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Altered State Machine: Why do NFTs Need Intelligence?

Read 5 min
Altered State Machine_ Why do NFTs Need Intelligence
Key Takeaways:
— NFTs are set to evolve. Collectors will now go beyond collecting and holding; Instead, they will now be able to train their NFTs

— Altered State Machine (ASM) is a platform and protocol that gives you the power to build, train and trade AI agents using NFTs 

— Decentralized Artificial Intelligence (AI) creates an immersive experience that gives us a new level of control over our digital assets across gaming, finance and the metaverse in general.

NFT’s are powering some incredible projects – but they still can’t think for themselves. Until now…here, we explain ASM, the brain for your NFT.

No matter where you are on your crypto journey the chances are you have heard about NFTs. They allow ownership of digital items (and their associated value) including art, avatars, gaming assets and fashion and have been the talk of the crypto world for the last couple of years, enticing more creatives to join the fold and create the ultimate collectibles. 

Much like wearing a nice watch or a certain brand, NFTs are an extension of one’s identity – and sometimes have specific utility too, such as club membership or special access. But just flexing is not everyone’s cup of tea and so it’s time to take the next step, it’s time to give your NFT a brain.

Let’s recap; what exactly is an NFT?

NFTs are non-fungible tokens. Token refers to a digital certificate stored on a secure distributed database called a blockchain. NFTs are digital assets, publicly verifiable property that is authenticated on a blockchain. We are in the throes of NFT 1.0 – they are predominantly collectibles. 

An NFTs worth is determined by what people are willing to pay. If you or I are willing to pay $100 for a particular NFT then it’s worth $100, prices are driven by demand. We have seen demand sky rocket as collections like CryptoPunks, a collection of 10,000 unique, pixel art characters, sell on the second hand market for hundreds of thousands dollars worth of Ethereum. Since then weve seen multiple big pfp collections on the Ethereum Blockchain including Bored Ape Yacht Club, Doodles, Cool Cats, SupDucks

Whilst owning one of these can be a huge digital flex and you may get access to an online club and be on a mailing list and get dropped the odd benefit such as a discount on related merch, what else can an NFT do? They are not interactive – with you or with their environment – no matter what club they get you into.  None of them have independent functionality. If you can’t do anything with an expensive NFT it risks becoming worthless if nobody wants to buy it, but what if we could change the desirability by adding value through engagement. What if it was no longer a lottery if your NFT will return your investment, what if you had the ability to control, train and use your NFT in the ever expanding digital world to facilitate your interactions and transactions?

As the NFT space continues to mature alongside a rapidly developing Metaverse ecosystem, people want more from their NFTs – and interactivity is the next extremely exciting step. 

NFT 2.0 – NFTs Come to Life

A new generation of gaming and finance is here to answer that call, by adding a layer of Artificial Intelligence (AI) to NFTs. 

The guys behind Fluf World, are leading the way with their latest project Altered State Machine (ASM).  Exploring uncharted yet interesting territory as it creates AI driven “frames” made of random attributes that can be paired with an NFT to give it a unique “brain,” learning ability and memories. Welcome to NFT 2.0 – it’s a different game. Let’s take a look at its main components to get a better understanding of its functionality and implications.

The Body

Every agent has a Genome; the base or structure that provides all of the information the agent requires to function. This is basically its DNA. Each ASM is totally unique in its characteristics, DNA and reactions to its environment. It’s taking unique to a new level, almost a consciousness. 

Generative NFTs randomise background colour or character accessories, but ASM agents will have functional randomised attributes. The base values or attributes could be expressed differently in each world, for example when we look at gaming we would think of our characters size, speed, or strength, but for trading agents we would need to look at risk tolerance and randomness.


The Form is what your character looks like and the qualities that it has – these are also randomized and completely unique. You can use your existing NFT art or model from another part of the metaverse or you can create entirely new forms. ASM protocol enables anyone to own an A.I, and the machine learning models that define what it learns over time. Owners pair an NFT intelligence (a Brain) with NFT artwork (a Form), to create their Agent. 
Once your agent has a base it can learn, grow, and improve through Training, that will look different depending on the world the agent is operating in. Worlds are applications anywhere in the Metaverse using the ASM platform.


The most significant thing about ASM memory is that data is retained based on experience. This means agents can be trained to master specific activities and tasks. This is significant for owners: if you train the best agent within a particular ecosystem, you can reap the rewards by trading them on the open market. Buyers will be willing to pay for the skills you’ve taught, especially if they want a head start against their competition in a particular field.

The NFT is the vehicle that allows the whole process to be monetized, by allowing you to own your agent, and harness the rewards of your own training. 

Further to that, each one of these agents ends up being a unique entity in the universe and the way that they evolve through the learning programme means that each one can be seen as a non fungible intelligence.

Use Cases for ASM

The platform and protocol from ASM most obviously has exciting implications in gaming for owning, trading, creating, and interacting with AI agents in any world, arena, or universe. But it also has exciting implications for DeFi, fashion, digital assistants, travel management, supply chain… the list goes on.

Smarter, More Personal Gaming

We already know how to create characters and explore worlds, interact with the auto bots in games like Zelda, FIFA, or even Wii Sports allow you to personalise to some degree but it’s always in a very limited and predictable way. You’re also limited by the game itself – your Avatar won’t keep learning, its limits are already set, so it’s a bit one dimensional but all that can change when we give the character a brain. 

We can see how AI-powered NFTs can improve gaming, with ASM’s Artificial Intelligence Football Association (AIFA),. Where you create a team of AI avatars, train that team, assemble them, and then put them in the game and challenge the marketplace. Someone can accept that challenge, put their team in versus you so there are two AIs that are trying to beat each other at the game. It creates a really interesting mechanism of discovery: watching the AIs as they learn is a bit like watching your kid learn how to walk. And as with learning to walk, the more your ASM avatar competes, the more it learns and the better it becomes. You can play for rankings, just for fun, it can even be monetized. The gaming experience is no longer limited by the game itself, and new iteration of play to earn could be ushered in.

ASM Brings a Calculated Approach to DeFi

ASM is also a potentially ideal vehicle for DeFi and trading. Thanks to their capacity for memory, one of these agents could be trained in making trading decisions – keeping track of prior results and data while continuing to learn and make better predictions to improve their next position. And since digital proof-of-ownership on the blockchain allows for shared ownership of training costs, ASM could be a vehicle for automated distribution of profit among many owners.

Move Over Alexa

NFTs are becoming more than simple JPGs that collectors can admire, collect, and sell. They are developing into intelligent digital agents that can learn ways to better navigate their always-on digital worlds. As the worlds expand, smart agents can evolve with these building blocks from ASM to make our chatbots, voice assistants, and non-player characters (NPCs) become next-gen smart sidekicks, much more than just a flex on your profile picture. 

ASM provides this platform and protocol to build, train and trade AI agents using NFTs. It’s all about creating and developing dynamic NFTs that are fully autonomous and trainable Metaverse avatars able to move between Augmented Reality (AR) and Virtual Reality (VR) spaces.

NFT Training as a Career

The Metaverse is not automated – it relies on US being there to control the avatars and animate them. It’s a 24/7 environment, it’s global. So what happens when you go to bed or you’re not online? You’re missing huge chunks of activity.  If you run a shop or an art gallery in the Metaverse, who will staff that experience when you’re not around? With ASM digital shopping assistants can be on hand around the clock, meaning your customer or client can have a valuable interaction without you having to physically be online. 

Smart AIs, much like real humans, will need to be trained and so it will open the door to a new way of working. AI breeding and training for different purposes such as distribution, consultancy, management, etc will be the real world professions that put processes in place where employees review, understand and resolve the decisions made by AI systems. This has the potential to be a massive source of employment. Like any piece of software, the quality of AI insight depends on the quality of the data you feed into it, and it takes a human to know and judge what is good for it.

Like big tech or the internet before it, AI is paving the way for a new way of working to emerge. Accurate AI that is capable of taking on tedious or difficult tasks which in turn boosts the workforce by increasing the value of interactions that are genuinely human. For many organisations, it will mean having more time to make important decisions, thanks to AI agents doing the groundwork. 

What’s in store for the future of NFTs?

The way we view and use NFTs is set to evolve. For the first time, access to AI is democratized, meaning NFT collectors could go beyond just collecting and holding; instead, they will have an opportunity to train their NFTs, potentially increasing their value by giving them rare or unique new abilities, and even monetizing the whole process. 

AI is not here to replace us, but rather it is redefining what we can do with technology, and how we can work with it to create new experiences. In short, the boundaries of NFTs are changing once again – something that will in turn change our expectations, our ways of working and our potential to create.

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