The Data Gold Rush
During the California Gold Rush of the 1800s, thousands flocked to a new frontier, chasing untapped wealth. Stories of ordinary people becoming wealthy were common, and entire industries and cities sprang up to support the rush, rapidly transforming the American landscape. The parallels with the rise of Crypto AI are striking.
Most Crypto AI products are still under development or operating on testnets, indicating that we are in the infrastructure-building phase. Investors and developers are laying the foundation for a potential surge in growth. The tools, networks, and protocols being created now could form the basis of a decentralized AI ecosystem.
If the comparison holds, we are in the early stages of a digital gold rush, which could prove as transformative as the original.
Imagine my surprise when I came across a Crypto AI project claiming over 700,000 daily active users—an extraordinary number for such a new field. Naturally, I had to investigate what was happening under the surface. The project in question is DIN, or the "Data Intelligence Network."
Crypto Accelerates Data Networks
I’ve been closely tracking data networks in Crypto AI, and it's clear they are addressing a key challenge in AI: access to valuable datasets. Currently, the most valuable data is controlled by centralized companies that charge high fees for access.
For instance, Reddit recently signed a $60M/year deal with Google for its user-generated content, while X (formerly Twitter) now charges developers between $100 and $42,000 per month for tweet data. Corporations are locking down data to maximize profits, recognizing its importance as a new battleground.
Crypto offers a potential solution—breaking free from the centralized control of valuable datasets. Crypto data networks aim to create decentralized, high-quality datasets without the limitations of traditional models. These networks use tokens to incentivize large-scale data labeling, motivating individuals to contribute to data collection or organize web scraping efforts. Blockchains also ensure transparency, tracking data ownership and provenance, so contributors are fairly compensated whenever their data is used. This creates a new paradigm where data value is shared rather than monopolized.
DIN’s Vision
DIN is one of the projects tackling the data problem head-on. At its core, DIN is a data layer that collects and validates both on-chain and off-chain data while using blockchain as the settlement layer. The big idea is to give data ownership back to users and allow them to earn rewards for contributing to the system.
How DIN Works
At first glance, DIN's structure may seem complex, but it can be broken down into three main actors:
1. Data Collectors
2. Data Validators
3. Computation Nodes
To understand how data collectors and validators operate, let’s look at xData, DIN’s primary live product.
#1: xData — Data Collection
xData is DIN’s flagship platform for collecting, organizing, and storing data from social media platforms like X, without relying on their APIs. It runs on a decentralized network that ensures user privacy and data ownership. Launched in April 2024 on opBNB (a Layer-2 on BNB Chain), xData collects data in a decentralized way, offering rewards for participation.
Users install a browser plugin, link their X account, and tag interesting tweets to earn “wafers,” which can be converted into tokens at a later date. The platform uses gamified mechanics to make the process engaging, such as offering missions to tag specific tweets and unlocking storage space for more tags. Data collection happens off-chain, with tagged tweets stored on a decentralized data layer on BNB Chain.
#2: Chipper Nodes — Data Validation
To ensure data integrity, DIN employs Chipper Nodes, which validate and process the data collected. These AI-powered nodes check that the content of tagged tweets matches the labels before storing them. Users can operate these nodes on regular PCs, and the AI models improve over time as they process more data. While DIN currently handles all data validation in-house, they are working towards decentralizing the process.
#3: Computation Nodes
Although not live yet, Computation Nodes represent DIN's future plans for data storage. These nodes will convert validated data into vectors, process them through privacy-preserving Zero-Knowledge (ZK) processors, and store the final datasets on IPFS, making them accessible to third parties securely.
A Potential Layer 2 Solution on BNB Chain?
Though not officially announced, a DIN token has appeared on the BNB Chain testnet, suggesting potential developments like a sidechain or Layer-2 solution on the BNB Chain in the future.
A Brief History of DIN
DIN may seem like a new player, but its origins date back to late 2021. Initially called “Web3Go,” it started as an on-chain data analytics platform within the Polkadot ecosystem, securing grants from the Web3 Foundation. In 2022, it expanded to the BNB Chain ecosystem and joined Binance Lab’s MVB incubator. By July 2023, recognizing the growing demand for robust data infrastructure for AI, the team rebranded to DIN and shifted focus to building a data intelligence layer to support AI advancement. This shift culminated in the May 2024 launch of DIN as it aligns itself with the demands of the generative AI revolution.
