Introduction

Web 3.0 and blockchain technology share related features and exist side by side. However, they lack a single point of convergence, limiting their collective potential in a decentralized system. This is the existing challenge that Spectral aims to solve. Using artificial intelligence, machine learning, and solidity codes, Spectral aims to provide an enabling environment for creating smart contracts for Web3 applications.

What is Spectral?

The Spectral platform aims to bring efficiency and adaptive intelligence to the blockchain industry. It enables the convergence of Artificial Intelligence (AI), Machine Learning (ML), and Web3 decentralization features under one operational system.

Spectral uses AI Agents and machine learning inferences to provide resources necessary for building Web3 decentralized applications on the platform. It also embraces decentralized and rigorous procedures to ensure the validation of AI and ML on-chain activities.

Further, Spectral is an autonomous system that requires little human input. It uses the inferchain to ensure communication between AI Agents and its machine intelligence network.

Brief History of Spectral

Spectral is a privately held financial software company located at Pinebrook Boulevard in New Rochelle, New York, United States. It was launched in 2020; however, its machine learning network went live on the mainnet in November 2023.

Following the launch of the Spectral machine learning network, other innovations were developed in quick succession. Notably, Spectral Syntax Agent launched on March 26, 2024, followed by Syntax MoonMaker on April 19, 2024, and Syntax Onchain Explorer on May 17, 2024. Shortly after, Spectral also announced the launch of Agent Wallet on June 13, 2024.

Subsequent innovations are bound to launch, as Spectral is still implementing proposed projects on its roadmap timeline as of this writing.

About Spectral Team

Spectral Team is made up of 23 employees, including three co-founders and executive members: Sishir Varghese, Kevin Chio, and Srikar Varadaraj.

Additionally, Spectral has recorded funding from 37 investors, some of which include Circle Ventures, Foundation Capital, Franklin Templeton, General Catalyst, Polychain Capital, and several others.

Advantages and Disadvantages of Spectral

There are benefits and downsides associated with introducing new tech innovations like Spectral in the blockchain industry.

Here are some of the advantages and disadvantages of Spectral:

Advantages of Spectral

• Through its ecosystem, Spectral simplifies the use of blockchain applications while improving user experiences. For instance, users can easily deploy and execute smart contracts and query the blockchain using natural human language.
• Spectral introduced an advanced and practical application of AI, machine learning, web3 decentralized features, and blockchain technology.
• Spectral helps with efficiency and productivity, especially in executing on-chain tasks through automation. On Spectral, repetitive human tasks can be delegated to spectral AI Agents, thus allowing users to focus on more complex On-Chain tasks.
• Spectral equally personalizes user interaction with AI Agents. It provides round-the-clock customer support, thereby improving user experiences on the blockchain.

Disadvantages of Spectral

• Spectral AI Agents still require a user signature or approval to execute transactions. Automation technically exposes users to security lapses. For example, Spectral Agent Wallet uses a 1:2 multi-signature model that allows users and AI Agents to broadcast transactions from a single wallet.
• AI agents’ use in customer service implies a lack of emotional intelligence in meeting the customer’s on-chain needs. AI Agents are only limited to the data they access while human on-chain needs are diverse and sometimes unpredictable.
• Spectral’s robust infrastructure may require specialized AI and machine learning expertise to operate.
• Using a 1:2 multi-signature model indicates poor data protection practices as AI Agents’ wallets can be exploited, thus exposing users to risk.

Use Cases/Utility

Spectral is designed to function with the convergence of Artificial Intelligence, Machine Learning, Web3, and blockchain technologies. The output constitutes the use cases of the platform.

Used to Construct Code Components using Machine Learning

Spectral, through AI Agents, creates specific code components following users’ prompts by referencing existing project repositories. Spectral AI agents can also be used to write Zero-Knowledge Machine Learning (ZK-ML) circuits and ERC-4337 smart wallet abstractions.

Used to Carry out Trading Operations

Spectral AI Agents can execute trading of crypto asset pairs based on pre-set instructions. They can also be used for copy trading, memecoin generation, and transaction scheduling.

Used to Execute Onboarding Tasks

Spectral AI Agents use Machine Learning to train in the documentation of Web3 infrastructure providers. Thus, the AI Agents can automatically onboard users by creating instances for new users using the required API.

Spectral’s Main Features

Spectral Syntax

Source: Spectral

Spectral Syntax is a software application that helps users to easily deploy their own on-chain Agents. Syntax operates using Large Language Models (LLMs), a programming language built on Solidity that generates codes that can be used to create on-chain Agents on Spectral. Solidity is an object-oriented programming language created on the Ethereum Virtual Machine to enable easy design of smart contracts on the blockchain. In essence, Spectral Syntax allows crowdsourcing of AI Agents within the Spectral platform using Solidity’s LLM.

Technically, Spectral Syntax works using six major components, namely Base model, Agent Identities, Agent Knowledge Bases, Plugins, Machine Learning Inferences, and Wallet Management. Let’s briefly explain these components.

Agent Identities: With this feature, Spectral Syntax can distinguish between different Agents using the same LLMs. Each agent’s uniqueness lies in its functions and reactions in terms of effectiveness in responding to user prompts.

Base Model: This feature enhances easy response to user requests regarding smart contacts implementation. The base model uses specialized tools to interact between models on-chain following users’ smart contract requests.

Syntax base model uses one or more of these techniques—Parameter-efficient Fine-tuning, Low-rank Adaptation, and DeepSpeed (a custom-built data set comprising 7 million solidity contracts)—all tailored to work with a retrieval augmented generation system to enhance quick responses to user queries.

Plugins: Syntax plugin connects Spectral to relevant internet data sources. Not just any data source, Syntax plugins are integrated into data sources that Spectral AI Agents need for the running of on-chain smart contracts.

Agent Knowledge Base: Agent Knowledge Base complement the functionality of Agent identities. It enables the crowdsourcing of knowledge base from users. The AI Agents use the information generated from the knowledge base to respond to queries. The Knowledge Base are mostly text-based, thus enabling user participation.

Machine Learning Inferences: Machine learning inferences enable automatic interaction between Spectral Syntax and Spectral Nova. Spectral Syntax can directly access and retrieve inferences from Spectral Nova models.

Wallet Management: Spectral Syntax uses ERC-4337 smart wallet Abstraction to ensure autonomous smart contracts execution. The smart wallet uses a 1:2 multi-signature contract, thereby enabling AI Agents and Users to execute transactions from a single wallet.

Although users have to determine the amount of tokens to deposit in their Agent wallet, Spectral AI Agents can sign transactions, handle assets, and pay gas fees autonomously.

Spectral Nova

The second product offering of Spectral is Spectral Nova. It is a machine intelligence network that provides verified inference feeds for smart contracts on the Spectral platform. Inferences are conclusions reached after consulting numerous data sources. Thus, instead of sending data feeds directly for verification, Spectral Nova sends already verified data feeds for smart contracts deployment on Spectral.

Spectral Nova incentivizes Data Scientists and Machine Learning engineers in order to build models that churn out Inference feeds, thereby solving machine learning and predictive problems.

Spectral Nova uses ZK-ML or Zero Knowledge Machine Learning to ensure the integrity of the Inferences that smart contracts receive. Here is how it works.

The Machine Learning models are trained across relevant smart contract nodes, with each node containing its own data segments. The nodes generate Zero Knowledge Inferences, helping Machine Learning models to verify certain aspects of the Inferences without revealing the actual data.

There are 4 key actors on Spectral Nova. They include Creators, Solvers, Validators, and Consumers.

Source: Spectrallabs

Creators: Creators on Spectral Nova constitute web3 companies that are responsible for posting data science and machine learning challenges. They set performance benchmarks and reward solvers. Creators on Spectral Nova share in the revenue generated from the purchase of Inferences by consumers.

Solvers: Solvers are a group of people who commit their own models to solve data science and machine learning challenges from Creators. Solvers stand chances of winning, receiving a reward, and also sharing in the revenue generated from the purchase of their Inferences if they successfully solve a challenge.

Validators: Validators monitor the performance of Solvers’ model to ensure they meet the performance benchmarks. They also ensure that Solvers execute their challenges and upload the outcome to IPFS or Interplanetary file system. IPFS is a decentralized peer-to-peer file storage system that connects all computing devices with the same file system.

Consumers: the consumers select inferences that match their data science and Machine learning needs from the inference feed. They apply these feeds in their own application for a fee.

How Does Spectral Work?

Spectral uses Artificial Intelligence, Machine Learning models, and Web3 decentralization features to make blockchain use more efficient and seamless. The functionality of Spectral is dependent on its product offerings, namely, Spectral Syntax and Spectral Nova.

With Syntax, Spectral deploys Large Language Models (LLMs) to generate codes that guide the creation of Onchain Agents on the Spectral network. Using Syntax on-chain Agents, users write codes easily and deploy them on-chain.

Syntax also provides an Agent-enabled platform for the development of Web3 apps. It uses human natural language to make code writing easy, especially for non-coders. Hence, when users write the coding instructions in human language, Syntax on-chain Agents execute these instructions directly on-chain using Foundry. On-chain Agents convert the human language to a Language model that Foundry can understand. Foundry makes it easy to compile codes, enabling the smart contract deployment on the Ethereum Virtual Machine.

On the other hand, Spectral Nova is a decentralized network of Creators, Solvers, Validators, or Consumers, who supply machine intelligence Inferences to smart contracts. Spectral Nova uses ZK-ML or Zero-knowledge Machine Learning to ensure that Inferences are accurate without revealing sensitive data.

Spectral Syntax and Spectral Nova are interconnected through an Interchain. The Inferchain connects Syntax AI Agents and Nova Machine Learning Inferences. The convergence of Syntax AI and Nova ML technologies enables the development of intelligent and adaptive smart contracts that respond to users’ dynamic data inputs in real time.

Spectral Ecosystem

Spectral has some projects built to function within its platform, complementing the Spectral ecosystem. They include:

Syntax On-chain Explorer

Source: Spectral

Syntax on-chain explorer is an AI Agent, launched on Spectral. It allows users to query Ethereum Virtual Machines using natural human language. Syntax on-chain explorer uses Data Sourced from Nexandria, Transpose, and DefiLIama to provide search outputs for users.

With Syntax on-chain explorer, users can use the internal chat interface to submit on-chain data queries. This allows the AI Agents to select the most relevant tool suitable to generate the most accurate responses from data sources.

Agent Wallet

Agent Wallet is a customized wallet on the Spectral platform. It enables Spectral AI Agents to deploy and execute smart contracts autonomously. With Agent Wallet, Spectral AI Agents can initiate smart contract actions without manual verification from a third party.

Secondly, the Agent wallet exhibits a unique functionality that is not native to a typical DeFi wallet. This is because it uses a 1:2 multi-signature model. This means that Spectral AI Agents and Users can equally share a cryptocurrency wallet and broadcast transactions from the same wallet without exposing sensitive data.

Syntax MoonMaker

Source: Spectral

Syntax MoonMaker is an AI Agent on SpectralSyntax that enables the creation and launch of meme coins on Spectral. With Syntax MoonMaker, users can generate meme coins with Zero coding knowledge.

To use Syntax MoonMaker, Users need to initiate the process first. Next, the MoonMaker collaborates with DALL-E to generate AI-powered visuals and designs for the memecoin. After that, MoonMaker AI Agent initiates smart contract deployment for the memecoin with Ethereum ERC-20 contract. The AI Agent goes further to provide liquidity for the token on decentralized exchanges by integrating both on-chain and off-chain systems. Lastly, the AI Agent goes further to deploy a customizable web page thereby enabling users to promote their memecoin.

What is SPEC Token?

SPEC is the native token of the Spectral ecosystem. It also serves as the governance token of the protocol. By holding SPEC tokens, users can participate in ecosystem activities including decentralized governance, staking, and other internal financial settlements.

SPEC Token Use Cases

SPEC tokens serve the following use cases on the Spectral platform:

• Used for voting on governance proposals and smart contract upgrade
• Used to make payment for using Community Agents on Spectral Syntax
• Used as collateral settlement by Spectral Nova Validators
• Used to incentivize Agents’ creation on Spectral Syntax

Tokenomics

Source: Cryptorank

The tokenomics of SPEC token underscores its issuance, allocation, and distribution across stakeholders, with a total supply of 100,000,000 million SPEC.

Here’s a breakdown of the token allocation:

• 0.03% for public market supply
• 38% allocated to investors
• 29.7% was allocated to Foundation Treasury
• 22% was allocated to Team contributors
• 10.3% has been allocated for Airdrop

Is Spectral (SPEC) a Good Investment?

A few factors need to be considered in deciding whether SPEC is a good investment. First, the practical utility of SPEC tokens within the blockchain determines the level of demand. Second, token supply, allocation, and distribution strategies contribute to determining a token’s credibility.

SPEC tokens have practical use cases within its platform and have exhibited fairness regarding token allocation and distribution. However, it is very important to research before making an investment decision on SPEC.

Furthermore, it is important to understand that the information provided here are for educational purposes only and should not be mistaken for financial advice. So, be sure to consult financial experts before considering investing.

Highlights

Spectral Partners with Nexandria to integrate On-chain Explorer

Spectral has announced a recent collaboration with Nexandria to provide an intuitive chat interface for on-chain data queries. The aim is to deliver a reliable and accurate response to users’ queries on Spectral Syntax.

With this collaboration, Spectral can provide token movement analysis, social graph analysis, portfolio statement reports, and time series of asset balance on its platform.

Nexandria is an intelligent data platform that provides real-time, historical, and filterable blockchain data for decentralized platforms.

Spectral Partners with Turnkey to redefine Spectral Agent Wallet

Spectral is currently working with Turnkey, a provider of flexible, scalable, and secure wallet infrastructure, to redefine the Spectral customized Agent wallet.

This collaboration aims to abstract the Spectral Agent wallet authentication layer to ensure seamless and secure on-chain transactions. The collaboration also facilitates Agent-to-agent transactions while ensuring that Agent wallets have the same digital property rights and capabilities as other blockchain wallets.

How to Own the SPEC Token

You can buy SPEC from centralized cryptocurrency exchanges. For example, Gate.io offers traders the following trading pair: SPEC/USDT. To own the token, create a Gate.io account, and complete the registration process. Also, you need to fund your spot trading account and go through the steps to buy SPEC.

Take Action on SPEC

Check out SPEC price today and start trading your favorite currency pairs:

• SPEC/USDT