Disclaimer: This is not intended as investment advice in any form.
Blockchain’s decentralization has already transformed how organizations function and how data is shared between different parties. Imagine what it could do if merged with AI capabilities as well!
An idea like this was unthinkable and unexplored until the inception of Oraichain back in 2020.
This merger has transformed the blockchain business in a big way, and that’s what we’ll talk about today. We’ll discover why Oraichain is so important, what problems it solves, and whether it’s legit.
Let’s get started!
What is Oraichain?
Oraichain is a platform by Oraichain Labs that connects trustless applications and Artificial Intelligence (AI) models within the blockchain environment. It makes it easier for these technologies to work together by acting as a data oracle and giving reliable, verified data to decentralized apps that need information from the outside world.
Before we go any further, we need to know what an oracle is and why it’s essential in Blockchain.
What is An Oracle?
An Oracle gives smart contracts the power they need to make transactions safer. One big problem with smart contracts is that they can’t access and verify “off-chain” (not on the Blockchain) info from the real world on their own. And an Oracle solves the problem by working as a go-between for smart contracts and the outside world.
They give intelligent contracts a way to access off-chain data and real-world events safely and reliably. Oracles get information from outside the Blockchain technology, check it, and send it to the Blockchain network.
It lets smart contracts make decisions and take steps based on real-time conditions.
Let’s say Emily and David want to bet on the outcome of a sports game. Emily bets $20 on Team X, and David bets the same on Team Y. A smart contract puts $40 into a trust account. How does the clever agreement decide who gets the money after the match?
The answer is an oracle, which gets exact match results from sources outside of the Blockchain and sends them safely to the Blockchain. It makes sure the money goes to the rightful owner.
Where Does Oraichain Stand with Its AI Oracle?
Oraichain is the world’s first AI-powered oracle. It has transformed the way people think about oracles by making a new AI Oracle that integrates artificial intelligence (AI) into the oracle process. Oraichain’s AI-Powered Data Oracle is different from traditional oracles because it uses AI to analyze complicated datasets, verify information from multiple sources, and give real-time insights.
This integration makes data retrieval more accurate and reliable so that smart contracts can make safe choices based on real-world events. For example, in the case of a sports bet, Oraichain’s AI-Powered Data Oracle can use match commentary, player stats, and expert opinions to predict the outcome correctly.
The AI integration makes the analysis process automated so intelligent contracts can distribute funds independently. On Oraichain’s AI Marketplace, AI experts can also share predictive models, which makes the community even more potent.
Oraichain’s AI Marketplace is one of its best parts. What makes it stand out is that it does away with intermediaries. On the Oraichain network, AI developers can share their models and services without going through a third party. The AI Marketplace is like a store for developers and people who want to use AI services. Many AI services are easy to choose and use. ORAI tokens are used to pay for services in this store, which makes payments easy and safe. The token is also used as a transaction fee to run an AI request directed to the Oraichain network.
Scale Up with Layer 2 Solution
Oraichain’s planned use of a Layer 2 solution shows how forward-thinking it is when scaling its Oracle services and protocols. This new way of doing things includes using the features of customized Layer 2 Rollups like Polygon, which are made to meet the needs of AI Oracles and Oraichain’s many protocols. It makes it possible for the platform to handle a large number of transactions without any problems. It improves the speed and scalability of Oracle services and protocols like Verifiable Random Function (VRF).
The ORAI Token
ORAI is an ERC20 coin and the native currency of the Oraichain network. It is called ERC20-ORAI and works on the Ethereum network. These tokens are essential for keeping the decentralized Oracle network of validators running and giving it power. Validators must stake the Oraichain token to take part in making blocks or answering data questions.
Oraichain works like a DAO, a “Decentralized Autonomous Organization.” It means that its validators decide how it works as a group. Oraichain Token holders actively shape the direction of the project by participating and voting. The token is also used as a transaction fee to run an AI request directed to the Oraichain network.
One problem is that it only has 51 validators, which makes it centralized.
Even scarier is that over 75% of Oraichain tokens are held by only ten addresses. This uneven division of assets, known as “whale concentration,” can make ORAI a risky investment for regular investors. With so much control resting in the hands of a few, they can easily manipulate decisions and steer things in their own favor.
The Team Behind Oraichain
In the crypto world, the founders of a coin or a chain may often remain anonymous. In a previous blog, we discussed Bitrock, which raised concerns due to undisclosed founders. Fortunately, with Oraichain, this is not a worry, as the founders are readily accessible.
This enhances the project’s authenticity, as all founders are identifiable and not hidden behind anonymity. This heightened transparency fosters public trust, as there are individuals who can be held accountable for the project.
Oraichain’s Digital Presence
Having a strong digital presence, especially on social media, is a positive indicator for any digital asset-based projects like cryptos. And one thing that works in Oraichain’s favor is its strong online presence.
Oraichain’s Twitter page boasts an impressive 77k followers. It maintains a decent level of engagement, regularly posting updates and actively interacting with its audience.
They also have a YouTube channel close to 1.5k subscribers where they post regular updates. However, the videos are mostly in Vietnamese, which might make it difficult for users from other parts of the world to understand them.
Last but not least, for those seeking a communal platform to engage with like-minded individuals and partake in discussions, their official subreddit, Orachain Official, serves as an additional avenue. Here, you are likely to encounter fellow users, exchange insights, and participate in meaningful conversations about the subject matter.
Staking and Earning
Validators participate by staking their tokens, earning rewards for enhancing network security. Additionally, other users can delegate their Oraichain tokens to established validators, entitling them to a proportionate share in these rewards. However, it’s crucial for delegators to recognize that this isn’t a form of passive income.
Delegators have the ongoing responsibility of actively monitoring validators’ performance to ensure their consistent contribution to the ecosystem. In the event of delegation to a malicious validator, there exists a risk of slashed delegated tokens. Thus, delegators bear equal responsibility for making the Oraichain ecosystem a secure solution.
You must look at their website to understand a coin or a chain. I looked it up, and the website was put together well. Nothing seemed off, user experience was pretty good. The website’s information, however, seemed too complex for most people to understand. Still, on the whole, it appeared to be strong.
Downsides You Should Consider
Oraichain stands out in the cryptocurrency market because it uniquely uses AI. But it has some problems, which we will look at more closely now.
Market Cap and Low-Circulating Supply
Upon glancing at CoinMarketCap, an initial observation might raise eyebrows for some potential investors. The circulating supply reflects a current market capitalization of 5 million dollars, while the fully diluted market cap sits at 47 million dollars.
For those less familiar with these metrics, this implies that, based on the current distribution, additional tokens could potentially flood the market. This can dilute the value of existing holdings and result in a situation where a small group of people holds a large number of tickets, leading to various implications like:
- Control and Manipulation: A concentrated token release makes people wonder how decentralized the project is and if it could be manipulated. If only a few people own many tokens, they could have too much control over the project’s direction and the market’s workings.
- Price Volatility: A skewed distribution could make prices change more than usual. Large holders, often called the “whales,” may have the power to cause significant price changes through their selling, which could make the market unstable.
- Investor Confidence: If the distribution isn’t even, investors may be worried about how fair the project is and how long it will last. If more people don’t join in, it could be hard to be optimistic about the project.
Previous Bull Market
Oraichain already had a bull market, which is an issue. Because tokens that have already had a bull market often struggle to reach their previous peak. So, considering the tokenomics and the current price, this doesn’t seem like a favorable situation.
In the case of Orai, you can see that its USD price reached a crazy $103 in February 2021. The price now is only about $2 in the crypto market, a crazy 97% less than the all-time high. And looking at the chart it’s quite clear that Orai may not ever reclaim it’s lost glory.
Our Final Take
Oraichain has carved a unique path by uniting blockchain and artificial intelligence, sparking innovation at the intersection of data and trustless applications. Its AI Oracle infuses predictive power into smart contracts, while the AI Marketplace offers a direct avenue for developers. However, concerns linger over token distribution and past market trends. Oraichain’s journey stands at the crossroads of promise and caution, inviting us to watch as it navigates uncharted terrain in the dynamic realm of blockchain and AI.