AIOZ Network - Leading AI Paradigm Shift

Introduction

AIOZ Network is DePIN for Web3 AI, storage, and streaming and empowers a fast, secure, and decentralized future.

AIOZ Network is aiming to become the leading DePIN infrastructure platform for storage and streaming, and specifically as a leader in DePIN AI.

Let’s take two steps back, because what is DePIN?

DePIN stands for Decentralized Physical Infrastructure Networks. To understand it, think of centralized infrastructure, such as cloud computing through Amazon Web Services (AWS) which enables you to access processing power, storage, and databases without having to go out and create your own server farm or even maintain it at all.

AIOZ Network is a distributed infrastructure network that allows anyone, anywhere, anytime, access to decentralized services such as storage, AI computation, content distribution, and VOD (video-on-demand).

A fun fact, but did you know that AIOZ Network was a part of the NVIDIA Inception program some years back? This should tell you everything about the potential of AIOZ Network.

In web2 storage, leading cloud object storage providers boast impressive numbers, growing year on year.

Yet centralized providers often fall short in terms of security, data sovereignty, and environmental sustainability.

Single points of failure also present risks of downtime which can cost some of the world’s largest companies millions of dollars, even resulting in complete data loss for the end users.

The centralization of AI resources has led to bottlenecks in data processing, further monopolization of the data storage industry, and concerns over data privacy. The lack of GPU supply and high computational costs inhibit the advancement of AI, with industry monoliths spending millions of dollars to progress and the average developer or startup being priced out. On top of that, you have the video streaming market, which is projected to surpass $500 billion growth by 2032.

AR, VR, and social media streaming platforms have witnessed an explosion in both innovation and popularity. Traditional models, however, are increasingly strained under the demands for high-quality streaming, leading to a need for more resilient and efficient delivery methods.

In November 2022 the first version of chat generative pre-trained transformer (chatGPT) went live and has since caused a paradigm shift which has brought a lot of innovation since its inception.

However, most AI out there including chatGPT is monopolized which begs the question is OPENAI really open? Open in this context refers to being a decentralized AI computation.

Microsoft made a $10billion partnership with OPENAI which gives Microsoft privileged access to OPENAI’s tech while “locking” its dependence on its cloud computing infrastructure.

Check here for more info: https://blogs.microsoft.com/blog/2023/01/23/microsoftandopenaiextendpartnership/

Partnerships like this slowly gravitate the AI industry towards monopolization and one of the key factors that happens is that the quality of the AI algorithm data can be easily influenced and compromised.

The fact remains that centralized AI computation aids and abets poor development of such astonishing tech.

With that said, let’s look at the solution to this problem: AIOZ Network.

What is AIOZ Network?

To explain the figure above, let’s look into the core, which is the AIOZ blockchain.

AIOZ Blockchain

AIOZ Network is built using the Cosmos SDK but is also EVM-compatible. It leverages the Tendermint core and a delegated Proof of Stake consensus mechanism (dBFT) to achieve high transaction throughput, speed, and scalability with minimal fees. These features establish AIOZ Blockchain as a strong platform for decentralized applications (dApps).

The chain has a multichain structure and ensures fluid asset and data transfer across different blockchain ecosystems, enabling developers to utilize the advantages each offers.

AIOZ Network Blockchain Features

1. Instant Finality: Transactions on the AIOZ Network are finalized instantly, eliminating the need for long confirmation times and potential vulnerabilities associated with traditional blockchains.
2. Low Transaction Fees: Maintains low transaction fees, broadening access to blockchain technology and reducing costs for Web3 dApp deployment.
3. Multi-Chain Architecture with Infinite Horizontal Scalability: AIOZ Network’s blockchain is designed to support multiple chains, allowing for infinite horizontal scalability.
4. Smart Contracts for Web3 dApps: AIOZ Network supports both EVM-compatible smart contracts written in Solidity and WebAssembly smart contracts. This flexibility enables developers to choose the programming language that best suits their needs.
5. Interoperability: COSMOS Blockchain with EVM Compatibility: AIOZ Network’s blockchain is based on COSMOS, providing interoperability with other COSMOS-based blockchains. It also offers compatibility with EVM chains, allowing seamless integration with existing Ethereum-based dApps.

The EVM - Cosmos compatibility gives some benefits:

AIOZ dCDN

AIOZ Network’s dCDN (decentralized content delivery network) platform revolutionizes file storage and distribution in Web 3.0 dApps, providing an affordable solution for file storage & media streaming.

The dCDN is run by nodes which contributes to the security, storage capacity, bandwidth, and computing power of the network. And, since AIOZ Network is a POS-coin, the people who runs nodes get rewarded in AIOZ-tokens.

By harnessing the power of AIOZ Network Edge Nodes, participants are incentivized with $AIOZ tokens to share storage and deliver content, ensuring a secure and decentralized environment for end-users in the Web3 realm.

The use of peer-to-peer nodes, combined with a user-friendly application interface, enables seamless storage, transcoding, and delivery of media content.

AIOZ dCDN Features

1. Infinite Scalability: The AIOZ dCDN is engineered for limitless expansion, underpinned by a robust network of community-powered nodes (P2P Network). As the network grows, so does its capacity, ensuring that it can effortlessly accommodate the surging data requirements of a digital-first future.
2. Cost-Effectiveness: The AIOZ dCDN leverages a peer-to-peer architecture, which dramatically slashes the costs associated with content delivery and storage.
3. AI Smart Caching & Routing Optimization: AIOZ dCDN integrates AI to revolutionize caching and routing, making last-mile content delivery exceedingly efficient. The AI system strategically caches in-demand content across an extensive network of edge nodes, facilitating rapid access to popular files.
4. Enhanced Data Privacy: Privacy is paramount in the AIOZ dCDN’s design. The decentralized network structure offers a formidable barrier against data breaches. Advanced encryption techniques provide a robust layer of security, ensuring that user data is protected and that users retain absolute control over their personal information.
5. Extensive Global Reach: The dCDN’s expansive network ensures prompt content delivery to users worldwide. By strategically positioning edge nodes across different geographies, the AIOZ dCDN minimizes latency and optimizes the delivery process.
6. Reliability and Resilience: AIOZ dCDN offers high reliability by dispersing its nodes globally, preventing downtime by eliminating single points of failure. Its decentralized nature allows for seamless rerouting if some nodes fail, maintaining consistent service and data integrity, essential for a resilient content delivery network.

About the AIOZ Network nodes

AIOZ Network Edge Nodes are computers that operate AIOZ Network Nodes software, whether it’s the GUI or CLI. AIOZ Edge Nodes contributes storage capacity, network bandwidth and computing power to the AIOZ dCDN and gets rewards in AIOZ Tokens.

The AIOZ Network’s edge nodes are powered by robust hardware components:

• Storage: High-capacity hard drives store large amounts of data, vital for delivering content swiftly and reliably.
• Computing: The integration of CPUs and GPUs enables efficient transaction processing, software operations, and enhanced capabilities for video transcoding and AI-driven tasks.
• Network Bandwidth: Utilizing local bandwidth available globally, these nodes improve latency and reduce costs, optimizing the network’s overall performance in content delivery.

There are approx. 80k nodes throughout the world today (and this number is heavily increasing).

Have anyone done the math behind running a node in terms of POS rewards and “passive income”?

Let’s just stop for a second and think about why we need these nodes?

Imagine you are a creator, you upload clips to YouTube, videos to Instagram, dance moves to Tik Tok etc. These are all centralized brands and store your files on their own server.

However, on AIOZ Network, the files are stored on the decentralized network (those who own nodes), and the node owners are rewarded by maintaining, securing, fetching, and storing the content.

With each node added to the network, the whole system becomes more scalable and performant due to the increase in hardware and localization of storage.

It is also worth mentioning that AIOZ Node V3 is out end of this quarter which introduces inference tasks to the Node.

In this thread you can read more about it:

https://x.com/AIOZNetwork/status/1753280990011969942?s=20

AIOZ Network Web3 Services

AIOZ Network Web 3 Storage (W3S)

W3S is an Object Storage Infrastructure with S3 compatibility for Web3 dApps.

AIOZ Network W3S leverages AIOZ Network’s P2P nodes to store data across multiple regions, making it distributed with security in mind. By leveraging the decentralized power of the AIOZ Network, P2P networking, and blockchain technology, AIOZ Network W3S delivers the benefits of reliable, distributed, and scalable cloud object storage at an affordable cost.

Here are some of the advantages with W3S:

• S3 compatibility: AIOZ W3S is compatible with Amazon’s Simple Storage Service (AWS S3). You can easily switch or integrate AIOZ W3S with minimal hassle.
• No Single Point of Failure: With data copies distributed globally, your information remains intact, ensuring high availability.
• Fast Access: AIOZ W3S addresses the slow data retrieval typically linked to decentralized networks, ensuring swift access to your data with minimal delays.
• Scalable: AIOZ W3S can adapt to your growing storage needs continuously.
• Enhanced Privacy: The decentralized nature of AIOZ W3S significantly lowers the risk of data breaches. !
• Built-in CDN: AIOZ W3S leverages the AIOZ Network’s peer-to-peer nodes that span worldwide, allowing data delivery from the nearest node without needing extra fees for separate CDN services.
• Transparent Pricing: Our pricing structure is straightforward, with no hidden costs, making it simple to budget for development or scaling.
• Pay with AIOZ tokens: Simplify transactions and get more value using AIOZ tokens for all your storage needs. With a pay-as-you-go model, you only pay for what you use.

Use Cases

• Media and Entertainment Companies: Media and entertainment companies dealing with large volumes of video, audio, and image content can leverage AIOZ Web3 Storage for decentralized and secure storage of their media assets.
• E-commerce Platforms: E-commerce platforms can utilize AIOZ Web3 Storage to store product images, videos, and other media files.
• Decentralized Applications (DApps): DApp developers can integrate AIOZ Web3 Storage as a storage solution for their decentralized applications.
• Blockchain Projects: Blockchain projects that require decentralized and immutable storage solutions can utilize AIOZ Web3 Storage to store and retrieve data from the blockchain.
• Healthcare and Medical Data: Healthcare providers, medical research institutions, and telemedicine platforms can leverage AIOZ Web3 Storage for storing sensitive medical data securely.
• Data-driven Startups: Startups that deal with large datasets, such as data analytics, machine learning, or AI-based companies, can benefit from AIOZ Web3 Storage’s scalability and cost-effectiveness.
• Cloud Service Providers: Cloud service providers can integrate AIOZ Web3 Storage as an additional storage option for their customers.

W3S Cloud Object Storage offers a one-size-fits-all solution for different needs. It’s great for media companies needing to store libraries of digital content, e-commerce sites desiring fast media delivery, and decentralized apps requiring scalable storage. It’s also secure enough for healthcare data and cost-effective for startups with vast storage needs.

AIOZ Network W3IPFS (InterPlanetary File System)

InterPlanetary File System, short for IPFS, is an open-source file-sharing system.

IPFS revolutionizes data storage by creating a content-addressable, P2P-structure that aspires to make the web faster, more secure, and open for all.

As an example, NFTs, are on the blockchain, but the file itself is off-chain. With W3IPFS this no longer have to be this way.

With PFS File Storage you can seamlessly store and retrieve data within the decentralized InterPlanetary File System (IPFS). Enjoy the benefits of distributed storage, immutability, and data availability, ensuring the integrity and security of your DApp’s content. For example your NFTs.

Usually, the issue with pure-on-chain storage is the storage limitations. This is not the case with NFTs stored natively on the AIOZ Network. As we now know, AIOZ is a network that can store, handle, and process BIG DATA due to its Edge Nodes and dCDN.

Artists, content creators, and digital media producers can leverage AIOZ Network’s Web3 IPFS to store and showcase their digital artworks, music, videos, and other multimedia content, utilizing the decentralized and secure storage infrastructure.

AIOZ Network W3AI

AIOZ W3AI is a cutting-edge Web3 AI computing infrastructure developed to revolutionize the way artificial intelligence tasks are executed. It empowers developers and businesses to harness the power of decentralized AI computing while offering seamless AI-as-a-service integration.

So, you may wonder, what can you actually do with AI on AIOZ Network?

AIOZ Nodes enable the execution of AI tasks directly on user devices, ensuring data privacy and reducing the reliance on centralized servers. End users can access a wide array of AI models, such as image generation, image classification, text recognition, sound recognition, and more, through the decentralized AI-as-a-service.

For example an AI model could be trained for you to find the optimal trades for you, basically by developing a trading strategy based on the input you give to the model. The thing with AI is that it gets better and better for every day you use it.

Decentralized applications (DApps) and smart contracts can leverage AIOZ W3AI to integrate AI functionalities directly within the blockchain ecosystem, enabling new use cases and enhancing data privacy.

With AIOZ W3AI , developers, businesses, and end users can unlock the full potential of decentralized AI computing while ensuring data privacy, security, and scalability.

Huggingface is the centralized alternative to W3AI, and is massively popular for AI devs without any monetization opportunities even.

AIOZ Network can migrate devs from there to W3AI and enable them to monetize and share their models with their own terms and pricing. Just think about the powerful potential of a web3 AI marketplace!

Use Cases: Potential Clients

1. Decentralized AI Applications Blockchain Projects: Decentralized applications (DApps) and smart contracts can leverage AIOZ W3AI to integrate AI functionalities directly within the blockchain ecosystem, enabling new use cases and enhancing data privacy.

2. Edge Computing Solutions IoT Devices: IoT platforms and devices can benefit from AIOZ W3AI by executing AI tasks locally on edge devices, reducing the need for constant data transmission and enhancing real-time decision-making.

3. Mobile and Web Applications Mobile Apps: Mobile app developers can integrate AIOZ W3AI to deliver AIpowered features without compromising user data privacy. Web Applications: Web developers can leverage AIOZ W3AI to enhance web applications with AI capabilities without relying on centralized AI service providers.

4. E-commerce Platforms: AIOZ W3AI can be used to power personalized product recommendations, enhancing user experiences and driving customer engagement.

5. Research and Development AI Researchers: AIOZ W3AI provides a decentralized infrastructure for AI researchers to collaborate, share models, and execute experiments securely and efficiently.

6. Healthcare and Biotechnology Medical Imaging: AIOZ W3AI enables AI-powered medical image analysis directly on medical devices, improving diagnostic accuracy and patient care.

7. Education and E-learning E-learning Platforms: AIOZ W3AI can enhance e-learning platforms by providing on-device AI capabilities for personalized learning experiences.

Here you can see a clip from the AIOZ founder where he talks about how W3AI will become the core of AI development going forward:

https://x.com/AIOZNetwork/status/1764686386685186143?s=20

AI intereference

AI inference will continue to grow, as an investment and focus on training AI models moves toward monetizing them.

What is AI inference, why is decentralized inference exciting and where does AIOZ Network fit in?

Inference is the process of running live data through an already-trained AI model to make a prediction or solve a task.

Inference can be viewed as an AI model’s “moment of truth” - a test of how well it can apply information learned during training. GPUs make the processing of this data possible. Most computing used for deep learning is spent not on training, but on inference; this is because of the multiplicative factor of using the system many times.

Actually more than 40% of Nvidia’s data center business in the past year—when revenue exceeded $47 billion—was for deployment of AI systems and not training.

That percentage was the first significant indication that the shift is underway.

This growth is great and all, but where does decentralized AI inference fit into the equation?

By tapping into the distributed nature of web3, AI inference tasks can be made more affordable, more private and less reliant on a single centralized provider.

In the case of the AIOZ Network, compute power used for inference tasks inside the AIOZ W3AI Marketplace will be contributed by thousands of DePIN nodes; these same nodes store users’ data in a distributed manner instead of on centralized servers. The AIOZ Node V3 will also enable the execution of AI tasks directly on user devices.

Executing AI tasks locally on edge devices reduces the need for constant data transmission and enhances real-time decision-making, resulting in a better experience for those developing tomorrow’s AI innovations.

AIOZ Network W3Stream

A streaming media service (also simply called a streaming service) is an online platform that allows users to watch or listen to content, such as movies, TV shows, music, or podcasts, over the internet. Instead of downloading the content to their device, users can stream it in real time, which means they can start watching or listening immediately without having to wait for the entire file to download.

Video hosting and streaming platforms have experienced tremendous growth and have become integral parts of the digital media landscape.

Web 2’s largest video platforms (YouTube, Twitch, Vimeo, etc.), allows users to upload, share, and discover a wide range of videos. It has transformed the way people consume and create video content.

Similarly, short-form video platforms (eg. Instagram, and TikTok) have gained massive popularity, especially among younger audiences, with algorithm-driven content recommendation systems that keep users engaged.

The bad thing with these web2 services is that the basically have monopoly, with content creators being censored, shadowbanned, and even completely platformed with no comment on the reasons why.

Example of a ban of a popular crypto YouTube channel

Anyway, it is glaringly obvious that decentralized streaming platforms that have great web2-like UX are very much needed.

W3Stream is another great proof-of-concept product on AIOZ Network that shows the performance of the chain whilst allowing users to retain their sovereignty and access to their own content.

This product enables video streaming, hosting, encoding, management, and analytics.

AIOZ Network’s Web3 Streaming serves as a foundational infrastructure for decentralized video streaming on the internet.

It provides the necessary tools, technologies, and support for businesses to deliver high-quality video content to their audiences globally; it also enables anyone to develop web3 applications that can offer alternatives to the lopsided revenue-sharing mechanics of the web2 industry that create an unhealthy balance between the creators of value and the platforms distributing content.

AIOZ Web3 Streaming can serve as a valuable solution for video streaming platforms of all sizes. Whether it’s a global streaming service, a niche content provider, or a live streaming platform, AIOZ Web3 Streaming offers the necessary infrastructure to deliver high-quality video content to their viewers.

Tokenomics

After the successful launch of the AIOZ Network Mainnet back in December 2021, a 9% inflation rate was applied to the AIOZ Network token, which came into effect from March 2023 due to block time production.

While 9% is not too much, the team has now launched their upgraded tokenomics.

From December 25th 2023 onwards, inflation of the AIOZ Network token will be decreased by 1% each year on December 25th, for a total of 4 years. This means a total of 4% reduction and a resting inflation rate of 5% by 2026.

The proceeds of this inflation will be distributed like this:

• 50% of Inflation Rewarded to Validators/Delegators
• 50% of Inflation Sent to Treasury

With 4 large infrastructure pillars in active development, Treasury tokens will be used in part to incentivize growth, adoption and expansion of our products:

• AIOZ W3S
• AIOZ W3AI
• AIOZ W3IPFS
• AIOZ W3Stream

There will also be token burns based on revenue, node rewards and blockchain transactions.

Here you can find even more details about the tokenomics: https://medium.com/aioz-network/aioz-network-token-metrics-explained-791b4e0854af

At the moment AIOZ is sitting at $0.90, up over 3,000% in the last year. Still it’s 65% lower than ATH, so it should still have great room to go higher.

Further you can see that all tokens are in circulation, so there won’t be any nasty unlocks going forward.

The Team

The core AIOZ Network team met up the first time already in 2013.

They researched and experimented with different technologies before the official creation of the team in 2017. A fun fact is that AIOZ AI is a separate entity and has been running alongside the AIOZ Network blockchain project, providing A.I. solutions to businesses over the years; they recently decided to merge the two companies together to attack dePIN head-on.

In the years since the launch in 2022, the team has grown to over 40 developers and a total team of nearly 50 talented Blockchain engineers, AI Scientists, UI/UX designers, project managers, business developers, and marketers.

Some of the key roles consists of:

• Erman Tjiputra is the Founder and Chief Executive Officer of AIOZ Network, specializing in web3 storage, decentralized AI computation, live streaming, and video on demand (VOD). Tjiputra has expertise in AI computing, deep learning, computer vision, and medical imaging. Erman Tjiputra has contributed to several publications in the fields of Medicine and Computer Science, focusing on topics such as medical visual question answering, visual question answering, autonomous navigation, and facial expression recognition.
• Trieu Nguyen is the Chief Technology Officer (CTO) at AIOZ Network. He is responsible for developing and implementing the AIOZ Network’s blockchain framework and ensuring that the product will have (and continue to have) the best technology offerings in the highly competitive and quickly evolving blockchain market.
• Quang Tran is responsible for the Artificial Intelligence department of the AIOZ Network. role is to lead and manage the AI engineering and research teams, which focus on predictive data (A.I., Machine Learning, Deep Learning), experimentation, and analytics/data.

The team have tier 1 ranked peer reviewed publications. You can check it out here:

• https://www.semanticscholar.org/author/Erman-Tjiputra/1387964524
• https://ai.aioz.io/research/

Roadmap

The current AIOZ roadmap is jammed full of exciting launches in all areas of their network; from AI marketplaces to metaverse platforms and new token standards:

Q1 2024

• AIOZ W3S
• AIOZ DTransfer dApp
• AIOZ Multi-Chain Wallet Browser Extension
• AIOZ Node V3 - AI Computing Integration
• AIOZ W3IPFS

Q2 2024

• AIOZ W3AI V1 - Decentralized AI as a Service
• AIOZ Drive dApp
• AIOZ Node V4 - Transcoding Integration

Q3 2024

• AIOZ W3Stream
• AIOZ W3AI V2 -AI Marketplace v1 for decentralized dataset monetization, Open-source & user-customized AI models storage.
• Deployment of AIOZRC-20, AIOZRC-1155 and AIOZ RC-721 token standards
• AIOZ Gravity Bridge

Q4 2024

• AIOZ DEX
• AIOZ W3AI V3 -AI Training with Decentralized Federated Learning, Spaces for building AI dApps.

The long term vision is to develop a self-sustaining web3 infrastructure network that offers unparalleled security, cost-effectiveness, and infinite scalability for Web3 decentralized applications (dApps), enterprises, and developers.

Their long-term goal is to position AIOZ Network as a leading web3 infrastructure provider in the coming years.

Conclusion

AIOZ Network is DePIN for Web3 AI, storage, and streaming and empowers a fast, secure, and decentralized future.

AIOZ Network is aiming to become the leading DePIN infrastructure platform for storage and streaming, and specifically as a leader in DePIN AI.

AIOZ Network is a distributed infrastructure network that allows anyone, anywhere, anytime, access to decentralized services such as storage, AI computation, content distribution, and VOD (video-on-demand).

Currently, a lot of people still think of AIOZ Network as storage/streaming. AIOZ Network is an AI powerhouse in several ways and deserves to be up there with Bittensor.

Also, some important differences between AIOZ Network and other dePIN projects are that it is arguably the lowest barrier to entry to run a node (literally just a laptop and internet to get rewards in AIOZ and provide GPU/CPU, storage, and transcoding.

AIOZ W3AI is the web3 AI ecosystem for collaborative and easy access to AI model training, testing, sharing and monetization (web2 alternative is HuggingFace, valued at over $4.5B, raised funding from Google. W3AI also enables incentivized feedback and rating of AI models.

AIOZ W3S acts as the web3 storage infra to store AI models and training datasets made on W3AI, or on any other AI platform for that matter (web2 alternative is Amazon AWS cloud storage).

AIOZ Node V3 will power the inference (aka execution) of AI models via thousands of GPUs running on people’s devices worldwide. Models are executed directly on users’ devices, more secure, faster, cheaper, private, etc.

In conclusion:

W3AI + W3S + AIOZ Node/ DePIN = A fully decentralized AI ecosystem powered by the people

…

All right, I guess that’s it for today. Hope you liked the article and that you got even more bullish on AIOZ Network and AI in general.

See you around, anon!

Stay bullish.

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1. This article is reprinted from [The Black Swan], All copyrights belong to the original author [ROUTE 2 FI]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
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