Cryptonian
03/23 14:15
CryptoGPT explained
One very important thing to point out is that most cryptocurrencies have a whitepaper, a technical document explaining what the project is, how it works, what it is used for and so on. Cryptogpt does not have a whitepaper. This is something that could cause a potential investor some concern because, as a rule of thumb, investors like to know who and what they are putting their money into.
It is also worth noting that the CryptoGPT platform is run by a decentralised autonomous organisation (DAO). This means that there is no centralised authority and, by extension, no single person or board to hold accountable. While this is by no means uncommon in the world of cryptocurrency, it may be something that could give a potential investor a potential red flag.
The CryptoGPT website does contain some information about the platform, saying that it is “dedicated” to AI and that it is a layer-2 blockchain. Something that people should note is that there is no such thing as a layer-2 blockchain.
A layer-2 scaling solution is something designed to take transactions off a blockchain and carry them out elsewhere, therefore, at least in theory, saving users time and money.
Likewise, it makes some rather unsubstantiated claims about layer 2s “predicted to lead the next bull cycle” due to The Merge, Ethereum’s move from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism.
In truth, part of the idea behind The Merge is that the move to PoS should speed Ethereum up and remove the need for layer-2 scaling solutions. We have asked CryptoGPT for clarification on this, but have not yet received a reply.
The cryptogpt token is used to help power the platform, with holders able to pay transaction fees using GPT. People can also stake it in exchange for rewards. People can consent to sell their data to AI companies in return for payments in GPT, although the website does not explain how much people can expect to get.
It is important to point out that GPT is based on the Ethereum blockchain. This means that it is a token, rather than a coin. You might see references to such things as a cryptogpt coin price prediction, but these are wrong.
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