AI without the black box - Matej Janez | Oasis

Hey everyone, it's great to be back at E Belgrade. I think this year is actually even better than last year. Uh you have a great location here. Um all right, so AI without the black box. Uh we're going to go through Oh, let let me just see if the clicker works as well.

Oh. Oh, now it works. Perfect. So, yeah, we're going to go through the current AI landscape. Then, we're going to talk a little bit about uh the differences between the centralized, decentralized AI approaches.

Uh I'm going to present our own Oasis raw framework and how it can help developers to develop in a more trustless verifiable way. And then I'm also going to talk about WT3, but about that a bit later. So if you look at the current landscape, uh early AI, you know, AI has existed from the '9s, but back then it was more called like machine learning, and machine learning now is more of a subset of what we call AI. And we're kind of tipping uh reaching the tipping point, you know, where everybody's using AI, predominantly LLMs, but obviously we do have some specific applications as well. And we had some sort of, you know, AI in YouTube algorithms, in Spotify algorithms, stuff like that.

But we're kind of reaching the tipping point now. But we also see the power concentration that's happening, right? You have Google, OpenAI, Entropic, you know, Meta. These are all very big companies with a lot of resources that are kind of hogging the whole space, the whole mind share, right? And there are alternatives that are being built uh in the decentralized space predominantly crypto.

Uh but there's still a little bit of a lack of understanding what's happening here. You know, we're still a slightly smaller community and there's still work to be done here. So if you look at centralized AI, what it means, right? Um it's it's obviously dominated by the large tech companies as I mentioned and they have you know the data compute power development uh talent and it's just in the hands of the few. Of course there are advantages for this.

You know you have economies of scale, you have access to data, you also have rapid development, but you know there are also the disadvantages that are mostly to the detriment of the user right so you have data privacy concerns you have the monopoly over AI and obviously risk of bias because we know that there was a lot of bias installed let's say in chat GPT and similar right and the problem is that you know tech companies and companies in general are more interested in the new shiny AI features than actual data privacy. And what's the alternative here? We can look at decentralized AI, right? It's the removal of the single point of failure, you know, adding more transparency, more verifiability, and users all are in control of the data. Um, advantages are obviously, yeah, pretty obvious, control of data, enhanced data privacy, less potential for bias.

But obviously the disadvantages are there as well with lower performance, you know, slower coordination, u lack of standards. So everybody's kind of building in their sandbox and we need to try to bring that together, right? The focus of the decentralized AI is on the user. So the data ownership, the transparency and also the value recognition, right? So personal data they call it, right?

The the new oil oil, the new gold. Um and for now users are not really included in the in the data economy. And with AI with decentralized I AI we can actually help that uh that aspect develop a lot more as well because you know smart contracts enable very easy payments tokenization everything um so if we look at the decentralized AI landscape this has been done back in end of last year I think we need to update a little bit but uh we can see that it's it's quite big and obviously it's growing by the day agents I think were the biggest hype end of last here. But there are also different other other se sections that we're kind of looking at. You know, you have dev platforms, you have confidential compute, you have um decentralized compute providers, you have data collections, u trading algorithms.

So there are so many sectors that kind of put together, you know, these are the legos of the whole decentralized AI landscape. If I speak a little bit about Oasis, so we started back in 2018 as a layer 1 blockchain and we had the unique architecture of having you know multiple layers. Um layer one was just consensus and native layer 2s. We went mainet in 2020. Uh smart privacy was always at our core.

So we developed we developed um private runtime first in rust then we switched to EVM. So we also developed yeah the first EVM compatible confidential runtime. It's called Sapphire. It's been in production since 2023. Uh, and it's been running smoothly.

Uh, and this provides, you know, onchain privacy, onchain confidential compute to developers. Um, so this is quite unique in the space. I think we're still the only one in production right now, but we're moving to the new framework that's very applicable in AI and other fields as well, but uh, predominantly because the whole narrative right now is dominated by AI. U, uh, we focus a lot on those use cases. It's called raffle uh pun intended but yeah it means runtime offchain logic uh it's uh basically a framework that leverages tees you know for secure for security paired with sapphire for onchain verifiability it allows us to have offchain components that um can do the the more let's say difficult or more intensive computations and then they can commute through communicate through this framework with the onchain rail and bringing basically the full composibility of it uh to the devs.

Um obviously the flexibility in computation that brings is enormous right because you're not limited by the VM capabilities. So how raw works I uh intentionally put this on because it's it's like a terrible diagram right but this is all offiscated away for the users. So uh for the devs so how the raffle works for devs is actually like this right. So you have onchain logic you have off-chain components everything else is taken care of care of by uh by the raffle framework. You can obviously go and check all the components and see how they work, right?

But um if you're if you're a dev, this is this is um this is the simplified uh kind of view. What it does, it's does the TE provisioning, it does the on registration and it's the it does the smart contract integrations, right? Next steps for raffle, we're going to be developing u a raffle marketplace or maybe a more closer naming would be an oasisd cloud where we're going to have compute providers um offering compute to developers that want to um deploy those raw apps. So developers won't even have to take care of the infra themselves. We're going to develop raw app templates.

So it's going to be easy to launch like MCP uh service agents AI oracles trustless bridges this can all be done vits through remote attestations right without having like a big quorum come together on every every decision and we're also going to add GPU support to raw so you're going to be able to do like very intensive uh computation uh in a trustless manner I'm going to jump now to agents since agents were quite the hype at the end of last year and they're kind of coming back right now as well. We saw some um yeah some uh projects really rise in in the last few weeks. Um but yeah, they they they got industry momentum from from basically um the virtual ecosystem was just booming with everybody launching their agents, but there were mostly you know chat chat bots back then. Uh, and I think the second time around round that we're going now, um, it's going to be a lot more complex, a lot more, um, let's say they're going to have actual utility, right? Beyond just interacting on Twitter.

Um we see with the DeFi or DeFi AI uh trend emerging that uh there's going to be real use cases uh that uh the agents can do for the users and it's going to cross web 3 or crypto and web two right because Jensen Huang uh the CEO of Nvidia also predicted that 2025 will be the year of the agents right so if we having more traditional space focusing on the agents and also crypto focusing on the agents that maybe is the solution how you we can finally cross that on boarding difficulty that we constantly have in crypto right because people don't like to you know interact with the wallets they maybe don't understand it but if they're used to a UI that's like aic right or an LLM UI and there's a web two agent that's communicating with a crypto agent web three agent you can maybe simplify those interactions for everybody so they don't actually need to know the whole background and maybe still utilize you know some yield on some stable coins or something like that. Um so we see agents as one of the crucial uh or one of the key uh key uh key figures um in in this bridging bridging of the gap and this brings us to WT3 uh the agent you don't need to trust. We launched this uh in Dubai a token a month ago and I'm happy to say that yeah today it's going to start trading live. You're going to be able to follow it on on Twitter as well all the trade that it does. Um and maybe I I'll tell you a little bit more about why we went to this into this direction.

Right? If you look at the evolution of crypto, there were many different trends. Right? So we had metaverse, we had NFTs, we had um uh what was there? DeFi obviously was one of the important ones uh back in 20 2020 2020 and DeFi is the kind of the only constant that we we're seeing now.

A lot of those trends like came and came and went, right? Um but D5 really stayed ground and and AI as the emerging trend the the cross-section of both is actually uh in what we're mostly interested in. If we look at the market cap of DeFi, right? It peaked at 200 billion. We're back at 100 billion right now.

Uh but it's still rising. And this doesn't even count RWA, right? So RWAs are coming onchain as well. And that's going to be a big sector uh in the future I believe as well. So um the RWAS for me are kind of a subsection of D5.

It's more CD5, right? But um still there's going to a lot there's going to be a lot more TV coming onchain. Um so this is the sector we're going to be focusing on with uh our our agent as well, right? So why is DeFi or DFA AI the winning combination for crypto? Right?

Um the participation right now is relatively low, right? Because people still don't know where they can put their money. they they're afraid of the smart contract risk. Um they they're not knowledgeable about all the new opportunities that are popping up, right? Um so AI and AI agents can potentially solve this to enable crypto and non-crypto users uh to participate in DeFi a lot easier, right?

The promise of DeFi, it's speed and efficiency, you know, tireless operation. It works 247. It can, you know, use AI for complex pair recognition. It democratizes sophisticated strategies. But the crucial thing for us of DeFi is adding the transparency and verifiability, right?

And we shouldn't forget about the decentralized in DeFi, right? Um market rapid market evolutions usually demand fast development. Projects usually take shortcuts to deliver and the shortcuts that are usually taken, you know, are right at the decentralization part because that that one's usually the most difficult, right? um when you're doing things centrally it's quite easy when you try to do it decentrally it gets harder so users in the end still need to trust projects that uh they won't rug and here we come to WT3's components so why what does it makes it trustless so we're using here Oasis raffle for the integrity and verifiability we're using the Imperial agent SDK for the X engagement we're using ocean predictor as part of the um trading strategy for the trading signals and we're using hyperlquid for the trading venue. I think hyperlquid here is pretty obvious.

They have very deep liquidity. They have, you know, a lot of interest around it. So, this is kind of the venue to be at right now if you're trading in DeFi. How it works? So, everything gets deployed within the raw app.

The raw app also generates the keys for the agent to hold the funds, right? So, nobody else has access to those keys, right? um predictor um predictor um signals are submitted on sapphire on our layer 1 in confidence so um privately we have uh a paid subscription for the predict for the predictions so these are input signals for the part part of the strategy we're using Imperial as I said for the tweeting of all the trades that are happening and we're also going to be um doing a little bit you know contributing back to the ecosystem so uh trading profits a part of the trading profits will be used to buy back uh rows and and burn it. So our community can benefit from our W3 as well. So slight I'll lightly touch on raffle again here uh in the context of W3.

So what is what it allows us to do is you know the development of custom offchain logic and easy verifiable onchain uh easy verifiable onchain through TE's. It has you know um verifiability uh which is key for us. Uh the raffle framework basically abstracts away all the complexity of these for the devs and yeah as I mentioned before the raffle marketplace is coming to simplify the deployments even more. Uh as I mentioned the integrated key manager is powered by Sapphire because we have confidentiality onchain. Uh we can we can use that to generate the keys within raw so nobody has access.

um um except of course um if the admin would be malicious. Now here W3 is not fully decentralized yet um as only the foundation funds will be at risk here. uh outside participation will come later and we will also then decentralized um a bit more the kind of the management of the TE like um f final final destination is for the agent to be truly trustless to truly autonomous you know but when you're starting out things there can be bugs there can be problems you know so it's still uh has let's say a little bit of training wheels when it comes to admin control but at the same time we still don't have access to the keys but with milic code we could um extract um um the money but again this is similar to how you know smart contracts if it has uh an exploit nobody will use it right because the exploit is seen it's similar with raffle apps you can you can imagine it in the same way they need to be fully uh fully transparent and auditable in order to to be able to to to trust that nobody nobody can uh inter intervene with it. Um and of course there's an onchain log for all the enclave invocations. So that means all the changes within um within the the raw app.

The trading strategy as I mentioned it uses predictor trading signals to add confidence to the long and shortterm trades. Predictor was built by the ocean foundation. Uh and it's an AI powered app that runs on Sapphire. Um so it basically those are kind of like predictor agents. They're are supplying predictions for the trading agents.

The current accuracy is actually between 51 and 54% on the major pairs. So that's actually not bad. Um fees are usually the problem with trading. So those usually uh kill the profitability. So there needs to be a little bit more or if you're trading very big volume that you can get like uh 0% fees.

But yeah, uh the strategy needs some adjustment. You can't just rely on on um um the accuracy here and say I'm going to be profitable, right? uh but it can give it can add confidence to your trades. As I mentioned, emperial SDK it the SDK supports building autonomous agents with skill-based systems, right? It's integrated uh with Oasis Sapphire also for world abstraction.

Um it's uh power it powers the platform like similar acum which actually was quite popular at the end of last year where you could um tweet at the similarum um agent Twitter profile and it would deploy tokens for you uh via Twitter. So that was pretty cool. Um and yes there going to be some future um Imperial raffle integrations. So do follow us and Imperial to to to find out more about that. If we look at the W3 road map, uh so we launched W3 um back in Dubai and we funded it today.

So it's going to start trading on Hyperlquid with initial capital of 100K from the Oasis Foundation. It's closed right now. So outside participation is not possible. uh but we'll do we will in introduce a staking contract where people will be able to add funds um based on the history of the agent to see what's kind of the APR APY and if they want to participate in the strategy they can just deposit the funds and and get the yields from there and the last step is actually launching you know your own agents through uh what what we're going to build is like a raw dashboard uh and launchpad where it's going to be very easy for anybody to take a template of like an agent like WT3 deploy it yourself. So you don't even need to trust us.

Um I mean here it's no trust but uh because people don't go verifying the whole the whole usually the whole uh chain of things right uh to an extent they usually trust uh the projects right but as I said there's no trust here it's all trustless it's all verifiable um so future partners right the wolf is always hunting for alpha so projects that offer market insights or new venues for trading do reach out um we're happy to collaborate we're happy to extend W3 32 to a different platform uh and and see and seize the opportunities there. Uh so yeah, we we're at the booth here at E Belgrade. So you can find us there and chat and I just want to uh have you yeah go with a few key takeaways uh today for us and I think for everybody verifiably should be key uh to everything in crypto right the ethos of crypto was always don't trust verify and raffle is the framework that enables combining the onchain and off-chain compute in one verifiable stack the future belongs to the agents that can think privately while proving integrity so W3 is showing the And yeah, stay connected with us. You can follow W3 on X agent_wt3 or check the website w3.ai.

I think the QR code is for the W3 website. Uh or website is oasis.net. Uh and here are my contacts as well if you want to reach out. Yeah, catch me here or DM me um on on Telegram or email.

So I want to just one final meme to end it all. Right. uh the human torch is all about you know speed so centralized is better and then you know we have iron man uh saying decentraliz is better because of power to the people questions and thank you very [Applause]