Understanding Open Ledger, led by Polychain: A blockchain network for the specialized AI language model SLM.

Author: BCH Alpha Researcher

Project Name: Open Ledger

Project Positioning: Blockchain Network of Dedicated AI Language Model SLM

Project Highlights: In the dedicated language model track, cleverly uses blockchain technology to solve problems such as AI data scraping, rights confirmation, and incentives. Truly realizes the value of blockchain.

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

Participation method: TGE not yet held, currently you can use a computer to participate in test network mining incentives.

The following is a detailed explanation of the project:

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 that allows everyone to fairly contribute data, develop AI models, and also earn from it.

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

Among these four roles, I particularly emphasized the word "dedicated", which is the core of Opne Ledger. Opne Ledger is not constructed like Open AI to build a general AI large language model, but rather to build a dedicated AI language model, which is SLM. This means that the data is dedicated, and the AI model is trained using dedicated data.

Opne Ledger is based on a dedicated data network (Datanets)) that absorbs, cleans, and transforms data into usable information, which is then provided to specialized AI model developers. The attribution proof mechanism built on blockchain technology allows Opne Ledger to identify data sources and assign rights to specific data providers' identities. Thus, Opne Ledger can clearly recognize that certain proprietary data is contributed by specific users, enabling rights assignment and incentives based on blockchain.

OpenLedger emphasizes a concept called "Payable AI," which means that AI models can not only be used but can also automatically distribute payments to data providers and model developers based on their contributions. Imagine you are a photographer who has taken many beautiful pictures of women. You upload these photos to OpenLedger, and AI developers use your photos to train a generative art AI model for creating images of beautiful women. Every time someone uses this AI to generate a woman's portrait, OpenLedger can track that your photos were used and automatically provide you with a share of the revenue. This is the core of Payable AI and also the core operational logic of OpenLedger. This logic does not apply to general large language models, but in the field of SLM, which is specialized language models, blockchain plays a significant role, and OpenLedger serves as the universal platform in the SLM space.

2. The Operating Principle of OpenLedger

To explain the operating principles of OpenLedger more clearly, we will break down several specialized terms involved in OpenLedger into simpler language and elaborate on the role of blockchain in each segment.

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

(1) Data Source: Datanets (Data Network)

OpenLedger relies on something called Datanets to collect data.

Datanets are like specialized data markets, with each market targeting a specific field, such as healthcare data, music creation, social media content, and so on. 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 and cleaned, becoming the "raw materials" for AI training.

Blockchain here is like a super transparent ledger. Every time someone uploads data, the blockchain records it: who uploaded what, and how many times the data has been used. This way, no one can secretly alter the data, and no one can deny having used your data.

For example, Bob is a game streamer who uploads his live stream clips to OpenLedger's "Game Datanet". A company used 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 number of uses.

(2) Proof of Attribution

This is the core technology of OpenLedger, which can be translated into plain language as "proving who contributed what." It can track every output of the AI model and clarify which data was used and who contributed.

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

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

(3) Payable AI (Payable AI)

Payable AI is the ultimate goal of OpenLedger: to turn AI models into an "asset that can earn money by itself." Developers can deploy AI models on OpenLedger, and users will pay for using the models, with the fees automatically distributed to data contributors and model developers.

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

Blockchain ensures that transactions are open and transparent, with clear visibility on how money is distributed and who receives how much. Smart contracts can also automatically execute profit sharing without the need for intermediaries, saving both 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 contributors providing language data (such as Ruby, who uploaded English teaching materials) can earn money, with the blockchain automatically calculating the proportions and transferring funds directly.

(4) OpenLedger Decentralized Network

OpenLedger does not place all data and computations on a single company's server, but instead utilizes a decentralized network of blockchain. This means that data and AI models are distributed across nodes globally, preventing any one entity from monopolizing.

Users around the world can run OpenLedger's nodes (like a small server) to help store data and run AI computations. In return, they can also earn some rewards.

The blockchain is responsible for coordinating these nodes, ensuring data security and the credibility of computation results. It records who runs the nodes and how much work was done, so no one will be missed when rewards are distributed.

For example, Black ran an OpenLedger node at home, helping the platform store some music data. Someone used this data to train an AI, and Black's node recorded the transactions, while the blockchain sent him a small amount of tokens as a reward.

What problems has OpenLedger solved using blockchain technology that were previously difficult to address?

There are several major issues in the AI track, and OpenLedger cleverly provides its own solutions using blockchain technology:

(1) Data source is not transparent

Most AI companies randomly grab data from the internet to train their models, and you don't even know if your data has been used, let alone get paid for it. OpenLedger uses blockchain to record data sources and usage, ensuring that contributors are treated fairly through attribution and proof. For example, many AI drawing tools are trained using artists' works, but the artists haven't received a penny. OpenLedger allows artists to upload their works, and automatically compensates them when the AI uses it.

(2) Centralized Risk

At present, large companies control AI data and models, and they can turn it off if they want to, and change it if they want to, and users have little right to speak. For example, if an AI platform suddenly says "I won't let you use it", you will be dumbfounded. OpenLedger's blockchain allows data and models not to be monopolized by a single company, and users themselves can participate in running the network, making power more decentralized. Just like in the early days of YouTube, video creators relied entirely on the mood of the platform to make money. OpenLedger is like building a "decentralized YouTube" for AI, giving creators more control.

(3) Contributors have no returns

The current situation is that AI models make a lot of money, but ordinary people who provide data and engineers who develop the models often get nothing. OpenLedger's Payable AI allows every contributor to share in the profits, encouraging more people to participate, which will also improve data quality. Just like how YouTube later shared ad revenue with content creators, leading to a significant increase in video quality. OpenLedger also aims to enrich AI data through profit sharing.

(4) The AI models are not diverse enough

Currently, most AI large models are developed by big companies and are more general-purpose, making it difficult to meet niche demands (such as local language translation). OpenLedger focuses on the field of dedicated language models. Datanets make it easier to collect data in specialized fields, allowing developers to create more precise "specialized AI". For example, an AI for a minority language may 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 the fact that it does not directly enter the large language model track, but instead focuses on the specialized language model (SLM) track, which can fully utilize the characteristics of blockchain technology.

Let's list the roles that blockchain technology plays in OpenLedger:

• Accounting: Record every data upload, usage, and profit sharing, transparent and immutable.
• Profit Sharing: Automatically distribute profits to contributors proportionally using smart contracts, without the need for manual intervention.
• Decentralization: Distributing data and computing tasks across global nodes to prevent centralization.
• Security: Data is encrypted and stored, and the blockchain ensures that no one can secretly alter the data.
• Incentives: Issue token rewards to those who run nodes and contribute data, encouraging everyone to participate.

Summary

The core of OpenLedger is to create a fair and transparent dedicated AI model ecosystem using blockchain. It collects data through Datanets, tracks contributions with Proof of Attribution, and automatically distributes funds with Payable AI, allowing everyone to share in the benefits of AI development. Blockchain ensures data security, transaction transparency, and fair distribution, while also preventing the entire system from being controlled by large companies.

The OpenLedger team keenly discovered that the general large language model track is monopolized by super companies such as OpenAI, Google, and Microsoft. They do not need blockchain and will not use blockchain to equalize themselves. However, the specialized language model track (SLM) is an AI track that relies more on decentralized communities and decentralized power for its drive. In this sector, AI and blockchain have achieved a clever combination.

OpenLedger shows us a possibility that the combination of blockchain and AI should not only arise from technical needs but should also start from the market. First, the business needs to be established, and then we can see what value blockchain and AI can actually provide here. OpenLedger allows us to see this potential.

Open Ledger testnet mining link: The official documentation provides detailed guidance, just follow the steps to participate. Risk warning: The above content is for discussion purposes only, DYOR.