#### What is Lithium? Lithium (LITH) is a decentralized [protocol](https://www.coinbase.com/learn/crypto-basics/what-is-a-protocol) that seeks to harness the power of artificial intelligence and collective wisdom to provide deep insights into the valuation of digital assets. It aims to address the challenge of pricing unique and infrequently traded assets, such as Non-Fungible [Tokens](https://www.coinbase.com/learn/crypto-basics/what-is-a-token) (NFTs), by combining machine learning algorithms with the expertise of its community. The protocol uses its native token, LITH, to incentivize participation and reward accurate pricing estimates. Lithium's primary goal is to aid decision-making by providing accurate and reliable asset valuations. #### How does Lithium work? Lithium operates by combining the wisdom of its community with machine learning to provide insights into [NFT](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/nft) markets. The protocol incentivizes and aggregates opinions from the community to gauge market sentiment. Price Experts, who are subject matter experts or market participants with insights into asset prices, respond to pricing inquiries posted by the protocol and receive rewards for their contributions. The Lithium [DAO](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/decentralized-autonomous-organization--dao-), a community-driven organization, operates autonomously using [smart contracts](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) on the [blockchain](https://www.coinbase.com/learn/crypto-basics/what-is-a-blockchain), allowing members to vote on proposals related to the development and direction of the Lithium Finance platform. The protocol uses a token-based governance model, where members can vote using LITH tokens. #### What are the potential use cases for Lithium? Lithium's primary use case is to provide accurate pricing information for illiquid assets, such as NFTs. This information can be used by various stakeholders, including [crypto](https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency) projects, issuers, investors, lenders, and analysts, to make informed decisions. The protocol allows Price Seekers, who are individuals or entities seeking accurate pricing information, to post questions on asset prices or access data and analytical tools. The protocol also incentivizes Price Experts, who are subject matter experts or market participants with insights into asset prices, to provide accurate pricing estimates. In the future, Lithium aims to support multichain NFT collections and explore real-world applications. #### What is the history of Lithium? Lithium was developed with the aim of revolutionizing the way digital assets are valued. The protocol was designed to harness the power of artificial intelligence and collective wisdom to provide accurate and reliable asset valuations. Since its inception, Lithium has made significant strides in its development, including the launch of its testnet and mainnet beta, the recruitment of Price Experts, and the establishment of initial partnerships. The protocol has also developed a proprietary machine learning algorithm and a reputation system to enhance its valuation capabilities. Looking ahead, Lithium plans to further enhance its AI capabilities, decentralize the protocol, and expand its support for multichain NFT collections.