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An in-depth review of the $ORAI chain project by our crypto talk. Making your decision to invest in it easier.
Author: Sahil Thakur
Published On: Mon, 25 Mar 2024 09:55:28 GMT
The $ORAI chain project claims itslef to be the world’s first AI-powered oracle and ecosystem for blockchains.
The mission states the project’s desire to become an advanced AI Layer 1 for data economy and oracle services.
Current smart contracts cannot run AI models. There are three main reasons for this –
1. Lack of strict inputs – Smart contracts expect very strict inputs whereas AI models do not give 100% fixed results.
2. Environment – Smart contracts are mostly written in Solidity or Rust whereas AI models are typically written in Python.
3. Data size – Storage is a big issue on smart contracts because of the cost it takes sto store data on blockchains, AI models on the other hand are huge and take up a lot of memory.
Solutions proposed by Oraichain are as follows:
In simpler terms, smart contracts are like agreements stored on a computer program called blockchain. But there’s a limitation: they can’t access information outside the blockchain, like weather updates or stock prices. Imagine a smart contract as a locked box – it can’t see what’s happening outside.
Here’s where oracles come in. Think of oracles as messengers who fetch information from the outside world and deliver it to the smart contract. They bridge the gap between the blockchain and real-world data, like a key unlocking that box to let information in.
Before, blockchains could only use their own data, which was limiting. But now, with oracles, they can tap into external sources, expanding their capabilities. Oracles can be nodes collecting data or scripts fetching information from APIs. They bring flexibility and functionality to blockchain, making it more versatile and powerful.
Oraichain provides an oracle that helps fetch external data securely and its architecture is designed to focus more on AI data sources as follows:
Oraichain, a public blockchain, enables users to generate various data requests. Beyond users, smart contracts can securely request data from AI APIs via Oraichain. Powered by Cosmos SDK and Terdemint’s Byzantine Fault Tolerance consensus, this blockchain network enhances transaction confirmation speed.
The process of requesting data from AI APIs through Oraichain is depicted in the System Overview figure. To initiate a request, users or smart contracts must trigger an oracle script accessible on the ORAI gateway or marketplace. These scripts contain AI data sources, test cases, optional test sources, and transaction fees for each request. Upon a request, a randomly selected validator is tasked with its execution. The validator fetches data from AI providers after conducting test scenarios, canceling requests if providers fail testing.
Successful requests result in data being written to the Oraichain blockchain. Transaction results serve as proof of execution, with associated fees. Though reading results from Oraichain transactions incurs overhead, it ensures AI API quality and guards against data tampering during retrieval from providers.
Compared to Band Protocol and Chainlink, Oraichain uniquely incorporates API testing-based test cases. Given Oraichain’s focus on AI APIs, robust testing is crucial for quality control. Additionally, test providers can propose suitable test cases, motivating AI providers to enhance model accuracy.
A notable feature allows the Oraichain community to rate validators’ reputations for improving AI API quality. Validators exhibiting poor behavior, such as test case failure or slow response times, face token slashing.
However, validators play crucial roles in Oraichain and could represent a centralized point. Therefore, increasing the number of chosen validators enhances request performance, scalability, and availability. As validators contribute significantly to the network, they receive block rewards and transaction fees in ORAI tokens.
Two methods incentivize validators and test case/data source providers:
Stats as on 26 March 2024:
Circulating Supply: 12,706,080 ORAI
Market Cap: $180M
Market Cap for $LINK (Another project from same domain): $11B
The native $ORAI token plays a vital role in the decentralized Oracle network of validators, serving various purposes:
The team is completely doxxed and consists of some really strong names.
The $ORAI team was established in 2019 and has a dedicated mission to build a new era of Blockchain x Artificial Intelligence. The team consists of blockchain specialists, data scientists, engineers and advisors from all over the world.
The project is very strong as it covers the hottest narrative of the 2024 bull market, ie, Artificial Intelligence. We have already seen the potential of something like $LINK in the previous runs and with nearly a 10B market cap for chainlink, there’s a lot of scope of potential for $ORAI as well.
As always, nothing is financial advice though and always do your own research. To check $ORAI website – link and to read other project reviews by us check our blogs page here – OCT Blogs.
