0G Labs has announced ERC-7857, a new NFT standard designed specifically for artificial intelligence (AI). This protocol enables the creation of intelligent NFTs (iNFTs) — tokenized AI agents that can be transferred, monetized, and autonomously operated within the Web3 ecosystem.
What Are iNFTs?
According to the announcement, intelligent NFTs (iNFTs) represent a new concept that merges AI and NFTs. Unlike traditional NFTs that store static metadata, iNFTs incorporate dynamic parameters that influence their behavior and capabilities. They allow owners to fully control AI agents, transfer them to other users, and earn royalties from resales.
Key advantages of iNFTs include:
- Transferability – AI agents can be bought, sold, and transferred, with their value determined by functionality and earnings.
- Decentralization – iNFTs are not dependent on centralized services; instead, they operate via smart contracts.
- Full Control – Owners retain complete access to the AI assets and data.
- Royalties – Developers receive a share of the revenue from secondary sales.
Why Existing NFT Standards Are Incompatible with AI Agents
The ERC-721 and ERC-1155 standards currently dominate the NFT space, but they have limitations that make them unsuitable for AI agents. Some key issues include:
- Static Metadata – ERC-721 NFTs store data as URI links to JSON files, whereas AI agents require continuous updates to their models and information.
- No Secure Metadata Transfer – When a standard NFT is transferred, the new owner only receives the token, not the underlying AI model.
- Lack of Encryption Support – Many AI agents handle confidential data, but existing NFT standards do not provide built-in security measures.
How ERC-7857 Works
The ERC-7857 standard addresses these issues through several innovative features:
- Encrypted Metadata – AI agent data is stored in encrypted form to prevent leaks.
- Secure Data Transfer – Owners can transfer not just the NFT but also access to its AI functionality via smart contracts.
- Dynamic Information Updates – AI agents can modify their parameters in real-time.
- Integration with Decentralized Storage – ERC-7857 leverages 0G Storage for secure AI data storage.
- Cryptographic Verification – NFT transfers include a proof of data authenticity.
Applications of ERC-7857 in Web3
The ERC-7857 standard unlocks new use cases for AI in blockchain:
- AI-Agent Marketplaces – Developers can sell trained AI models as NFTs.
- Personalized AI Assistants – Users can own and customize digital assistants.
- Enterprise Adoption – Companies can transfer and license AI solutions.
- AI-as-a-Service – AI agents can be rented out for different applications.
- Monetization of Intellectual Property – Developers can earn from AI model sales and resales.
Read Also: NFT Security Checklist for the New Year
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.