Calm thinking under the AI+Crypto bubble: Can Flock stand out?

Author: NingNing

While the recent meme Supercycle theory has become a dominant trend in the crypto market, after filtering out market sentiment noise, you will find that AI+Crypto projects have equally impressive performance in the Secondary Market during this period. From the perspective of asset issuance, memes are Tokenized (attention & Cult culture), while AI+Crypto is Tokenized (monetization (AI)). The objects of Tokenization for both have strong potential and sustainable growth at present.

As represented by the Tokenize (AI tokenization) formula, the key to AI tokenization is to tokenize AI first, and then to tokenize the AI tokenization capability. This path shares certain similarities with traditional securities issuance. Applying the formula of Tokenize AI, stock issuance is the securitization (future cash flow). However, there are also significant differences between them, as their asset issuance has their own specialized primitives.

The original language of MeMe coin’s issuance: standardized creation-launch-Bonding Curve curve IBO financing-initial Liquidity addition-market maker market-making-conspiracy group advocate-online CEX exit

The process of MEME tokenization is already very familiar to the market and has been standardized. However, how to AI tokenization is still in the stage of contention. Some solutions are Tokenize (monetization (AI Agent, vector knowledge base)), some solutions are Tokenize (monetization (AGI)), some solutions are Tokenize (monetization (AI production factors)), and some solutions are Tokenize (monetization (AI large model training, optimization, deployment, and usage)).

Today, let’s analyze Flock’s AI tokenization solution.

Let me give you a brief introduction of Flock, it is a Decentralization AI development and deployment platform, aiming to redefine the creation and distribution of AI through blockchain technology and federated learning. The grand narrative of Flock Follow is the democratization of AI.

Flock has built three core products: AI Arena, FL Alliance, and AI Marketplace, forming a complete deAI development lifecycle among them:

1. AI Arena: An arena for selecting and training basic AI large models.

Its innovation lies in:

• Introduces a stake mechanism similar to POS, closely integrating AI training with economic incentives.

• Multiple verification data set design effectively prevents Sybil attacks and model overfitting.

• Dynamic reward distribution mechanism (Reward A and B), balancing short-term participation and long-term value creation.

2. FL Alliance: Model optimization platform based on federated learning.

Its technological highlights include:

The supervision of Node for Decentralization solves the problem of centralised “peeping” in traditional federated learning.

• Based on blockchain technology, random role assignment ensures fairness and resistance to censorship.

The innovative ‘proposer-voter’ mechanism improves the efficiency and quality of model updates.

An example of medical AI: Let’s say we want to train a model to predict whether a patient has diabetes. Hospitals A, B, and C all have patient data, but for privacy reasons, they cannot directly share it. We use FL Alliance:

The initial model was sent to all hospitals.

2. Each hospital uses local data to train the model.

3. The hospital only sends updated model parameters to the Blockchain network, not the original data.

4. The network aggregates model updates from all hospitals through Consensus Mechanism to generate a new global model.

5. The updated global model is sent back to each hospital, repeating steps 2-5.

This method not only protects patient privacy, but also improves model accuracy using a wider range of data sets. Compared to traditional centralized methods, accuracy can be improved by 15-20%.

3. AI Marketplace: A marketplace platform for model deployment and usage.

Its uniqueness lies in:

• The concept of ‘use is mining’ is introduced, the more the model is used, the more rewards the creator will receive.

• Achieved the “composability” of the model, allowing developers to combine different models like building blocks.

Innovative pricing mechanism, dynamically adjusting prices based on model usage frequency and computational complexity.

Flock ingeniously monetizes AI in the development lifecycle of deAI:

• AI Arena monetizes the model training process. Participating in competition with stakeToken is like betting on the potential of the model, and excellent trainers and validators can receive rich rewards.

• FL Alliance monetizes the value of data. In our medical AI example, its data value is indirectly monetized through model contribution updates, while privacy is protected.

• AI Marketplace directly monetizes model applications. Users pay to use the model, and profits are distributed to developers, data providers, and computing resource providers based on their contributions.

In this way, Flock not only tokenizes the abstract AI capabilities into quantifiable and tradable assets, but also creates an ecosystem that incentivizes all participants to contribute and improve continuously. Finally, Flock tokenizes the AI after monetizing it through the issuance platform’s native TokenFML.

It can be seen that the tokenizationAI solution adopted by Flock is tokenization (the tokenization (monetization (AI large model training, optimization, deployment, and use))).

Of course, the above is just from the perspective of the tokenizationAI solution to observe and understand the Flock project. We can also gain a deeper understanding by comparing and analyzing it with other well-known AI+Crypto projects in the market.

First, we compare the technical focus, tokenization objects, degree of decentralization, market positioning, and ecosystem openness of Flock, Bittensor, Ritual, Sentient, and the Artificial Superintelligence Alliance.

1. Technical Focus:

• Flock and Bittensor further follow the Decentralization and incentive mechanisms of current AI technology.

• Ritual focuses on introducing AI capabilities into Web3 applications.

• Sentient and ASI Alliance follow the long-term development of AGI/ASI.

2. Tokenization object:

• Flock’s tokenization scope is the widest, covering the entire lifecycle from training to usage.

• Bittensor tokenizes the computational nodes and information value in the network.

• Ritual focuses on the inference ability of tokenization AI large models.

• Sentient and ASI Alliance further tokenized the AGI development process and contributions.

3. Level of Decentralization:

• Bittensor may be the most decentralized, adopting a fully P2P structure.

• Flock and Sentient seek a balance between Decentralization and efficiency.

• Ritual may be more centralized to ensure execution efficiency.

• Since ASI Alliance is a longer alliance, the degree of Decentralization may vary depending on different components.

4. Market positioning:

• Flock aims at a wide AI large model development and application market.

• Bittensor focuses on creating a self-organizing, self-optimizing AI network.

• Ritual is designed for Web3 developers who need AI capabilities.

• Sentient and ASI Alliance target the future AGI market.

5. Ecosystem openness:

• Flock, Sentient, and ASI Alliance emphasize openness and community participation.

• The openness of Bittensor is reflected in the fact that any Node can join the network.

• Ritual may have lower openness and is more oriented towards specific Web3 developers.

Let’s compare the total market capitalization/financing again.

Bittensor FDV: $12.15B

ASI Alliance FDV: $3.65B

Ritual Financing: ~$30M, undisclosed valuation

Flock financing: $6M, valuation undisclosed

Sentient Financing: $8500, undisclosed valuation

The AI+Crypto field is in the period of expected expansion of the Gartner Hype Cycle. The current market’s high valuation of Bittensor, Sentient, and ASI Alliance indicates optimism towards the Tokenize (monetization of AI self-organizing networks) and Tokenize (monetization of AGI) solutions for AI asset issuance. However, this high valuation and high FDV may reflect more of investors’ enthusiastic imagination of AGI and AI self-organizing networks rather than a rational evaluation of real technology, and not the confidence in the economic feasibility of monetization of AI self-organizing networks and monetization of AGI.

This irrational prosperity is reminiscent of the dot-com bubble at the beginning of the century, which is unsettling. For the entire AI+Crypto track, we need to stay sober. The current prosperity is likely a bubble. Most projects may disappear in the next few years. But we also need to see that, after the dot-com bubble, projects that focus on solving practical problems and have a clear path to realizing their vision may emerge after the ‘fantasy burst’ period. For investors, now is a good time to reevaluate and balance their AI+Crypto investment portfolios.

Let’s compare the total market capitalization/financing again.

Bittensor FDV: $12.15B

ASI Alliance FDV: $3.65B

Ritual Financing: ~$30M, undisclosed valuation

Flock financing: $6M, valuation undisclosed

Sentient Financing: $8500, undisclosed valuation

The AI+Crypto field is in the period of expected expansion of the Gartner Hype Cycle. The current market’s high valuation of Bittensor, Sentient, and ASI Alliance indicates optimism towards the Tokenize (monetization of AI self-organizing networks) and Tokenize (monetization of AGI) solutions for AI asset issuance. However, this high valuation and high FDV may reflect more of investors’ enthusiastic imagination of AGI and AI self-organizing networks rather than a rational evaluation of real technology, and not the confidence in the economic feasibility of monetization of AI self-organizing networks and monetization of AGI.

This irrational prosperity is reminiscent of the dot-com bubble at the beginning of the century, which is unsettling. For the entire AI+Crypto track, we need to stay sober. The current prosperity is likely a bubble. Most projects may disappear in the next few years. But we also need to see that, after the dot-com bubble, projects that focus on solving practical problems and have a clear path to realizing their vision may emerge after the ‘fantasy burst’ period. For investors, now is a good time to reevaluate and balance their AI+Crypto investment portfolios.