In-Depth Analysis of AI Layer 1 Projects: Breaking Through Traditional Architecture to Build a Decentralized Artificial Intelligence Ecosystem

With the rapid development of artificial intelligence technology, traditional blockchain architectures have struggled to meet the demands of AI applications for high-performance computing and complex data processing. 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 committed to building an open Decentralization artificial intelligence collaboration network. It aims to break the centralized barriers in traditional AI research and development, allowing more participants to contribute and share benefits.

Bittensor adopts a dual-layer structure design:

• Root Network (Mainnet): Responsible for overall system coordination, verification, and TAO token management.
• Subnet Ecology: Develop professional solutions for specific AI application scenarios

This design allows Bittensor to balance overall network stability with expertise in various fields, providing a flexible infrastructure for the development of Decentralization AI.

Ecological Development Progress

• The number of subnets has expanded to over 64, covering various AI application scenarios such as text generation, trading signals, and data labeling.
• The number of active users reached 140,000, doubling compared to the same period last year.
• The total market valuation of the subnet exceeds $100 million, with a daily trading volume of around $45 million.
• Institutional participation has increased, Grayscale has included TAO in its Decentralization AI fund, with a weight adjusted to 29.55%.

The recent upgrade of the dTAO (Dynamic TAO) system by Bittensor has optimized the distribution mechanism of the token TAO, shifting from reliance on the subjective judgment of validators to a more market-oriented distribution method, allowing resources to flow more precisely to competitive subnets.

The most active subnets currently include:

• Subnet Targon 4: Focused on text generation AI inference services
• Subnet 64 Chutes: Provides API interfaces for various LLMs.
• Subnet 8 PTN: Focused on the financial sector, generating trading signals
• Subnet No. 52 Dojo: Conduct data annotation

Vana: Data Sovereignty and Value Reconstruction Platform

The Vana project focuses on solving the issues of personal data ownership and value distribution in the digital economy. It establishes an ecosystem where users truly own and control their data, while also being able to derive economic benefits from it.

As an EVM-compatible Layer 1 blockchain network, Vana's technical architecture consists of five core components:

1. Data Liquidity Layer: Achieves the incentivization, aggregation, and validation of data assets through the data liquidity pool.
2. Data Portability Layer: Ensures that user data can be easily transferred between different applications and AI models.
3. General Connection Group: Tracking the real-time flow of data within the ecosystem, forming a data ecosystem map.
4. Non-custodial data storage: Users choose their own data storage location, ensuring complete control.
5. Application Ecosystem: Developers build innovative applications using DLP data, and data contributors receive dividend rewards.

Latest Development Trends

• In February 2025, YZi Labs strategically invested in Vana, with Binance founder CZ serving as an advisor.
• Ecological construction covers data projects in multiple fields, such as Finquarium, GPT Data DAO, Reddit Data DAO, etc.
• Recently organized a hackathon during Eth Denver, offering high rewards to incentivize developers to build DataDAO and AI applications based on Vana data.

Kite AI: Technical Breakthrough of AI Native Public Chain

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

1. PoAI Consensus Mechanism: The first to create Proof of Attributed Intelligence, accurately tracking the value contributions of data, models, and AI agents.
2. Composable AI Subnet: Supports developers to build industry-specific AI collaboration ecosystems on demand.
3. AI Native Execution Layer: Specifically designed to handle AI computing tasks, integrated with a confidential computing environment.
4. Decentralization Data Engine: Ensures that data creators receive fair compensation, with built-in compliance modules.

Development Status

• The incentive testnet will be launched on February 6, 2025, with the number of connected wallets exceeding 100,000 within 70 hours of going live.
• As of now, a total of 1.95 million wallets have joined the incentive testnet V1, over 1 million wallets have interacted with AI agents, and the total number of calls has exceeded 115 million.
• The project team has a strong background, with core members from top tech companies and prestigious institutions.
• Has secured investments from top institutions such as General Catalyst, Hashed, and Hashkey.
• Establish technical partnerships with Eigenlayer, Sui, Avalanche, AWS, etc.

Nillion: Cutting-edge Exploration of Privacy Computing

Nillion redefines the way sensitive data is processed through its unique "blind computing" technology. Its core advantage lies in integrating 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 network architecture of Nillion consists of the processing layer, the coordination layer ( NilChain ), and the connection layer.

Latest Development Progress

• The mainnet is scheduled to launch in March 2025, with a total token supply of 1 billion.
• Completed $25 million financing in October 2024, with a total financing of $45 million.
• Establish integration relationships with multiple mainstream public chains such as NEAR Protocol, Aptos, and Arbitrum.
• Collaborate with projects such as Ritual, Crush AI, Skillful AI, Virtuals Protocol in the AI ecosystem.

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

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

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

Latest Development Progress

• The Beta version test network of the first phase data service platform will be launched in December 2024.
• Launch of the second phase of the testnet in February 2025
• The public testnet named "SIWA" will be launched on March 10, 2025.
• The roadmap for the 2024-2025 fiscal year has been announced, including key milestones such as the launch of the AI Marketplace and the release of the Sahara Studio toolkit.
• Launch of the incubator program on March 1, 2025, supporting AI x Web3 innovative projects

AI Layer 1 is currently at a critical stage of rapid evolution, reconstructing the underlying architecture of AI technology through decentralized infrastructure. These platforms are breaking through the limitations of traditional centralized AI systems, creating a more open, transparent, and efficient technological ecosystem, and promoting the development of artificial intelligence towards decentralization and collaboration.