Understand in one article Open Ledger, led by Polychain: the blockchain network of the dedicated AI language model SLM.

Project Name: Open Ledger

Project positioning: Blockchain network for dedicated AI language model SLM

Project highlights: In the specialized language model track, blockchain technology is cleverly used to solve issues such as AI data scraping, rights confirmation, and incentives. This truly demonstrates the value of blockchain.

Financing situation: Seed round financing of 8 million USD, led by institutions such as Polychain.

Participation method: Not yet TGE, currently you can use a computer to participate in test network mining incentives.

The following is a detailed explanation of the project:

What is OpenLedger?

In simple terms, @OpenledgerHQ is a decentralized network that combines AI and blockchain technology. Its core goal is to create a decentralized AI ecosystem where everyone can fairly contribute data, develop AI models, and also profit from it.

There are a few key roles here: dedicated data contributors, dedicated AI model developers, Open Ledger, dedicated AI applications.

Of these four roles, I particularly highlighted the word "dedicated", which is at the heart of the Opne Ledger. Instead of building a general-purpose AI large language model like Open AI, Opne Ledger builds a dedicated AI language model, or SLM. That is, the data is proprietary, and the AI model is trained using dedicated data.

The Opne Ledger is based on a dedicated data network (Datanets) that absorbs, cleanses, and converts into usable data that can be made available to dedicated AI model developers. Opne Ledger's attribution proof mechanism built based on blockchain technology can distinguish the source of data and confirm the identity of the specific data provider, so that Opne Ledger can clearly know that some special data is contributed by some specific users, so as to complete the confirmation and incentive based on the blockchain.

OpenLedger emphasizes a concept called "Payable AI", which means that AI models can not only be used, but also automatically distribute money to data providers and model developers based on their contributions. Imagine that you are a photographer and take a lot of beautiful pictures. You upload these photos to OpenLedger, and the AI developers use your photos to train an AI model of beauties that generates art. Every time someone uses this AI to generate a portrait of a beautiful woman, OpenLedger will be able to track that your photo has been used and automatically give you a share of the benefits. This is the core of Payable AI and the core operating logic of Opne Ledger. This logic does not apply to general-purpose large language models, but in the track of SLM, that is, specialized language models, blockchain plays a great role, and OpenLedger is the general platform of SLM.

2. The operating principles of OpenLedger

In order to explain more clearly how OpenLedger works, we will break down several technical terms involved in OpenLedger and explain them in the vernacular, and explain the role of blockchain in each sector.

The operation of OpenLedger can be divided into several key parts:

(1) Data Source: Datanets (Data Network)

OpenLedger collects data using something called Datanets.

Datanets are like specialized data marketplaces, each targeting a specific area, such as medical data, music creation, social media content, and more. Anyone (individuals, companies, experts) can upload their own data to Datanets.

For example, if you are a doctor, you can upload some anonymous case data; or if you are a programmer, you can upload code snippets. This data will be organized and cleaned, turning into the "raw material" for AI training.

The blockchain here is like a super transparent ledger. Every time someone uploads data, the blockchain records it: who uploaded what and how many times the data has been used. This way, no one can secretly alter the data, and no one can deny using your data.

For example, Bob is a game streamer who uploads clips of his live stream to OpenLedger's "Game Datanet". A company used these clips to train an AI that automatically generates gameplay explainer videos. The blockchain records that Bob's snippet has been used 100 times, and Bob gets paid based on the number of times he uses it.

(2) Proof of Attribution

This is the core technology of OpenLedger, which translates to "proving who contributed what" in simple terms. It can track every output of the AI model, figuring out which data was used and whose contributions were involved.

When an AI model generates a result (e.g., an article, an image), OpenLedger analyzes which data sources the result relies on and distributes credit to the corresponding contributors. For example, if an AI writes a song, the system can find out that it references Peter's melody and Mary's lyrics, and then automatically give them a penalty. Blockchain ensures that this "credit distribution" process is transparent and immutable. All contribution records are written on the chain, and no one can change them. And the smart contract (a self-executing program) will send money directly to the contributor's account based on the record.

For example, Jack is a writer who uploads a bunch of short stories to OpenLedger. An AI writer generates new stories in his novel style. When Proof of Attribution discovers that 30% of the new story is inspired by Jack's novel, Jack automatically gets a 30% share of the revenue.

(3) Payable AI

Payable AI is the ultimate goal of OpenLedger: to turn AI models into "self-generating assets." Developers can deploy AI models on OpenLedger, and users pay when using the models, with fees automatically distributed to data contributors and model developers.

For example, a company has developed a medical diagnostic AI that doctors use to analyze patient data and pay a fee each time they use it. The money will be distributed through the blockchain to the hospitals that provide medical data, the engineers who train the models, and so on.

Blockchain ensures that transactions are open and transparent, and it is clear how the money is divided and who takes how much. Smart contracts can also automatically execute shares, eliminating the need for middlemen, saving money and worry. For example, Alice is an AI engineer who has developed a translation AI and deployed it on OpenLedger. Every time someone translates a file with this AI, Alice and the contributor who provides the language data (such as Ruby, who uploads the English textbook) can get a share of the money, and the blockchain automatically calculates the proportion and transfers it directly.

(4) OpenLedger Decentralized Network

OpenLedger does not place all data and computations on a single company's server, but rather utilizes a decentralized network of blockchain. This means that the data and AI models are distributed across nodes worldwide, preventing any single entity from having a monopoly.

Users around the world can run OpenLedger nodes (like a small server) to help store data and run AI computations. In return, they can also earn some rewards.

The blockchain coordinates these nodes to ensure that the data is secure and the computation results are trusted. Whoever runs the node and how much work they do, the blockchain will record it, and it will not be missed when the reward is issued.

For example, Black ran an OpenLedger node at home, helping the platform store some music data. Someone used this data to train AI, and Black's node recorded the transactions, with the blockchain sending him some tokens as a reward.

What problems has OpenLedger solved using blockchain technology that were originally difficult to resolve?

Currently, there are several major issues in the AI sector, and OpenLedger has cleverly provided its own solutions using blockchain technology:

(1) Lack of transparency in data sources

Most AI companies randomly grab data from the internet to train their models, and you wouldn’t even know if your data was used, let alone get paid for it. OpenLedger uses blockchain to record the sources and usage of data, ensuring that contributors are treated fairly. For example, many AI drawing tools are trained using artists' works, yet the artists receive nothing. OpenLedger allows artists to upload their works, and when AI uses them, they are automatically compensated.

(2) Centralized Risk

At present, large companies control AI data and models, and they can turn it off if they want to, and change it if they want to, and users have little right to speak. For example, if an AI platform suddenly says "I won't let you use it", you will be dumbfounded. OpenLedger's blockchain allows data and models not to be monopolized by a single company, and users themselves can participate in running the network, making power more decentralized. Just like in the early days of YouTube, video creators relied entirely on the mood of the platform to make money. OpenLedger is like building a "decentralized YouTube" for AI, giving creators more control.

(3) Contributors have no returns

The current situation is that AI models make a lot of money, but the ordinary people who provide the data, the engineers who develop the models, often get nothing. OpenLedger's Payable AI gives each contributor a share of the benefits, incentivizing more people to participate and improving the quality of the data. Just like YouTube later gave the UP main ad a share, the video quality has gone up. OpenLedger also wants to enrich AI data through sharing.

(4) Lack of diversity in AI models

At present, most large AI models are developed by large companies, which are general-purpose and difficult to meet niche needs (such as local language translation). OpenLedger focuses on the field of specialized language models. Datanets makes it easier to collect data from specialized domains, enabling developers to create more accurate "specialized AI". For example, an ethnic minority language AI may not be developed because of the lack of data. OpenLedger's Datanet allows people to upload linguistic data, and developers can make their own AI.

The brilliance of OpenLedger lies in not directly entering the large language model track, but rather the specialized language model (SLM) track, which can fully leverage the characteristics of blockchain technology.

Let's list the roles that blockchain technology plays in OpenLedger:

• Accounting: Record every data upload, usage, and revenue sharing, transparent and immutable.
• Profit Distribution: Automatically distribute profits to contributors in proportion using smart contracts, without the need for manual intervention.
• Decentralization: Distributing data and computational tasks across global nodes to prevent any single entity from dominating.
• Security: Data is encrypted and stored, and the blockchain ensures that no one can secretly alter the data.
• Incentives: Issue token rewards to those who run nodes and contribute data, encouraging everyone to participate.

Summary

The core of OpenLedger is to use blockchain to create a fair and transparent ecosystem of dedicated AI models. It collects data through Datanets, tracks contributions through Proof of Attribution, and automatically splits money with Payable AI, giving everyone a piece of the AI development. Blockchain is here to ensure data security, transparent transactions, fair money sharing, and the entire system from being controlled by large corporations.

The OpenLedger team keenly found that the general large language model track is monopolized by super companies such as Openai, Google, and Microsoft, who do not need blockchain and will not use blockchain to equalize themselves, while the dedicated language model track (SLM) is an AI track that needs to rely more on decentralized communities and decentralized forces, in this sector, AI and blockchain have achieved a clever combination.

OpenLedger, this also allows us to see a possibility, that is, the combination of blockchain and AI should not only start from the technical needs, but also from the market, first the business is established, and then see what kind of value blockchain and AI can play here. And OpenLedger gives us a glimpse of that possibility.

Open Ledger testnet mining link: There is a detailed official guidance document, just follow the steps to participate. Risk Warning: The above content is for discussion and communication only, DYOR.