In-Depth Exploration of Oraichain: Revolutionising Web3 with AI-Powered Oracles and Blockchain Integration

In today’s world, reliable and trustworthy data are crucial. Relying solely on centralised data sources poses risks like manipulation, errors, and delays. Oraichain presents itself as a groundbreaking solution poised to change the game. It offers a decentralised oracle network that effectively connects blockchains with real-world data, addressing the shortcomings of current systems.

Oraichain is a blockchain that serves as a bridge between artificial intelligence (AI) and blockchain technology, creating the framework for AI-powered oracles and an ecosystem for blockchains. Oraichain is taking a more niche approach by focusing on AI models, whereas other oracle blockchains are primarily focused on price oracles.

This article aims to provide an in-depth understanding of Oraichain, delving into its core features, functionalities, and the transformative potential it brings to the blockchain space.

Overview on Oraichain

Oraichain, launched on February 24, 2021, is recognised as the first oracle powered by artificial intelligence (AI) for blockchain technologies. This milestone marked the foundation of the Oraichain Mainnet, a blockchain designed for transparency and security, serving various industry sectors. Oraichain’s vision is to merge AI capabilities with blockchain services, paving the way for an innovative generation of smart contracts.

By harnessing the power of AI and leveraging zero-knowledge proofs (ZKPs), Oraichain presents a secure, scalable, and cost-effective solution. The network, constructed on the Cosmos SDK and employing Tendermint’s Byzantine Fault Tolerance, guarantees the delivery of dependable and trustworthy data to smart contracts. This innovation has the potential to usher in a new era of decentralised applications (dApps) and transformative blockchain solutions, improving smart contract functionality by enabling access to AI-driven external APIs.

According to Oraichain, the current limitation of smart contracts lies in their inability to execute AI models due to three key characteristics: strictness, environment, and data size. Oraichain is being used to create smart contracts capable of utilising AI models. The mechanism employed by Oraichain shares similarities with other data Oracles. However, Oraichain stands out for its pronounced emphasis on AI APIs and the quality of the AI models. The platform is strategically crafted to broaden the potential applications of oracles, facilitating the connection between AI APIs and smart contracts, as well as regular applications.

Oraichain’s DINO: A Global AI Marketplace

Oraichain also functions as a global AI Marketplace through its DINO platform formerly known as Oraichain Data Hub, which stands for Data Intelligence and Oracle. Within DINO, the central hub known as DINO Center provides a collaborative space for creators and developers, offering crowdsourcing and analytics tools for data creation and AI model development.

Additionally, DINO features two other components: the Data Marketplace, which focuses on trading test case data essential for validating AI models in decentralised applications, and the AI Marketplace, which facilitates the exchange of AI services, including options for seamless integration into businesses and smart contracts.

Oraichain’s Data Structure

The Oraichain data oracle structure is built upon an accessible oracle script housed within the ORAI gateway. This comprehensive framework includes AI data sources, test cases, optional test sources, and transaction fees for every request. When a user initiates a request, a willing validator is randomly selected to execute it. This validator retrieves data from AI providers on behalf of the user. The success of the request is confirmed by recording its result on the Oraichain blockchain.

Oraichain’s AI Oracle goes beyond a simple data feed, placing strong emphasis on AI APIs and unique API testing functionality rooted in test cases. AI developers, who serve as AI Providers, can publish, edit, and manage their creations while earning rewards on a global scale. Meanwhile, users can take on the role of governors by staking ORAI tokens, actively contributing to network operations and receiving rewards in return. This user-centric approach is further solidified through the ORAI DAO, highlighting the significance of community governance in steering the project.

It should be noted that the ORAI consensus protocol is similar to the delegated proof-of-stake (DPoS). The network consists of numerous validators, each owning ORAI tokens, while other ORAI token holders can act as delegators, staking their tokens to validators and receiving rewards for each newly created block.

In addition to the previously mentioned solutions offered by Oraichain, the platform also presents various product suites, including:

Oraichain VRF Service

Oraichain VRF (Verifiable Random Function) service offers unpredictable and publicly verifiable random values on-chain. It serves as an oracle for smart contracts, enabling applications to generate unpredictable values with on-chain proof to ensure the integrity of outcomes without tampering by any party involved. dApps can utilise Oraichain VRF to produce demonstrably fair and tamper-proof random numbers. Designed to be bias-resistant and fully decentralised, Oraichain VRF is suitable for various applications requiring fair and random operations, such as gaming and investment back-testing. It holds the distinction of being the world’s first fully on-chain VRF and has been implemented on multiple blockchain networks, including the Oraichain Mainnet, Fantom network, and Avalanche network.

Orai Dex

OraiDEX is a decentralised exchange developed by Oraichain, utilising the CosmWasm smart contract-based framework for multi-chain interoperability. It provides features such as futures trading and a meta-staking program for ORAIX and ORAI token holders. The exchange also maintains an insurance fund to cover any shortfalls in payouts to winning traders in the event of liquidation of losing positions, thereby safeguarding the profits of winning traders. Additionally, OraiDEX has introduced a user-friendly interface to streamline the process of bridging assets to the Oraichain Mainnet.

Owallet

Oraichain boasts its proprietary non-custodial wallet, Owallet. This multi-chain crypto wallet is designed to accommodate both Cosmos-based and EVM-based networks, allowing users to seamlessly manage assets and engage with applications across both ecosystems through a unified interface.

These noted products are part of the Oraichain ecosystem, where Oraichain strives to act as the bridge connecting AI and blockchain technologies.

Core features of the Oraichain Network

• AI Layer 1: Oraichain is more than just a blockchain; it’s an AI Layer 1 infrastructure. This means it combines an L1 blockchain, an AI platform, and oracle services into one unified platform. This makes it easier for developers to build AI-powered dApps without needing to manage multiple platforms.
• AI Oracle: This Oraichain feature enables smart contracts to securely access external AI APIs, enhancing their functionality by incorporating reliable AI data.
• Marketplace: Oraichain provides a library of public AI algorithms available to connect with dApps or any application. It also allows users to create, manage, and sell their own AI services via the marketplace.
• Test cases: Oraichain stands out due to its continuous testing of the quality of AI models. When a data request is received, it includes test cases. The AI provider must successfully pass these test cases before receiving payment for fulfilling the data request. This process ensures the accuracy and reliability of the provided data.
• Interoperability: Oraichain emphasises the scalability and interoperability of its oracle solutions and services with other networks, expanding the utility of the Oraichain ecosystem.

Diverse Applications of the Oraichain Network

The Oraichain ecosystem boasts significant capabilities, rendering it well-suited for numerous applications, such as:

• Smart Contracts with AI: Oraichain enables the development of smarter contracts by allowing them to access external AI-driven APIs, which can be used for various purposes, such as supply chain verification or loan decision-making.
• Decentralised Finance (DeFi): Oraichain can be used to bring real-world data into DeFi applications, such as price feeds, weather data, and sports scores. This can be used to create more sophisticated and innovative DeFi products.
• Fake news detection: Oraichain verifies news credibility through AI analysis from various providers in a decentralised marketplace. To ensure payment, providers’ APIs must pass test cases by returning accurate results. This application is ideal for verifying the trustworthiness of news in a straightforward manner.
• Yield farming with AI: Inspired by yearn.finance (YFI), Oraichain’s yield farming use case incorporates AI-based price prediction APIs as inputs to smart contracts, streamlining the complexity of yield trading. It offers features such as AI-based vaults, an investment tracker, and metrics for ROI, among others.
• AI Oracle: As the world’s first AI-powered oracle for blockchains, serves as a fundamental layer for the development of the next generation of smart contracts and dApps that harness the power of AI. It achieves this by aggregating and linking AI APIs to both smart contracts and conventional applications.

Oraichain Native Token (ORAI)

Oraichain’s token, ORAI, serves various purposes within its ecosystem. It supports the development of open-source core protocols, funds Foundation-hosted hackathons, and contributes to the Foundation Delegation Campaign (FDC) for validator support. The token is utilised in transactions, validator staking, rewards, and governance.

As of August 2023, three types of ORAI tokens exist: ERC20 ORAI on Ethereum, BEP20 ORAI on BNB Chain, and Native ORAI on the Oraichain Mainnet. The total supply is 19,779,272, with a circulating supply of 5,538,595 in the ecosystem, 1,700,000 in the DAO Treasury, and 6,062,294 in the Foundation.

As of February 27, 2024, according to CoinMarketCap, the market supply of ORAI stands at $145,411,391, accompanied by a 24-hour trading volume of $3,383,754. Currently, the trading price sits at $11.44.

A Comparative Look at Oraichain and Competing Projects

While Oraichain continues to excel in the AI oracle space, several other projects are also delving into similar solutions. Here are a few notable examples:

• Band Protocol: Band Protocol operates as a decentralised oracle network, facilitating the connection of blockchains to real-world data sources. Serving as a bridge between traditional Internet data providers and blockchains, it empowers decentralised applications (dApps) and smart contracts to access external data from reliable sources, as well as internal data from other blockchains. A notable comparison can be made with Oraichain, as both platforms aim to link smart contracts with external data sources, yet they differ in their approaches and applications. Band Protocol places a primary emphasis on providing an extensive array of data feeds, covering price updates, weather information, and sports scores. In contrast, Oraichain specialises in delivering AI-enhanced data feeds, specifically establishing connections between smart contracts and AI application programming interfaces (APIs).
• ChainLink: Chainlink is a decentralised blockchain oracle network that securely connects smart contracts to external data sources. It enhances smart contract functionality across industries by enabling access to real-world data and events. The network comprises multiple blockchain oracles that retrieve and validate data, ensuring the reliable integration of off-chain data into smart contracts. While both Chainlink and Oraichain are decentralised Oracle platforms, as noted earlier, Oraichain distinguishes itself by leveraging AI technology, enabling functionalities beyond Chainlink’s scope. Oraichain is establishing a comprehensive AI blockchain ecosystem with diverse products unrelated to its role as an Oracle. In contrast, Chainlink acts as an intermediary, facilitating the transfer of real-world data between non-blockchain platforms and smart contracts.
• Supra Oracle: Supra Oracle is a cross-chain oracle network specifically designed to empower decentralised applications (dApps) and smart contracts within blockchain ecosystems. It delivers fast, secure, decentralised, and scalable data solutions, facilitating seamless interaction across diverse blockchains. It’s crucial to recognise that while both Supra Oracle and Oraichain operate as blockchain oracle platforms, they diverge in their focal points. Supra Oracle places its emphasis on providing essential data feeds for various assets, including cryptocurrencies and stocks, with a specific focus on price and market information. In contrast, Oraichain directs its focus towards AI-driven oracles and smart contracts, offering a broader spectrum of functionalities. These functionalities encompass AI data feeds, data verification, AI model execution, and the generation of test cases. A noteworthy similarity between Oraichain and Supra Oracle is their provision of Verifiable Random Function (VRF).

Achievements and Partnerships: Oraichain’s Remarkable Milestones

Oraichain has had a significant impact in the Web3 space since its inception. In a December 2023 Oraichain keynote, the company unveiled its 2024 vision, outlining plans to introduce diverse product suites such as LLM (large language model) Layer, DeFi Lens, AI agents, and co-harvest revenue, all to be offered as SaaS products.

Beyond this, Oraichain has made notable strides in the Web3 space. In May 2023, the Oraichain Hackathon gathered developers worldwide to compete in building AI and Web3 applications on the Oraichain ecosystem. With over 200 participants forming teams, they worked on dApps utilising Oraichain’s AI Layer 1 infrastructure, judged on creativity, innovation, and technical execution.

The final event, held on May 13 and 14 in Hanoi, Vietnam, featured eight finalists competing for $10,000 USD in prizes, grants, and other accelerations. The hackathon introduced tools like an open-source IDE (integrated development environment) for streamlining smart contract development and deployment processes. Additionally, Oraichain conducted a non-profit course called “Blockchain Anyone” to assist technology enthusiasts nationwide. This hackathon is noteworthy as Vietnam’s first cross-sector hacking battleground.

In November 2023, Oraichain launched the OraiBTC Subnet, a recent addition to its mainnet. This serves as a decentralised bridge that enables direct Bitcoin deposits into the Oraichain, introduced after the Bitcoin Testnet launch on OWallet. This development sets the stage for the upcoming genesis of OraiBTC. The subnet’s purpose is to facilitate seamless and secure transactions between the Bitcoin network and the Oraichain platform, enhancing the interoperability and utility of the Oraichain ecosystem.

Notably, in February 2024, Oraichain reaffirmed its dedication to building an innovative ecosystem merging blockchain and AI in its H1 2024 roadmap. The platform noted that it is focusing on the core product goals of Oraichain Labs, particularly DeFi Lens, LLM Layer, aiRight, OraiDEX, and OWallet.

As highlighted in their recent blog post, the Oraichain ecosystem will also be working on a few projects in the first half of 2024. Examples include KawaiiQ, which integrates educational and psychological technologies; Cupiee, which fosters anonymous social connections; Orchai, offering simplified DeFi solutions through low-code platforms; NestQuant, which democratises investment strategies; and Neststock, a platform for personalised real estate searches.

These projects demonstrate the fusion of blockchain and AI to transform various sectors. Through these strategic initiatives, Oraichain aims to attract new talent and streamline their integration into the network.

Notable Partnerships formed by Oraichain

Oraichain has also established noteworthy partnerships with various companies. In the latest developments this year, Oraichain joined forces with Tron in March 2023, to seamlessly integrate AI capabilities into the TRON network and foster collaboration between their respective communities.

Oraichain also unveiled a strategic partnership with DoraHacks, a leading global hacker movement and Web3 developer platform, in March 2023. This strategic alliance is geared towards propelling the adoption of the Oraichain Layer 1 ecosystem for AI and the data economy. The collaborative efforts of the two teams will focus on several initiatives supporting the next generation of AI, encompassing AI-enhanced decentralised applications (dApps), AI Oracles, and crucial infrastructure.

Oraichain and DoraHacks co-hosted a hackathon named “Oraichain AI X DeFi Cook-off.” The programme ran from October 2 to December 9, 2023, to bringing together AI enthusiasts, developers, and creatives from diverse backgrounds to explore the intersection of AI and decentralised finance (DeFi).

Notably, on November 23, 2020, Rikkeisoft, a leading Vietnamese IT and software enterprise, expanded globally by forming a strategic partnership with Oraichain. This collaboration included a significant investment by Rikkeisoft, securing 10% of Oraichain’s shares. Notably, Rikkeisoft’s Chairman, Ta Son Tung, and CEO, Phan The Dung, joined the Board of Oraichain. This move aims to strengthen international connections and advance the AI blockchain technology of both companies. Additionally, DWF Labs had previously invested in Oraichain, though the specific amount of the investment remains undisclosed.

In addition to these partnerships, Oraichain has forged lasting collaborations with notable enterprises like Syscoin, Netvrk, Imba Games Studio, Trava Finance, and various others in the past.

Conclusion

Oraichain is a prominent player in the Web3 space, which is the next chapter in the evolution of the Internet. Oraichain’s project has the potential to have a significant impact on the Web3 space. Oraichain’s efforts to integrate artificial intelligence with blockchain technology could bring about innovative solutions and new use cases for Web3, further driving its adoption and expansion.

Emphasising AI-powered oracles, unique data structures, and user-centricity through the ORAI DAO, Oraichain underscores its dedication to reliability, security, and community governance. Progressing significantly in the Web3 space, Oraichain has outlined a clear 2024 vision encompassing diverse product suites, heightened ecosystem interoperability, and utility. Anchored in technological excellence, community engagement, and strategic partnerships, Oraichain is well-positioned to shape the future of decentralised applications and AI-driven solutions.

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