offered by other agents. FET is used to pay for these interactions, facilitating a marketplace within the network.
• Staking and Governance: Fetch.ai utilizes a Proof-of-Stake (PoS) system. Users can stake their FET tokens to participate in network validation and earn rewards. Additionally, staked FET can be used for voting on governance proposals, giving token holders a say in the future direction of the Fetch.ai network.

Token distribution

As of 2023, the total supply of FET is between 1.1-1.2 billion tokens, most of which are circulating, though with issuance of new coins (inflation), this number is subject to change. The initial allocation of tokens saw 20% of all FET going to each the Fetch.ai Foundation and the founders, 17.6% to the token sale, 17.4% to future token releases, 15% to mining rewards, and 10% to advisors.It’s important to note that this information reflects the initial distribution. There might be vesting schedules or lockup periods associated with some allocations, meaning the tokens aren’t immediately freely available. Additionally, some allocations like “Future Releases” might have been further distributed or used for different purposes over time.

Unique Features of FET Coin

Fetch.ai stands out in the crowded AI crypto projects landscape due to several unique features:

1. Autonomous Economic Agents: The core technology allows agents to operate independently, making decisions and transactions without human intervention.

2. Open Economic Framework: Fetch.ai provides an open framework for building decentralized applications that leverage AI and blockchain.

3. Interoperability: Fetch.ai is designed to be interoperable with other blockchain-based networks, enhancing its utility and adoption.

FET Tokenomics

The tokenomics of FET are critical to the operations of Fetch.ai, defining how tokens are distributed, utilized, and contribute to the platform’s governance. Here is a concise breakdown:

1. Circulating and Total and Max Supply

a) Circulating Supply: Currently, the circulating supply is around 2,520,000,000 FET.

b) Total Supply: The total supply of FET tokens is capped at. 2,630,547,141 FET.

c) Max Supply: The maximum supply of FET is 2,630,547,141 tokens.

2. FET Consensus Mechanism

Fetch.ai employs a unique consensus mechanism known as “Proof of Stake” (PoS), which allows token holders to participate in network security and earn rewards by staking their tokens.

3. FET Token Distribution

a) 40% Network Rewards: Allocated for network operations, validators, and other network participants to incentivize network security and activity.

b) 20% Foundation: Reserved for the Fetch.ai Foundation to support the ecosystem’s growth and development.

c) 20% Team and Early Contributors: Distributed to the project’s team and early contributors to fund ongoing development and operations.

d) 20% Public and Private Sales: To facilitate the initial public and private distribution of the tokens to foster community involvement and raise capital.

4. FET Utility and Use Cases

a) Governance: FET token holders can vote on critical platform decisions including updates to the protocol and new feature implementations.

b) Staking: Users can stake FET tokens to participate in network validation processes and earn rewards for their contributions to network security.

c) Transaction Fees: FET tokens are used to pay for various operations within the Fetch.ai ecosystem, such as smart contract executions and data transactions.

d) Agent Purchases: Tokens can be used to create, deploy, and operate autonomous agents on the Fetch.ai network.

5. Governance Token Rights

By possessing FET tokens, users can engage in the platform’s governance process. This includes proposing, voting on, and implementing changes to the Fetch.ai protocol, thus allowing token holders to influence the development trajectory of Fetch.ai directly.

Conclusion

• Fetch.ai is a blockchain-based platform that provides artificial intelligence and machine learning functions to its user base.
• Micro-agents (uAgents) are the primary tool used on Fetch.ai’s network, allowing users to create digital representations of themselves that can carry out automated tasks like booking travel.
• The FET token is Fetch.ai’s network utility token that is used for staking, governance, and paying transaction fees.

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