Zero-Gas Blockchain Network for Generative AI

Blockchain technology has no doubt revolutionised numerous industries by providing decentralised, transparent, and secure systems. High transaction fees and scalability remain the prevalent challenges that hinder internet scale adoption adoption. Traditional blockchain networks using forms of Proof of Work (PoW) or Proof of Stake (PoS) mechanisms require high gas fees to incentivise validators.

Imagine the possibilities with a network offering zero gas fees and a high transaction rate: seamless microtransactions, unrestricted access to blockchain services, and the ability to support a vast array of applications without the burden of transaction costs. By eliminating gas fees, this network democratises access to blockchain technology, allowing users from all economic backgrounds to participate without financial barriers. The high transaction rate ensures that the network remains fast and responsive, even under heavy loads, providing a smooth and efficient user experience.

For developers, a zero-gas fee network opens up new avenues for creativity and innovation. They can build and deploy applications that rely on frequent transactions, such as gaming platforms, DeFi solutions, and IoT ecosystems, without the concern of incurring high operational costs. The combination of zero gas fees and high transaction rates represents a significant advancement in blockchain technology, paving the way for widespread adoption and a new era of digital innovation.

Consider such a network analogous to the Global Positioning System (GPS). Just as the GPS, initially funded by the government, became freely available and transformed countless industries by enabling services like Uber and Google Maps, our zero-gas blockchain network can fuel unprecedented growth and innovation. By providing a foundational infrastructure that removes financial barriers and supports high transaction volumes, this network can empower startups and established companies alike to develop groundbreaking applications. This could lead to the creation of new industries, much like GPS did, driving economic growth and improving lives through enhanced technology and accessibility. The zero-gas blockchain network, much like GPS, has the potential to be a game-changer, opening up a world of possibilities for technological advancement and societal benefits.

Such a network fundamentally shifts the paradigm by eliminating the need for a native token, thereby simplifying the economic model and enhancing accessibility. Without the necessity for transaction fees paid in a native token, users can engage with the network freely and without financial barriers. This approach also means that the network does not need to hold value as a security, which significantly reduces the regulatory complexities typically associated with blockchain systems. By sidestepping the issues related to token issuance and trading, the network can focus on providing seamless, cost-free transactions and innovative functionalities, particularly in areas such as generative AI, without the burden of navigating stringent financial regulations. This regulatory simplicity not only accelerates deployment and adoption but also opens the doors to a broader audience, ensuring that the benefits of blockchain technology can be enjoyed by all.

Materialising a Zero-Gas Network

The underlying network acts as a state-store on a decentralised ledger, utilising the Proof of Authority (PoA) consensus mechanism to ensure efficient, secure, and cost-free transaction processing. In this system, trusted entities such as government agencies, universities, and reputable corporations serve as validators, bearing the operational costs to maintain the network’s integrity and performance. To fund the development and deployment of this innovative network, a comprehensive strategy involving multiple funding sources is essential. Government grants from bodies like Innovate UK and Digital Catapult offer significant initial funding, while academic institutions such as 英国牛津大学 and 英国伦敦大学学院 provide research grants and collaborate on projects. Additionally, support from non-profits and NGOs, such as The Alan Turing Institute and Nesta , bring both financial resources and valuable expertise to the table. By combining PoA with a robust and diverse funding approach, and with operational costs managed by trusted entities, the vision of a zero-gas network is achievable. This paves the way for widespread adoption and fosters innovation in areas like generative AI, democratising access to blockchain technology without the financial barriers.

The operational cost of running a validator node is approximately $500 per month. For a redundant PoA validation cluster running IBFT , the cost rises to around $2,000 per month. Thus, the total operational cost for a network with five trusted entities, each deploying a redundant validation cluster, amounts to a mere $10,000 per month.

In the UK, it is feasible to enlist organisations such as Digital Catapult , UK Research and Innovation and Department for Culture, Media and Sport to fund a redundant validator at a modest cost $24,000 per year. Additionally, bringing in aligned non-profit organisations like The Alan Turing Institute , Open Data Institute and Nesta can help establish trust and security within the network. University funding programs from institutions such as University of Oxford and UCL contribute valuable knowledge capital and advancing the network.

A network supported and operated by such trusted entities has a high likelihood of attracting interest from public cloud providers like Google Cloud , Microsoft Azure and Amazon Web Services (AWS) , all of which have previously demonstrated an interest in building and hosting blockchain services. This combination of funding, expertise, and infrastructure support creates a robust and trustworthy network environment.

Roadmap to Generative AI Blockchain

Built upon the zero-gas network is a sophisticated utility token, materialised through smart contracts. This utility token serves as the cornerstone of the network, enabling a wide array of functionalities and incentives without the burden of transaction fees.

Staking Mechanism for Generative AI Models

Holders of the utility token can actively participate in the network by staking their tokens in dedicated Staking Pools. Each pool is aligned with the development of a specific Generative AI Model, allowing token holders to support the projects they believe in. By staking their tokens, participants are essentially voting with their capital, directing resources to the most promising and innovative AI initiatives.

Earning Rewards from Inference Revenue

In return for their support, token holders receive a percentage of the revenue generated from the inference requests made to the AI models they have staked their tokens on. Enshrined in smart contracts, this creates a mutually beneficial ecosystem where both developers and token holders are incentivised to contribute to the success of the AI models. The revenue sharing model ensures that the financial benefits of AI development are fairly distributed among those who support the network.

Funding for AI Model Development

To ensure that developers have sufficient resources for research and development (R&D), the network implements a multi-faceted funding strategy.

On-Chain Funding

A significant portion of the funds for AI model development comes directly from the staking pools. When token holders stake their tokens, a portion of these tokens is allocated to the developers of the AI models. This direct funding mechanism provides developers with the necessary capital to conduct their R&D activities and progress their projects.

Off-Chain Funding

Additionally, the network leverages off-chain funding sources to bolster the resources available for AI model development. This includes grants and sponsorships from government bodies, non-profit organisations, and private enterprises. Furthermore, partnerships with academic institutions like the University of Oxford and UCL can provide additional funding and resources, including access to cutting-edge research facilities and expert knowledge.

Enhancing Network Value and Participation

The integration of utility tokens and staking pools not only drives the development of cutting-edge AI models but also significantly enhances the overall value of the network. By eliminating gas fees, the network lowers the barriers to entry, making it accessible for a broader range of participants. This inclusivity encourages more token holders to engage with the network, fostering a vibrant and dynamic community.

Security and Trust in the Ecosystem

The use of smart contracts to manage the utility tokens and staking pools ensures transparency, security, and trust within the ecosystem. Smart contracts automate the staking and reward distribution processes, minimising the risk of human error and ensuring that all transactions are executed fairly and accurately. This level of automation and security is crucial for maintaining the integrity and reliability of the network.

Generative AI Inference, Privacy and Security

Generative AI models are hosted off-chain on infrastructure owned and managed by the model developers. This setup allows developers to leverage their specialized hardware and environments optimised for AI computations. Users interact with these models through on-chain Oracles, which act as intermediaries, securely connecting the blockchain network to the off-chain AI services via APIs.

Utilisation of Utility Tokens

To generate output from these AI models, users spend utility tokens. These tokens facilitate the interaction between the user and the AI model, serving as a medium of exchange within the network. The use of utility tokens ensures that transactions are secure, transparent, and incentivised.

Encryption and Security of Generated Output

Once the AI model generates the requested output, it is encrypted using a unique key that is only accessible to the requester. This encryption ensures that the data remains private and secure, protecting the user's information and intellectual property. The encryption key is managed in such a way that only the requester can decrypt and access the output, maintaining strict confidentiality.

On-Chain References and NFTs

To establish ownership and provenance, a reference to the generated output is recorded on-chain via a Non-Fungible Token (NFT). This NFT acts as a digital certificate, linking the output back to the requester. The NFT contains metadata that includes details about the generated output and its ownership, providing a verifiable and immutable record on the blockchain.

Off-Chain Storage Solutions

The actual data for the generated output is stored off-chain using decentralised storage solutions like a variant of Filecoin or IPFS. The choice of storage solution depends on the size and nature of the payload. For instance, large datasets may be stored on a variant of Filecoin, which is designed for scalable and cost-effective storage, while smaller datasets might be stored on IPFS, which provides fast and efficient retrieval.

Integration and Workflow

1. Model Deployment: Developers deploy their generative AI models on their own infrastructure.
2. Oracle Interaction: Users make requests through the blockchain, which are relayed to the AI models via Oracles.
3. Token Expenditure: Users spend utility tokens to process their requests.
4. Output Generation: The AI model generates the output and encrypts it with a key unique to the requester.
5. On-Chain Reference: An NFT is created to reference the generated output, establishing ownership and provenance.
6. Off-Chain Storage: The encrypted output is stored on decentralised storage solutions like a variant of Filecoin or IPFS.

Benefits and Implications

This architecture ensures that generative AI models are both secure and accessible, leveraging the strengths of both on-chain and off-chain technologies. By using Oracles, utility tokens, and NFTs, the network provides a robust framework for secure interactions, transparent ownership, and scalable storage. This system not only protects user privacy but also incentivises developers by enabling them to monetise their AI models effectively.

Network Governance Model

In addition to utility, the token is used in the governance of the network. The network is governed by a Decentralised Autonomous Organisation (DAO), where stakeholders (token holders) participate in decision-making processes. The DAO oversees:

• Protocol Changes: Voting on updates and improvements.
• Project Approvals: Deciding on new AI model projects and funding allocations outside the on-chain staking.
• Dispute Resolution: Addressing conflicts and ensuring fair practices.

Voting power is proportional to the number of tokens held. The DAO employs a secure, transparent voting system, ensuring that decisions reflect the collective interests of stakeholders.

Conclusion

The integration of a zero-gas blockchain network with generative AI models represents a groundbreaking advancement in both blockchain and AI technologies. By leveraging a zero-gas fee infrastructure, the network eliminates financial barriers, making it more accessible and inclusive. The innovative staking mechanism allows token holders to support AI projects and earn rewards, driving continuous innovation and collaboration. The use of smart contracts, NFTs, and decentralised storage solutions ensures a secure, transparent, and efficient system for developing and utilising AI models.

This sophisticated ecosystem not only democratises access to advanced AI technologies but also fosters a vibrant community of developers, researchers, and users. The combination of on-chain and off-chain funding mechanisms provides ample resources for AI research and development, paving the way for cutting-edge advancements and applications.

I am excited about the potential of this transformative approach and believe it can significantly impact various industries, from healthcare to finance, by providing scalable and cost-effective solutions.

Call to Action

I invite you to share your thoughts and feedback on this concept via a message to me or a comment. Your insights and perspectives are invaluable as I continue to refine and develop this vision. Additionally, if you are passionate about making this a reality and would like to contribute to this project, please reach out. Let's collaborate to bring this revolutionary network to life and drive the future of democratised decentralised AI together.

Feel free to contact me directly if you're interested in joining forces to realise this vision or if you have any questions. Your engagement and support can help shape the future of blockchain and AI. Let's make this happen!