πŸ“–
Web3 Encyclopedia
  • Welcome aboard!
  • Source
  • πŸ˜€Evolution from Web 1.0 to Web 3.0
    • Web 1.0 Web 2.0 Web 3.0
    • Key Features
    • Current Limitations
    • Future of Web 3.0
    • Learn: What Is Web3?
    • Learn: Will Every Brand Have a Web3 Strategy?
    • Learn: Big Ideas in 2023
    • Learn: The Web3 Paradox: Why Scaling Usage Alone Won't Lead to Mass Adoption?
    • Learn: Is Web3 A Marketing Buzz or Tech Revolution?
    • Learn: What is the relationship between blockchain and Web3?
    • Learn:Empowering Women in Web 3.0: The Role and Contributions of Women in Blockchain, DeFi, and dApp
    • Learn: Web 3.0 and the Future of E-Commerce
    • Learn: 12 ways ecosystem projects can attract more developers
    • Learn: How Web3 is Impacting Education?
    • Learn: Web3 And The Future Of Digital Advertising
    • Learn: Web3’s impact on personalization, trust and engagement
    • Learn: Web3-Powered Identity Management -- Unlocking the Benefits of Decentralization
    • Learn: Why Web2 companies fail in Web3 while others made it?
    • Learn: To Identify or Not in a Web3 World?
    • 🀫[Insider Series] McKinsey x Web3
    • TL;DR πŸ‘€
  • πŸ’²Blockchain Fundamentals
    • Why is Blockchain So Popular?
    • Introduction to Blockchain
    • Blockchain Misconceptions
    • Blockchain vs Bitcoin, Database, Cloud
    • Consensus Mechanism
    • Public and Private Keys
    • Hash Functions and Cryptography
    • Sharding
    • Types of Blockchains: PoW, PoS and Private
    • Understanding Cryptocurrency
    • Coins vs Tokens
    • Blockchain Trilemma
    • Legality
    • Learn : Google’s Cloud Based Blockchain Node Service
    • Learn: How Blockchain, Digital assets, and Web3 Unlock Financial Inclusion Globally
    • Learn: Will Chinese-Made Crypto Soar Higher?
    • Learn: What Does MiCA Mean for Crypto in Europe?
    • Learn: Unraveling the Intricacies of Blockchain Forensics and Asset Tracking
    • Learn: Promising blockchain use cases in healthcare industry
    • Learn: The Role of Blockchain in Authenticating and Provenance Art
    • Learn: Blockchain-Based Digital Identity: Benefits, Risks, and Implementation Challenges
    • Learn: The Future of Energy Supply Chains
    • Learn: Revolutionizing smart contracts and cryptocurrency
    • Learn: Nigeria goes blockchain
    • Learn: A Game Changer for Online Gaming?
    • Learn: Is blockchain technology ready for high-storage applications?
    • Learn: Will Blockchain Technology Mark a Turning Point in Fraud Prevention?
    • Learn: Why ZK-rollups need data availability?
    • Learn: How will generative AI disrupt blockchain?
    • Learn: A New Blockchain for Generative AI?
    • TL;DR πŸ‘€
  • 🏟️Web3 Utilities
    • Decentralized Applications (dApps)
    • Cross-chain Bridges
    • DAO
    • Artificial Intelligence
    • Learn: Is Community-building Essential for Web3 Startups?
    • Learn: β€˜Decentralization Theater’
    • Learn: Crypto and AI- A yay or nay combination?
    • Learn: Dissecting the DAO
    • Learn: What is motivating Lido DAO to rise?
    • Learn: How to Turn Your Community Into a DAO?
    • Learn: The Key to Decentralized Decision Making
    • Learn: How Web 3.0 can disrupt the supply chain industry?
    • TL;DR πŸ‘€
  • πŸͺ™Bitcoin
    • What is Bitcoin
    • Bitcoin's Blockchain Technology
    • UTXO Model and Transaction Fees
    • Bitcoin Mining and Mempool
    • Learn: What is bitcoin mining?
    • What are Hard Forks and Soft Forks
    • What is SegWit and the Lightning Network
    • Bitcoin Ecosystem
    • Can Bitcoin be Destroyed? Game Theory and Network Attacks
    • Learn: Crypto token supplies explained
    • Learn: What is crypto tax-loss harvesting, and how does it work?
    • Learn: Can Crypto Go Green? How to Invest in Eco-Friendly Cryptocurrencies
    • Learn: Why Did FTX Collapse? Here’s What to Know.
    • Learn: How Sam Bankman-Fried swindled $8 billion in customer money?
    • Learn: How much is Bitcoin worth today?
    • Learn: The Costs of Running a Bitcoin Node In Nigeria
    • Learn: Has 2022 Left Any Crypto Positives?
    • Learn: How Crypto Exchanges Can Be Free of Risk?
    • Learn: Greed, Lies and FTX: Is Crypto a Force for Good or Evil?
    • Learn: Is Crypto a Cultural Movement?
    • Learn: What are the consequences of crypto’s ongoing regulatory process?
    • Learn: Beyond the Crash and Embracing NFTs?
    • Learn: Understanding crypto bag holders and their mindset
    • Learn: Inscriptions: Just A Fad, Or A Real Threat To Bitcoin Becoming Decentralized Money?
    • Learn: How Bitcoin Ordinals Can Change the Future Of Mining?
    • Learn: What is a supernet?
    • Learn: Bitcoin Miners Celebrate 10 Years Since First ASIC, What Changed Since Then?
    • Learn: Bill Vs. CBDC – Why This US Congressman Wants To Block The Fed From Issuing A Digital Dollar?
    • Learn: Why Bitcoin Will Blow People’s Minds In 2025?
    • Learn: How the Howey Test Sheds Light on Cryptocurrency's Regulatory Gray Area
    • Learn: Cryptocurrency vs AI: A Complex Debate
    • Learn: Where the U.S. Government Went Wrong in Regulating Crypto?
    • Learn: The Nostr Privacy Paradox
    • Learn: Do algorithmic stablecoins have a future as centralized coins are under scrutiny?
    • Learn: Is Bitcoin Set To Revolutionize The Financial World With Its Superior Purchasing Power?
    • Learn: What is Shibarium, and what does it mean for Shiba Inu?
    • Learn: What is a crypto dusting attack?
    • Learn: Is the Adoption of Central Bank Digital Currencies (CBDCs) the Future?
    • Learn: How Artificial Intelligence Could Revolutionize Crypto?
    • Learn: What’s next for EU’s crypto industry as European Parliament passes MiCA?
    • Learn: Why the EU Has MiCA and the U.S. Has Securities Law Confusion?
    • Learn: Six New Projects Looking to Mitigate Bitcoin Mining’s Energy Footprint
    • Learn: Who on Crypto Twitter chose not to pay for a blue checkmark?
    • Learn: What is the wash-sale rule in Crypto?
    • Learn: What is Pepecoin and can it flip memecoins Dogecoin and Shiba Inu?
    • Learn: Can you recover stolen Bitcoin from crypto scams?
    • Learn: What the β€˜anti-mining bill’ means for the crypto industry in Texas?
    • Learn: Does the US have a crypto β€˜tax loophole’ problem?
    • Learn: How users can stay protected?
    • Learn: How Crypto Revolutionize Cheaper and Faster Transactions?
    • Learn: Can NFTs and CFDs be BFFs?
    • Learn: A PR expert’s tips for memecoin projects
    • Learn: Why politicians aren't convinced about the Digital Euro?
    • Learn: How A 90-Year Old TA Theory Predicted The Sudden Bitcoin Boom?
    • Learn: Social Trading Platforms and CFDs: A New Paradigm in Investment
    • Learn: How could the Chinese economic crisis impact Bitcoin and crypto?
    • Learn: How do they compare: Bitcoin IRA vs. traditional IRA?
    • Learn: Why Tokenized Assets Are Safer During a Banking Crisis?
    • TL;DR πŸ‘€
  • πŸ›’οΈEthereum
    • Bitcoin vs Ethereum
    • What can Ethereum do?
    • What is Ether (ETH)?
    • What's Unique About ETH?
    • What are Smart Contracts?
    • Energy Consumption?
    • Ethereum Virtual Machine (EVM)
    • Pros & Cons of Smart Contracts
    • Decentralized Applications (dApps)
    • Ethereum Token Standards (ERC-20, ERC-721 and ERC-1155)
    • Evolution of Ethereum
    • How to Get Your First Ethereum
    • Learn: Next Ethereum Upgrade β€” Shanghai Upgrade
    • Learn: Tipping Scale for Crypto Adoption: Usability vs. Accessibility
    • Learn: Major Publicly Traded U.S. Bitcoin Miner Files For Chapter 11 – Impact On The Market?
    • Learn: 5 altcoin projects that made a real difference in 2022
    • Learn: How Tether Can Be a More Stable Stablecoin?
    • Learn: Are the Ethereum Killers Still Deadly?
    • Learn: What Ethereum Tech Trends Are Weathering the Bear Market?
    • Learn: How Ethereum’s token burns are making it a deflationary cryptocurrency?
    • Learn: A few things to know about Ethereum's Shanghai Upgrade
    • Learn: The Role of Enterprise Ethereum
    • Learn: Understanding Layer 2 Scaling Solutions for the Ethereum Network
    • Learn: The Battle of Giants: Bitcoin vs Ethereum
    • Learn: Cryptography, Smart Contracts and Distributed Networks
    • Learn: The Memecoin Grift and How It Threatens Ethereum Culture
    • Learn: What Is Ethereum’s β€˜Data Availability' Problem, and Why Does It Matter?
    • TL;DR πŸ‘€
  • πŸ‘›Wallet
    • What is a Blockchain Wallet?
    • Hardware / Software Wallet
    • How to Get Your First Cryptocurrency
    • Setting up Metamask Wallet
    • Learn: How to connect the Avalanche network to MetaMask?
    • Learn: How to pass on your crypto when you die?
    • Learn: What are hierarchical deterministic (HD) crypto wallets?
    • Learn: Pros and Cons of Digital Wallets
    • Learn : How Web 3.0 Wallets Are Redefining Digital Asset Security?
    • Learn: Open source: Buzzword or real security for crypto wallets?
    • TL;DR πŸ‘€
  • πŸŒ•New & Rising Protocols
    • Binance
    • NEAR
    • Solana
    • Fantom
    • Polygon
    • Cardano
    • Polkadot
    • Cosmos
    • Harmony
    • Cronos
    • Optimism
    • Terra
    • Who Will Win the L1 Wars?
    • Learn: New Layer 1 Blockchains Are Expanding the DeFi Ecosystem But No Eth Killers Yet
    • Learn: Is an Increased Focus on Layer-2 Scaling and ZK Technology Justified?
    • Learn: What Are the Stakes in the SEC vs. Ripple Case?
    • Learn: What is The Graph, and how does it work?
    • TL;DR πŸ‘€
  • πŸ“ˆDecentralized Finance (DeFi)
    • CEX vs DEX
    • CeFi vs DeFi
    • Algorithmic Stablecoins
    • Airdrop
    • Liquidity Pool
    • Impermanent Loss
    • Swapping
    • Wrapped Token
    • Arbitrage Opportunities
    • Staking
    • Yield Farming
    • Total Value Locked (TVL)
    • Gas Fees
    • Lending & Borrowing
    • Useful Tools
    • Activity: Uniswap & Pancake Swap
    • Learn: Automated Market Makers (AMMs) in DeFi
    • Learn: Crypto Moving towards ESG: What Is Regenerative Finance (ReFi)
    • Learn: What Is dYdX? Understanding the Decentralized Crypto Exchange
    • Learn: It's A Wrap - DeFi in 2022
    • Learn: Why DeFi should expect more hacks this year?
    • Learn: The Security Challenges of DeFi
    • Learn: The Promising Future of Decentralized Social Media on Web 3.0
    • Learn: Can CBDCs, Tokenized Deposits, Stablecoins and DeFi Coexist?
    • Learn: The Increasing Popularity of DeFi and Its Potential to Disrupt Traditional Finance
    • Learn: The future of DeFi is ReFi
    • Learn: DeFi aggregation
    • TL;DR πŸ‘€
  • πŸ™ˆNon-Fungible Token (NFT)
    • What are NFTs?
    • Case Study
    • Storage
    • Who are the Players?
    • NFT Marketplace
    • NFT Useful Resources
    • Activity: Mint Your Own NFT
    • Learn: How You Can Prevent Hackers From Stealing Your NFTs?
    • Learn: What Is an NFT Floor Price?
    • Learn: Should Bored Ape buyers be legally entitled to refunds?
    • Learn: China’s view of NFTs different from rest of the world’s
    • Learn: NFTs IRL: How Digital Collectibles Are Forging Offline Experiences
    • Learn: How NFT Brands Can Cut Through The Noise
    • Learn: How Web3 disrupts the music sector?
    • Learn: Unlockable content in NFTs
    • Learn: Why Meta Matters in NFTs?
    • Learn: Should NFT Marketplaces Become Centralized?
    • Learn: HermΓ¨s vs. MetaBirkins: The NFT Case That Could Have Major Trademark and Artistic Consequence
    • Learn: What are phygital NFTs, and how do they work?
    • Learn: What is NFT ticketing and how does it work?
    • Learn: Why Solana NFT marketplace is seeing less active users?
    • Learn: NFTs and Intellectual Property
    • Learn: How AI Is Changing Artistic Creation and Challenging IP Laws?
    • Learn: The Future of NFTs: Exploring Dynamic NFTs and Their Versatile Use Cases
    • Learn: NFTs in the event and ticketing industry
    • Learn: What is NFT rarity, and how to calculate it?
    • Learn: What happens to your NFTs when you die?
    • Learn: Dogecoin-Like Spike in Milady NFTs After Elon Musk’s Tweet, But Will It Last?
    • Learn: What are NFT royalties, and how do they work?
    • Learn: How developers aim to store crypto inside NFTs?
    • Learn: Generative Art NFTs: What Are They & Why Are They So Popular?
    • TL;DR πŸ‘€
  • πŸ’—Metaverse
    • What is the Metaverse?
    • Metaverse Economy
    • Metaverse Companies
    • GameFi
    • Learn: Are We in the Metaverse Yet?
    • Learn: Can the Metaverse exist without blockchain?
    • Learn: Can the Metaverse Facilitate Sustainable Growth of Defi Systems?
    • Learn: What is the role of biometrics in the metaverse?
    • Learn: Can metaverse be the future court?
    • Learn: Metaverse Fashion Is on the Rise, but for Whom?
    • Learn: Sustainability in the Metaverse: Challenges and Opportunities
    • Learn: How To Build A Responsible Metaverse?
    • Learn: What is a VTuber, and how do you become one?
    • Learn: How proof-of-identity provides human experiences?
    • Learn: The β€œMetaverse” Next Frontier for Business: Impact And Challenges
    • Learn: The 5 Biggest Misconceptions About The Metaverse
    • Learn: Why culture and ownership are critical to the metaverse?
    • TL;DR πŸ‘€
  • πŸ‘ΎCareer in Web3 (coming soon)
    • Developers
    • Moderators
    • Community Managers
    • UI/ UX Designers
    • Digital Fashion Designers
  • 🌱Sustainability (Coming Soon)
    • Industry Effort
    • Co-author
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On this page
  • Open-source momentum versus centralized control
  • Building a generative AI foundation in Web3
  • Why a new blockchain?
  • The risk of ignoring generative AI in Web3
  1. Blockchain Fundamentals

Learn: A New Blockchain for Generative AI?

PreviousLearn: How will generative AI disrupt blockchain?NextTL;DR πŸ‘€

Last updated 1 year ago

Generative artificial intelligence (AI) has quickly become one of the hottest and arguably the most transformational technology trends of the last few decades. The impact of generative AI is evident in all areas of the technology stack, ranging from infrastructure to applications.

Since the release of ChatGPT and the subsequent GPT-4, the Web3 community has been speculating about the potential intersection of generative AI and Web3. While there are many obvious use cases, such as conversational wallets or language exploration, there are more sophisticated theses worth exploring.

What if generative AI deserves its own blockchain?

Open-source momentum versus centralized control

To analyze the viability of a blockchain for generative AI, it is important to understand the current state of affairs regarding foundation models, particularly the emergence of open-source alternatives to API-based tech like GPT-4, and the increasing concerns surrounding centralized control of those foundation models.

Until a few months ago, the gap between API-based and open-source foundation models was significant. Models such as OpenAI's GPT-4, Anthropic's Claude in the language space, DALL-E, and Midjourney in the computer vision space, seemed significantly advanced compared to open-source alternatives. However, a change started to occur late last year with the surprising open-source release of Stable Diffusion, which provided a viable alternative to API-based text-to-image models. Despite this, large language models (LLMs) continued to be the focal point of generative AI, and in that domain, open-source models paled in comparison to API-based alternatives in terms of quality.

Earlier this year, Meta AI Research published, an LLM that matched the performance of GPT-3 while being significantly smaller. Initially, the model was not intended to be open-sourced, but something unexpected happened. A week after its publication, the model was leaked on 4chan and rapidly downloaded by thousands of people. The LLaMA "accident" made a foundation LLM available to anyone and sparked an unexpected momentum in open-source innovation.

Shortly after the leak, new open-source foundation models with amusing animal names started to emerge everywhere. Stanford University released Alpaca, Databricks unveiled Dolly, Berkeley University open-sourced Koala, UC Berkeley and Carnegie Mellon University collaborated on the release of Vicuna, Together announced the Red Pajama project, and the list goes on. Stable Diffusion and LLaMA have helped shift the scales of open-source generative AI and have generated significant momentum. Moreover, open-source foundation models are rapidly closing the gap with commercial incumbents in terms of quality.

Another factor contributing to the emergence of a generative AI blockchain is the concern surrounding the lack of transparency and centralized control of foundation models. The size and complexity of the neural architectures powering foundation models make exact interpretability nearly impossible. As a result, the industry must rely on intermediate steps such as more open architectures and thoughtful regulation. That a few centralized entities control the most powerful models in the market adds another layer of concern regarding the feasibility of achieving real accountability, transparency, and interpretability in generative AI.

The combination of open-source innovation in foundation models and growing concerns about centralized control in the field creates a unique window of opportunity for Web3 architectures. The abundance of high-quality open-source models reduces the barriers to adoption in Web3 platforms. Solving the transparency and control risks in generative AI is far from trivial, but there is little doubt that blockchain architectures possess key properties that can help in this area.

Building a generative AI foundation in Web3

The explosion of innovation in open-source foundation models has significantly lowered the barrier of entry for Web3 platforms to incorporate generative AI capabilities. The adoption of foundation models in Web3 platforms can follow two fundamental, and likely sequential, paths:

  1. Building DApps that enable intelligent capabilities powered by generative AI.

  2. Constructing new Web3 platforms designed with generative AI as a foundational component.

In the first scenario, we are likely to witness tools like exchanges, explorers, or wallets incorporating conversational capabilities powered by large language models. Additionally, a new generation of DApps will be built with generative models as their cornerstone. In this scenario, Web3 primarily acts as a consumer of generative AI capabilities, with models running on traditional Web2 cloud infrastructures.

More intriguing alternatives emerge when considering Web3 platforms that can inherently support generative AI models. Imagine open-source foundation models like LLaMA, Dolly, or Alpaca running on nodes within a distributed blockchain. The ultimate realization of this vision is a blockchain specifically designed for generative AI.

The concept of a new blockchain optimized for a technology paradigm like generative AI may sound appealing, but it is undeniably controversial. After all, there were no new blockchains created solely for DeFi or NFTs. So, what makes generative AI so different?

The answer lies in the architectural mismatch between the requirements to run foundation models and blockchain runtimes. A typical pre-trained foundation model consists of millions of neurons spread across tens of thousands of interconnected layers, executing on clusters of GPUs or specialized deep learning hardware topologies. No smart contract in the history of Web3 even comes close to that level of complexity. Thus, it is logical to conclude that a new type of architecture is needed. Even Web2 infrastructures are evolving to support large-scale generative AI models, illustrating the magnitude of the required changes in Web3 architectures.

When contemplating a new blockchain for generative AI, the possibilities appear endless. But, the simplest iteration of this idea should encompass a set of core capabilities. The ability to run nodes that execute foundation models is paramount for a blockchain dedicated to generative AI. The same applies to the ability to execute pretraining, fine-tuning, and inference workflows, which are the three primary stages in the life cycle of foundation models. Publishing and sharing datasets used for pretraining or fine-tuning models is also a desired feature. Once we establish a blockchain runtime as the foundational layer, numerous capabilities in the areas of transparency and interpretability can be enabled. For instance, we can envision a proof-of-knowledge protocol that offers transparency regarding the specific weights of a model, validating that non-toxic or biased datasets were used for pretraining.

Why a new blockchain?

The concept of a specialized blockchain for generative AI is enticing, but is it truly necessary? There is a valid value proposition in integrating generative AI capabilities into existing blockchain runtimes. However, the history of software demonstrates a recurring trend of new architecture paradigms influencing infrastructure technologies. Recent trends like cloud computing or big data serve as examples. Foundation models represent fundamentally different architecture paradigms that likely necessitate more specialized blockchain infrastructures to operate effectively.

Furthermore, we cannot overlook the potential for generative AI to transform the lower layers of the blockchain stack. It is not far-fetched to envision a proof-of-stake blockchain where validators process transactions based on natural language. Similarly, smart contracts could utilize language as the fundamental means of exchanging messages.

Generative AI has the potential to drive changes throughout the entire blockchain stack. From this perspective, it seems logical to adopt a first principles approach by enabling a new runtime with the flexibility to incorporate these changes.

The risk of ignoring generative AI in Web3

The idea of a generative AI blockchain can indeed be controversial and not without its challenges. However, I encourage exploring this idea using a via negative argument.

What could happen if we neglect to build new blockchains for generative AI?

Currently, generative AI has created a significant technological gap between Web2 and Web3 architectures. This gap continues to widen in the absence of native generative AI capabilities in Web3. Generative AI is reshaping fundamental aspects of software development, and new frameworks and platforms are rapidly emerging to support this paradigm shift.

Developing native generative AI capabilities is nothing short of an existential challenge for Web3, as it is crucial to enable new waves of innovation in the field. A native generative AI blockchain represents just one of the many approaches that can facilitate this transition into the world of foundation models. Building a new blockchain comes with numerous challenges, but the rapid evolution of L2 runtimes, platforms like Cosmos, and the emergence of high-performance L1 ecosystems like Aptos or Sui make the possibility of a generative AI blockchain much more achievable than in previous years.

This article is written by

πŸ’²
a paper introducing LLaMA
Jesus Rodriguez