🌵 The Intersection of Crypto & AI 🌵

Big Brain Breakdown

Market Metrics

Total Crypto Market Cap: up 0.4% to $2.78T
Total AI Sector Market Cap: up 3.7% to $29.4B

Top Movers (24hrs):

📈 Commune AI (COMAI): up 22.5% to $1.87
📈 DeepFakeAI (FAKEAI): up 19.3% to $0.01711
📈 Carbon Browser (CSIX): up 19% to $0.09325

Big Brain Breakdown

We are back this Thursday with yet another Big Brain Breakdown to help you understand the fundamentals of blockchain AI projects so you can stay ahead of the herd and invest in projects that are set to outperform.

We have been focusing heavily on AI agents lately, as seen in our previous two breakdowns covering Onchain AI Agents and Wayfinder’s Whitepaper, but we have yet to dissect the foundation that makes all of these projects happen:

Decentralized. Computing. Networks.

Decentralized computing networks are the backbone of the AI revolution. Understanding their crucial role in the advancement of blockchain-based AI will not only help you make sense of many AI projects, but also empower you to seize the incredible opportunities that exist in this sector.

Before we explore their significance, let's understand the traditional computing systems they aim to revolutionize.

Cloud computing platforms and powerful GPUs (specialized processors for graphics and computing) are crucial for AI because they provide the necessary computing resources and capabilities to train and deploy AI models effectively. These technologies enable AI systems to process and analyze vast amounts of data, perform complex calculations quickly, and make real-time predictions or decisions.

Today's digital infrastructure is based around centralized computing systems, where the vast majority of resources like servers, storage and processing power reside in the hands of a few giant corporations, such as Amazon Web Services (AWS) or Google Cloud.

While they've been the backbone of deploying AI, these centralized giants have significant limitations and potential problems.

The structure of these systems means a single, central authority has control over the entire network and its resources, leading to a single point of failure for data breaches, bottlenecks and the potential for stifled innovation if the project requiring compute doesn’t align with the authority’s rules.

Many decentralization pundits have thoroughly discussed the caveats to these centralized systems, mainly in regard to wait times to receive access to powerful resources, privacy and security, single points of failure, scalability, and censorship risks. For investors, these limitations signal an urgent need for a more robust, accessible solution.

Recognizing the pitfalls of centralized computing leads us to the emerging alternative: decentralized computing networks.

These networks don't just address the shortcomings of their centralized counterparts; they offer a new paradigm where control, transparency, and efficiency are distributed across a global network. This shift is not merely technical—it represents a foundational change in how computing power is accessed and utilized.

• Spreading out resources and control across multiple nodes, rather than relying on a single central authority.

• Offering transparency by design, which builds trust among participants and reduces the chance of data tampering or misuse.

• Efficiently allocating resources and incentivizing resource supply to handle increased demand as it grows.

• Eliminating censorship of network participants and resource contributors.

There are many blockchain projects working on building these networks and computing resource marketplaces, all with their own nuances, incentives, and specialized use cases. Here are the most prominent projects building these networks:

• Render Network (RNDR): Decentralized GPU rendering platform, empowering artists to scale GPU rendering work on-demand to high performance GPU Nodes around the world.

• Akash Network (AKT): An open network that lets users buy and sell computing resources securely and efficiently.

• Nosana (NOS): Cost-effective GPU grid developed and customized for AI inference workloads.

• io.net (Token TBA 👀): Instant, permissionless access to a global network of GPUs and CPUs.

and many, many more!

Our Take

Decentralized computing networks, platforms, and marketplaces are crucial components of the crypto and AI technology stack and represent one of the most practical and widely applicable use cases in the AI sector. As demand for AI increases, the need for these networks' resources grows accordingly, creating a sustainable and mutually beneficial ecosystem for users, model developers, and resource providers.

Some projects, such as Akash and Render, have made significant progress and have already established a thriving ecosystem of contributors. However, new competitors are constantly emerging, seeking to capture a share of this growing market.

The race to become the dominant player in this space has begun, and it remains to be seen whether the incumbent projects can defend their positions against the rising challengers.

We will be following this subsector of blockchain AI projects closely, given the clear product-market fit for decentralized computing and the almost infinite demand for computing power that will inevitably result from AI invading every aspect of our lives.

In Other News

🟠 Grass announced the migration to new backend infrastructure was successful, enabling the platform to scale to tens of millions of users and paving the way for the Grass L2.

🟠 Nimble Network goes on a partnerships spree, announcing partnerships with Aethir Cloud, Web3Go, Manta Network, zkPass and Exabits.

🟠 Parallel announced the game will go live on the Epic Games store, allowing millions of users globally to download and play Parallel TCG.

🟠 Echelon announced in-game tournaments are now live on Parallel TCG, with three modes available.

🟠 Destra Network will deploy the foundation layer of its L2 testnet, which will support decentralized infrastructure services.

🟠 SingluarityNET dropped its Vision Paper, detailing the vision and motivation behind the proposed Artificial Superintelligence Alliance.

Generative AI of the Day

🐢 This made us lol because it reminds us of the turtle from Finding Nemo.

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