Crypto oracles and AI. Imagine a cryptocurrency that combines both, giving users the chance to integrate real-world data with advanced artificial intelligence. This is where Oraichain comes in!
Oraichain, also known by the market ticket ORAI, is an AI-powered oracle and AI-focused ecosystem for blockchains.
Oraichain is an AI Layer 1 blockchain for Data Economy and Oracle services that serve as a foundation layer for the creation of new AI smart contracts that will eventually help complete the AI Ecosystem on the blockchain.
But, how does Oraichain work exactly? And what are the tokenomics of the ORAI token?
Today, we find out.
What is Oraichain?
Oraichain was founded in August 2020 by Chung Dao, Duc Le Pham, and Diep Nguyen.
Chung Dao is the current global CEO, while Duc Le Pham serves as the Technical Lead, and Diep Nguyen is the Chief Operating Officer.
Oraichain is a data oracle that links AI APIs to smart contracts and decentralised applications.
Essentially, Oraichain acts as the bridge between AI and smart contracts, enabling users to create various AI data requests.
But what exactly does that mean?
To break that down, a crypto oracle is a service or mechanism that provides blockchain smart contracts with real-world data, enabling decentralised applications to access information from outside the blockchain, such as market prices, weather conditions, or sports scores, which it then uses to execute conditional logic autonomously.
Artificial Intelligence, or AI, in this context, means machines that can solve problems by themselves and without further input required from humans once launched.
Application Programming Interface, or API, is a set of rules or protocols that let software applications communicate with each other to exchange data, features, or functionality.
So why doesn’t conventional blockchain include AI models usually?
Simply put, current smart contracts cannot run AI models and it is almost impossible to integrate an AI model into a smart contract mostly due to the following three reasons:
First, strictness. Simply put, smart contract inputs must be 100% accurate to generate the correct output. However, as AI models cannot be trusted with such high levels of accuracy, this has been a limitation for AI on the blockchain.
Next, most high-level smart contracts and written in the Solidity or Rust programming languages due to their stricter syntax and better security, whereas most AI models are typically written in Python or Java.
Finally, there is data size.
To keep transaction fees down, the data size needs to be as small as possible, however, anything that involves AI will inherently have more data attached to it which increases costs for users.
Although, there are some areas where AI could be very useful, and according to Oraichain’s website, those would be the following:
Identification based on biometrics, such as face and fingerprint.
Automated trading based on price prediction and AI strategies.
Lending based on credit scores.
Comparison of two products from their photos.
Evaluating the price of game items.
But that leads us to the question, how does this all work?
How coes Oraichain work?
Oraichain was built using the Cosmos SDK, which means it is a Proof-of-Stake based cryptocurrency.
Like most other Cosmos SDK-based blockchains, Oraichain is connected to Cosmos’ network of over 50 independent blockchains through the Interblockchain Communication Protocol.
Though, the one thing it does differently is through its Delegated Proof-of-Stake consensus mechanism.
Under Delegated Proof-of-Stake, token holders elect a limited number of delegates to validate transactions and secure the network, enhancing the scalability and transaction speed of the network by moving decision-making authority to fewer elected nodes.
However, the second task of the validators is something more unique to the Oraichain itself, and that is to collect data from AI providers and validate that data before they are written to the blockchain to ensure accuracy.
So what makes Oraichain truly unique?
What makes Oraichain unique?
One of the unique features of Oraichain is that with each user request, there are test cases attached, and the providers’ API must pass a certain number of test cases to receive payment.
Oraichain looks to branch into many subsections of the crypto landscape. Outside of AI Oracles, which enable smart contracts on the Oraichain to securely access external AI APIs.
It also includes an AI Marketplace which provides access to look up and choose ever-increasing AI algorithms and models from different providers around the world to support and increase your applications functionality.
Then, there is also the AI Provider, which gives AI developers the chance to publish, edit, manage, and earn rewards and royalties from users on a global scale.
Next, there is also AI Staking & Earning, which is sort of as you would expect. Staking & Earning but with AI algorithms running to help maximise potential returns.
Finally, users can also make custom requests for AI services that are not easy to find elsewhere.
But, how about the tokenomics?
ORAI Tokenomics
The ORAI token can be used for all the Proof-of-Stake classics such as payments, staking, and governance.
At present, there are three types of ORAI tokens. An ERC-20 version, a BEP-20 version, and the native ORAI token on the Oraichain blockchain.
The ERC-20 and BEP-20 are token standardisation blueprints that ensure compatibility with the native networks, in this case, Ethereum and Binance respectively.
In total, there will only ever be just under 20 million ORAI tokens.
By the end of their emission schedule in 2027, roughly 38% of all ORAI tokens will be in the possession of the Oraichain Foundation.
About 45% will be in the hands of the Ecosystem, which goes towards activities such as block rewards, and the final 17% will be under control by the DAO Treasury.
Oraichain looks to break into the crypto oracle landscape with the help of AI technology.
Ultimately, as with all things AI, its success will be dictated by a combination of wise management and also most importantly by remaining accurate and providing a service that customers value.
However, as technology rarely disappears once it has been developed, it seems likely that eventually, all blockchains will sooner or later be integrating AI technologies in some way into their platforms.
If this is the case, then Oraichain may find itself ahead of the pack in that regard.
But, as always, nothing is ever guaranteed in crypto, of course.
How to create an ORAI wallet
Step 1: Visit https://orai.io/control-center and click “Download OWallet”
Step 2: Download and install OWallet wallet on your browser
Step 3: Open OWallet and create a new wallet or import an existing one
To support the blog, consider donating ORAI here: orai19xmw02yg778rgtmyecqg460c3sp5fnpujaude4