The fusion of artificial intelligence (AI) and blockchain technology is revolutionising the digital world by giving birth to the Web3 AI ecosystem. This powerful combination is powering the rise of decentralised AI applications on layer 1 blockchain platforms, marking the dawn of a new era characterised by significant technological progress and enhanced transparency. Decentralised AI aims to create intelligent systems that are not controlled by any single entity. This decentralisation is crucial for fostering innovation, ensuring transparency, and enhancing security. Layer 1 blockchains, the base layer of blockchain technology, act as the critical foundation for decentralised AI by providing several key functionalities. In a decentralised AI framework, data and computations are spread across multiple nodes, enhancing security and fostering trust among participants. In this article, we'll explore four ways that layer 1 blockchains play a key role in building the Web3 AI ecosystem and various challenges to be navigated to build a reliable Web3 AI and blockchain ecosystem.
1. Secure and Transparent Data Storage
Decentralised AI relies on vast amounts of data to train and improve its algorithms. Layer 1 blockchains offer a secure and transparent way to store this data. Transactions on the blockchain are encrypted and distributed across a network of computers, making them tamper-proof and resistant to censorship. This ensures the integrity of the data used to train the AI, preventing bias or manipulation from any single source.
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An example is the aelf blockchain, a cutting-edge AI blockchain that offers modular systems, parallel processing, cloud-native architecture, and multi-sidechain technology, ensuring unlimited scalability. aelf supports the creation, integration, and deployment of smart contracts and decentralised apps (dApps) through its native C# software development kit (SDK) and additional SDKs in languages such as Java, JS, Python, and Go. Their robust AI blockchain ecosystem nurtures a wide range of dApps, driving innovation and the advancement of Web3, blockchain, and AI technology. By leveraging aelf's advanced infrastructure, decentralised AI systems can securely store and access the vast amounts of data needed for sophisticated algorithm development, significantly enhancing the reliability and performance of AI applications.
2. Decentralised Computing Power
Training complex AI models requires immense computational resources. Blockchains with AI capabilities can facilitate the creation of decentralised computing networks, where users can contribute their unused computing power to the network and earn rewards in return, usually in the form of cryptocurrency. This distributed approach provides the necessary processing power for training and running decentralised AI models without relying on centralised cloud providers.
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Decentralised computing marketplaces like Golem allow companies to contribute their spare server capacity to the network. Golem functions as a marketplace, matching these companies with users who require that power for demanding tasks like training AI models. Through Golem, companies can rent out their unused server capacity for a fee, usually paid in Golem's cryptocurrency, GLM. This contributes valuable resources to the network while allowing companies to earn rewards for their idle hardware. This decentralised and Web3 approach offers a cost-effective and scalable way to tackle complex computing needs.
3. Coordination and Collaboration
Decentralised AI projects often involve collaboration between stakeholders like developers and investors. Blockchains offer an avenue for collaboration through Decentralised Autonomous Organisations (DAOs) where smart contracts automate tasks and govern the interactions between different components of the AI system. This fosters trust and transparency between participants, ensuring that everyone involved adheres to the agreed-upon rules.
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An example of this is Network DAO, deployed on TMRWDAO within the aelf AI blockchain ecosystem, which aims to achieve fully decentralised governance of the aelf blockchain. It allows communities to vote for Block Producers (BPs) and enables BPs to participate directly in decision-making processes. By leveraging smart contracts, Network DAO ensures transparency, security, and the trustless execution of tasks. It empowers community members to submit proposals, supports establishing and managing decentralised organisations, facilitates transparent elections for BPs, simplifies smart contract management, and enables the trading of resource tokens. This comprehensive approach enhances collaborative efforts within the Web3 AI and blockchain ecosystem, ensuring that decentralised AI projects can leverage the collective intelligence and resources of a global Web3 and crypto community.
4. Tokenisation and Incentives
Blockchains enable the creation of tokens, digital units of value, that can represent various things in a decentralised AI and blockchain ecosystem. These tokens can be used to incentivise data contribution, participation in training processes, and access to AI services. This creates a self-sustaining economic model that drives the development and growth of decentralised AI.
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For instance, Ocean Protocol uses tokens to incentivise data sharing and ensure that AI models have access to diverse and high-quality datasets. Data owners can tokenise their datasets through their platform, essentially creating access rights they can sell on the Ocean Market. This incentivises data sharing while allowing owners to retain control and ensure privacy through techniques like secure multi-party computation. By facilitating high-quality and diverse data access, Ocean Protocol fuels the development of powerful AI models in a decentralised way while fostering collaboration between data providers, AI developers, and researchers.
Challenges and Considerations
While Layer 1 blockchains offer a powerful foundation, there are challenges to consider. Scalability is a significant issue; many Layer 1 blockchains struggle to handle a high volume of transactions, which can slow down processing and increase costs, posing a bottleneck for large-scale decentralised AI applications. Security is another concern. Although blockchains are secure overall, vulnerabilities in specific blockchains can be exploited to compromise the AI system. Interoperability is also a challenge, as different blockchains often have their own protocols and standards, making it difficult for decentralised AI systems on different blockchains to interact with each other.
Developers are constantly working on improving Layer 1 blockchains to address these challenges. New Layer 1 solutions are emerging that are specifically designed for scalability and interoperability. For example, Ethereum 2.0 aims to significantly increase transaction throughput and reduce fees, making it more suitable for AI blockchain applications. Similarly, projects like Polkadot and Cosmos focus on creating interoperable blockchain networks that can seamlessly interact.
Unlocking AI's Full Potential in the Web3 and Blockchain Space
The synergy between decentralised AI and layer 1 blockchain platforms unlocks unprecedented opportunities within the Web3 ecosystem. Blockchain's inherent transparency, security, and decentralisation are making AI applications more reliable and trustworthy. As the AI and blockchain landscape continues to evolve, addressing emerging trends and challenges will be essential to harnessing the full power of this transformative technology. Embracing this evolution, aelf is pivoting to become a dedicated AI blockchain by actively integrating AI technology into our blockchain. To kickstart this, we will release a revamped version of our whitepaper soon. Stay tuned and join us on our journey to becoming a revolutionary AI blockchain.
*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.
About aelf
aelf, the pioneer Layer 1 blockchain, features modular systems, parallel processing, cloud-native architecture, and multi-sidechain technology for unlimited scalability. Founded in 2017 with its global hub based in Singapore, aelf is the first in the industry to lead Asia in evolving blockchain with state-of-the-art AI integration, transforming blockchain into a smarter and self-evolving ecosystem.
aelf facilitates the building, integrating, and deploying of smart contracts and decentralised apps (dApps) on its Layer 1 blockchain with its native C# software development kit (SDK) and SDKs in other languages, including Java, JS, Python, and Go. aelf’s ecosystem also houses a range of dApps to support a flourishing blockchain network. aelf is committed to fostering innovation within its ecosystem and remains dedicated to driving the development of Web3, blockchain and the adoption of AI technology.
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