Oraichain is a data oracle platform that focuses on connecting trustless applications with Artificial Intelligence models. The platform is powered by the ORAI token for payments and governance. Here we will take a look at what is Oraichain building in the blockchain data oracle sector.
What is Oraichain?
Oraichain is a bridge for connecting AI to smart contracts, the core technology of providing data streams to trustless applications is similar to Tellor or DIA. However, Oraichain is taking a more niche approach by focusing on AI models. Currently, smart contract languages such as Solidity or Vyper are much too strict to implement AI models natively on-chain. Generally speaking, they require inputs that are 100% accurate because code is the law.
Whereas, an AI model for face recognition would work off percentages of accuracy. Furthermore, to implement an efficient AI strategy you need high amounts of storage to input lots of data. But, blockchain networks such as Ethereum often limit the storage to help keep transaction fees down. As a result, Oraichain aims to bridge the gap by enabling secure access between smart contracts and Artificial Intelligence models.
Key Features of Oraichain
The platform is a public blockchain that implements a delegated proof of stake (dPoS) consensus protocol. In this way the transaction times are fast and data requests can be completed quickly. ORAI is the platform’s native cryptocurrency for paying network transaction fees, such as making data requests or setting up a validator.
Below are the key benefits of using Oraichain:
- Oracle AI: Data streams for smart contracts to connect with AI models that can enhance their DeFi products.
- Marketplace: Library of public AI algorithms available to connect with dApps or any application.
- Publisher: Create, manage, and sell your own AI services via the marketplace.
- Staking: Token holders can stake their ORAI to participate in securing the network, and earn rewards in the process.
- Crowdsource: A request portal that deals with crowdfunding to develop new AI services, not on the market.
- DAO: Oraichain is community-driven, where ORAI tokens provide holders with voting power.
A unique point of Oraichain is that the quality of provided AI models is constantly tested. When a data request comes through, it will also contain test cases. As a result, the AI provider must pass these test cases before receiving any payment for sourcing the data request. The idea is that test cases will be an incentive for providers to keep improving the accuracy of their AI models.
Oraichain Use Cases
- DeFi products with AI strategies: the yield farming platform yAI finance uses Oraichain to source AI-powered risk management for its vault trading strategies. For example, its farming strategy automatically optimizes itself based on an AI model that calculates metrics such as ROI, Risk Score, and Price Prediction. The idea is that an AI-based trading performance will have better risk management for buying and selling tokens, as it’s not influenced by human psychology.
- Face authentication: Oraichain could enable the use of smart contracts through face authentication. In certain scenarios, this would be more convenient than always needing your private key, such as checking your balance.
- Detecting fake news: The marketplace can combine results from various AI providers for a decentralized way of checking for fake news.
- Quality control: with AI models the possibilities for designing smart contracts that can provide decentralized quality control are endless: counterfeit detection for supply chains, diagnostics for X-ray images, KYC verification, handwriting detection, loan decisions from user’s credit score, and more.
As with other cryptocurrency projects building in the data oracle sector, the demand for these platforms will expand as the DeFi economy continues to grow. Oraichain shows it is more than capable of fulfilling those demands with its MVP product yAI finance. Furthermore, the platform is filling a niche area of data streams powered by AI models that industry leaders such as Chainlink or Band Protocol may overlook. Mainnet launch in on their roadmap for February 2021. To summarize, we recommend watching their announcements and future exchange listings closely!