Polychain's AI+Blockchain Project: How Did OpenLedger Break the Mold with SLM Racing?

Original Title: "ABC Alpha Seed Project Update No.17-Open Ledger"

Original Author: ABC Alpha Researcher

Project Name: Open Ledger

Project Positioning: Blockchain network for a specialized AI language model SLM

Project Highlights: In the specialized language model field, cleverly using blockchain technology to address AI data collection, provenance, and incentive issues. Truly leveraging the value of blockchain.

Funding Status: $8 million seed round funding, led by institutions such as Polychain

Participation Method: TGE has not launched yet; currently, you can participate in the test network mining incentive using a computer

Below is a detailed explanation of the project:

1. What is OpenLedger?

Simply put, @OpenledgerHQ is a decentralized network that combines AI and blockchain technology. Its core goal is to build a decentralized AI ecosystem where everyone can fairly contribute data, develop AI models, and also earn money from it.

There are several key roles here: specialized data contributors, specialized AI model developers, Open Ledger, specialized AI applications.

Of these four roles, I particularly emphasize the word "specialized," which is at the core of Open Ledger. Open Ledger is not building a generalized AI like Open AI's large language model but is building a specialized AI language model, namely SLM. This means the data is specialized, and the AI model is trained using specialized data.

Open Ledger operates based on specialized data networks (Datanets) to absorb, clean, and transform the data into usable data provided to specialized AI model developers. With the attribution proof mechanism built on blockchain technology, Open Ledger can distinguish the data source and attribute the data rights to the specific data provider's identity. Consequently, Open Ledger can clearly know that certain specialized data was contributed by specific users, thereby completing attribution and incentives based on the blockchain.

OpenLedger particularly emphasizes a concept called "Payable AI," meaning that AI models can not only be used but can also automatically pay data providers and model developers based on their contributions. Imagine you are a photographer who has taken many beautiful photos of women. You upload these photos to Open Ledger, where an AI developer trains a model to generate artful images of women using your photos. Every time someone uses this AI to generate a portrait of a woman, Open Ledger can track that your photos were used and automatically share some earnings with you. This is the core of Payable AI and the core operational logic of Open Ledger. This logic does not apply to general large language models, but in SLM, a specialized language model field, blockchain plays a significant role, and Open Ledger is a universal platform in this SLM field.

2. Operating Principle of OpenLedger

To provide a clearer explanation of the operating principle of OpenLedger, we will break down and explain in plain language several key terms involved in OpenLedger, as well as elaborate on the role of blockchain in each aspect.

The operation of OpenLedger can be divided into several key parts:

(1) Data Source: Datanets (Data Networks)

OpenLedger relies on something called Datanets to collect data.

Datanets are like specialized data markets, each catering to a specific domain such as medical data, music creation, social media content, and more. Anyone (individuals, companies, experts) can upload their data to Datanets.

For example, if you are a doctor, you can upload some anonymized case data; or if you are a programmer, you can upload code snippets. This data is then curated, cleansed, and transformed into the "raw material" for AI training.

Blockchain here acts as a super transparent ledger. Every time someone uploads data, the blockchain records: who uploaded what, and how many times the data has been used. This way, no one can secretly alter the data, and no one can deny that their data was used.

For example, Bob is a game streamer, and he uploads his live streaming clips to OpenLedger's "Gaming Datanet." A company uses these clips to train an AI that can automatically generate game commentary videos. The blockchain records that Bob's clips have been used 100 times, and Bob can receive compensation based on usage.

(2) Proof of Attribution

This is the core technology of OpenLedger, translated into plain language as "proving who contributed what." It can track every output of an AI model, understanding which data and contributions were utilized.

When an AI model generates a result (such as an article or an image), OpenLedger analyzes which data sources were relied upon for this result, and then allocates credit to the corresponding contributors. For instance, if AI writes a song, the system can identify that it referenced Peter's melody and Mary's lyrics, and then automatically distribute payments to them. The blockchain ensures that this "attribution of credit" process is transparent and tamper-proof. All contribution records are written on the chain and cannot be altered by anyone. Moreover, smart contracts (a type of self-executing program) will directly transfer the funds to the contributors' accounts based on the records.

For example, Jack is a writer who has uploaded a bunch of short stories to OpenLedger. An AI writer used his storytelling style to generate a new story. Proof of Attribution identified that 30% of the new story's inspiration came from Jack's stories, so Jack automatically received a 30% revenue share.

（3）Payable AI

Payable AI is OpenLedger's ultimate goal: to turn AI models into a "self-earning asset." Developers can deploy AI models on OpenLedger, and users have to pay when using the models, with the fees automatically distributed to data contributors and model developers.

For example, a company develops a medical diagnostic AI, and doctors use this AI to analyze patient data, paying a fee each time they use it. These fees are distributed via blockchain to the hospitals providing medical data, the engineers who trained the model, and so on.

Blockchain ensures transparent transactions, clearly showing how the money is distributed and who received what. Smart contracts can automatically execute revenue splitting, eliminating the need for intermediaries, saving money and providing peace of mind. For instance, Alice is an AI engineer who developed a translation AI deployed on OpenLedger. Every time someone uses this AI to translate a document, both Alice and the language data contributor (such as Ruby, who uploaded English materials) receive a share of the payment, with the blockchain automatically calculating the proportions and making direct transfers.

（4）OpenLedger Decentralized Network

OpenLedger does not centralize all data and computation on a company's server but instead uses a blockchain-based decentralized network. This means that data and AI models are distributed across nodes globally, preventing any single entity from dominating.

Users worldwide can run OpenLedger nodes (like small servers), helping to store data and run AI computations. In return, they can earn rewards.

The blockchain coordinates these nodes to ensure data security and trustworthy computation results. It records who operates nodes and how much work they do, ensuring that no rewards are missed when distributed.

For example, Black runs an OpenLedger node at home, storing some music data for the platform. When someone uses this data to train AI, Black's node records the transaction, and the blockchain rewards him with some tokens as compensation.

3. What problems has OpenLedger solved using blockchain technology that were originally hard to solve?

Currently, in the AI field, there are several major issues, and OpenLedger has cleverly provided its own solutions using blockchain technology:

(1) Lack of Data Transparency

Most AI companies randomly scrape data from the internet to train models, and once your data is used, you have no idea, let alone receive any compensation. OpenLedger uses blockchain to record data sources and usage, with attribution proof ensuring fair treatment of contributors. For example, many AI drawing tools now use artists' drawings for training, but the artists never receive any payment. OpenLedger allows artists to upload their work, and when AI uses it, they are automatically compensated.

(2) Centralization Risks

Currently, large companies control AI data and models, with the power to shut down or modify them at will, leaving users with little say. For instance, if an AI platform suddenly decides "not to let you use it anymore," you would be at a loss. OpenLedger's blockchain prevents data and models from being monopolized by a single company, allowing users to participate in running the network themselves, thus distributing power more evenly. It's similar to the early days of YouTube, where video creators relied entirely on the platform's whims to receive a share of the revenue. OpenLedger is like creating a "decentralized YouTube for AI," where creators have more control.

(3) Lack of Compensation for Contributors

Currently, the situation is such that AI models make a lot of money, but the everyday people providing data and the engineers developing the models often get nothing in return. OpenLedger's Payable AI ensures that every contributor receives a share of the earnings, incentivizing more people to participate, ultimately leading to higher data quality. Similar to how YouTube later started sharing ad revenue with content creators, resulting in a significant improvement in video quality. OpenLedger also aims to enrich AI data through revenue sharing.

(4) Lack of Diversity in AI Models

Currently, most large AI models are developed by big companies and are more geared towards general use, making it challenging to meet niche demands (such as local language translation). OpenLedger focuses on the field of specialized language models. Datanets make it easier to collect data in specialized domains, allowing developers to create more accurate "specialized AI." For example, an AI for a minority language may not have been developed due to a lack of data. OpenLedger's Datanet allows community members to upload language data, enabling developers to create a custom AI.

The brilliance of OpenLedger lies in not directly entering the large language model track, but entering the specialized language model (SLM) track, which can fully leverage the characteristics of blockchain technology.

Let's list the roles played by blockchain technology in OpenLedger:

· Ledger: Recording each data upload, use, revenue sharing, transparent and tamper-proof.

· Revenue Sharing: Automatically distributing income to contributors in proportion through smart contracts, without the need for manual intervention.

· Decentralization: Distributing data and computing tasks to global nodes to prevent centralization.

· Security: Data encrypted storage, blockchain ensures no one can secretly alter the data.

· Incentives: Rewarding node-runners and data contributors with tokens to encourage participation.

Summary

The core of OpenLedger is to build a fair and transparent dedicated AI model ecosystem using blockchain. Through Datanets to collect data, Proof of Attribution to track contributions, and Payable AI to automate revenue sharing, everyone can benefit from AI development. Blockchain here ensures data security, transparent transactions, fair revenue sharing, and prevents the entire system from being controlled by big corporations.

The OpenLedger team astutely observed that the general large language model track is monopolized by super companies like OpenAI, Google, Microsoft, etc., which do not need blockchain and will not use blockchain to empower themselves. On the other hand, the specialized language model (SLM) track relies more on decentralized communities and decentralized forces to drive the AI track. In this space, AI and blockchain have cleverly combined.

This also shows us a possibility - the fusion of blockchain and AI should not only stem from technical requirements but should start from the market. First, establish the business, and then see how blockchain and AI can add value here. OpenLedger shows us this possibility.

Open Ledger Testnet Mining Link: https://testnet.openledger.xyz/ The official website has detailed instructions. Follow the steps to participate. Risk Warning: The above content is for discussion purposes only. DYOR.

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