AI... no it's AO Computer
We finally have LLMs & AI models living directly on the blockchain
Hello there,
Since June 2024, I have transitioned all my personal writings on AI x Crypto to a new research site I’m spearheading, Chain of Thought.
Chain of Thought (COT) is my dedicated effort to contribute to the decentralized AI movement.
It’s clear that AI remains a dominant market theme in Crypto.
AI is progressing at an exponential pace. And I know how hard it is to keep up.
With COT, I provide free access to the highest-quality AI x Crypto research. My hope is that many more people will learn about, participate in, and benefit from the intersection of AI and crypto.
Every research article is extensive and crafted with weeks of effort, making it a valuable resource for you. If you find COT helpful, please subscribe and you’ll be the first to get every new article that drops. We have so much in the pipeline.
Below is an excerpt from my latest research article on AO computer. Check out the full post at:
https://www.chainofthought.xyz/p/research-ao-fking-big-computer
SpaceX-Like Success
Source: Spacenews.com / SpaceX webcast
Earlier this month, SpaceX successfully launched Starship flight 4.
It’s the most powerful rocket ever flown.
This engineering marvel boasts a Super Heavy booster, which houses 33 Raptor engines, generating a total thrust of 72 MN. To put that in perspective, that’s twice the thrust of the Apollo mission rocket and three times that of a NASA space shuttle.
I’m always captivated by the evolution of deep tech companies. Years of relentless effort and millions in R&D culminate in what appears to be an overnight success.
But insiders know that numerous low-probability events must align perfectly for a deep tech company to succeed. SpaceX, founded 22 years ago as a scrappy startup with big dreams, exemplifies this journey—an outcome of compounded hard work and iterative progress.
Such monumental success is rare in crypto.
Only a handful of crypto companies from the 2017-2018 wave during the ICO boom remain relevant today. We’re a young, nascent industry with very short attention spans, and this mindset often bleeds into how founders think about their companies.
That’s why it’s heartening to see an OG project elevate to the next level, becoming one of the most exciting launches of the year.
Arweave & AO Computer — Closely Intertwined
It took 5+ years for Arweave to cross the 10M transaction mark (16 Nov 2023). Source: https://viewblock.io/arweave/stat/tx
Launched in 2018, Arweave is decentralized permanent data storage. Despite the fundamental importance of data storage, it has struggled to find a compelling use case and adoption.
Data storage isn’t exactly sexy. It’s a commodity.
AO computer is Arweave’s most ambitious project.
AR = storage layer.
AO = compute layer
AO aims to be a scalable, secure, trustless and customizable computing platform—a hyper-parallel computer.
The big idea is that deterministic virtual machines + permanent data storage = reproducible state. Envisioned four years ago, this has materialized into AO’s actor-oriented computing environment.
I want to emphasize that AO computer vastly differs from most other blockchains today. Its existence is enabled due to the foundational work done by Sam (founder) and the Arweave team over the years. Like deep tech startups need a solid groundwork to succeed, AO wouldn’t be possible without Arweave’s secure decentralized storage network.
And I’m rooting for them to succeed.
Not Another Ethereum or Solana
Ethereum and Solana are global synchronous state machines with a shared global state.
AO computer is a shared global messaging machine with localized states
Shared global state is the default mode for blockchains today. It enables consensus and trust among participants, maintaining the integrity of the ledger. However, this falls short of supporting AI applications of the future.
The AO computer framework differentiates itself from Ethereum and Solana through two primary features:
(1) scalable compute capabilities and
(2) a flexible security model.
Scaling Compute
In Ethereum and Solana, adding more compute resources (new nodes) does not enhance the network’s output. Ethereum still processes 12 - 15 transactions per second, no matter how many validator nodes there are.
However, the AO computer framework offers a dynamic approach to scaling. The computational output scales correspondingly as additional compute resources are integrated into the network. This is because AO processes run in parallel locally, unhindered by the limitations of a global state.
Security
Ethereum employs a uniform security model where every transaction is protected equally within its Proof of Stake (PoS) network. While this ensures consistency, it can be inefficient and expensive for low-value transactions, such as gaming.
The AO computer framework introduces a flexible security model, allowing developers to tailor security requirements to the specific needs of their processes.
A F**King Big Computer
Imagine you have a giant supercomputer made up of many smaller computers spread all over the world.
This big, connected computer can do lots of things at once, like running games and apps. The smaller computers talk to each other using a messaging system. The best part is that each small computer isn’t slowed down by the rest of the network but still gets the security and trust of a blockchain.
This is what the AO computer is, in a nutshell.
Here’s the TL;dr:
AO's trillion-dollar opportunity is in AI, bringing intelligence directly onto the blockchain
In the full 3,068-word research article, I cover
AO’s trillion-dollar opportunity in AI,
How it is building the Permaweb,
Top apps on AO
Tokenomics & yield opportunity
Personal thoughts on AO’s chances of success.
You can read the full post here.
Billush