AI x Crypto | Empowering Open Source AI with On-Demand Compute

As a significant part of the fourth industrial revolution, Artificial Intelligence and applications enabled by AI increasingly impact larger percentages of the global economy. The rapid evolution of Machine Learning (ML), computer vision, and the broad field of AI has demonstrated value across industries, causing a rapid build-up of AI-focused infrastructure and software solutions that aim to solve problems using tools like Large Language Models (LLMs).

From Biomedical research to personal assistants, data control issues, restricted availability of compute (GPUs), and high costs of maintaining these systems cause significant barriers to entry for individuals and businesses. The concentration of AI capabilities in the hands of a few tech giants can potentially limit innovation and has raised questions about the fair use of these powerful tools.

The open source AI community has gained significant steam over the last years, growing across industries to provide alternative solutions to closed source AI platforms. Platforms like Huggingface have become the hub for sharing and improving open source AI models.

This community-driven approach to development allows the industry to use a model or system as they see fit. Public ML models and AI-powered systems can be audited by the stakeholder community (industry, developers, end users, etc.) and improved through open source development and auditing. When deciding on specific implementations, the global economy is now comparing open source vs closed source solutions and making large commitments down these paths. Major components of this decision come down to cost, access to compute, tooling available, and more!

The growth of open source technologies like IPFS, blockchain-based cloud networks like Filecoin, Helium, and decentralized compute networks like Lilypad Network and Render Network provide a complementary set of functionality for the AI industry. Teams such as Lilypad and Render provide compute marketplaces with tooling geared towards enabling large-scale access to compute and simplifying the process of running large compute jobs. Blockchain and IPFS-based systems converge powerfully with open source AI, helping to enable decentralization, transparency, and open access for all.

Verified compute jobs, hashed data (training data, models, code, outputs, etc.), and highly accessible GPUs offer solutions to many of the challenges faced by the industry when implementing AI systems. Open source Web3 systems working with open source AI models aim to accelerate human productivity, helping to make AI models public goods available to everyone.

Why AI Needs Crypto

The intersection of AI and Blockchain technologies offers solutions to some of AI's most compelling challenges. The concentration of power and resources in a few small closed source AI platforms can be shifted using open source development. Blockchain’s native decentralized framework helps address some of these limitations, including data integrity issues, system transparency/verification, and large-scale access to GPU compute. As highlighted in the Galaxy Research report on the intersection of AI and crypto, combining these technologies paves the way for new AI applications that are more secure, efficient and accessible to a broader range of users.

Blockchain-based platforms enable peer-to-peer sharing of computational power (GPUs), expanding the availability of the hardware needed for training and running advanced AI models. Using crypto-economic incentives and peer-to-peer networking, blockchain-based compute networks match idle GPU capacity with compute job demand. These innovative networks offer an alternative GPU service from traditional cloud providers while providing unique functionality like blockchain-verified compute jobs and hashed data (training data, models, code, outputs, etc.) for a low overall cost. This is crucial for building trust in AI decision-making processes, especially in sensitive applications like healthcare or finance.

The immutable nature of blockchain can enable native transparency in AI systems storing data in IPFS or running compute jobs with blockchain verification. Audit trails are introduced that will enhance accountability and, in the long run, unlock performance and accessibility benefits. Democratized AI models, training data, and GPU compute can lead to a renaissance of innovation across industries.

Data marketplaces leveraging blockchain and systems like InterPlanetary File System (IPFS) could allow individuals and smaller entities to monetize their data directly, breaking the monopoly of tech giants. This can expand and diversify the datasets available for AI training, helping to create more robust and less biased models. By tokenizing data assets (turning data into digital tokens representing ownership or rights), we can create a more equitable ecosystem where data providers are fairly compensated, and AI developers tap into richer and more diverse datasets.

Crypto-economic models could transform the funding and incentives for AI research and development. Token-based systems could reward contributors to open-source AI projects, cultivating a more collaborative and innovative ecosystem. Decentralized Autonomous Organizations (DAOs) could govern AI projects, allowing for more democratic decision-making in resource allocation and research directions.

Image: Galaxy Research AI/Crypto Market 2024

Advanced cryptographic techniques can help address AI's data privacy and security concerns. For instance, zero-knowledge proofs allow AI models to learn from sensitive data without directly interacting, opening up new possibilities for privacy-preserving AI applications. Additionally, decentralized identity solutions can assist in secure interactions between users and AI systems, protecting personal information while enabling personalized services. According to a comprehensive AI and crypto thesis by Outlier Ventures, this intersection of cryptographic innovations and AI has the potential to unlock groundbreaking advancements across the infrastructure, model, and application layers.

Leveraging crypto's strengths can help address AI's current limitations, unlocking its true power and paving the way for a more fair and innovative AI ecosystem. This pairing solves existing problems and opens up new possibilities for AI applications that are more transparent, secure and accessible to all.

Decentralized GPUs: Fueling the AI x Crypto Revolution

Unlike traditional networks dominated by centralized control, decentralized GPU networks pool the computational resources of independent GPUs into a collective, distributed cloud network. Rather than relying on a few large cloud providers, this model allows a distributed system to handle large-scale AI computations. From individual GPU owners to larger operators and data centers, a diverse group of participants collaborates to build an expansive computing network, offering a transformative alternative to today's dominant AI infrastructure.

Real-world Use Cases

For both users and resource providers, decentralized GPU networks offer significant economic advantages. Resource providers, such as individuals with underutilized GPUs, can monetize their idle hardware. At the same time, AI developers can gain affordable computational power without relying on centralized service providers that charge high rates or require a subscription. This lowers AI development costs, making innovation more available to a broader range of developers, researchers and organizations.

Open source, AI marketplaces can use blockchain networks to facilitate an exchange where AI models and datasets are traded and owned like digital assets, introducing collaboration across borders.

AI-powered decentralized applications (dApps) offer advanced possibilities:

• Evolving smart contracts

• Decentralized finance platforms

• Data networks optimized by AI agents

These changes signify a transformation of the digital world. It also marks another significant shift. Breakthroughs will no longer be gate-kept by corporate labs or paywalls. Instead, a community can collaborate in real-time to tackle complex challenges.

Imagine prediction markets where AI algorithms, powered by distributed computing networks, analyze global data streams in real-time. These systems could forecast everything from global health trends to consumer behavior while offering broader availability to high-quality predictive insights. In DeFi, AI-powered trading bots are evolving beyond simple algorithms. Autonomous agents can adapt to market conditions, manage risk and even provide personalized financial advice. This could level the playing field between retail investors and financial institutions, introducing a new era of open financial participation.

DAOs are being transformed by AI integration. They can now use AI systems to assist in governance, optimizing resource allocation and even participating in decision-making processes. This unification of human and artificial intelligence could redefine how we think about organizational structures as a whole.

AI is also revolutionizing the world of NFTs. Generative models are producing digital artworks that are not only unique but constantly evolving. Imagine owning an NFT that reacts to real-world events or transforms through interactions… an artwork that grows and changes over time, creating a dynamic piece of digital creativity.

This isn't just technological evolution. It's a fundamental change in how we innovate, collaborate and solve problems collectively. The combination of AI and blockchain doesn’t just create equal opportunities; it redefines the rules of innovation and collaboration.

Lilypad: Empowering the AI x Crypto Ecosystem

The Lilypad Network orchestrates GPUs across the globe verifying compute jobs on the Ethereum blockchain (using the Arbitrum layer 2 solution on Ethereum). By tapping into a global network of decentralized GPUs, developers and researchers can efficiently scale AI models without the need for centralized cloud services, reducing costs and increasing flexibility.

Image: How Lilypad Works

Lilypad simplifies the process of developing and deploying AI applications using decentralized networks. The platform provides tooling that can integrate directly into an AI workflow. From GPU compute to a CLI/SDK for developers, Lilypad provides everything needed to streamline the journey from product concept to execution, making complex technologies straightforward to implement.

The Lilypad ecosystem includes an open marketplace of AI models (and other arbitrary programs) that have been configured to run on the network (Docker images). These Docker images are referred to as Lilypad Modules. Community members continue to build modules and add to the diversity of models running on the network.

Beyond the technology, Lilypad is creating a thriving ecosystem of developers, researchers and Web3 innovators who come together to share insights, collaborate and drive open source development. We at Lilypad believe that community comes first, and it takes a village to grow a network. This collective energy accelerates breakthroughs in the AI x Crypto world, bringing new solutions to life in ways that were previously unattainable.

The Future of AI x Crypto

As decentralized GPU compute networks evolve, they promise to revolutionize the AI and crypto ecosystem remarkably. According to reports from Foresight Ventures, the intersection of AI and crypto could be one of the most exciting industries over the next 50 years. These networks are breaking down barriers that previously restricted participation in AI development, empowering builders and creators globally, regardless of their resources or location. This broader participation will accelerate innovation and spark a wave of creativity, driving advancements across industries.

The decentralized nature of these technologies will encourage a more ethical, transparent and equitable AI ecosystem. With collaboration at its core, we can expect novel AI applications and economic models to emerge, reimagining how we create and share value in the digital age.

The fusion of AI and decentralized computing represents a new shift in global innovation and problem-solving. As we enter this new era, AI's power can become a shared resource, driving innovation and progress for all. The future is no longer reserved for a select few; it's for everyone to shape.

Join the Movement

Ready to see what's possible when the power of AI is in everyone's hands? Join the Lilypad community to explore, create, and shape the future of decentralized AI. Whether you're an expert or a beginner, there’s a place for you to collaborate and thrive in this growing ecosystem.

Check out the resources below for ways to get involved with Lilypad Network!

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About Lilypad

Lilypad is a pioneering serverless, distributed compute network revolutionizing AI access by enabling internet-scale data processing for AI, ML, and other arbitrary computation. Unleashing idle GPU processing power by leveraging decentralized infrastructure networks, Lilypad unlocks a new marketplace for compute, making AI more accessible, efficient, and transparent, enabling innovation without limits. Lilypad is empowering the intelligence era, solving the possible—one job at a time.