{"id":25380,"date":"2024-12-29T17:50:00","date_gmt":"2024-12-29T22:50:00","guid":{"rendered":"https:\/\/coincentral.com\/?p=25380"},"modified":"2024-12-30T15:21:45","modified_gmt":"2024-12-30T20:21:45","slug":"what-is-decentralized-ai-deai","status":"publish","type":"post","link":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/","title":{"rendered":"What is Decentralized AI and Why We Need It ASAP?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">When we think of centralized AI gone wrong, imaginative readers may begin to conjure images of a society ruled by artificial general intelligence-powered robot overlords.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just as the Bitcoin movement was born out of a desire to create a permissionless financial system, decentralized AI aims to democratize access to AI technologies by removing gatekeeper chokepoints.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Decentralization, in step with the open-source programming philosophy, offloads the heavy burden of auditing and data security to a global community, which decentralization proponents believe to be an effective means to watchdog against the potential of a centralized AI Frankenstein growing too strong for centralized systems to control.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If it sounds dystopian, that\u2019s because it is\u2014such was the plot of Terminator; Arnold\u2019s character was just one of a series of machines designed by Skynet, a fictional artificial intelligence created by a centralized organization.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While decentralized AI isn\u2019t a guaranteed insurance policy against dystopia, it hints at a necessary alternative construction to the nascent centralized systems, the true risks we may not realize until it\u2019s too late.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Why Do We Need Decentralized AI in the First Place?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Machine learning improves with the quantity of data available, and consumer-friendly products like ChatGPT, Claude, and Perplexity.AI will continue to improve as they grow in popularity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Providing models with training data, Users are often oblivious to the value they generate for private companies just by using them.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AI\u2019s potential to pull the economic rug from virtually any career path and the out-of-whack monetary incentives for users are parts of an entirely different rabbit hole we&#8217;ll explore in a future article.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Perhaps the greatest risk is what happens if these highly trained models end up in the wrong hands.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">OpenAI, for example, has been under intense scrutiny over recent moves.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apple and OpenAI <\/span><a href=\"https:\/\/openai.com\/index\/openai-and-apple-announce-partnership\/\"><span style=\"font-weight: 400;\">announced a partnership on June 10th, 2024<\/span><\/a><span style=\"font-weight: 400;\">, that would bring ChatGPT into Apple\u2019s suite of products, including iOS, MacOS, and iPadOS, a collaboration that\u2019ll likely lead to a mindblowing customer experience far exceeding any recent iOS update.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other hand, however, is troublesome.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the press release states, \u201crequests are not stored by OpenAI, and users\u2019 IP addresses are obscured. Users can also choose to connect their ChatGPT account, which means their data preferences will apply under ChatGPT\u2019s policies.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, OpenAI\u2019s models would be trained on incredibly intimate personal behavior and information, which could be used for whatever purpose.\u00a0<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"zxx\"><a href=\"https:\/\/t.co\/7OgZAAdPf6\">pic.twitter.com\/7OgZAAdPf6<\/a><\/p>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1800272349134279011?ref_src=twsrc%5Etfw\">June 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<i><span style=\"font-weight: 400;\">Ok, CoinCentral, let\u2019s take off the tinfoil hats for a moment. This doesn\u2019t seem much more invasive than Siri or Alexa; besides, what could a company like OpenAI do with this data?\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">We\u2019re not in the business of fear-mongering or speculation, but the juxtaposition with this next data point is concerning.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just three days after the Apple news, OpenAI announced its appointment of former NSA Director (2018 to 2023) and Retired U.S. Army General <\/span><a href=\"https:\/\/openai.com\/index\/openai-appoints-retired-us-army-general\/\"><span style=\"font-weight: 400;\">Paul M. Nakasone<\/span><\/a><span style=\"font-weight: 400;\"> to its Board of Directors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While we shouldn\u2019t be dismissive of the NSA&#8217;s counter-terrorism and cyber defense efforts, it\u2019s still a government apparatus notorious for spying on its citizens, popularized by NSA whistleblower Edward Snowden, who also criticized the appointment.<\/span><\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">They&#8217;ve gone full mask-off: ???????? ???????????? ???????????????? trust <a href=\"https:\/\/twitter.com\/OpenAI?ref_src=twsrc%5Etfw\">@OpenAI<\/a> or its products (ChatGPT etc). There is only one reason for appointing an <a href=\"https:\/\/twitter.com\/NSAGov?ref_src=twsrc%5Etfw\">@NSAGov<\/a> Director to your board. This is a willful, calculated betrayal of the rights of every person on Earth. You have been warned. <a href=\"https:\/\/t.co\/bzHcOYvtko\">https:\/\/t.co\/bzHcOYvtko<\/a><\/p>\n<p>\u2014 Edward Snowden (@Snowden) <a href=\"https:\/\/twitter.com\/Snowden\/status\/1801610725229498403?ref_src=twsrc%5Etfw\">June 14, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span style=\"font-weight: 400;\">We don\u2019t mean to paint OpenAI, Nakasone, or the NSA with ominous and villainous overtones, but the reality is that, through relatively straightforward and flashy integrations, people may walk backward into a surveillance state they wouldn\u2019t be inclined to enter through the front door.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Knowledge is power, but not in the way your stereotypical classroom motivational poster claims. As useful and constructive a tool like generative AI is, it can also seem to have an enormous downside risk in the wrong hands that must be actively protected against.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Even a glass-half-full approach should acknowledge that while companies like OpenAI aren\u2019t operating with a malevolence bent on world domination, safeguards should still be in place to prevent unintended consequences.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a breather from the dramatic flair of this section for a moment by looking at the decentralized AI\u2019s structural advantages.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Centralized AI vs. Decentralized AI: On Technology<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s important to frame decentralized AI not solely as a strategic safeguard against centralized AI but as potentially a better system overall.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s explore.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Cost Advantages of DeAI<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Scaling a centralized AI system is often compared to building a skyscraper on a single foundation; the higher you go, the more strain you place on that foundation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Centralized AI demands substantial computational resources, including powerful servers and large-scale data centers. As the appetite for AI grows, these systems face challenges in scaling efficiently and cost-effectively.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ChatGPT, for example, was estimated to cost roughly <\/span><a href=\"https:\/\/www.businessinsider.com\/how-much-chatgpt-costs-openai-to-run-estimate-report-2023-4\"><span style=\"font-weight: 400;\">$700,000 per day<\/span><\/a><span style=\"font-weight: 400;\"> in 2023, a figure that has likely increased due to OpenAI\u2019s advanced models\u2014and that\u2019s not counting any of the audio or generative video, as seen with Sora.\u00a0<\/span><\/p>\n<figure id=\"attachment_25383\" aria-describedby=\"caption-attachment-25383\" style=\"width: 938px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\" wp-image-25383\" src=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM.png\" alt=\"The OpenAI homepage. (Source: https:\/\/openai.com\/)\" width=\"938\" height=\"572\" srcset=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM.png 1986w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-300x183.png 300w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-1024x624.png 1024w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-131x80.png 131w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-768x468.png 768w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-1536x936.png 1536w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-591x360.png 591w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.35.41\u202fPM-621x378.png 621w\" sizes=\"(max-width: 938px) 100vw, 938px\" \/><figcaption id=\"caption-attachment-25383\" class=\"wp-caption-text\">The OpenAI homepage. Source: https:\/\/openai.com\/<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Anthropic, creator of the Claude model, has raised over <\/span><a href=\"https:\/\/techcrunch.com\/2024\/05\/13\/anthropic-is-expanding-to-europe-and-raising-more-money\/#:~:text=Anthropic%20has%20to%20date%20picked,raised%20in%20the%20last%20year.\"><span style=\"font-weight: 400;\">$7.6 billion<\/span><\/a><span style=\"font-weight: 400;\"> to compete with OpenAI.<\/span><\/p>\n<figure id=\"attachment_25384\" aria-describedby=\"caption-attachment-25384\" style=\"width: 997px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\" wp-image-25384\" src=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM.png\" alt=\"\" width=\"997\" height=\"474\" srcset=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM.png 2048w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-300x142.png 300w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-1024x486.png 1024w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-131x62.png 131w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-768x364.png 768w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-1536x729.png 1536w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-591x280.png 591w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.37.09\u202fPM-621x295.png 621w\" sizes=\"(max-width: 997px) 100vw, 997px\" \/><figcaption id=\"caption-attachment-25384\" class=\"wp-caption-text\">Anthropic&#8217;s Home Page (https:\/\/www.anthropic.com\/)<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Decentralized AI systems utilize some variation of a network of globally distributed providers of computing power and data storage. Instead of going through AWS or private data centers, a DeAI entrepreneur could tap into a marketplace of 24\/7\/365 competitively priced compute and data storage resources.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A decentralized AI network could tap into various devices, from high-end servers to personal laptops and even smartphones. For example, by connecting your MacBook to a decentralized AI network, you can contribute its computational power to the collective pool, for which you\u2019d be compensated, likely in the project\u2019s native token.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Editor\u2019s note: We use the term \u201cdecentralized AI\u201d or \u201cDeAI\u201d here, but this model has existed since decentralized computing projects such as Golem. Today, the category of \u201cDecentralized Physical Infrastructure Network, or DePIN, largely overlaps with the creation and operation of compute marketplaces.\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This distributed approach creates a marketplace for idle (or active) compute resources, aligning proper business incentives for aspiring DeAI entrepreneurs and cash flow seekers alike.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Centralized AI vs Decentralized AI: Efficacy, Data Security, and Privacy<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">By definition, centralized systems tend to have single central points of failure, making them susceptible to attacks and technical failures. A compromised central server can disrupt the entire AI system, leading to downtime and data loss.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Famously, a distributed network made possible by blockchain should, theoretically, never experience downtime.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/status.openai.com\/\"><span style=\"font-weight: 400;\">Downtime is just the cost of doing business\u2013 most popular centralized businesses, such as <\/span><\/a><a href=\"https:\/\/status.openai.com\/\">Op<\/a>enAI<span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/metastatus.com\/\"><span style=\"font-weight: 400;\">Meta<\/span><\/a><span style=\"font-weight: 400;\">, have their own downtime trackers.<\/span><\/p>\n<figure id=\"attachment_25382\" aria-describedby=\"caption-attachment-25382\" style=\"width: 862px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\" wp-image-25382\" src=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM.png\" alt=\"OpenAI's downtime detector.\" width=\"862\" height=\"787\" srcset=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM.png 1582w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-300x274.png 300w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-841x768.png 841w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-92x84.png 92w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-768x701.png 768w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-1536x1402.png 1536w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-591x539.png 591w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.32.34\u202fPM-621x567.png 621w\" sizes=\"(max-width: 862px) 100vw, 862px\" \/><figcaption id=\"caption-attachment-25382\" class=\"wp-caption-text\">OpenAI&#8217;s downtime detector.<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Blockchain, which underpins most DeAI systems, provides a secure and immutable ledger of transactions and interactions within the network. This makes it nearly impossible for malicious actors to alter or corrupt the system without detection.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A large enough network should be fine even if some nodes go offline or are compromised.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s this distributed nature that inherently provides continuous uptime, ensuring that AI services remain available and providing a level of reliability that centralized systems struggle to match.<\/span><\/p>\n<p><strong>And then there\u2019s the 21st-century digital bogeyman\u2013 data privacy.\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Imagine a vault containing the most valuable jewels in the world, all stored in one place\u2013 enough to make a goblin salivate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Centralized AI systems store vast amounts of data in central servers, making them a honeypot for cyberattacks. A single breach could expose sensitive information, causing irreparable harm to individuals and organizations alike.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, these data breaches aren\u2019t necessarily the same thing as your Reddit password being exposed. The specter of surveillance looms large, as entities with access to centralized data can misuse it, eroding public trust and raising ethical concerns about privacy and consent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s not a matter of a centralized company willingly using your data for evil but of the potential for them to neglect to secure it, as has been seen <\/span><a href=\"https:\/\/informationisbeautiful.net\/visualizations\/worlds-biggest-data-breaches-hacks\/\"><span style=\"font-weight: 400;\">time and time again<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<figure id=\"attachment_25381\" aria-describedby=\"caption-attachment-25381\" style=\"width: 1610px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-25381\" src=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM.png\" alt=\"A frightening visualization of data breaches. (source: Information Is Beautiful)\" width=\"1610\" height=\"1418\" srcset=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM.png 1610w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-300x264.png 300w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-872x768.png 872w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-95x84.png 95w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-768x676.png 768w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-1536x1353.png 1536w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-591x521.png 591w, https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Screenshot-2024-06-24-at-5.31.21\u202fPM-621x547.png 621w\" sizes=\"(max-width: 1610px) 100vw, 1610px\" \/><figcaption id=\"caption-attachment-25381\" class=\"wp-caption-text\"><em>A frightening visualization of data breaches. (source: Information Is Beautiful)<\/em><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Artificial intelligence innovation is moving at light speed, evidenced by OpenAI\u2019s breakout ChatGPT app, which notched an estimated <\/span><a href=\"https:\/\/www.theverge.com\/2023\/11\/6\/23948386\/chatgpt-active-user-count-openai-developer-conference\"><span style=\"font-weight: 400;\">100 million monthly users<\/span><\/a><span style=\"font-weight: 400;\"> in just two months upon launch, making it the fastest-growing consumer app of all time\u2013 a milestone that took runner-up Facebook four and a half years.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the average user, what\u2019s not to love: ChatGPT is regarded as very accessible with a free version, premium costs of $20 per month, and reasonable API requests for developers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, centralized AI is like a gated community, where only a select few have access to the resources needed for development.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It goes beyond API accessibility\u2013 the average startup doesn\u2019t have Google or Microsoft money to spend $700,000 daily on operational expenses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many decentralized AI startups focus on providing developers with a marketplace where people from all over the world provide compute resources and access to servers at reasonable prices.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">AI &amp; Data Transparency<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Nearly all centralized models operate behind a veil.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data in this \u201cblack box\u201d of sorts used to train these systems is collected from limited, largely unknown sources, introducing biases that can lead to inaccurate, unfair, and discriminatory outcomes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Granted, this threat level seems negligible if something like ChatGPT\u2019s chicken casserole recipe calls for using egg whites instead of egg yolks. Still, as society grows more dependent on AI\u2019s efficiencies, biases and inaccuracies can compound into enormous issues.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without transparency in their decision-making processes, it becomes challenging to identify and correct these biases, undermining the ethical integrity of AI applications.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Centralized data sets can\u2019t be reliably audited by third parties, whereas it seems to be common practice by decentralized AI companies to have the entire model, including its training data, open source.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some DeAI startups are even working on marketplaces where users can buy and sell their data or lease individual models specifically trained on a narrow task with exceptionally high-fidelity data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These \u201cpersonal AI experts\u201d will likely have enormous commercial demand, especially if they can reduce the likelihood of error for an incredibly useful and scalable system prototyped by ChatGPT.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">But what about licensing? What if we know that a model is being trained from data from the New York Times, Reddit, or our favorite site, CoinCentral?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s the thing with licensing: it\u2019s <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/03\/02\/technology\/elon-musk-openai-lawsuit-microsoft-research.html\"><span style=\"font-weight: 400;\">expensive<\/span><\/a><span style=\"font-weight: 400;\"> but also creates another regulatory chokepoint where a rulemaker can determine which data should or shouldn\u2019t be permissible to be licensed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For starters, licensing costs may dissuade budding AI startups from building if they can even obtain permission to license the data.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the notion of using licenses to restrict and control AI startups isn\u2019t just Libertarian propaganda; it\u2019s a courtroom drama evolving as we write this article.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An August 2023 proposal by anti-crypto Senators Lindsay Graham and Elizabeth Warren advocated for creating a <\/span><a href=\"https:\/\/www.techpolicy.press\/senators-propose-a-licensing-agency-for-ai-and-other-digital-things\/\"><span style=\"font-weight: 400;\">new federal agency<\/span><\/a><span style=\"font-weight: 400;\">, structured as a commission (<\/span><a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/Tech%20Bill_Full%20Text.pdf\"><span style=\"font-weight: 400;\">full text here<\/span><\/a><span style=\"font-weight: 400;\">) to \u201cregulate digital platforms, including with respect to competition, transparency, privacy, and national security.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The proposal would require \u201cdominant platforms\u201d (as defined by the commission) to get a license that meets the designation. Specifically, the commission can also revoke licenses if the platform has \u201cengaged in repeated, egregious, and illegal misconduct\u201d and hasn\u2019t undertaken measures to address the misconduct.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The White House-issued <\/span><a href=\"https:\/\/www.whitehouse.gov\/ostp\/ai-bill-of-rights\/\"><span style=\"font-weight: 400;\">AI Bill of Rights<\/span><\/a><span style=\"font-weight: 400;\"> has a similar tone of regulatory control in order to protect.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our discussion here isn\u2019t whether AI innovation should be regulated or left completely laissez faire as there are <\/span><a href=\"https:\/\/www.wired.com\/story\/senators-want-chatgpt-ai-to-require-government-license\/\"><span style=\"font-weight: 400;\">extensive arguments for either side<\/span><\/a><span style=\"font-weight: 400;\">, but this model does little to address data transparency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It actually further muddles it, enabling a regulatory body to exert control to omit or add new information with the threat or reward of a permit.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many decentralized AI companies offer marketplaces for models, where third parties can actively audit, confirm, and even contribute to the training data for each model.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Challenges for Decentralized AI\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Throwing the blockchain on something isn\u2019t necessarily a panacea, and DeAI is fraught with challenges and shortcomings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If centralized AI is in its nascent baby deer-legged stages, DeAI has yet to leave the womb.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Few models work, let alone functional, robust marketplaces capable of rivaling the models made by OpenAI, Anthropic, Perplexity, Google, or most of the stuff shared on AI model directory, <\/span><a href=\"https:\/\/huggingface.co\/\"><span style=\"font-weight: 400;\">Hugging Face<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of DeAI\u2019s premier challenges is its reliance on diverse and distributed data sources. This can lead to discrepancies in data quality, making it difficult to maintain the accuracy and reliability of AI models.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, data integrity and standardization across a network is a critical challenge.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While DeAI aims to enhance security and trust, it introduces new vulnerabilities; its distributed nature makes it susceptible to various attacks, such as data poisoning or <\/span><a href=\"https:\/\/coincentral.com\/sybil-attack-blockchain\/\"><span style=\"font-weight: 400;\">Sybil attacks<\/span><\/a><span style=\"font-weight: 400;\">, where malicious actors can disrupt the system by flooding it with fake nodes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And then, there\u2019s product-market fit for each marketplace.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, don\u2019t let the novelty of DeAI dissuade you from learning about it. If the velocity of innovation of its centralized counterpart is any indication, it will move very quickly.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Final Thoughts: So, Why Decentralized AI<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Leaving the practical advantages described above aside, the spirit of decentralization is an extension of the rebellious demand for self-sovereignty and freedom from central control, as seen with Bitcoin.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understandably so, the crypto OGs may get flashbacks to the ICO craze of 2017 upon hearing of the combination of two trending technologies \u201c(cryptocurrency and AI), but we implore our readers to consider the severity of what\u2019s at stake.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At brass tacks, the DeAI niche is about marketplaces\u2013 people who buy and sell compute and data storage resources, people who buy and sell access to AI models, people who participate in the economics of the native tokens via staking or liquidity provision, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The more people who enter the DeAI space, driven by a passion for self-sovereignty or just general curiosity, will indirectly contribute to upholding privacy, security, and community-driven innovation as the standard for technology and not just fringe features.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When we think of centralized AI gone wrong, imaginative readers may begin to conjure images of a society ruled by artificial general intelligence-powered robot overlords.\u00a0 Just as the Bitcoin movement was born out of a desire to create a permissionless financial system, decentralized AI aims to democratize access to AI technologies by removing gatekeeper chokepoints.\u00a0<\/p>\n","protected":false},"author":5,"featured_media":25388,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"iawp_total_views":84,"footnotes":""},"categories":[5714,5712],"tags":[28124,28122,28123,28121,14036],"class_list":{"0":"post-25380","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-articles","8":"category-guides","9":"tag-anthropic","10":"tag-chatgpt","11":"tag-claude","12":"tag-deai","13":"tag-decentralization"},"wppr_data":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Decentralized AI and Why We Need It ASAP?<\/title>\n<meta name=\"description\" content=\"Explore how decentralized networks for AI work, and why today&#039;s budding DeAI projects are passionate about competing against centralized AI.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Decentralized AI and Why We Need It ASAP?\" \/>\n<meta property=\"og:description\" content=\"Explore how decentralized networks for AI work, and why today&#039;s budding DeAI projects are passionate about competing against centralized AI.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/\" \/>\n<meta property=\"og:site_name\" content=\"CoinCentral\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/moskovalex\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-29T22:50:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-30T20:21:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1536\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Alex Moskov\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:description\" content=\"Explore how decentralized networks for AI work, and why today&#039;s budding DeAI projects are passionate about competing against centralized AI.\" \/>\n<meta name=\"twitter:creator\" content=\"@AlexMoskov\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Alex Moskov\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/\",\"url\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/\",\"name\":\"What is Decentralized AI and Why We Need It ASAP?\",\"isPartOf\":{\"@id\":\"https:\/\/coincentral.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png\",\"datePublished\":\"2024-12-29T22:50:00+00:00\",\"dateModified\":\"2024-12-30T20:21:45+00:00\",\"author\":{\"@id\":\"https:\/\/coincentral.com\/#\/schema\/person\/0b8804b1fb558695b592459ee3d41568\"},\"description\":\"Explore how decentralized networks for AI work, and why today's budding DeAI projects are passionate about competing against centralized AI.\",\"breadcrumb\":{\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage\",\"url\":\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png\",\"contentUrl\":\"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png\",\"width\":1536,\"height\":768,\"caption\":\"Decentralized AI\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/coincentral.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What is Decentralized AI and Why We Need It ASAP?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/coincentral.com\/#website\",\"url\":\"https:\/\/coincentral.com\/\",\"name\":\"CoinCentral\",\"description\":\"Your Bitcoin, Ethereum, and other Cryptocurrency HQ\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/coincentral.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/coincentral.com\/#\/schema\/person\/0b8804b1fb558695b592459ee3d41568\",\"name\":\"Alex Moskov\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/coincentral.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/6c12f3f561bd6c8fa68af36f4733378ea1d33ad5d78c4027e4259b6f38925426?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/6c12f3f561bd6c8fa68af36f4733378ea1d33ad5d78c4027e4259b6f38925426?s=96&r=g\",\"caption\":\"Alex Moskov\"},\"description\":\"Alex Moskov co-founded CoinCentral in 2017 as its first Editor-in-Chief, growing it into a leading crypto publication with over 12 million readers. With a finance degree from the University of Florida and over a decade in the industry, he\u2019s worked with top web2 and web3 companies on content strategy and business development. He privately consults VCs, founders, and business leaders. His writing has been seen in The Hustle, VentureBeat, Yahoo Finance, Harvard Business Review, and Business Insider. His articles on CoinCentral have been cited on publications like Forbes, TechCrunch, Vice,\u00a0 The Guardian, Investopedia, The Motley Fool, Seeking Alpha, and more. He also regrets not buying more Bitcoin back in 2012, just like you. You can connect with Alex on Twitter website https:\/\/alexmoskov.me. Alex currently runs a new-tech research and venture studio HollyFrank.\",\"sameAs\":[\"https:\/\/alexmoskov.me\",\"https:\/\/www.facebook.com\/moskovalex\",\"https:\/\/x.com\/AlexMoskov\"],\"url\":\"https:\/\/coincentral.com\/author\/alexmoskov\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is Decentralized AI and Why We Need It ASAP?","description":"Explore how decentralized networks for AI work, and why today's budding DeAI projects are passionate about competing against centralized AI.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/","og_locale":"en_US","og_type":"article","og_title":"What is Decentralized AI and Why We Need It ASAP?","og_description":"Explore how decentralized networks for AI work, and why today's budding DeAI projects are passionate about competing against centralized AI.","og_url":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/","og_site_name":"CoinCentral","article_author":"https:\/\/www.facebook.com\/moskovalex","article_published_time":"2024-12-29T22:50:00+00:00","article_modified_time":"2024-12-30T20:21:45+00:00","og_image":[{"width":1536,"height":768,"url":"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png","type":"image\/png"}],"author":"Alex Moskov","twitter_card":"summary_large_image","twitter_description":"Explore how decentralized networks for AI work, and why today's budding DeAI projects are passionate about competing against centralized AI.","twitter_creator":"@AlexMoskov","twitter_misc":{"Written by":"Alex Moskov","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/","url":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/","name":"What is Decentralized AI and Why We Need It ASAP?","isPartOf":{"@id":"https:\/\/coincentral.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage"},"image":{"@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage"},"thumbnailUrl":"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png","datePublished":"2024-12-29T22:50:00+00:00","dateModified":"2024-12-30T20:21:45+00:00","author":{"@id":"https:\/\/coincentral.com\/#\/schema\/person\/0b8804b1fb558695b592459ee3d41568"},"description":"Explore how decentralized networks for AI work, and why today's budding DeAI projects are passionate about competing against centralized AI.","breadcrumb":{"@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#primaryimage","url":"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png","contentUrl":"https:\/\/coincentral.com\/wp-content\/uploads\/2024\/06\/Decentralized-AI.png","width":1536,"height":768,"caption":"Decentralized AI"},{"@type":"BreadcrumbList","@id":"https:\/\/coincentral.com\/what-is-decentralized-ai-deai\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/coincentral.com\/"},{"@type":"ListItem","position":2,"name":"What is Decentralized AI and Why We Need It ASAP?"}]},{"@type":"WebSite","@id":"https:\/\/coincentral.com\/#website","url":"https:\/\/coincentral.com\/","name":"CoinCentral","description":"Your Bitcoin, Ethereum, and other Cryptocurrency HQ","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/coincentral.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/coincentral.com\/#\/schema\/person\/0b8804b1fb558695b592459ee3d41568","name":"Alex Moskov","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/coincentral.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/6c12f3f561bd6c8fa68af36f4733378ea1d33ad5d78c4027e4259b6f38925426?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/6c12f3f561bd6c8fa68af36f4733378ea1d33ad5d78c4027e4259b6f38925426?s=96&r=g","caption":"Alex Moskov"},"description":"Alex Moskov co-founded CoinCentral in 2017 as its first Editor-in-Chief, growing it into a leading crypto publication with over 12 million readers. With a finance degree from the University of Florida and over a decade in the industry, he\u2019s worked with top web2 and web3 companies on content strategy and business development. He privately consults VCs, founders, and business leaders. His writing has been seen in The Hustle, VentureBeat, Yahoo Finance, Harvard Business Review, and Business Insider. His articles on CoinCentral have been cited on publications like Forbes, TechCrunch, Vice,\u00a0 The Guardian, Investopedia, The Motley Fool, Seeking Alpha, and more. He also regrets not buying more Bitcoin back in 2012, just like you. You can connect with Alex on Twitter website https:\/\/alexmoskov.me. Alex currently runs a new-tech research and venture studio HollyFrank.","sameAs":["https:\/\/alexmoskov.me","https:\/\/www.facebook.com\/moskovalex","https:\/\/x.com\/AlexMoskov"],"url":"https:\/\/coincentral.com\/author\/alexmoskov\/"}]}},"_links":{"self":[{"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/posts\/25380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/comments?post=25380"}],"version-history":[{"count":0,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/posts\/25380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/media\/25388"}],"wp:attachment":[{"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/media?parent=25380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/categories?post=25380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coincentral.com\/wp-json\/wp\/v2\/tags?post=25380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}