🧐 Research Report｜From the collaboration with CARV, Tencent and Matrix Partners' investment in Chainbase: How to build the largest artificial intelligence full-chain data network -
The current crypto market has completed the extraction of blood from Bitcoin and is expected to soon enter a new cycle of capital overflow and leading growth.
Finding new incremental opportunities has become the focus of every investor and developer.
When traditional narratives no longer feel fresh and existing projects fail to stir the market, attention begins to turn to fields with potential high growth.
It can be said that one of the biggest variables in this cycle is AI. As a hot topic throughout the year, AI has not only attracted a lot of attention but has also become a gathering place for capital and liquidity.
The characteristics of blockchain also align with those of AI. Currently, the entire Web3 field integrates AI into three main areas: computing, models, and data. While many projects have already emerged in computing and model areas, the data direction remains a blue ocean with potential for mining. For AI, data is like a lifeblood.
Just as plants rely on sunlight and moisture to thrive, AI systems also rely on vast amounts of data to continuously 'learn' and 'think'. Without data, even the most sophisticated AI algorithms are just castles in the air, unable to exhibit their intended intelligence and effectiveness.
Especially in the three pillars of AI - computing power, algorithms, and data, the application and development of data are seen as the key to the next Alpha opportunity. Unlike the leading projects and fierce competition that have already appeared in the fields of computing power and algorithms, data-related projects are beginning to evolve towards decentralized physical infrastructure networks (DePIN).
For example, top artificial intelligence models heavily rely on high-quality data input. For instance, GPT-2 was trained on 40 Gigabytes of human-filtered data, while GPT-3 was trained on 570 GB of data filtered from 45 TB of raw data. Essentially, the larger the dataset, the better the model is likely to perform; high-quality data produces high-quality models.
In the Web3 field, on-chain data is no longer limited to simple transaction records but is gradually evolving into a new type of asset class. This data is not only used to verify transactions but has also become a valuable resource for providing insights and driving innovation. To utilize and mine the value of on-chain data, a robust data infrastructure is key to realizing this vision.
The combination of AI and cryptography is beginning to reveal structural opportunities, especially in data applications.
Currently, the infrastructure project deeply focused on data is Chainbase @ChainbaseHQ.
In a nutshell, Chainbase is a full-chain data network that mines the value of on-chain data and integrates AI to create smarter crypto applications.
1️⃣ Chainbase collaborates with the modular data layer project CARV.
Personally, I think that the recent announcement by Chainbase @ChainbaseHQ of a strategic cooperation with the modular data layer project CARV @carv_official is completing this structural opportunity!
These two projects are innovators in the fields of cross-chain data and AI, and this cooperation is crucial for building a more seamless blockchain ecosystem, especially in scenarios where Web3 applications need to interact across multiple blockchains.
By integrating AI technology, such as the collaboration between Chainbase's Manuscript project and Google Gemini, the CARV ecosystem can leverage these AI capabilities for more efficient data processing and analysis.
The two parties will also establish a dual-staking mining framework for $CARV and $C to enhance governance efficiency and create more value for token holders.
I looked at some details of the cooperation and found it very interesting!
So—
2️⃣ What exactly does Chainbase do?
In July this year, the blockchain data network Chainbase announced the completion of a $15 million Series A financing, led by Tencent Investment Group and Matrix Partners China.
Tencent may enter the blockchain technology field through its investment in Chainbase, expanding its influence in the Web3-related ecosystem.
This is also Tencent's only recent move in the crypto field in the past year.
So what exactly is Chainbase? Why can it attract investments from Tencent and Matrix Partners?
In simple terms, Chainbase is a platform that provides cloud-based API services for Web3 developers!
3⃣ Characteristics of Chainbase -
1. The largest full-chain data network, unifying all chains.
Currently, public chains and L2 data are scattered across various independent networks, and the dispersion and heterogeneity of data pose significant challenges, hindering efficient circulation and value mining of data. Chainbase emerges as a solution, aiming to construct a cohesive data network to address these challenges.
Different chains have their own architectures, while Chainbase unifies them, much like Qin Shi Huang's ‘currency measurement, unified script, and coordinated vehicles’, integrating and processing any data from any chain in the vast and fragmented crypto world, even off-chain data, which is of significant importance for future value mining of on-chain data.
2. On-chain native AI
By introducing on-chain native AI, Chainbase provides a whole new possibility for data analysis and applications, greatly expanding the application scenarios and value of data. Simply put, it transforms raw blockchain data into insights that AI applications can operate on, allowing models to understand and process blockchain data more accurately.
For example, one of Chainbase's core products is the Theia model, which is based on complex D2ORA algorithms and artificial intelligence technology, adept at identifying crypto patterns from vast amounts of on-chain and off-chain data. These models provide users with a complete reasoning chain and offer a new interface for ordinary users, aiming to transform a large amount of on-chain dark knowledge into comprehensive intelligence in a trustworthy manner, allowing people to interact with data through natural language for the first time.
The Theia model surpasses mainstream market models in perplexity and BERT scores, demonstrating a better understanding of the crypto world than most mainstream open-source large models. It is reported that Theia-Llama-3.1-8B is Chainbase's initial attempt in the field of large models in crypto, and this model has been successfully applied in Chainbase's DEMO interactive application TheiaChat, with over 300,000 daily active users.
Chainbase's AI model Theia is a key highlight that distinguishes it from other data service protocols. Theia is based on the DORA model developed by NVIDIA, combining on-chain and off-chain data as well as spatiotemporal activities to learn and analyze crypto patterns and respond through causal reasoning, thereby deeply mining the potential value and patterns of on-chain data to provide users with more intelligent data services.
It can be said that AI-empowered data services make Chainbase no longer just a blockchain data service platform, but a more competitive intelligent data service provider. Through powerful data resources and proactive analysis of AI, Chainbase can provide broader data insights and optimize users' data processing workflows.
4⃣ The architectural mechanisms of Chainbase: dual-chain, dual-staking security
Dual-chain model
Chainbase has introduced an innovative dual-chain architecture that enhances the programmability and composability of cross-chain data, supporting high throughput, low latency, and finality. This architecture achieves higher network security through a dual-staking model.
1. Consensus Layer - Cosmos CometBFT
Chainbase uses CometBFT. Once data is processed and included in a block, it is considered final visible data without the need for additional confirmations or data reorganization. CometBFT has been tested in real-world applications, successfully protecting billions of dollars in assets across various blockchain networks, proving its robustness and reliability.
2. Execution Layer - Eigenlayer
Based on the decentralized environment of Eigenlayer AVS, it not only enhances the decentralization of the system but also provides additional economic security, balancing high performance and high security at the execution layer. The execution layer provides a powerful computing logic execution environment, offering developers an efficient and flexible platform to support complex data processing tasks and application scenarios.
The dual-chain architecture of Eigenlayer and Cosmos enhances the programmability and composability of cross-chain data, supporting high throughput, low latency, and finality. Compared to a single staking model, this architecture achieves higher game-theoretic security.
Dual-staking security
First, the staking of the native token $C, and second, the introduction of Eigenlayer Restake, which has low volatility and strong liquidity, namely LST assets.
The benefit of this approach is that early PoS networks, when faced with a decline in token prices, will weaken the network's security, leading to a decrease in Total Value Locked (TVL) and further depress token prices, creating a death spiral, which has a significant impact on PoS network security, as introducing LST assets can greatly enhance network security.
5⃣ The economic model of $C, TGE is coming soon.
$C token is the native token of Chainbase and is a core component of its ecosystem. Information regarding the total supply is still pending, but we can analyze it from the perspective of its incentive mechanism.
The incentive mechanism distribution is as follows:
Data query fees: Data developers create scripts to process blockchain data and generate datasets for querying and use. Each time these datasets are queried, a certain amount of C tokens must be paid to cover the cost of data retrieval and to compensate network resource providers (such as operators and validators), ensuring they continue to provide excellent service. The distribution is as follows:
-- 80% of rewards go to operators and their delegators to incentivize them to maintain and optimize computing resources and ensure the efficient processing of data queries.
-- 15% allocated to data developers to encourage them to provide high-quality data processing logic.
-- The remaining 5% will be destroyed to maintain the economic value of the token.
In the six-year plan, a total of 15% of the C token supply will be gradually unlocked, releasing 2% each year, aimed at incentivizing operators to provide reliable and diverse computing resources to support the network's large-scale data processing capabilities. The distribution principle is: 100% fairly distributed to operators and their delegators based on the quality and quantity of data processing services provided to blockchain projects.
Block rewards: To assist in network startup and maintain a -2% annual inflation rate, block rewards have been specially established. The distribution is as follows: 100% of rewards go to validators and their delegators to recognize their contributions to maintaining network security, stability, and ensuring smooth blockchain operation.
To ensure the long-term value and stability of the C token, Chainbase has implemented several mechanisms to resist inflation and maintain the token's utility: including setting an annual cap on token issuance, carefully controlling the distribution of new tokens, maintaining the broad utility of the tokens, adjusting query fees based on network activity, and requiring validators and delegators to stake tokens.
Currently, users can also participate in the Chainbase Genesis event and the first phase of the Chainbase EcoBoost event by verifying addresses, recommending friends, and completing tasks to earn C token rewards.
6⃣ Conclusion:
Blockchain is becoming the largest global shared computer in the era of artificial intelligence, akin to a new cloud computing revolution.
Due to the unique attributes of on-chain data: public, transparent, and causally complete, data has become the ultimate symbol of value flow on the chain. However, these treasures remain buried, and a large amount of on-chain data is underutilized, much like untapped gold mines in a desert.
Chainbase is building the world's largest full-chain data network, integrating scattered on-chain data into a unified system, significantly reducing the complexity and cost of mining the value of on-chain data, and providing an open and transparent data interaction foundation and data interoperability layer for the future AI era, opening up infinite possibilities for the integration of AI and Web3.
By providing cloud-based API services, Chainbase helps developers more easily access blockchain networks for data querying and application development.
I believe that soon, the value of this gold mine of on-chain data will be unlocked by Chainbase; stay tuned and keep an eye on it!
