Proof of Work through Staking - The Magic Behind NeurochainAI
We’ve come a long way from the initial idea of creating an ecosystem geared toward community-powered AI development. Not only are we getting people invested in shaping the future of AI, but we’re also providing a platform that streamlines the development and usage of decentralized AI applications.
Moreover, the idea to pair AI model quantization with consumer-grade hardware DePIN is radically changing the landscape as we know it - making it easy for developers and businesses to join the AI revolution in a cost-efficient manner with unmatched scalability.
But how does NeurochainAI guarantee the efficient operation of a decentralized AI platform powered by a blockchain?
The answer lies in the potent combination of two consensus mechanisms - Proof of Work and Proof of Stake on the L1 NCN Chain and L3 NCN AI.
What’s a consensus mechanism?
A consensus mechanism is a process used in a blockchain system to reach a distributed agreement on the state of a data set.
The most common types are:
- Proof of Work (PoW)
Requires participant nodes to prove that the work they completed and submitted was valid. It incentivizes network validation by rewarding miners for adding computational power to the network.
- Proof of Stake (PoS)
PoS evolved as a low-energy alternative to PoW. It functions by allocating responsibility in suggesting new blocks to participant nodes directly proportional to the number of virtual tokens held. The block is then verified and added to the chain once the consensus is reached.
Before we dive deeper into how these systems work in the context of NeurochainAI, there’s more basic information to cover.
Blockchain layers explained
Blockchain networks consist of various layers that enable different functionalities.
Layer 1 (L1) is at the core of a blockchain and encapsulates the main functions, including security protocol. It’s the layer everything else is built on.
Layer 2 (L2) represents other off-chain networks, technology, or systems built on top of L1 that extend the underlying network and introduce a series of enhancements. Polygon is a good example - a popular L2 network for Ethereum (L1) that connects various Ethereum-compatible blockchains.
Layer 3 (L3) is a natural progression toward more specialized functions built on the two layers. It’s often referred to as the application layer.
For the most effective performance and scale of the decentralized AI infrastructure, NeurochainAI combines Layer 1 - NCN Chain with Layer 3 - NCN AI.
L1: NCN Chain
At the core of NeurochainAI is NCN Chain built on EVM and Optimistic Rollups. This finely tuned combo increases the network's security, traceability, scalability, and efficiency. More importantly, it facilitates seamless connectivity between the NCN Chain and the decentralized AI L3.
Along with serving as the foundation, the NCN Chain manages and stores validation information on mined and burned coins for activities that occur on L3, thereby keeping the ecosystem stable.
The L1 also provides developers with a suite of tools through easy API integrations, allowing a seamless connection between L1 and L3 for managing AI dApps and their blockchain features.
Lastly, the NCN Chain is leveraging different bridging solutions to make NeurochainAI services and liquidity accessible on all blockchains - guaranteeing interoperability of liquidity and scalability of the entire system.
L3: NCN AI
While L1 serves as the bedrock of the entire infrastructure, AI features are built as Layer 3 because AI is chain and technology-agnostic and should not be tied to any certain chain. NCN AI is the layer of all the AI-related platform features. First and foremost, it’s the decentralized GPU network or DePIN tapping into community-owned desktop and mobile GPUs and NPUs to source processing resources for AI computations.
NCN AI also encompasses data required for AI model training either connected from developers’ private or third-party databases or collected and validated by NeurochainAI community.
It also houses the AI model marketplace, interoperability tools, and the AI dApp store.
Building AI platform as a Layer 3 enables full connectivity and interoperability with any Web3 or Web2 ecosystem and solution guaranteeing scalability and adoptability of the entire NeurochainAI ecosystem.
Types of nodes across L1 and L3
Two main types of nodes power NeurochainAI’s L1 and L3, each with a specific purpose.
Neuron Validator Nodes are an integral part of the L1. They act as lite validators that validate, confirm, and batch the work done on L3 for transaction execution on L1. In other words, they ensure computational consensus proofs and a fair attribution of $NCN rewards by validating AI tasks on L3 and minting new coins on the NCN Chain.
Equally important are AI Mining Nodes on L3 which come in two variants.
The first of L3’s AI Mining Nodes are Desktop GPUs powered by Windows, Linux, and soon MacOS operating systems. This can be various laptops, gaming consoles, Raspberry Pis, and old Ethereum miners starting with a minimum of 6GB GPU and 4GB RAM that support NVIDIA.
The second of L3’s AI Mining Nodes are Smartphone GPUs and NPUs powered by Android OS with ARM processors and a minimum of 4GB of RAM. Examples of compatible devices are the series of Samsung Galaxy, Google Pixel, OnePlus, Xiaomi, Huawei, and many more.
Proof of Work through Staking
How do you ensure the trustless, secure, and seamless operation of an infrastructure to guarantee accurate and verifiable attribution of rewards on blockchain for work performed on layer 3? We already hinted that the magic happens through a mix of PoW and PoS consensus mechanism - Proof of Work through Staking (PoWtS).
Here’s how it goes down:
When the AI Mining Node receives an AI compute task, it processes the message and computes the response - similar to cryptographic calculations on regular PoW blockchain.
The AI compute acts as a PoW on the NCN AI L3 and has to be validated by Neuron Validator Nodes through PoS on NCN Chain L1.
This way, AI Mining Nodes receive rewards for the work - AI computations performed on the DePIN and Neuron Validator Nodes receive rewards for mining new coins in relation to validating these responses and filtering out bad actors, applying penalties for bad responses, misinformation, and misconfiguration.
This PoW and PoS amalgamation ensures seamless, scalable, and integral operation of the NeurochainAI ecosystem.
A revolution has started
NeurochainAI effectively reinvents existing concepts and approaches while also breaking down the barriers of centralization and monopolization by encouraging cooperation in the AI industry. The infrastructure we’re building will bring artificial intelligence to the masses and address challenges stemming from excessive computing costs and the lack of integrated tools required to build AI solutions.
Everyone is welcome to join and make even the smallest contribution that through the power of the masses becomes significant in the grand scheme of things.
PoWtS consensus mechanism is an important piece of the puzzle that makes this revolutionary approach possible. On their own, PoW and PoS are not quite novel ideas, however, applied together they enable true innovation. Similar to how we found a use for mobile processors in AI, we realized that these classic blockchain consensus mechanisms are more than capable of delivering across layers - especially when combined.
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