Upshot Launches Allora, a Self-Improving Decentralized AI Network for Crypto Apps
Upshot launched Allora to converge crypto and AI with advanced apps featuring peer prediction, federated learning and zkML.
Decentralized AI platform Upshot today unveiled Allora, a decentralized AI network aimed at enhancing applications with more intelligent and secure AI capabilities. By utilizing crowdsourcing mechanisms such as peer prediction, federated learning, and zkML, Allora creates an expansive design space for applications at the convergence of cryptocurrencies and AI.
The new initiative aims to enable applications to benefit from a self-improving network of machine-learning models.
“With Allora, we are commoditizing intelligence itself. Rather than focusing on other aspects of the AI stack like other networks, our network coordinates every modular component of AI and constructs economic incentives to enable ML models to recursively self-improve over time,” Nick Emmons, CEO of Upshot told Metaverse Post.
Allora’s innovation stems from integrating crowdsourcing mechanisms, including peer prediction, federated learning and zkML. According to Nick Emmons, integrating peer prediction and federated learning is crucial for establishing an AI network in which the collective capability of the network can exceed the combined performance of its individual models.
Furthermore, in its pursuit of democratizing access to secure, trustless AI — Allora contributes to advancing zkML tooling, allowing model outputs to be conveyed in a cryptographically verifiable manner. A notable instance is zkPredictor, which represents the most comprehensive on-chain zero-knowledge ML product.
“Rather than trusting the outputs of the network, or even the individual models, zkML tools like zkPredictor ensure the integrity of the network’s outputs,” explained Upshot’s Nick Emmons. “This unlocks an era of hyperfinancialization, in which an exponentially increasing set of insights will be financialized. The first wave will improve existing DeFi, such as the AI vaults in RoboNet. However, the potential will extend far beyond anything we can predict now.”
Incorporating AI to Bolster Decentralized Networks
The new decentralized AI network addresses a diverse user base. It provides application and protocol developers with a sturdy infrastructure for constructing AI-driven cryptocurrency applications, while ML model creators can monetize their innovations by deploying them on a decentralized network, extracting value from the usage of their models.
Moreover, existing platforms can effortlessly incorporate AI into their applications, eliminating the necessity for in-house development or dependence on centralized, “black-box” models.
Upshot’s Nick Emmons asserts that “AI is such a powerful form of computing that it will redefine all of society’s critical functions–it will literally change how we operate. As such a transformative general-purpose technology, retaining it as a decentralized coordination mechanism is important. This is best achieved through a financial substrate.”
According to him, the capability of AI to analyze data aligns seamlessly with market incentives, evolving into the “ideal economic coordination mechanism” that propels decentralized networks towards achieving parity with their centralized counterparts. “Amalgamating machine learning with DeFi establishes a fertile ground for composable intelligence to enable new utilities across crypto.”
Facilitating Real-time Asset Price Prediction with AI
The company claims dedicating three years to craft advanced AI and cryptocurrency infrastructure, including an AI price prediction model known for achieving up to 99 per cent accuracy across over 400 million assets in diverse projects that gained widespread usage in various cryptocurrency applications.
This model is set to bootstrap the Allora network, providing the foundation for developing new models and applications on the network.
Allora’s AI-driven price prediction facilitates real-time asset price feeds for advanced financial primitives. Likewise, AI-powered vaults designed for developers enable implementation of sophisticated strategies, AI risk modelling allows creation of safer systems that consider exotic risks, and AnyML—a tool streamlining the integration of machine learning models to incorporate decentralized AI into products.
Developers have the opportunity to utilize these solutions for constructing various applications, including but not limited to new long-tail perpetual markets, Automated Market Makers (AMMs), lending protocols, portfolio trackers, marketplaces, market-making strategies, data indexers, analytics platforms and other related functionalities.
“We were an early mover in building AI x crypto infrastructure, as evidenced by our flagship price prediction model. That model has been responsible for creating price feeds for long-tail assets for years. But it is only the starting piece. As Allora expands, our flagship model will be surpassed by the many builders creating on the network. We can’t wait to see what they accomplish,” Nick Emmons told Metaverse Post.
What’s Next for Upshot?
Established in 2019, Upshot facilitates the advancement of sophisticated financial markets in the next era through the utilization of decentralized AI. The New York-based company has garnered support from prominent industry investors such as Polychain, Framework, Blockchain Capital and CoinFund, who share the company’s vision to accelerate decentralized AI infrastructure, development and adoption.
In support of the new initiative, Upshot launched an ecosystem growth program aimed at strengthening projects built on the network that also facilitates the growth of ongoing projects such as RoboNet’s market-making vaults and the zkPredictor created in collaboration with Modulus Labs. This program provides comprehensive support, including access to Upshot’s technical team, investor connections, and strategic go-to-market assistance.
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