• Cardano’s AI integration is promising, but it hinges on the full deployment of the Midnight Network.
  • AI-powered smart contracts could boost Cardano’s ecosystem and ADA’s value, but don’t expect it to happen overnight.

Incorporating artificial intelligence (AI), particularly large language models (LLMs), into Cardano’s ecosystem has been of interest to Charles Hoskinson, the founder of Cardano (ADA). In a recent update, CNF revealed that Hoskinson has been vocal about the growing implications of AI and its potential impact on various industries.

He has previously hinted at something big for the future of his blockchain—AI integration. In a recent exchange with a community member on X, Hoskinson expressed interest in this development. But there’s a catch: it won’t happen immediately.

Yep, we'll work on it after midnight

— Charles Hoskinson (@IOHK_Charles) February 4, 2025

What’s most profound is that the suggestion came from Cardano community member Hieronymus, who proposed integrating LLMs into Cardano’s Layer-2 (L2) structure. The idea is to use AI to power decentralized applications (dApps) and smart contracts, which could spark an increase in network activity and transaction volume.

Experts predict that such integration could significantly drive ADA’s value , as increased demand for the ecosystem would likely push up the token’s price.

But it’s not just about smart contracts. If Cardano succeeds in becoming a hub for decentralized AI, it could attract a whole new wave of developers and funding, further boosting its market standing.

The “Midnight” Protocol: A Key to Cardano’s AI Future

While the idea of AI on Cardano is exciting, Hoskinson made it clear that the blockchain won’t dive into this ambitious project just yet. His quick response indicates that the team plans to focus on AI once Cardano’s Midnight Network is fully deployed.

Not to mention, the Midnight protocol is already making waves. Open to the public, it allows developers to collaborate and innovate around privacy and data protection technologies. Those joining the network early could gain an edge in creating cutting-edge solutions for the Cardano ecosystem.

This could pave the way for the integration of AI-driven capabilities in the future.

Addressing the Big Challenges

If Cardano moves forward with this AI vision, it could redefine how blockchain and AI interact. The potential for AI to enhance the capabilities of dApps and smart contracts would be a significant milestone for the entire blockchain space.

As for the marketwise performance, currently Cardano (ADA) is trading at $0.754, reflecting a decrease of 4.84% in the past day and 19.64% over the past week.

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