In-depth Analysis of AI Layer 1 Projects: Building the Infrastructure for Decentralized Artificial Intelligence

With the rapid development of artificial intelligence technology, traditional blockchain architectures can no longer meet the high-performance computing and complex data processing needs of AI applications. As a result, a number of Layer 1 blockchain platforms optimized for AI have emerged, showcasing diverse characteristics in terms of technical architecture, application scenarios, and business models. This article provides an in-depth analysis of five leading AI Layer 1 projects: Bittensor, Vana, Kite AI, Nillion, and Sahara AI.

Bittensor: Decentralization AI Network Infrastructure

Bittensor, as an early explorer in the blockchain AI field, is committed to building an open decentralized artificial intelligence collaboration network. Its goal is to break the centralized barriers in traditional AI development, allowing more participants to contribute and share profits.

Bittensor adopts a dual-layer structure design:

• Core Network (Mainnet): Responsible for the coordination, verification, and issuance management of the TAO token.
• Subnet Ecology: Develop specialized solutions for specific AI application scenarios

Eco Development Progress

• The number of subnets has exceeded 64, covering various AI application scenarios such as text generation, trading signals, and data annotation.
• Active users reached 140,000, a year-on-year increase of 100%.
• The total market valuation of subnet exceeds $100 million, with a daily trading volume of about $45 million.
• Institutional participation increases, well-known funds include TAO in their Decentralization AI fund.

Bittensor recently completed the dTAO (dynamic TAO) system upgrade, optimizing the distribution mechanism of the token TAO and introducing a market-driven dynamic resource allocation system. This system transforms each subnet into an independent economic unit, driven by the actual needs of users for resource allocation.

The currently most active subnets include:

• Subnet Targon 4: Focused on AI inference services for text generation
• Subnet 64 Chutes: Provides API interfaces for various LLMs.
• Subnet No. 8 PTN: Focused on the financial sector, generating trading signals
• Subnet 52 Dojo: Focus on Data Annotation

Vana: Data Sovereignty and Value Reconstruction Platform

The Vana project focuses on solving the issues of personal data ownership and value distribution, establishing an ecosystem that allows users to truly own and control their own data.

The technical architecture of Vana consists of five core components:

1. Data Liquidity Layer
2. Data Portability Layer
3. General Connection Group
4. Non-custodial data storage
5. Application Ecosystem

Latest developments

• Secured strategic investment, Binance founder CZ joins as an advisor
• Built data projects covering multiple fields
• Organize hackathon events to encourage developers to build DataDAO and AI applications based on Vana data.

Kite AI: Technical Breakthrough of AI-native Public Chain

Kite AI is a native Layer 1 blockchain project focused on the AI field, built on the Avalanche framework. It proposes four core technological innovations:

1. PoAI Consensus Mechanism
2. Composable AI Subnet
3. AI Native Execution Layer
4. Decentralization Data Engine

Development Status

• Launched incentive testnet, the number of connected wallets exceeded 1.95 million
• Built by an experienced Silicon Valley team, core members come from top tech companies.
• Obtain investments from multiple top-tier institutions and establish technical cooperation relationships with various projects.
• As a selection committee member in the Avalanche InfraBUILDL(AI) program, promote the development of the Avalanche artificial intelligence ecosystem.

Nillion: Frontier Exploration of Privacy Computing

Nillion redefines the processing of sensitive data through its unique "blind computation" technology. Its technical architecture integrates various cutting-edge privacy protection technologies, including multi-party computation, fully homomorphic encryption, zero-knowledge proofs, and the Nada language.

Latest Development Progress

• The mainnet is scheduled to launch in March 2025.
• Completed a $25 million financing, with a total financing amount of $45 million.
• Establish integration relationships with multiple mainstream public chains
• Establish cooperation with multiple projects in the AI ecosystem

Sahara AI: A Platform for Building a New Economy of AI Assets

Sahara AI aims to build a "Human-AI Collaboration Network" that allows ordinary users, developers, and enterprises to participate in the creation, deployment, and monetization of AI assets.

Latest Development Progress

• The testnet is being rolled out in phases to attract a large number of users to participate.
• Release the roadmap for the 2024-2025 fiscal year, including several key milestones.
• Launching an incubator program to support AI x Web3 innovative projects

Summary

AI Layer 1 is in a critical stage of rapid evolution, reconstructing the underlying architecture of AI technology through Decentralization infrastructure. These platforms are breaking through the limitations of traditional centralized AI systems, building a more open, transparent, and efficient technological ecosystem, and promoting the development of artificial intelligence towards a more Decentralized and collaborative direction.