Source: Hyper Oracle

introduction

Currently, decentralized applications (DApps) encounter many challenges in securely organizing and processing data off-chain. HyperOracle launches zkOracle, an innovative solution that uses zero-knowledge proof technology to achieve seamless connection between on-chain data and off-chain environments.

As a bridge to introduce machine learning to on-chain technology, HyperOracle not only opens the door to scalable AI capabilities, but also ensures that the dual requirements of decentralization and data verifiability are met.

At the intersection of AI and blockchain technology, transparency is particularly critical. Despite continued commitment to the openness of the chain, the opacity of AI models remains a major challenge. Vitalik Buterin, founder of Ethereum, believes that the combination of AI and encryption technology has great potential, and the transparency of blockchain can help eliminate the inherent ambiguity of AI.

HyperOracle has been recognized by the Ethereum Foundation for its advanced application of Halo2 technology and has made significant contributions to promoting the development of blockchain standards and technology, including providing support for Ethereum (ERC-6150, ERC-7007 ), Celestia and Uniswap provide technical support.

This article will deeply explore HyperOracle’s achievements in promoting the democratization of AI, bridging the gap between transparency and innovation, and its key role in shaping decentralized applications.

value proposition

Transparency has become a prominent issue in the current fields of artificial intelligence (AI) and machine learning (ML). Despite the openness argument and open source audio, it is still a challenge to deeply understand the specific models behind AI output. Vitalik Buterin believes that the integration of AI and encryption technology has great potential, because the transparent characteristics of encryption technology can neutralize the inherent opacity of AI. HyperOracle responded to this challenge with its original solution and proposed zkOracle.

Source: Vitalik’s article

HyperOracle is committed to building a global supercomputer - a global network that securely connects various peer-to-peer networks. The platform enhances the capabilities of Ethereum to support larger computing needs and storage expansion. By integrating AI and ML technology into the chain, HyperOracle introduces intelligent functions into smart contracts based on the transparent characteristics of the blockchain, realizing an innovative revolution.

Although Ethereum provides on-chain computing capabilities, it has limitations in fully realizing on-chain ML/AI. By introducing two innovative technologies, opML and zkML, HyperOracle realizes the verification of on-chain calculations and effectively overcomes the challenges of cost and performance. As a decentralized oracle network, zkOracle uses zero-knowledge proof technology to achieve seamless connection between on-chain data and off-chain calculations and verification of off-chain proofs, opening a new chapter in the coexistence of transparency and efficiency.

Ethereum acts as a consensus ledger, while the zkOracle network performs resource-intensive computing tasks, connecting different components through zero-knowledge proof technology.

opML is specially optimized for on-chain AI and ML, providing efficiency, scalability and decentralized solutions. The adoption of this cutting-edge technology aims to unleash the full potential of AI and blockchain technology while ensuring that transparency, security and ethical responsibility are maintained.

Project Overview

According to official documents, HyperOracle is a programmable zkOracle protocol that can provide arbitrary computing power and richer data sources for smart contracts. HyperOracle provides comprehensive security and decentralization guarantees for trustworthy automation and on-chain AI/ML, allowing developers to easily create the next generation of decentralized applications (dApps).

In the HyperOracle network, multiple zkOracle nodes form a network, similar to Ethereum nodes that perform calculations and generate zero-knowledge proofs.

As you can imagine, the technical details of the project are complex. Even after delving into the detailed documentation, it can still be difficult to fully understand the mechanics. Next, let us explore in detail the revolutionary elements introduced by HyperOracle to gain a deeper understanding of its future development potential.

Zero-knowledge machine learning (zkML)

zkMLinference is HyperOracle's trustless machine learning inference protocol based on zero-knowledge proof. It serves as an input and output zkOracle Meta App similar to zkAutomation. It implements on-chain ML reasoning by integrating the zk machine learning framework and using zkGraph as the core component. Developers can leverage zkMLinference to build any ML-powered and Ethereum-secured DApp.

zkML empowers blockchain technology with privacy-protecting AI model application verification capabilities to ensure data confidentiality throughout the entire process.

Source: BinanceResearch

zkML shows great potential at the intersection of encryption technology and AI, with its commercial applications led by Modulus Labs and Giza Tech. Despite the promise, gaps in the AI ​​supply chain, especially in the certification link, have not yet been fully addressed. The slow adoption of zkML frameworks, mainly due to their long proof cycles and high computational costs, highlights the need for further development in this technology area.

To connect zero-knowledge proofs with machine learning models, two different implementation methods are proposed:

● Specific ZK Circuits: Custom ZK Circuits designed for different models to meet their specific accuracy needs.

● Universal zkML runtime: Integrate ZK proofs and ML models through a universal runtime, similar to how zkEVM handles EVM-compatible programs.

Source: HyperOracle

Introduction to Optimistic Machine Learning (opML)

As mentioned earlier, zero-knowledge machine learning (zkML) technology has not yet reached a fully optimized state. In this context, HyperOracle recognized this and while working hard to find a solution, its founder proposed a new concept called Optimistic Machine Learning (opML) as a temporary solution before the official launch of zkML.

As the creators of the first open source implementation case of opML, the HyperOracle team believes that opML can promote the integration of artificial intelligence and encryption technology by utilizing game theory principles to eliminate the additional burden brought by encryption technology.

opML uses an optimistic verification mechanism to perform the reasoning and training/fine-tuning process of the AI ​​model on the chain. Compared to zkML, opML provides machine learning proofs at lower cost and higher efficiency. In addition, opML has low hardware requirements, enabling it to run large language models on ordinary personal computers without GPUs.

opML uses a verification mechanism (similar to OP Rollup) to ensure the decentralization and verifiability of the machine learning calculation process.

HyperOracle became the pioneer of the first open source implementation of opML.

Source: HyperOracle

zkGraph technology

zkGraph acts as a customizable "smart contract" for HyperOracle nodes, responsible for managing data behavior and generating zero-knowledge proofs, similar to how smart contracts define Ethereum node calculations. Smart contract developers can build smart contracts and zkGraph simultaneously, enabling users to interact with both.

zkGraph mainly contains three components:

● Manifest (zkgraph.yaml): Configuration information, such as zkGraph standard, target blockchain network and target smart contract.

● Mapping (mapping.ts): Convert blockchain data into other forms (off-chain calculation).

● (Optional) Schema (schema.graphql): Define data storage and access modes.

When deployed, all zkGraph code files are stored in EthStorage, a decentralized storage extension layer powered by Ethereum ESP.

Source: Hyper Oracle

Competitive product analysis

In order to gain a deeper understanding of its direct competitors, we analyze the innovative technologies introduced by HyperOracle and their applications. HyperOracle has launched a blockchain service, the zkOracle protocol, for performing complex calculations in smart contracts, similar to Chainlink’s approach. It also utilizes zkGraph technology to handle post-collection processing of data, similar to The Graph. At the same time, it is worth noting that HyperOracle is not the only project providing AI capabilities on the blockchain. Even within the zkML field, other projects such as Modulus Labs are also players worthy of attention.

Oracle Comparison: Chainlink/Traditional Oracle vs. Hyper Oracle

Source: Greythorn Internal

Source: Hyper Oracle

Comparison of HyperOracle and Knowledge Graphs technologies

By adopting zkWASM technology, HyperOracle is different from traditional Knowledge Graphs technology, such as The Graph. Its advantages include:

● Use zkWASM technology to enhance security without sacrificing performance.

● Accelerate data requests through zero-knowledge proof, optimize response time, and ensure data security and verifiability.

● Utilize programmable zkGraph technology to achieve secure off-chain automation.

● Improve system performance through trustless requests to the nearest zkOracle node.

● Increase confidence in building any decentralized application using zero-knowledge proof technology.

HyperOracle offers significant advantages over traditional Knowledge Graphs that rely on traditional indexing methods and lack decentralized security. Traditional methods may rely on distributed autonomous organizations (DAOs) or legal documents, bringing uncertainty to the automated process, and their security is often weak, often relying on multi-signature dispute resolution mechanisms.

Source: Hyper Oracle

In short, Chainlink and The Graph are networks that integrate data into blockchain applications, but they cannot fully guarantee the accuracy of the data. Although Chainlink uses multiple data sources and security measures, it is not impeccable. Both technologies rely on data aggregation and incentive mechanisms to pursue data correctness, but this does not ensure absolute data integrity. HyperOracle believes that further technological innovation is needed to enable secure, trustless applications. Therefore, they are developing a network that uses mathematical proofs to quickly verify data, providing a more reliable solution than traditional trust- or incentive-based methods.

Thinking: It is worth noting that the innovative features mentioned in the HyperOracle white paper may face challenges in implementing them in actual applications. In contrast, traditional oracle solutions like Chainlink have proven their effectiveness over time. Whether these new features can meet or exceed previous standards remains to be tested by the market.

Comparative analysis of HyperOracle and Modulus Labs

In the context of this emerging trend and the protocols for its development, comparative analysis becomes more complex. For example, Modulus Labs is combining AI and blockchain technology, and using zero-knowledge proof and machine learning technology to develop transparent and verifiable AI algorithms for blockchain applications. It adopts a special strategy, especially in handling the need for proof generation, while promising to allow decentralized applications to integrate AI and ML technologies without compromising trust or security.

In addition, Gensyn, another key project in this field, is a blockchain-based AI computing protocol that recently completed a $43 million Series A financing led by a16z.

Bullish fundamentals

● The Hyper Oracle team hinted that, although it has not been officially confirmed, their upcoming token may refer to the proof-of-work (POW) mechanism used by blockchains such as Ethereum or Aleo.

● The integration of AI and ML technology with blockchain has opened up new areas full of potential for smart contracts. If Hyper Oracle succeeds in carving out a niche in this space, its valuation could see significant growth.

● The technological advancements of opML and zkML have shown great potential in the on-chain verification calculation process, effectively solving the existing challenges of cost and performance.

● Hyper Oracle has completed US$3 million in financing, which was jointly led by Sequoia China Seed Fund and Dao5.

● The project is trusted by core blockchain entities such as the Ethereum Foundation, Compound and Uniswap, and has a solid development roadmap. Its founders have outstanding previous work experience at Google.

Bearish factor analysis

● Hyper Oracle is still in the experimental stage, and there is still a lack of evidence of its future performance and effectiveness.

● The efficiency and practicality of the off-chain authentication mechanism bring challenges to Hyper Oracle’s opML framework.

● Key elements such as the token economic model are not yet clear, making it difficult to evaluate the project from an investment perspective.

● The AI ​​system built into Hyper Oracle can be complex and difficult to make transparent, making it more difficult to understand, explain, and trust.

Conclusion

Greythorn is dedicated to keeping a close eye on the latest developments in blockchain and crypto technology. The area where AI and blockchain technology combine is particularly eye-catching. Traditional smart contracts respond to triggering events based on preset actions, while smart contracts incorporating AI and ML can make autonomous real-time decisions. This advancement has brought innovative expansion to blockchain functions.

If you are interested in exploring this topic further, we invite you to read our latest research results on OLAS.

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Greythorn Team.