Solving AI’s Data Issues With Decentralised Ownership

Introduction: Data Layers

Like crude oil and minerals, data is an important resource powering industries across AI, finance and social media. While we, as users, generate massive amounts of data daily, most of the data remains controlled by large companies and centralised systems, limiting how users can benefit from the data they create.

Some examples of centralised data ownership include:

Social media: Platforms like X and Instagram control the content we create, using it for advertising and profit without compensating users

Smart devices: Data from fitness trackers or IoT devices often belongs to manufacturers, not the users who generate it

Health data: While individuals can access their medical records, much of the data from health apps or wearable devices is owned by corporations

The Data Bottleneck

AI systems, especially LLMs and AI agents, thrive on a steady supply of high-quality data to improve their capabilities. However, the internet’s supply of diverse public data is nearing exhaustion—a challenge known as the 'Data Wall'.

With most available public data already scraped and processed, AI progress risks stagnation without access to fresh, high-quality datasets, limiting innovation and the development of more advanced systems. This growing problem calls for a fresh approach to data collection and sharing with Web3 AI technology, where data layers emerge as a transformative solution.

What Can Data Layers Do

Data layers are decentralised networks or systems where individuals, businesses, and developers can own, share and monetise data—an area increasingly attracting interest from Web3 VC firms and Web3 investment funds.

They form the backbone of a user-centric data economy, offering tools for secure data management and making data more accessible for applications like AI training, finance and personalised services.

These decentralised ecosystems empower users to contribute new, high-quality datasets, filling the gaps left by traditional data sources. Unlike centralised systems, they offer:

Data ownership: Users retain full control over their data and decide how it is used

Monetisation: Users can turn data into an asset, earning rewards for contributing it to projects or marketplaces

Privacy: Advanced tools like Zero-Knowledge Proofs (ZKPs) enable people to share data securely without compromising privacy

Conclusion: Data Layering for AI's Future Development

By giving individuals the ability to decide how their data is used and allowing them to benefit directly from their contributions, data layers create a more sustainable and ethical foundation for AI growth.

With user-driven ecosystems at the core of this Web3 AI technology, data layers not only address the pressing data bottleneck but also pave the way for a more inclusive and transparent future for AI development.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

What's aelf Ventures?

aelf Ventures is the investment arm of aelf, a high-performance Layer 1 AI blockchain platform that offers builders and users advanced AI functionalities and cutting-edge infrastructure. With a dedicated fund of $50 million, aelf Ventures is focused on empowering Layer 1 blockchain projects and various aspects of the Web3 ecosystem, such as DeFi, GameFi, NFT, and those looking to make the transition from Web2 to Web3.

Till date, aelf Ventures has invested in projects such Crystal Fun and Confiction Labs (pka. Mythic Protocol), and is actively incubating promising ventures within the ecosystem such as Portkey, eBridge, Forest NFT Marketplace, AwakenSwap, eWell, and BeanGoTown.

Find out more about aelf and stay connected with our community:

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
aelf	A high-performance, customisable multi-chain blockchain framework with AI-powered smart contracts and a developer-friendly environment.
Quick Intel	An AI-powered crypto security platform that helps investors avoid scams, rug pulls, and honeypots by analysing smart contracts, social sentiment, and on-chain data.
Cogwise AI News Aggregator	An AI-powered news aggregator that analyses real-time news and global trends to predict market movements in the crypto market.
OpenAI Codex	An AI system that transforms natural language into code, automating code creation for smart contracts, blockchain applications, and other development tasks.
QnA3	An AI-powered Web3 knowledge hub that provides real-time information and insights on cryptocurrencies, blockchain projects, and the broader Web3 ecosystem, with unique Solana Actions integrations.
Fetch.ai	A platform that combines AI and blockchain to create autonomous economic agents (AEAs) for various applications, including supply chain optimisation and smart city management.
Octavia	A decentralised digital identity (DID) platform for creating and managing self-sovereign digital identities, empowering users to control their data and online presence.
TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

Solving AI’s Data Issues With Decentralised Ownership | aelf Ventures