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Altered State Machine Why do NFTs Need Intelligence

Jul 05,2024


— 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). This includes art, avatars, gaming assets and fashion which 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. Sometimes they have specific utility too, such as club membership or special access. But just flexing is not everyone’s cup of tea. 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. Making it possible to authenticate digital assets such as NFTs as publicly verifiable properties on a blockchain. We are in the throes of NFT 1.0 – they are predominantly collectibles.


The worth of an NFT is determining what people are willing to pay for it. If you willing to pay $100 for a particular NFT, then it’s worth $100 as demand drives the price. We have seen demand skyrocket as collections like CryptoPunks, a collection of 10,000 unique, pixel art characters, sell on the second-hand market for hundreds of thousands of dollars worth of Ethereum. Since then, we’ve seen multiple big pfp collections on the Ethereum Blockchain, including Bored Ape Yacht Club, Doodles, Cool Cats, SupDucks.


Owning an NFT is a huge digital flex. As it possibly grants access to an online club, a mailing list, and obtaining the odd benefit such as a discount on related merch, but 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. Although, 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 could 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. Answering 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. Pairing 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 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 randomize background colour or character accessories, but altered state machine agents will have functional randomized attributes. Expressing the base values or attributes differently in each world. For example when we look at gaming, do we consider a character’s size, speed, or strength? For trading agents, we need to look at risk tolerance and randomness.



The Form is what your character looks like and its qualities – these are also random 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 AI, 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. This will look different depending on the world the agent is operating in. Worlds are applications anywhere in the Metaverse using the altered state machine platform.



Data retained based on experience is the most significant thing about ASM memory. Meaning agents can learn 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 owner to monetize the whole process. Allowing you to own your agent and harness the rewards of your own training.


Further to that, each agent becomes a unique entity in the universe. Evolving through the learning program, considering each one as non-fungible intelligence.


Use Cases for Altered State Machine

The platform and protocol from ASM has exciting implications in gaming. Be it 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, explore worlds, and interact with the auto bots in games like Zelda, FIFA, or even Wii Sports. Allowing you to personalize to some degree, but always in a very limited and predictable way. The game also limits you – your Avatar does not keep learning, setting its limits. So it’s a bit one-dimensional, but all that can change when the character has a brain.


We can see how AI-powered NFTs can improve gaming, with ASM’s Artificial Intelligence Football Association (AIFA),. Where creating a team of AI avatars, train, assemble them, and 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. It creates an interesting mechanism of discovery. Watching the AIs as they learn is a bit like watching your kid learn how to walk. As with learning to walk, the more your altered state machine avatar competes, the more it learns and the better it becomes. You can play for rankings, just for fun, or monetizing. The game itself no longer limits the gaming experience, ushering in a new iteration of play to earn.


ASM Brings a Calculated Approach to DeFi

ASM is also a potentially ideal vehicle for DeFi and trading. Thanks to their capacity for memory, it is possible to train one of these agents to make trading decisions. Keeping track of prior results and data while continuing to learn and make better predictions to improve their next position. Since digital proof-of-ownership on the blockchain allows for shared ownership of training costs. Altered state machine could be a vehicle for automating 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. Making 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. So that they 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 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, they 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, need training. 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 real-world professions. Requiring 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. 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. Accurate AI 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 organizations, 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 view and use of NFTs are evolving. For the first time since the democratization of access to AI, NFT collectors can 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. 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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