In-depth Analysis of AI Layer 1 Projects: The Integration of Blockchain and Artificial Intelligence

With the rapid development of AI technology, traditional Blockchain architectures can no longer meet the high-performance computing and complex data processing requirements of AI applications. As a result, a number of Layer 1 Blockchain platforms optimized specifically for AI have emerged, showcasing diverse characteristics in terms of technical architecture, application scenarios, and business models. This article provides an in-depth analysis of five leading AI Layer 1 projects: Bittensor, Vana, Kite AI, Nillion, and Sahara AI.

Bittensor: Decentralized AI Network Infrastructure

Bittensor, as a pioneer in the blockchain AI field, is dedicated to building an open decentralized artificial intelligence collaboration network. It has created a peer-to-peer ecosystem where participants can earn rewards based on their contributions to the network.

Bittensor adopts a dual-layer structural design:

• Root Network (Mainnet): Responsible for overall coordination, verification, and token management.
• Subnet Ecosystem: Developing specialized solutions for specific AI application scenarios

Currently, the development momentum of the Bittensor ecosystem is good:

• The number of subnets has exceeded 64, covering various scenarios such as text generation, trading signals, and data labeling.
• Active users reached 140,000, doubling year-on-year.
• The total market valuation of subnet exceeds 100 million USD, with a daily trading volume of about 45 million USD.
• Participation of well-known institutions is increasing, such as Grayscale incorporating TAO into its decentralized AI fund.

Bittensor's recent dTAO system upgrade optimized the resource allocation mechanism and introduced a market-based dynamic resource allocation system. Each subnet issues Alpha tokens to allow users to participate in deciding the direction of resources. This improved allocation efficiency and fairness, while also providing more avenues for ordinary users to participate in network governance.

The most active subnets currently include:

• Subnet 4 Targon: Text Generation AI Inference Service
• Subnet 64 Chutes: Provides API interface for LLM
• Subnet 8 PTN: Focused on trading signals in the financial sector
• Subnet 52 Dojo: Data Annotation Service

Vana: Data Sovereignty and Value Reconstruction Platform

Vana is committed to solving the issues of personal data ownership and value distribution, establishing an ecosystem where users truly own and control their own data.

Vana's technical architecture consists of five core components:

1. Data Liquidity Layer: Achieving the incentivization, aggregation, and verification of data assets through data liquidity pools.
2. Data Portability Layer: Ensures data can be easily transferred between different applications and AI models.
3. General Connection Group: Tracking real-time data flow within the ecosystem
4. Non-custodial data storage: Users choose the data storage location themselves.
5. Application Ecosystem: Developers use DLP data to build innovative applications

Recent developments of Vana:

• Obtained strategic investment from YZi Labs, Binance founder CZ joins as an advisor.
• Built data projects in multiple fields, such as Finquarium, GPT Data DAO, etc.
• Organize hackathon events during Eth Denver to expand the ecosystem

Kite AI: Technical Breakthrough of AI-Native Blockchain

Kite AI is an AI-native Layer 1 blockchain project built on the Avalanche framework, proposing four core technological innovations:

1. PoAI Consensus Mechanism: Precisely track the value contributions of data, models, and AI agents through an on-chain verifiable contribution record system.
2. Composable AI subnet: Supports developers to build industry-specific AI collaborative ecosystems on demand.
3. AI Native Execution Layer: Specifically designed to handle AI computation tasks, integrating a confidential computing environment.
4. Decentralized Data Engine: Ensure data creators receive fair compensation, built-in compliance modules

Kite AI Development Status:

• The incentive testnet will be launched in February 2025, and it has performed remarkably after going live.
• Built by an experienced Silicon Valley team, backed by multiple top-tier institutional investments.
• Establish technical cooperation with Eigenlayer, Sui, Avalanche, AWS, etc.
• As a selection committee member of Avalanche in the InfraBUILDL(AI) initiative, promoting the development of the Avalanche AI ecosystem.

Nillion: The Cutting Edge of Privacy Computing

Nillion redefines the way sensitive data is processed through "blind computation" technology. Its core advantage lies in the integration of multiple cutting-edge privacy protection technologies:

• Multi-Party Computation ( MPC )
• Fully Homomorphic Encryption ( FHE )
• Zero-Knowledge Proof ( ZKP )
• Nada Language: A domain-specific language designed for creating secure MPC programs.

The Nillion network architecture consists of three layers: processing layer, coordination layer ( NilChain ), and connection layer.

Latest Development Progress:

• The mainnet is scheduled to launch in March 2025.
• Completed a $25 million financing led by Hack VC
• Establish integration relationships with multiple mainstream public chains such as NEAR Protocol, Aptos, and Arbitrum.
• Establish cooperation with multiple AI projects, such as Ritual, Crush AI, Skillful AI, Virtuals Protocol, etc.

Sahara AI: A Platform for Building a New Economy of AI Assets

Sahara AI aims to build a "Human-AI Collaboration Network" that allows all participants to share in the industry's growth dividends. Its technical architecture consists of three key components:

1. Sahara Blockchain
2. AI Infrastructure
3. Sahara AI Marketplace

Latest development progress:

• The testnet has undergone several important phases, with the second phase launching in February 2025.
• The public testnet named "SIWA" is scheduled to launch on March 10, 2025.
• The roadmap for the 2024-2025 fiscal year has been released, including key milestones such as the launch of AI Marketplace, the release of Sahara Studio toolkit, and the mainnet launch.
• Launch of the incubator program on March 1, 2025, supporting global AI x Web3 innovation projects.

AI Layer 1 is currently in a critical stage of rapid evolution, reconstructing the underlying architecture of AI technology through decentralized infrastructure. This emerging track will continue to drive technological innovation, advancing artificial intelligence towards a more decentralized and collaborative direction.