From cointelegraph by Nick M

Artificial intelligence is developing at an unprecedented pace, with the global AI market projected to surpass $1.8 trillion by 2030. Advancements in machine learning, natural language processing and other AI technologies are projected to result in a compound annual growth rate of 19.1% for the sector in the 2024-2034 period.

These innovations all require vast amounts of diverse, high-quality training data. However, valuable data is often locked in centralized systems or scattered across multiple isolated platforms, creating one of the greatest barriers to AI development. Concerns over data privacy, ownership and security further exacerbate these issues and deter individuals and organizations from opening up their data sets.

Itheum aims to solve these challenges by acting as a decentralized data brokerage platform. Its core mission is to turn data into an asset that can be securely controlled, shared, traded and monetized, and its infrastructure for data ownership is decentralized and built on blockchain technology.

Itheum also aims to incorporate privacy-preserving technologies such as zero-knowledge proofs and homomorphic encryption. These technologies allow data to be validated and used without being revealed, ensuring sensitive information remains confidential while still accessible for AI training or analysis. 

Itheum’s technology is a “horizontal platform,” which enables any industry to leverage it as a Web3-powered AI data platform. However, it’s actively focused on a few high-growth sectors: music, the AI creator economy and video game personalization via AI. Itheum sees these data-rich verticals as having high growth potential.

How Itheum works: Technical breakdown and new innovations

One of Itheum’s key innovations is the use of data NFTs, which represent data ownership and licensing rights on the blockchain. These tokens make it possible to bundle, package and trade data on decentralized marketplaces. They provide an immutable record of data provenance, ownership and transaction history. This is particularly relevant for gameplay data from platforms such as PlayStation, Xbox and Web3 games. 

By turning gameplay data into data NFTs, Itheum has created a structured and traceable framework for data ownership and monetization. Gamers can monetize their gameplay data in a transparent manner, while AI developers have a dependable data set, due to onchain validation. 

Itheum also has what it calls Data Coalition DAOs, which aggregate isolated and disparate data sets into valuable clusters. This allows AI developers to access comprehensive data sets that would otherwise be difficult to obtain. The DAO model ensures fair compensation for data providers and creates a more equitable data-sharing ecosystem. In the gaming sector, this could enable the aggregation of data from different gaming platforms and offer a more complete picture of gamer behavior and preferences.

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The platform also introduces the concept of “Liveliness,” backed by its NFMe ID product, a decentralized identity and reputation layer that allows users to maintain control over their identity and reputation data across multiple platforms while supporting secure, transparent data-sharing practices. NFMe ID, or Non-Fungible Me ID, is founded on the concept of self-sovereign identity (SSI), a paradigm where individuals have full ownership and control over their personal information. Unlike traditional identity systems that rely on centralized databases managed by authorities, SSI uses decentralized technologies to empower users.

Itheum’s omnichain infrastructure is engineered to function across various blockchain networks, including Solana, MultiversX, Sui and Base. This design allows data NFTs to be transferred, utilized and monetized seamlessly across multiple blockchain environments. For instance, data recorded on Solana could be easily transferred and used on Sui or MultiversX for AI model training or data analytics without compromising security or data integrity. 

Comparison with other market solutions

Several platforms, including Ocean Protocol and Fetch.ai, are attempting to address the challenges associated with data sharing for AI. These platforms have their own approaches to solving the data bottleneck problem, but Itheum differs in several areas.

Ocean Protocol is a decentralized data exchange protocol that allows data owners to monetize data sets while retaining control. Itheum differs by providing the entire infrastructure layer for data to be sourced and stored from reputable data providers. This data can then be tokenized using data NFTs, and bulk data can be aggregated and governed by Data Coalition DAOs. 

With its holistic approach to solving the issues around data sourcing, ownership and governance in AI, Itheum has positioned itself as a data technology infrastructure layer for artificial intelligence. This method is particularly well-suited to the gaming industry, where data ownership and provenance are critical and enable players to monetize their data while maintaining privacy.

Fetch.ai combines AI and blockchain to create a decentralized marketplace for data and machine learning models. Fetch.ai’s native token is primarily used for transactions in its own blockchain ecosystem, while Itheum’s token operates across multiple blockchains and facilitates broader data interoperability and adoption. In the gaming sector, this means that players from various platforms can participate in data sharing and monetization without being limited to a single network.

Ecosystem, omnichain structure and market strategy

Itheum aims to attract diverse users, from individual data creators such as gamers, musicians and AI content creators to large enterprises and AI developers. These users will be incentivized to provide data sets through Itheum’s system of BiTz XP points and its native ITHEUM tokens. 

Participants earn BiTz XP by regularly engaging with the platform. These points are then converted into ITHEUM tokens, which can be locked up to raise a user’s Liveliness score. AI companies using the platform, in turn, can reference a user’s Liveliness score to find and engage with high-reputation contributors. This drives the creation of more valuable data NFTs.

Itheum’s omnichain structure also allows it to leverage the unique features and capabilities of different blockchain networks. For example, Itheum utilizes Solana’s high throughput and low-cost transactions for scalability and Sui’s blockchain-powered bulk data storage systems while also leveraging MultiversX’s tokenization features to enhance data flow across different blockchain ecosystems. In the gaming and AI sectors, this could mean faster, more efficient transactions and greater flexibility in how data is shared and used.

Conclusion

Looking ahead, Itheum intends to continue building and strengthening partnerships, such as its collaboration with Sony and the Astar Web3 incubation program, to create innovative use cases in AI and gaming. The upcoming launch of its Gamer Passport alongside additional data NFT drops will help onboard more users and strengthen Itheum’s position in the gaming sector. As Itheum continues to evolve, it will continue contributing to the future of data management and AI development.