A Use Case for Decentralized AI

In my last article, I gave a general overview of the infrastructure Oraichain has built to make decentralized AI a reality:

• Decentralized file storage with encryption and access controls
• Zero knowledge engine
• Data annotation and labeling tools
• Data and AI marketplace
• On-chain AI execution

Big kid stuff. And while I hope you go back and read the previous post, I also recognize the need to simplify and extract the unique value this ecosystem proposes.

Here is a brief example of how the pieces fit together to offer viable alternatives to one of the main ways we interact with data and AI…

Advertising

As you already know, everyone is collecting your data. They are monetizing your data. Earning record profits.

We are talking about $366B in revenue from digital advertising, accounting for 67% of global ad spend…built on your data. Browsing, spending, streaming — they want it all.

So today, let’s consider what it might look like to utilize Oraichain’s infrastructure for decentralized data and AI to create ad networks that respect privacy, distribute royalties to data contributors and even (potentially) improve capital efficiency for advertisers.

The word of the day is simplicity. Let’s break this into three sections: Supply, Manufacturing and Demand.

Supply

• Data is the natural resource of the Oraichain economy. Consumers are generating data every time they pick up their phone. What if they were able to take control of this data and choose who they sell it to? There is a great opportunity to streamline this process, let users pull their data and monetize it directly by adding it to valuable datasets specifically meant for advertisers. Built on top of Eueno, data providers could have the ability to encrypt their data by default and revoke access at will, putting privacy in focus while still enabling monetization.

Manufacture

• We take our natural resource (data) and refine it. This is where raw and partially structured data is cleaned up through crowdsourced labeling and AI assisted tools, preparing it for use in AI models. Unlike other natural resources however, data owners still retain rights to royalties for the use of their data downstream.
• Next, these labeled datasets are used to create products. In this case, we are looking at programmatic advertising as an example. These AI models become the manufactured goods that will hit the open market, executed via Oraichain’s dedicated subnetwork of AI executors, targeting ads to the right audience, placing the ads on the right website and even tracking campaign performance to improve capital efficiency.

Demand

• Publishers: If you are driving traffic to your website or your app, your advertising space is valuable. There are thousands to choose from depending on your niche market, but most advertisers aren’t just utilizing one ad network, they are pushing campaigns across many at the same time. Integrating programmatic advertising into your platform can be a great additional source of revenue.
• Advertisers: Again, advertisers spent $366 BILLION on digital advertising in 2021. And with the recent release of the SKAdNetwork, the push towards privacy-centric technology has created challenges for advertisers. The advantage of this decentralized system is fairly obvious: first party data contributed voluntarily, AI advertising tools executed transparently and royalties flowing to every contributor fairly.

Great, hope that was easy to understand.

Now, let’s follow how the money could track through this ecosystem so that everyone earns. For the sake of argument, lets suppose this radically transparent and equitable system only achieves .5% market share:

• Advertiser: ~$1.8B spent on digital ad placement
• Publishers: ~$1.2B (68%) paid to websites and apps for ad space
• Service Providers: ~$497M (85% of remaining revenue) for AI Models and ad network infrastructure
• Data Contributors: ~$87M (15% royalty) paid out to data providers

This is not a business plan, it’s a concept.

The point here is to highlight what can be built from the infrastructure Oraichain has already developed.

Conclusion

Take a step back. Don’t look at Oraichain as DeFi. Don’t look at this infrastructure in the scope of the blockchain or crypto space. The value proposition is really much larger than this space is even ready to accept. Oraichain could be the beginning of a brand new, self sustaining digital economy. That’s what I’m here for. Go build something.