Author: ABC Alpha Researcher

Project Name: Open Ledger

Project Positioning: Blockchain network for dedicated AI language model SLM

Project Highlights: Ingeniously uses blockchain technology to solve issues related to AI data scraping, rights confirmation, and incentives in the dedicated language model track. Truly realizes the value of blockchain.

Funding Status: Seed round financing of 8 million USD, led by institutions such as Polychain.

Participation Method: Not yet TGE, currently can participate in testing network mining incentives using a computer.

Here are the project details:

1. What is OpenLedger?

In simple terms, @OpenledgerHQ is a decentralized network that combines AI and blockchain technology. Its core goal is to create a decentralized AI ecosystem where everyone can fairly contribute data, develop AI models, and earn money from it.

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

I particularly emphasize the word "dedicated," which is the core of Open Ledger. Open Ledger is not building a general AI large language model like Open AI, but rather a dedicated AI language model, which is SLM. This means that the data is dedicated, and the AI model is trained using dedicated data.

Open Ledger absorbs, cleans, and transforms data into usable data based on a dedicated data network (Datanets) to provide it to dedicated AI model developers. The attribution proof mechanism built on blockchain technology can identify the source of data and confirm the rights to specific data providers' identities, allowing Open Ledger to clearly know which dedicated data was contributed by specific users, thus completing rights confirmation and incentives based on blockchain.

OpenLedger particularly emphasizes a concept called "Payable AI," which means that AI models can not only be used but can also automatically distribute earnings to data providers and model developers based on contributions. Imagine you are a photographer who has taken many beautiful photos of women. You upload these photos to OpenLedger, and AI developers use your photos to train a generative art AI model. Every time someone uses this AI to generate a portrait of a woman, OpenLedger can track that your photos were used and automatically give you a share of the earnings. 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 the SLM, or dedicated language model track, blockchain plays a significant role, and OpenLedger is the universal platform for SLM.

2. How OpenLedger Works

To explain how OpenLedger works more clearly, we will break down several technical terms involved in OpenLedger and explain them in plain language, as well as describe the role of blockchain in each section.

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

(1) Data Source: Datanets

OpenLedger collects data through something called Datanets.

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

For example, if you are a doctor, you can upload some anonymous case data; or if you are a programmer, you can upload code snippets. This data will be organized, cleaned, and turned into "raw materials" for AI training.

Blockchain acts like a super transparent ledger here. Every time someone uploads data, the blockchain records: who uploaded what, and how many times the data was 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 who uploads his live stream clips to OpenLedger's "Game Datanet." A company uses these clips to train an AI that can automatically generate game commentary videos. The blockchain records that Bob's clips were used 100 times, so Bob can receive compensation based on the usage count.

(2) Proof of Attribution

This is the core technology of OpenLedger, which translates to "proving who contributed what" in plain language. It can track every output of the AI model, clarifying which data and contributions were used.

When the AI model generates a result (such as an article or an image), OpenLedger analyzes which data sources the result depended on and then allocates credit to the corresponding contributors. For example, if the AI writes a song, the system can find out that it referenced Peter's melody and Mary's lyrics, and then automatically distribute earnings to them. The blockchain ensures that this "credit allocation" process is transparent and tamper-proof. All contribution records are written on the chain, and no one can change them. Moreover, smart contracts (a type of self-executing program) will directly transfer money to the contributors' accounts based on the records.

For example, Jack is a writer who uploads a bunch of short stories to OpenLedger. An AI writer uses his writing style to generate a new story. Proof of Attribution finds that 30% of the inspiration for the new story came from Jack's stories, so Jack automatically receives 30% of the revenue share.

(3) Payable AI

Payable AI is the ultimate goal of OpenLedger: to make AI models a type of "self-generating asset." Developers can deploy AI models on OpenLedger, and users pay when using the models, with fees automatically distributed to data contributors and model developers.

For example, a company develops a medical diagnostic AI, and doctors pay a fee each time they use this AI to analyze patient data. This money will be distributed through the blockchain to the hospitals providing medical data, the engineers training the model, and so on.

Blockchain ensures that transactions are open and transparent, making it clear how money is distributed and who receives how much. Smart contracts can also automatically execute the distribution without the need for intermediaries, saving money and effort. For example, 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 contributor of the language data (such as Ruby who uploaded English teaching materials) can earn money, with the blockchain automatically calculating the ratio and transferring funds directly.

(4) OpenLedger Decentralized Network

OpenLedger does not store all data and computations on a single company's server but uses a decentralized network based on blockchain. This means that data and AI models are distributed across global nodes, preventing any single entity from monopolizing them.

Global users can run OpenLedger nodes (like small servers) to help store data and perform AI computations. In return, they can also earn some rewards.

Blockchain coordinates these nodes, ensuring data security and trustworthy computation results. The blockchain records who runs the nodes and how much work they do, ensuring that no one is overlooked when rewards are distributed.

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

3. What Problems Does OpenLedger Solve with Blockchain Technology?

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

(1) Lack of Transparency in Data Sources

Most AI companies randomly scrape data from the internet to train models, and you have no idea if your data was used, let alone receive compensation. OpenLedger uses blockchain to record data sources and usage, and the proof of attribution ensures that contributors are treated fairly. For example, many AI drawing tools train on artists' works, yet the artists receive nothing. OpenLedger allows artists to upload their works and automatically compensates them when AI uses them.

(2) Centralization Risks

Currently, large companies control AI data and models, and they can shut them down or change them at will, leaving users with little say. For instance, if an AI platform suddenly says, "You can't use it anymore," users are left in shock. OpenLedger's blockchain prevents data and models from being monopolized by a single company, allowing users to participate in running the network, thus decentralizing power. It's like the early days of YouTube, where video creators relied entirely on the platform's whims for revenue. OpenLedger creates a "decentralized YouTube" for AI, giving creators more control.

(3) Contributors Receive No Returns

Currently, AI models make a lot of money, but ordinary people providing data and engineers developing models often receive nothing. OpenLedger's Payable AI allows every contributor to share in the profits, incentivizing more people to participate and improving data quality. Just like how YouTube later shared ad revenue with creators, leading to a surge in video quality, OpenLedger aims to enrich AI data through revenue sharing.

(4) Lack of Diversity in AI Models

Most large AI models are developed by big companies and tend to be general-purpose, making it difficult to meet niche needs (such as local language translation). OpenLedger focuses on the dedicated language model field. Datanets make it easier to collect data from specialized fields, allowing developers to create more precise "specialized AI." For example, an AI for a minority language might not be developed due to a lack of data. OpenLedger's Datanet allows community members to upload language data, enabling developers to create dedicated AI.

The brilliance of OpenLedger lies in not directly entering the general large language model track but rather focusing on the dedicated language model SLM track, where the characteristics of blockchain technology can be fully utilized.

Let's summarize the roles of blockchain technology in OpenLedger:

• Accounting: Records every data upload, usage, and revenue distribution, ensuring transparency and immutability.
• Revenue Sharing: Automatically distributes earnings to contributors proportionally using smart contracts, without manual intervention.
• Decentralization: Distributes data and computational tasks across global nodes, preventing monopolization.
• Security: Data is stored encrypted, and blockchain ensures that no one can secretly alter the data.
• Incentives: Rewards those running nodes and contributing data with token incentives, encouraging participation.

Conclusion

The core of OpenLedger is to use blockchain to create a fair and transparent ecosystem for dedicated AI models. It collects data through Datanets, tracks contributions with Proof of Attribution, and automatically distributes earnings with Payable AI, allowing everyone to benefit from AI development. Blockchain ensures data security, transaction transparency, and fair revenue sharing, while also preventing the entire system from being controlled by large companies.

The OpenLedger team keenly observed that the general large language model track is monopolized by super companies like OpenAI, Google, and Microsoft, which do not need blockchain and will not use blockchain to empower themselves. However, the dedicated language model track (SLM) is an AI field that relies more on decentralized communities and decentralized forces for driving, where AI and blockchain achieve a clever combination.

OpenLedger also shows us a possibility: the combination of blockchain and AI should not only stem from technical needs but should also start from the market, first establishing a business, and then examining how blockchain and AI can create value here. OpenLedger allows us to see this potential.

Open Ledger testnet mining link: https://testnet.openledger.xyz/ Official documentation is available for detailed guidance; just follow the steps to participate. Risk Warning: The above content is for discussion and exchange only, DYOR.

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