It is worth following the four major directions and their projects in the AI track.

Author: Riyue Xiaochu

AI zone is different from all other zones. Because AI is not only the AI of the crypto world, but also the AI of all mankind. AI is changing human society dramatically. Perhaps in a few decades, our descendants will call what we now call artificial intelligence the fifth industrial revolution.

For a long time in the future, AI will be the biggest concern for humans. It will also be a hot topic in the crypto world.

Since the emergence of GPT3.5, the ability of AI has shocked the whole world, which will also affect the crypto world. The release of GPT3.5 in 23 and the release of Sora in 24 have caused two rounds of speculation in the AI zone of the crypto world. Now, giants are conducting a technological race to compete for the future discourse power of AI. Various fields of human society are using AI for innovative industries.

So the AI track will definitely produce billion-dollar projects. Of course, there are also many projects that want to take advantage of the hot trend. So we need to be discerning and select truly valuable Blockchain AI projects. Below are the important directions as I see them:

1 Decentralization Artificial Intelligence Network

The significance of Decentralization AI network, 1) is to prevent the excessive power of centralized giants 2) is also the aggregation of rights, gathering excellent small and medium-sized teams.

Bittensor is a Decentralization artificial intelligence network. Anyone can produce competitive digital goods on it. These digital goods can be machine intelligence, storage space, computing power, protein folding, financial market prediction, etc., and receive TAO rewards.

The architecture of Bittensor can be divided into two layers. The bottom layer is a blockchain based on Polkadot Substrate, which is responsible for executing Consensus Mechanism and incentivizing the network. The AI layer is responsible for inference, training, and ensuring the input/output compatibility between Bittensor protocol nodes.

The core of Bittensor is subnet. Subnet is a competitive market. Anyone can create a subnet or participate in an existing subnet. Create a subnet ** by paying a registration fee (in TAO). ** Subnets compete with each other to achieve survival of the fittest. Current subnets include large language models, fine-tuned models, language translation, data, etc.

For more detailed information about subnet, please refer to:

2 DecentralizationComputing Power

In the AI track, DecentralizationComputing Power must have a place, and it is a very important place. The three key elements of AI, data, Algorithm models, and Computing Power, only Computing Power belongs to hardware. General hardware needs to follow Moore's Law, that is, doubling performance every 18 months to meet market demand. However, we are now in the era of global AI, the AI competition of tech giants, and the landing applications on the application side have led to a huge demand for GPUs, and it is clear that the supply of Computing Power cannot meet the explosive demand for AI rise. The core value of the DecentralizationComputing Power platform lies in using blockchain technology to gather idle AI Computing Power worldwide to meet the market's demand for GPUs.

At the same time, the problem of which came first, the chicken or the egg, can also be solved in the crypto world. By leveraging the anticipation of Token Airdrop, a large amount of Computing Power can be attracted in the early stages of the project, and incentives can be given through Token production after the project goes live. We are already accustomed to this trap gameplay, but the reality is that only in the crypto world can such gameplay exist.

In addition, there is another advantage compared to cloud-based GPU services. The use of the DecentralizationComputing Power platform does not require complex contract review processes. There is also a price advantage, with prices only about 1/5 to 1/10.

Arkash and Render are old players in this field, each with their own strengths. However, in terms of GPU access, the two new players, Aethir and io.net, have far surpassed them. According to layergg's data statistics, Aethir's GPU count exceeds 40,000, and io.net exceeds 22,000. The GPU count of Arkash and Render is only in the hundreds or thousands.

From Market Cap perspective, io is only 260 million USD, fdv is 2.2 billion USD. ATH is 320 million USD, FDV35 is 3.5 billion USD. But unlike other high FDV, io and net have a lot of Mining output ratio, used for Mining rewards for decades. Excluding this part, io's fdv is 1.3 billion USD, and ATH's FDV is 1.7 billion USD.

3 AI's Web3 Platform

In addition to the general large language models of the giants, there are still a large number of unmet practical needs. For example, a certain data-sensitive industry (such as the medical, education industry, etc.), the market experience accumulated by companies, the professional knowledge possessed by teachers or experts, and the Algorithm optimized for solving specific problems.

These basic demands have two aspects: one is the desire to protect data or knowledge, and the other is the hope to obtain economic returns. And the AI platform based on blockchain can fully meet these two demands.

KIP Protocol is a secure and efficient Decentralization Web3 underlying protocol that provides AI creators (data owners, Algorithm model creators, AI application developers)

1. Ownership guarantee of data/knowledge. Stored on-chain in the form of ERC-3525 semi-fungible Tokens to represent ownership of knowledge assets and Token gate access rights. They are solely controlled by the owners.

2. Protection of data/knowledge usage. KIP Protocol is the world's first Web3 protocol that supports Decentralization RAG (Retrieve Augment Generate) scheme. RAG is a complex innovative technology used in generative AI, which allows AI models to retrieve data and information from external knowledge bases and databases to generate answers that they originally did not know.

3. The Application Layer of AI. Creators can easily access the path of their work and build front-end code to promote their products through KPI. Anyone can easily use various AI applications on the KIP platform. Meanwhile, various applications' usage can be recorded by a set of transparent and anonymous web3 contracts, which are open and transparent.

4. Settlement layer. KIP uses account abstraction to allow users to participate in and use long applications without signing long gas. Tokenize in the form of ERC-3525 SFT and use it to record and settle transactions between Token owners associated with each element that interacts with the user. Settlement can be done without borders using KIP platform Token.

On the 17th, KIP Protocol announced a milestone partnership with Moemate. Moemate is using the KIP protocol to build Decentralization infrastructure. This collaboration will onboard over 3 million users to Web3.

Moemate is a leading AI agent platform that allows users to create customized AI companions with adjustable personalities, long language support, and features such as voice cloning and image generation, such as chatbots, discord/telegram bots, AI NPCs. Games, virtual companions, and even AR/VR fields.

4 Real Human Protection

With the development of artificial intelligence, AI is already indistinguishable from humans. This is reflected not only in language expression but also in images (including portraits) and videos. On the internet, you can no longer tell whether an account is operated by a real person or AI. Therefore, a serious problem may arise in the future: how to prove that you are a real person online? At the same time, we also need to distinguish between humans and AI on the internet and promptly detect the potential negative impacts of AI. In this regard, blockchain technology can be used for identity verification, enabling the encryption storage of biometric information to ensure immutability. It can also provide proof of being a real person without disclosing sensitive details.

Regarding this issue, the founder of OpenAI, Sam Altman, who first proposed it, and the Worldcoin he founded, aims to establish a global digital identity and financial network owned by humans. Through Orb biometric scanning, it achieves global registration of each individual to reliably distinguish between humans and machines. Worldcoin creates a Layer2 using the Op stack, and all human biological information will be guaranteed privacy using Zero Knowledge Proof (ZKP) technology, without direct access by any third party. The incentive mechanism of the protocol uses a dedicated blockchain token called WLD. However, from a secondary perspective, the circulation of WLD is $800 million, and the FDV has reached as high as $28 billion. Therefore, it is not suitable for long-term holdings, only considering holding it again when there is speculation in the AI zone.