Blockchain

Using Blockchain provides a secure and immutable ledger for recording transactions and state changes. This ensures that all operations are transparent and tamper-proof, maintaining the integrity and trustworthiness of the network. It forms the backbone of the decentralized infrastructure, ensuring secure, transparent, and efficient operations.

This page details how blockchain is integrated and utilized within our system, providing insights into ongoing developments and potential future directions.

Multi-Chain Integration

We are exploring multi-chain integration to enhance scalability and interoperability. By publishing state data to multiple blockchain networks, such as Ethereum Virtual Machine (EVM) compatible chains and Solana, we aim to leverage the strengths of different blockchains:

• EVM Chains: Provide robustness and widespread adoption, ensuring compatibility with a wide range of decentralized applications (dApps) and services.

• Solana: Offers high throughput and low transaction costs, making it ideal for handling high-frequency updates and transactions.

This multi-chain approach is still under development, and we are evaluating the best strategies to implement it effectively. Our goal is to ensure that the network remains flexible and can interact with various blockchain ecosystems, enhancing its functionality and reach.

Smart Contracts

Smart contracts automate essential functions within the network, ensuring secure and transparent operations:

• Escrow Management: Payments for AI services are held in escrow by smart contracts, ensuring that funds are only released when tasks are completed successfully.

• Incentive Distribution: Upon task completion, validated by oracle updates, smart contracts automatically distribute rewards to nodes.

• Airdrops and Rewards: Smart contracts handle the distribution of tokens based on performance metrics, ensuring that contributors are rewarded fairly and promptly.

Incentive Mechanism and Airdrop Process

The blockchain component is responsible for the incentive mechanism, ensuring that node operators are fairly compensated for their contributions. Users pay fees in various tokens, which are held in escrow until the AI tasks are completed. The oracle then updates the state and triggers the release of tokens from escrow, airdropping them to the node operators.

Steps in the Incentive Process:

1. Fee Payment: Users pay fees in their preferred tokens, which are held in an escrow smart contract.

2. AI Task Completion: Node software processes AI tasks, and the completion state is recorded off-chain.

3. Oracle Verification: Oracles verify the completion state and update the custom blockchain.

4. State Update: The custom blockchain state is synchronized with mainnet blockchains.

5. Airdrop Execution: Smart contracts are triggered to release the tokens from escrow and distribute them to node operators.

Decentralized Database as an Alternative

An alternative approach involves using a decentralized database like OrbitDB on IPFS for off-chain state management. This database keeps track of all transactions and periodically updates the blockchain through oracle references.

Advantages of a Decentralized Database:

• Efficient Data Management: Handles frequent state updates without incurring high on-chain costs.

• Transparency and Traceability: Ensures all transactions are recorded in a transparent and traceable manner.

• Periodic Blockchain Updates: Uses IPFS CIDs for periodic state updates to the blockchain, ensuring data consistency.