AI×Crypto Convergence: In-depth Analysis of the Top 5 AI Layer1 Projects

With the rapid development of AI technology, the traditional Blockchain architecture is no longer able to meet its high-performance computing requirements. Therefore, a Layer 1 Blockchain platform optimized for AI has emerged. This article delves into five leading projects such as Bittensor, Vana, Kite AI, Nillion, and Sahara, exploring their technical architecture and market potential. (Background: Alpha Mine》Allora: A self-evolving Decentralization AI network, is the next Bittensor (TAO)?) (Background: Alpha Mine》CLIZA.AI 'zero-cost dialogue issuance coin' rewards 80% LP costs, can it subvert the Token issuance market?) With the rapid advancement of AI technology, traditional Blockchain architecture can no longer meet the efficient computation and complex data processing needs of AI applications. This has led to the rise of Layer 1 Blockchain platforms optimized for AI, presenting diverse characteristics in terms of technical architecture, application scenarios, and business models. This study provides an in-depth analysis of Bittensor, Vana, Kite AI, Nillion, and Sahara, the five leading AI Layer 1 projects. 1. Bittensor: Decentralization AI Network Infrastructure Bittensor, as an early explorer in the Blockchain AI field, is dedicated to building an open Decentralization artificial intelligence collaboration network. Its goal is to break down the centralization barriers in traditional AI research and development, allowing more participants to contribute and benefit together. Unlike traditional centralized AI systems (such as OpenAI and other companies), Bittensor has established an open peer-to-peer ecosystem where participants can receive rewards based on their contributions to the network. Bittensor's technical architecture adopts a dual-layer design: Mainnet: Responsible for coordinating the entire system, verification, TAO Token issuance management, serving as the central hub for network resource allocation Subnet ecosystem: Each subnet is like an independent AI laboratory, developing specialized solutions for specific AI application scenarios and proving their value in the market competition. This design allows Bittensor to balance the stability of the overall network and the professionalism of various domains, providing a flexible infrastructure for the development of Decentralization AI. Ecosystem development progress: The number of subnets has expanded from the initial 32 to over 64, covering various AI application scenarios such as text generation, transaction signals, data labeling, etc. The active user base has reached 140,000, doubling compared to the previous year. The total market valuation of subnets exceeds 100 million USD, with daily trading volume maintained at around 45 million USD. Institutional participation has significantly increased, with well-known fund Grayscale including TAO in its Decentralization AI fund, adjusting the weight to 29.55%. These data indicate that Bittensor is gaining more recognition from the market participants, and its ecosystem is entering a positive development track. Bittensor's recent completion of the dTAO (dynamic TAO) system upgrade is a significant innovation in its economic model. The core of this upgrade lies in optimizing the allocation mechanism of Token TAO, shifting from a resource allocation method relying on validators' subjective judgment to a more market-oriented allocation mechanism, allowing resources to flow more precisely to competitive subnets. Bittensor's original economic model revealed several key issues in practical execution: 1. Lack of objectivity in the evaluation mechanism: With an increasing number of subnets, validators find it challenging to objectively assess the actual value of each subnet, leading to a gradual decrease in allocation efficiency. 2. Imbalance in power structure: Many validators also operate subnets, and this overlap of roles can lead to conflicts of interest, with validators potentially favoring the subnets they are involved in, or even engaging in private transactions. 3. Participation barriers: Ordinary TAO holders find it difficult to directly influence network resource allocation decisions, with power excessively concentrated in the hands of a few validators. To address these issues, the dTAO upgrade introduces a dynamic resource allocation system based on market mechanisms. This system transforms each subnet into an independent economic unit, driving resource allocation based on users' actual needs. Its core innovation is the subnetToken (Alpha Token) mechanism: Operating principle: Users can stake TAO to obtain Alpha Tokens for each subnet issuance, representing the user's support for a specific subnet. Resource allocation logic: The market price of Alpha Tokens serves as a signal of subnet demand intensity. Initially, all Alpha Tokens have the same price, with each pool containing 1 TAO and 1 Alpha Token. As Liquidity of both tokens increases in the subnet, the price of Alpha Tokens also changes. TAO emissions are distributed proportionally among all tokens based on the subnetToken price, with higher-priced subnets receiving more TAO allocations, thus achieving automatic optimization of resource allocation. This mechanism significantly enhances the efficiency and fairness of resource allocation, solidifying the value of TAO Tokens and providing more avenues for ordinary users to participate in network governance. Some of the most active subnets currently include: Subnet 4 Targon: Focuses on AI inference services for text generation, known for its fast response times and low costs. Subnet 64 Chutes: Provides various LLM API interfaces, enabling developers to build and deploy AI applications on the Bittensor network. Subnet 8 PTN: Focuses on the financial sector, incentivizing Miners to generate accurate transaction signals, covering forex, Cryptocurrency, and other financial markets. Subnet 52 Dojo: Focuses on data labeling, encouraging users to earn Tokens through data labeling. Yzi Labs announced an investment in its parent company Tensorplex. 2. Vana: Data Sovereignty and Value Reconstruction Platform The Vana project focuses on addressing a core issue in today's digital economy: ownership and value distribution of personal data. In the current Internet ecosystem, users' data is mostly monopolized and controlled by large tech companies, while the actual creators of this data rarely benefit from it. Vana's innovation lies in establishing an ecosystem where users truly own and control their own data, while also being able to obtain economic returns from it. As a Layer 1 Blockchain network compatible with EVM, Vana's technical architecture includes five core components: Data Liquidity Layer: This is the core of the Vana network, incentivizing, aggregating, and verifying data assets through Data Liquidity Pools (DLP). Each DLP is a smart contract specialized in aggregating specific types of data assets, such as social media data, browsing history, etc. Data Portability Layer: Ensures that user data can be easily transferred between different applications and AI models, enhancing the flexibility of data use. Universal Connectome: Tracks real-time data flow throughout the ecosystem, forming a data...