Allora "Enhancing Decentralized AI Performance... Token Launch in Q3" [Cointerview]

Interview with Nick Emmons, Founder of Allora

Solving the 'information silos' problem in decentralized AI

Mainnet and Token Launch in Q3

Collaboration with projects like Story

"A vast ocean of information is forming as countless artificial intelligence (AI) models emerge. By gathering this scattered information, we can achieve optimal AI performance."

Nick Emmons, founder of Allora (pictured), said this during an interview with BloomingBit on the 7th. Allora is a 'decentralized AI network' that evaluates and aggregates information on decentralized AI.

The key to AI used in the virtual asset (cryptocurrency) market is 'decentralization.' Unlike the centralized AI offered by existing big tech companies like Google and OpenAI, decentralized AI allows individual users to develop and deploy AI models. That's why diverse AI models with different performance levels are constantly appearing in the crypto market.

The problem is that users are receiving widely varying outcomes from their AI. Allora is a project founded last year to address this issue. Its goal is to systematically evaluate decentralized AI models and ultimately deliver optimized results to users.

Since its inception, Allora has drawn the attention of major venture capital (VC) firms. As AI adoption in the crypto industry has accelerated, demand for optimizing AI performance has also grown. In June, through a strategic investment round, Allora raised a total of $35 million from 12 firms, including crypto-focused investment companies Polychain Capital and Framework Ventures.

Boosting performance by solving 'information silos' in decentralized AI

Allora's predecessor was Upshot, an NFT appraisal platform established in 2019. Last year, founder Emmons pivoted the company's business model from NFTs to AI, focusing on the issue of 'siloed intelligence' where decentralized AIs cannot share data with each other.

He said, "Currently, the phenomenon of information silos in the crypto market's AI leads to wasted resources and opportunities," adding, "I thought that by solving this through blockchain, we could provide a better AI experience for users and motivate developers to create higher-quality AI models."

He particularly noted the need for such services in the decentralized finance (DeFi) sector. Emmons emphasized, "What users want from decentralized finance AI services are functions such as price prediction and automated trading," and "Since the performance of AI models is directly linked to trader performance, accurate inference is the essence of the service."

Allora's solution is to connect AI models into a single 'intelligent network' structure. This creates a system in which multiple AI models learn from and evaluate each other's outcomes.

Within the Allora system, there are two types of AI models: Workers and Reputers. Worker models compete with one another on given topics and perform inference, while Reputer models assess how accurate the predictions from Worker models are. The system evaluates the trustworthiness of each AI based on the deviation between prediction and actual results, assigning higher weight to more accurate AI models.

The 'weight' is a key metric in the Allora system. Depending on the weight, the opinions of certain AI models are prioritized when determining results for a given topic in the future. For example, when given a topic such as "predict the price of Ethereum in one hour," Allora reflects the response of the highest-weighted AI as the final result.

Emmons explained, "AI, like humans, can form collective intelligence," and "When AIs interact and share information rather than being isolated, they can achieve significantly better performance."

Mainnet and Token Launch in Q3... Collaboration with Story and others

Allora plans to launch its mainnet and unveil its native token 'ALLO' in Q3. The ALLO token will be used as a means of payment for AI inference commands, as well as for transaction fees and staking collateral.

Emmons stated, "With the TGE (Token Generation Event) approaching, Q3 will be devoted to launching the mainnet," and "We're considering expanding services into decentralized finance ecosystems to enhance token value."

He also left open the possibility for partnerships. Allora is already pursuing collaborations with several projects, including Story (IP). Emmons explained, "Story is a project pioneering a new field called 'financialization of intellectual property (IP)'," and "Allora will support fair evaluation of Story's IP by AI." He added, "As a universal infrastructure applicable to various fields, Allora will pursue even more collaborations going forward."

Regarding the Korean market, he emphasized, "It's our top priority." Emmons said, "South Korea ranks second in the world for the number of paid ChatGPT users—an indication of its high level of AI adoption," adding, "I plan to visit Korea frequently to build the (Allora) community."

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Jinwook, BloomingBit Reporter wook9629@bloomingbit.io