{"id":715,"date":"2023-06-08T11:42:59","date_gmt":"2023-06-08T11:42:59","guid":{"rendered":"https:\/\/projectsofar.info\/filecointldrblog\/?p=715"},"modified":"2024-02-26T18:19:23","modified_gmt":"2024-02-26T18:19:23","slug":"why-ai-needs-blockchain","status":"publish","type":"post","link":"https:\/\/wp.filecointldr.io\/en\/article\/why-ai-needs-blockchain\/","title":{"rendered":"Why AI Needs Blockchain"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>This blog post is contributed to Filecoin TL;DR by a guest writer.&nbsp;Catrina is an Investment Partner at&nbsp;<\/em><a href=\"https:\/\/twitter.com\/PortalVentures\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Portal Ventures<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Until recently, startups led the way in technological innovation due to their speed, agility, entrepreneurial culture, and freedom from organizational inertia.&nbsp;<strong>However, this is no longer the case in the rapidly growing era of AI.<\/strong>&nbsp;So far, big tech incumbents like Microsoft-owned OpenAI, Nvidia, Google, and even Meta have dominated breakthrough AI products.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What happened?&nbsp;<\/strong>Why are the \u201cGoliaths\u201d winning over the \u201cDavids\u201d this time around? Startups can write great code, but they are often too hindered to compete with big tech incumbents due to several challenges:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Compute costs remain prohibitively high<\/li>\n\n\n\n<li>AI has a&nbsp;<a href=\"https:\/\/www.greenbiz.com\/article\/technology-systems-and-salients\" target=\"_blank\" rel=\"noreferrer noopener\">reverse salient<\/a>&nbsp;problem: a lack of necessary guardrails impedes innovation due to fear and uncertainty around societal ramifications<\/li>\n\n\n\n<li>AI is a black&nbsp;box<\/li>\n\n\n\n<li>The data \u201cmoat\u201d of scaled players (big tech) creates a barrier to entry for emerging competitors<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, what does this have to do with blockchain technology, and where does it intersect with AI? While not a silver bullet,&nbsp;<strong>DePIN&nbsp;<\/strong>(Decentralized Physical Infrastructure Networks) in Web3&nbsp;<strong>unlocks new possibilities for solving the aforementioned challenges.<\/strong>&nbsp;In this blog post, I will explain how AI can be enhanced with the technologies behind DePIN across&nbsp;<strong>four<\/strong>&nbsp;dimensions:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Reduction<\/strong>&nbsp;of infrastructure costs<\/li>\n\n\n\n<li><strong>Verification<\/strong>&nbsp;of creatorship and&nbsp;humanity<\/li>\n\n\n\n<li><strong>Infusion<\/strong>&nbsp;of Democracy &amp; Transparency in&nbsp;AI<\/li>\n\n\n\n<li><strong>Installation<\/strong>&nbsp;of incentives for data contribution<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><em>In the context of this&nbsp;article,<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201c<strong><em>web3<\/em><\/strong><em>\u201d is defined as the next generation of the internet where blockchain technology is an integral part, along with other existing technologies<\/em><\/li>\n\n\n\n<li>\u201c<strong><em>blockchain<\/em><\/strong><em>\u201d refers to the decentralized and distributed ledger technology<\/em><\/li>\n\n\n\n<li>\u201c<strong>crypto<\/strong>\u201d refers to the use of tokens as a mechanism for incentivizing and decentralizing<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-reduction-of-infra-cost-compute-and-nbsp-storage\">Reduction of infra cost (compute and&nbsp;storage)<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Every wave of technological innovation has been unleashed by something costly becoming&nbsp;<\/em><strong><em>cheap enough to&nbsp;waste<\/em><\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u2014&nbsp;<\/em><a href=\"https:\/\/skventures.substack.com\/p\/societys-technical-debt-and-softwares\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Society\u2019s Technical Debt and Software\u2019s Gutenberg Moment<\/em><\/a><em>by SK&nbsp;Ventures<\/em><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The importance of infra affordability<\/strong>&nbsp;(in AI\u2019s case, the hardware costs to compute, deliver, and store data) is highlighted by&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/stratechery.com\/2021\/the-death-and-birth-of-technological-revolutions\/\" target=\"_blank\">Carlota Perez\u2019s Technological Revolution<\/a>&nbsp;framework, which proposed that every technological breakthrough comes with two&nbsp;phases:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" data-src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ.webp\" alt=\"\" class=\"wp-image-719 lazyload\" data-srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ-300x199.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ-768x509.webp 768w\" data-sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/678;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ.webp\" alt=\"\" class=\"wp-image-719\" srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ-300x199.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_Zr2b7yAeEx5hK2LZMlDfoQ-768x509.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/noscript><figcaption class=\"wp-element-caption\"><em>Source:&nbsp;<\/em><a href=\"https:\/\/stratechery.com\/2021\/the-death-and-birth-of-technological-revolutions\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Carlota Perez\u2019s Technological Revolution<\/em><\/a><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The&nbsp;<strong>Installation stage<\/strong>&nbsp;is characterized by heavy VC investments,&nbsp;<strong>infrastructure<\/strong>&nbsp;setup, and a&nbsp;<strong>\u201cpush\u201d go-to-marke<\/strong>t (GTM) approach, as customers are unclear on the value proposition of the new technology.<\/li>\n\n\n\n<li>The&nbsp;<strong>Deployment stage<\/strong>&nbsp;is characterized by a&nbsp;<strong>proliferation of infrastructure supply<\/strong>&nbsp;that lowers the barrier for new entrants and a&nbsp;<strong>\u201cpull\u201d GTM approach<\/strong>, implying a strong product-market fit from customers\u2019 hunger for more yet-to-be-built products.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With definitive evidence of ChatGPT\u2019s product-market fit and massive customer demand, one might think that AI has entered its deployment phase.&nbsp;<strong>However, there is still one piece missingstill<\/strong>:&nbsp;<strong>an excess supply of infrastructure that makes it cheap enough for price-sensitive startups to build on<\/strong>&nbsp;and experiment with.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-problem\"><strong>Problem<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current market dynamic in the physical infrastructure space is largely a vertically integrated oligopoly, with companies such as AWS, GCP, Azure, Nvidia, Cloudflare, and Akamai enjoying high margins. For example, AWS has an estimated&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2021\/09\/05\/how-amazon-web-services-makes-money-estimated-margins-by-service.html\" target=\"_blank\">61% gross margin<\/a>&nbsp;on commoditized computing hardware.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compute costs are prohibitively high for new entrants in AI, especially in&nbsp;LLM.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>ChatGPT costs an est. of&nbsp;<a href=\"https:\/\/www.cnbc.com\/2023\/03\/13\/chatgpt-and-generative-ai-are-booming-but-at-a-very-expensive-price.html#:~:text=ChatGPT's%20knowledge%20stops%20in%202021,to%20retrain%2C%E2%80%9D%20Delangue%20said.)\" target=\"_blank\" rel=\"noreferrer noopener\">4M\/training<\/a>, and ~<a href=\"https:\/\/www.semianalysis.com\/p\/the-inference-cost-of-search-disruption\" target=\"_blank\" rel=\"noreferrer noopener\">$700,000 per day<\/a>&nbsp;to operate in hardware inference costs<\/li>\n\n\n\n<li>Version two of Bloom will likely cost&nbsp;<a href=\"https:\/\/www.cnbc.com\/2023\/03\/13\/chatgpt-and-generative-ai-are-booming-but-at-a-very-expensive-price.html#:~:text=ChatGPT's%20knowledge%20stops%20in%202021,to%20retrain%2C%E2%80%9D%20Delangue%20said.)\" target=\"_blank\" rel=\"noreferrer noopener\">$10M<\/a>&nbsp;to train &amp;&nbsp;retrain<\/li>\n\n\n\n<li>If ChatGPT were deployed into Google Search, it would result in&nbsp;<a href=\"https:\/\/www.semianalysis.com\/p\/peeling-the-onions-layers-large-language\" target=\"_blank\" rel=\"noreferrer noopener\">$36B reduction<\/a>&nbsp;in operating income for Google,&nbsp;<strong>a massive transfer of profitability from the <\/strong>software platform (Google) to the <strong>hardware provider&nbsp;(Nvidia)<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"317\" data-src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad.webp\" alt=\"\" class=\"wp-image-720 lazyload\" data-srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad-300x93.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad-768x238.webp 768w\" data-sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/317;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"317\" src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad.webp\" alt=\"\" class=\"wp-image-720\" srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad-300x93.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_BW1uDMT5x6J1R_ad-768x238.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/noscript><figcaption class=\"wp-element-caption\"><em>Source:&nbsp;<\/em><a href=\"https:\/\/www.semianalysis.com\/p\/peeling-the-onions-layers-large-language\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Peeling The Onion\u2019s Layers\u200a\u2014\u200aLarge Language Models Search Architecture And&nbsp;Cost<\/em><\/a><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-solution\"><strong>Solution<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">DePIN networks such as&nbsp;<a href=\"https:\/\/tldr.filecoin.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">Filecoin<\/a>&nbsp;(the pioneer of DePIN since 2014 focused on amassing internet-scale hardware for decentralized data storage)<em>, <\/em><a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bacalhau<\/a>,&nbsp;<a href=\"http:\/\/gensyn.ai\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gensyn.ai<\/a>,&nbsp;<a href=\"https:\/\/rendertoken.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Render Network<\/a>, and&nbsp;<a href=\"https:\/\/www.exabits.xyz\/\" target=\"_blank\" rel=\"noreferrer noopener\">ExaBits<\/a>&nbsp;(the coordination layers to match the demand for CPU\/GPU with supply) can deliver&nbsp;<a href=\"https:\/\/docs.exabits.xyz\/background\/why-decentralized-computing-can-lower-the-cost-of-ai\" target=\"_blank\" rel=\"noreferrer noopener\">75%\u200a\u2014\u200a90%+<\/a>&nbsp;cost savings in infra costs via below three&nbsp;levers<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1-pushing-up-the-supply-curve-to-create-a-more-competitive-marketplace\">1. <strong>Pushing up the supply curve<\/strong> <strong>to create a more competitive marketplace<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DePIN democratizes access for hardware suppliers to become service providers. It introduces competition to these incumbents by creating a marketplace for anyone to join the network as a \u201cminer,\u201d contributing their CPU\/GPU or storage power in exchange for financial rewards.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While companies like AWS undoubtedly enjoy a 17-year head start in UI, operational excellence, and vertical integration,&nbsp;<strong>DePIN unlocks a new customer segment that was previously out-priced by centralized providers.<\/strong>&nbsp;Similar to how eBay does not compete directly with Bloomingdale but rather&nbsp;<strong>introduces more affordable alternatives<\/strong>&nbsp;to meet similar demand, DePIN networks do not replace centralized providers but rather aim to serve a more price-sensitive segment of&nbsp;users.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2-balancing-the-economy-of-these-markets-with-crypto-economic-design\">2. <strong>Balancing the economy of these markets with crypto-economic design<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">DePIN creates a subsidizing mechanism to&nbsp;<strong>bootstrap hardware providers\u2019 participation<\/strong>&nbsp;in the network, thus lowering the costs to end users. To understand how let\u2019s first compare the&nbsp;<strong>costs<\/strong>&nbsp;&amp;&nbsp;<strong>revenue<\/strong>&nbsp;of storage providers in web2 vs. web3 using AWS and Filecoin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"407\" data-src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI-.webp\" alt=\"\" class=\"wp-image-722 lazyload\" data-srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI-.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI--300x119.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI--768x305.webp 768w\" data-sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/407;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"407\" src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI-.webp\" alt=\"\" class=\"wp-image-722\" srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI-.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI--300x119.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_ccO4KrdEWuR6RxI--768x305.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Lower fees for clients:<\/strong>&nbsp;DePIN networks create competitive marketplaces that introduce&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/en.wikipedia.org\/wiki\/Bertrand_competition\" target=\"_blank\">Bertrand-style competition<\/a>&nbsp;resulting in lower fees for clients. In contrast, AWS EC2 needs a&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2021\/09\/05\/how-amazon-web-services-makes-money-estimated-margins-by-service.html\" target=\"_blank\">mid-50%<\/a>&nbsp;margin and&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.cnbc.com\/2021\/09\/05\/how-amazon-web-services-makes-money-estimated-margins-by-service.html\" target=\"_blank\">31% overall margin<\/a>&nbsp;to sustain operations,&nbsp;<strong>plus<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Token incentives\/block rewards<\/strong>&nbsp;are emitted from DePIN networks as a&nbsp;<strong>new revenue source<\/strong>. In the context of Filecoin, hosting more real data translates to earning more block rewards (tokens) for storage providers.&nbsp;<strong>Consequently, storage providers are motivated to attract more clients and win more deals to maximize revenue.<\/strong>&nbsp;The token structures of several emerging compute DePIN networks are still under wraps, but will likely follow a similar pattern. Examples of such networks&nbsp;include:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bacalhau<\/a>: a coordination layer to bring computing to where data is stored without moving massive amounts of&nbsp;data<\/li>\n\n\n\n<li><a href=\"https:\/\/www.exabits.xyz\/\" target=\"_blank\" rel=\"noreferrer noopener\">exaBITS<\/a>: a decentralized computing network for AI and computationally intensive applications<\/li>\n\n\n\n<li><a href=\"http:\/\/gensyn.ai\/\" target=\"_blank\" rel=\"noreferrer noopener\">Gensyn.ai<\/a>: a compute protocol for deep learning&nbsp;models<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-reducing-overhead-costs\">3. <strong>Reducing overhead costs<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Benefits of DePIN networks like&nbsp;<a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bacalhau<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.exabits.xyz\/\" target=\"_blank\" rel=\"noreferrer noopener\">exaBITS<\/a>, and IPFS\/content-addressed storage&nbsp;include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Creating usability from latent data:<\/strong>&nbsp;there is a significant amount of untapped data due to the high bandwidth costs of transferring large datasets. For instance, sports stadiums generate vast amounts of event data that is currently unused. DePIN projects unlock the usability of such latent data by processing data on-site and only transmitting meaningful output.<\/li>\n\n\n\n<li><strong>Reducing OPEX costs<\/strong>&nbsp;such as data input, transport, and import\/export by ingesting data&nbsp;locally.<\/li>\n\n\n\n<li><strong>Minimizing manual processes to share sensitive data:<\/strong>&nbsp;for example, if hospitals A and B need to combine respective sensitive patient data for analysis, they can use&nbsp;<a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bacalhau<\/a>&nbsp;to coordinate GPU power to directly process sensitive data&nbsp;<strong>on-premise<\/strong>&nbsp;instead of going through the cumbersome administrative process to handle PII (Personal Identifiable Information) exchange with counterparties.<\/li>\n\n\n\n<li><strong>Removing the need to recompute foundational datasets:<\/strong>&nbsp;IPFS\/content-addressed storage has built-in properties that deduplicate, trace lineage, and verify data.&nbsp;<a href=\"https:\/\/curiouscat178.substack.com\/p\/the-non-philosophical-business-case\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Here\u2019s a further read<\/strong><\/a>&nbsp;on the functional and cost efficiencies brought about by&nbsp;IPFS.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Summary by AI:<\/strong>&nbsp;AI needs DePIN for affordable infrastructure, which is currently dominated by vertically integrated oligopolies. DePIN networks like&nbsp;<a href=\"https:\/\/filecoin.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">Filecoin<\/a>,&nbsp;<a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bacalhau<\/a>,&nbsp;<a href=\"https:\/\/rendertoken.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Render Network<\/a>, and&nbsp;<a href=\"https:\/\/www.exabits.xyz\/\" target=\"_blank\" rel=\"noreferrer noopener\">ExaBits<\/a>&nbsp;can deliver cost savings of 75%-90%+ by democratizing access to hardware suppliers and introducing competition, balancing the economy of markets with cryptoeconomic design, and reducing overhead&nbsp;costs.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-verification-of-creatorship-amp-nbsp-humanity\">Verification of Creatorship &amp;&nbsp;Humanity<\/h1>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-problem-0\"><strong>Problem<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">According to a&nbsp;<a href=\"https:\/\/aiimpacts.org\/2022-expert-survey-on-progress-in-ai\/#Chance_that_the_intelligence_explosion_argument_is_about_right\" target=\"_blank\" rel=\"noreferrer noopener\">recent poll<\/a>,&nbsp;<strong>50% of A.I. scientists agree that there is at least a 10% chance of A.I. leading to the destruction of the human&nbsp;race.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a sobering thought. A.I. has already caused societal chaos for which we currently lack regulatory or technological guardrails\u200a\u2014\u200athe so-called \u201c<a href=\"https:\/\/en.wikipedia.org\/wiki\/Reverse_salient#:~:text=A%20reverse%20salient%20refers%20to,was%20coined%20by%20Thomas%20P.)\" target=\"_blank\" rel=\"noreferrer noopener\">reverse salient<\/a>.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To get a taste of what this means, check out this&nbsp;<a href=\"https:\/\/twitter.com\/zachsilberberg\/status\/1626665046175539224\" target=\"_blank\" rel=\"noreferrer noopener\">Twitter clip<\/a>&nbsp;featuring podcaster Joe Rogan debating the movie&nbsp;<em>Ratatouille<\/em>&nbsp;with conservative commentator Ben Shapiro in an AI-generated video.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"471\" height=\"299\" data-src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g.webp\" alt=\"\" class=\"wp-image-724 lazyload\" data-srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g.webp 471w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g-300x190.webp 300w\" data-sizes=\"auto, (max-width: 471px) 100vw, 471px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 471px; --smush-placeholder-aspect-ratio: 471\/299;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"471\" height=\"299\" src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g.webp\" alt=\"\" class=\"wp-image-724\" srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g.webp 471w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/1_T2O-ilxls6mydUqyU18y5g-300x190.webp 300w\" sizes=\"auto, (max-width: 471px) 100vw, 471px\" \/><\/noscript><figcaption class=\"wp-element-caption\">Source:&nbsp;<a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2023-04-06\/pope-francis-white-puffer-coat-ai-image-sparks-deep-fake-concerns\" target=\"_blank\" rel=\"noreferrer noopener\">Bloomberg Article on Deep&nbsp;Fake<\/a><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Unfortunately, the societal ramifications of AI go much deeper than just fake podcast debates &amp;&nbsp;images:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The 2024 presidential election cycle will be among the first where a deep fake AI-generated political campaign becomes indistinguishable from the real&nbsp;one<\/li>\n\n\n\n<li>An altered video of Senator Elizabeth Warren made it appear like Warren was saying&nbsp;<a href=\"https:\/\/www.politifact.com\/factchecks\/2023\/feb\/27\/viral-image\/sen-elizabeth-warren-didnt-say-republicans-shouldn\/\" target=\"_blank\" rel=\"noreferrer noopener\">Republicans should not be allowed to vote<\/a>&nbsp;(debunked)<\/li>\n\n\n\n<li>The&nbsp;<a href=\"https:\/\/www.politifact.com\/factchecks\/2023\/feb\/06\/instagram-posts\/joe-biden-has-offered-support-transgender-american\/\" target=\"_blank\" rel=\"noreferrer noopener\">voice clone<\/a>&nbsp;of Biden criticizing transgender women<\/li>\n\n\n\n<li>A group of artists filed a&nbsp;<a href=\"https:\/\/www.polygon.com\/23558946\/ai-art-lawsuit-stability-stable-diffusion-deviantart-midjourney\" target=\"_blank\" rel=\"noreferrer noopener\">class-action lawsuit<\/a>&nbsp;against Midjourney and Stability AI for unauthorized use of artists\u2019 work to train AI imagery that infringed on those artists\u2019 trademarks &amp; threatened their livelihood<\/li>\n\n\n\n<li>A deepfake AI-generated soundtrack, \u201cHeart on My Sleeve\u201d featuring The Weeknd and Drake, went viral before being taken down by the streaming service. Such controversy around copyright violation is a harbinger of the complications that can arise when a new technology enters the mainstream consciousness before the necessary rules are in place. In other words,&nbsp;<strong>it is a&nbsp;<\/strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Reverse_salient#:~:text=A%20reverse%20salient%20refers%20to,western%20society%2C%201880-1930.\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Reverse Salient<\/strong><\/a><strong>&nbsp;problem<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">What if we can do better in web3 by putting some guardrails on&nbsp;AI?<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-solution-0\"><strong>Solution<\/strong><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-proof-of-humanity-and-creatorship-with-cryptographic-proof-of-origination-on-chain\"><strong>Proof of Humanity and Creatorship with cryptographic proof of origination on-chain<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This is where we can actually use Blockchain for its technology\u200a\u2014\u200aas a distributed ledger of immutable records that contain tamper-proof history on-chain. This makes it possible to verify the authenticity of digital content by checking its cryptographic proof.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-proof-of-creatorship-amp-humanity-with-digital-signature\"><strong><em>Proof of Creatorship &amp; Humanity with Digital Signature<\/em><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To prevent deep fakes, cryptographic proof can be generated using a digital signature that is unique to the original creator of the content. This signature can be created using a private key, which is only known to the creator, and can be verified using a public key that is available to everyone. By attaching this signature to the content, it becomes possible to prove that the content was created by the original creator\u200a\u2014\u200awhether they are human or AI\u200a\u2014\u200aand authorized\/unauthorized changes to this&nbsp;content.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-proof-of-authenticity-with-ipfs-amp-merkle-nbsp-tree\"><strong><em>Proof of Authenticity with IPFS &amp; Merkle&nbsp;Tree<\/em><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">IPFS is a decentralized protocol that uses content addressing and Merkle trees to reference large datasets. To prove changes to a file\u2019s content, a Merkle proof is generated, which is a list of hashes that shows a specific data chunk in the Merkle tree. With every change, a new hash is generated and updated in the Merkle tree, providing proof of file modification.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>A pushback against such a cryptographic solution<\/strong>&nbsp;may be incentive alignment: after all, catching a deep fake generator doesn\u2019t generate as much financial gain as it&nbsp;<strong>reduces the negative societal externality.<\/strong>&nbsp;The responsibility will likely fall on major media distribution platforms like Twitter, Meta, Google, etc. to flag, which they are already doing.&nbsp;<strong>So why do we need Blockchain for&nbsp;this?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The answer is that these cryptographic signatures and proof of authenticity are much more&nbsp;<strong>effective<\/strong>,&nbsp;<strong>verifiable<\/strong>, and&nbsp;<strong>deterministic<\/strong>. Today, the process to detect deep fakes is largely through machine learning algorithms (<em>such as the&nbsp;<\/em><a href=\"https:\/\/ai.facebook.com\/blog\/deepfake-detection-challenge-results-an-open-initiative-to-advance-ai\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>\u201cDeepfake Detection Challenge\u201d<\/em><\/a><em>of Meta, \u201cAsymmetric Numeral Systems\u201d (ANS) of Google, and&nbsp;<\/em><a href=\"https:\/\/c2pa.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>c2pa<\/em><\/a><em>)<\/em>&nbsp;to recognize patterns and anomalies in visual content, which is&nbsp;<strong>not only inaccurate at times but also falling behind the increasingly sophisticated deep fakes<\/strong>. Often, human reviewer intervention is required to assess authenticity, which is not only inefficient but also&nbsp;costly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine a world where each piece of content has its cryptographic signature so that&nbsp;<strong>everyone will be able to verifiably prove the origin of creation<\/strong>&nbsp;and flag manipulation or falsification\u200a\u2014\u200aa brave new&nbsp;one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Summary by AI:<\/strong>&nbsp;AI poses a significant threat to society, with deep fakes and unauthorized use of content being major concerns. Web3 technologies, such as Proof of Creatorship with Digital Signature and Proof of Authenticity with IPFS and Merkle Tree, can provide guardrails for AI by verifying the authenticity of digital content and preventing unauthorized changes.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-infusion-of-democracy-in-nbsp-ai\">Infusion of Democracy in&nbsp;AI<\/h1>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-problem-1\"><strong>Problem<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Today, AI is a black box comprised of proprietary data + proprietary algorithms. Such closed-door nature of Big Tech\u2019s LLM precludes the possibility of what I call an&nbsp;<strong>\u201cAI Democracy,\u201d<\/strong>&nbsp;where every developer or even user should be able to contribute both&nbsp;<strong>algorithms<\/strong>&nbsp;and&nbsp;<strong>data<\/strong>&nbsp;to an LLM model, and in term receive a fraction of the future profits from the model (as discussed&nbsp;<a href=\"https:\/\/curiouscat178.substack.com\/p\/four-foundational-pillars-to-usher\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>AI Democracy<\/strong>&nbsp;=&nbsp;<strong>visibility<\/strong><em>(the ability to see the data &amp; algorithm input into the model)<\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>contribution<\/strong><em>(the ability to contribute data or algorithm to the&nbsp;model).<\/em><\/li>\n<\/ul>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-solution-1\"><strong>Solution<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">AI Democracy aims to make generative AI models accessible for, relevant to, and owned by everyone. The below table is a comparison illustrating what is possible today vs. What will be possible, enabled by blockchain technology in&nbsp;Web3.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"390\" data-src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c.webp\" alt=\"\" class=\"wp-image-725 lazyload\" data-srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c-300x114.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c-768x293.webp 768w\" data-sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/390;\" \/><noscript><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"390\" src=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c.webp\" alt=\"\" class=\"wp-image-725\" srcset=\"https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c.webp 1024w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c-300x114.webp 300w, https:\/\/wp.filecointldr.io\/wp-content\/uploads\/2023\/09\/0_VyMkhvnksRkFdg9c-768x293.webp 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/noscript><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-today\"><strong>Today<\/strong>:<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For&nbsp;<strong><em>consumers<\/em><\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>One-way recipient of the LLM&nbsp;output<\/li>\n\n\n\n<li>Little control over the use of their personal&nbsp;data<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For&nbsp;<strong><em>developers<\/em><\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Little composability possible<\/li>\n\n\n\n<li>Little reproducibility because there\u2019s no traceability of the ETL performed on the&nbsp;data<\/li>\n\n\n\n<li>Single-source data contribution within the confine of the owner organization<\/li>\n\n\n\n<li>Close sourced only accessible through API for a&nbsp;charge<\/li>\n\n\n\n<li>80% of data scientists\u2019 time is wasted on performing low-level data cleansing work because of the lack of verifiability to share data&nbsp;output<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-blockchain-will-nbsp-enable\"><strong>What blockchain will&nbsp;enable<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For&nbsp;<strong><em>consumers<\/em><\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Users can provide feedback (e.g. on bias, content moderation, granular feedback on output) as input into continuous fine-tuning<\/li>\n\n\n\n<li>Users can opt to contribute their data for potential profits from model monetization<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For&nbsp;<strong><em>developers<\/em><\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Decentralized data curation layer<\/strong>: crowdsource tedious &amp; time-consuming data preparation processes such as data&nbsp;labeling<\/li>\n\n\n\n<li><strong>Visibility<\/strong>&nbsp;&amp; ability to compose &amp; fine-tune algorithms with verifiable &amp; built-on lineage (meaning they can see a tamper-proof history of all changes in the&nbsp;past)<\/li>\n\n\n\n<li><b>The sovereignty<\/b>&nbsp;of both&nbsp;<strong>data&nbsp;<\/strong><em>(enabled by&nbsp;<\/em><a href=\"https:\/\/www.ipfs.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>content-addressing\/IPFS<\/em><\/a><em>)<\/em>&nbsp;and&nbsp;<strong>algorithm<\/strong><em>(e.g.&nbsp;<\/em><a href=\"https:\/\/urbit.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Urbit<\/em><\/a><em>enables peer-to-peer composability and portability of data &amp; algorithm)<\/em><\/li>\n\n\n\n<li><strong>Accelerated innovation<\/strong>&nbsp;in LLM from the outpour of variants from the base open-source models<\/li>\n\n\n\n<li><strong>Reproducibility<\/strong>&nbsp;of training data output via Blockchain\u2019s immutable record of past ETL operations &amp; queries (e.g.&nbsp;<a href=\"https:\/\/www.kamu.dev\/\" target=\"_blank\" rel=\"noreferrer noopener\">Kamu<\/a>)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">One might argue that there\u2019s a middle ground of Web2 open source platforms, but it\u2019s still far from optimal for reasons discussed in&nbsp;<a href=\"https:\/\/medium.com\/decentralizedcomputing\/breaking-barriers-transparent-ais-quest-for-open-and-equitable-ai-development-1b8aab113df0\" target=\"_blank\" rel=\"noreferrer noopener\">this <\/a>blog post&nbsp;by&nbsp;<a href=\"https:\/\/twitter.com\/exa_bits\" target=\"_blank\" rel=\"noreferrer noopener\">exaBITS<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Summary by AI:<\/strong>&nbsp;The closed-door nature of Big Tech\u2019s LLM precludes the possibility of an \u201cAI Democracy,\u201d where every developer or user should be able to contribute both&nbsp;<strong>algorithms<\/strong>&nbsp;and&nbsp;<strong>data<\/strong>&nbsp;to an LLM model, and in turn receive a fraction of the&nbsp;<strong>future profits<\/strong>&nbsp;from the model. AI should be&nbsp;<strong>accessible for, relevant to, and owned by everyone<\/strong>. Blockchain networks will enable users to provide feedback, contribute data for potential profits from model monetization, and enable developers to have visibility and the ability to compose and fine-tune algorithms with verifiability and built-on lineage. The sovereignty of both data and algorithm will be enabled by web3 innovations such as&nbsp;<a href=\"https:\/\/ipfs.tech\/\" target=\"_blank\" rel=\"noreferrer noopener\">content-addressing\/IPFS<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/urbit.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">Urbit<\/a>. Reproducibility of training data output via Blockchain\u2019s immutable record of past ETL operations and queries will also be possible.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-installation-of-incentives-for-data-contribution\">Installation of Incentives for Data Contribution<\/h1>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-problem-2\"><strong>Problem<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Today, the most valuable consumer data is&nbsp;<strong>proprietary to big tech<\/strong>&nbsp;platforms as an integral business moat. The tech giants have little incentive to ever share that data with outside&nbsp;parties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What about getting such data directly from data originators\/users? Why can\u2019t we make data a public good by contributing our data and open-source it for talented data scientists to&nbsp;use?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simply put,&nbsp;<strong>there\u2019s no incentive or coordination mechanism for that<\/strong>. The tasks of maintaining data and performing ETL (extract, transform &amp; load) incur significant overhead costs. In fact, data storage alone will become a&nbsp;<a href=\"https:\/\/www.globenewswire.com\/news-release\/2023\/02\/28\/2616751\/0\/en\/With-17-8-CAGR-Data-Storage-Market-Size-Worth-USD-777-98-Billion-by-2030.html\" target=\"_blank\" rel=\"noreferrer noopener\">$777 billion industry by 2030<\/a>, not even counting computing costs. Why would someone take on the data plumbing work and costs for nothing in&nbsp;return?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Case in point, OpenAI started off as open-source and non-profit but struggled with monetization to cover its costs. Eventually, in 2019, it had to take the capital injection from Microsoft and close off its algorithm from the public. In 2024, OpenAI is expected to generate&nbsp;<a href=\"https:\/\/news.crunchbase.com\/ai-robotics\/venture-funding-startups-openai\/\" target=\"_blank\" rel=\"noreferrer noopener\">$1 billion<\/a>&nbsp;in&nbsp;revenue.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\" id=\"h-solution-2\"><strong>Solution<\/strong><\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Web3 introduces a&nbsp;<strong>new mechanism called dataDAO<\/strong>&nbsp;that facilitates the redistribution of revenue from the AI model owners to data contributors, creating an incentive layer for crowd-sourced data contribution. Due to length constraints, I won\u2019t elaborate further, but below are two related&nbsp;pieces.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/twitter.com\/duckie_han\/status\/1570899707274362880?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">How DataDAO works<\/a>&nbsp;by HQ Han of Protocol&nbsp;Labs<\/li>\n\n\n\n<li><a href=\"https:\/\/curiouscat178.substack.com\/p\/four-foundational-pillars-to-usher\" target=\"_blank\" rel=\"noreferrer noopener\">How data contribution and monetization works in web3<\/a>, where I dove into the mechanics, missing pieces, and emerging inevitable opportunities in&nbsp;dataDAOs<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In conclusion,<\/strong>&nbsp;DePIN is an exciting new category that offers an alternative fuel in hardware to power today\u2019s renaissance of innovations in web3 and AI. Although big tech companies have dominated the AI industry, there is potential for emerging players to compete by leveraging blockchain technologies: DePIN networks lower the barrier to entry in compute costs; blockchain\u2019s verifiable &amp; decentralized properties make true open IA possible; innovative mechanisms, such as dataDAOs, incentivize data contribution; and the immutable and tamper-proof property of Blockchain provides proof of creatorship to address concerns regarding the negative societal impact of&nbsp;AI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-some-good-resources-for-depin-deep-nbsp-dive\"><strong>Some good resources for DePIN deep&nbsp;dive<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/cryptoeconlab.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto Econ&nbsp;Labs<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/mechanism.institute\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mechanism Institute<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/docs.exabits.xyz\/background\/why-decentralized-computing-matters\" target=\"_blank\" rel=\"noreferrer noopener\">Why decentralized compute by exaBITS&nbsp;blogs<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Shoutout to below SMEs and friends for providing input and\/or reviewing my draft:&nbsp;<\/em><a href=\"https:\/\/twitter.com\/jnthnvctr\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Jonathan Victor<\/em><\/a><em>&amp;&nbsp;<\/em><a href=\"https:\/\/twitter.com\/duckie_han\" target=\"_blank\" rel=\"noreferrer noopener\"><em>HQ Han<\/em><\/a><em> of Protocol Labs,&nbsp;<\/em><a href=\"https:\/\/twitter.com\/ZUbillos\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Zackary B<\/em><\/a><em>of&nbsp;<\/em><a href=\"https:\/\/twitter.com\/exa_bits\" target=\"_blank\" rel=\"noreferrer noopener\"><em>exaBITS<\/em><\/a><em>,&nbsp;<\/em><a href=\"https:\/\/twitter.com\/danielrock\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Professor Daniel Rock<\/em><\/a><em> of Wharton,&nbsp;<\/em><a href=\"https:\/\/twitter.com\/evanbfish?s=20\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Evan Fisher<\/em><\/a><em>of&nbsp;<\/em><a href=\"https:\/\/twitter.com\/portalventures\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Portal Ventures<\/em><\/a><em>,&nbsp;<\/em><a href=\"https:\/\/twitter.com\/aronchick\" target=\"_blank\" rel=\"noreferrer noopener\"><em>David Aronchick<\/em><\/a><em>of&nbsp;<\/em><a href=\"https:\/\/www.bacalhau.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Bacalhau<\/em><\/a><em>,&nbsp;<\/em><a href=\"https:\/\/twitter.com\/jlehman_?lang=en\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Josh Lehman<\/em><\/a><em>of&nbsp;<\/em><a href=\"https:\/\/twitter.com\/urbitfoundation\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Urbit<\/em><\/a><em>, and&nbsp;more<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>About Author:<\/strong>\u00a0Partner at\u00a0<a href=\"https:\/\/twitter.com\/PortalVentures\" target=\"_blank\" rel=\"noreferrer noopener\">Portal Ventures<\/a>\u00a0|\u00a0<a href=\"https:\/\/twitter.com\/curiouscatwang\" target=\"_blank\" rel=\"noreferrer noopener\">@CuriousCatWang<\/a>\u00a0on\u00a0Twitter<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/mp.weixin.qq.com\/s?__biz=Mzg4MTExNjkyOQ==&amp;mid=2247487149&amp;idx=1&amp;sn=c6ca8d5f7329bfae0998e63668001b34&amp;chksm=cf6b9cc3f81c15d5a48f9fd87378dd8e005fb70308058fb133b3ba17d01c03e6f96ad808fce4&amp;token=2057143164&amp;lang=zh_CN#rd\">\ud83c\udde8\ud83c\uddf3AI\u4e3a\u4ec0\u4e48\u79bb\u4e0d\u5f00\u533a\u5757\u94fe\u2014\u2014\u6765\u770bDePIN\u5982\u4f55\u52a9\u529b\u4eba\u5de5\u667a\u80fd<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Until recently, startups led the way in technological innovation due to their speed, agility, entrepreneurial culture, and freedom from organizational inertia.\u00a0However, this is no longer the case in the rapidly growing era of AI.<\/p>\n","protected":false},"author":9,"featured_media":792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[7,1],"tags":[25,41,26,13],"class_list":["post-715","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-blog","tag-ai","tag-analysis","tag-blockchain","tag-filecoin"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why AI Needs Blockchain. 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