# Rise of Data Ownership in AI: VANA’s Vision for Decentralized AI

As AI technology rapidly evolves, the importance of data ownership is becoming increasingly prominent. VANA, a pioneering project, aims to bring transformative change to the blockchain ecosystem by integrating data ownership with AI learning.

Unlike traditional AI models, which rely exclusively on the data and resources monopolized by large corporations, VANA offers an innovative approach where individuals can train AI models using their own data and receive rewards in return.

At the recent KBW event, Block Media spoke with Anna Kazlauskas of VANA about their vision for a decentralized AI ecosystem and the potential of data DAOs. Kazlauskas elaborated on how VANA plans to empower users to harness their data for AI model training, and the broader implications for the blockchain and AI industries.

## Decentralizing AI Training with Data Ownership

In 2015, Kazlauskas first explored the world of cryptocurrencies, mining Ethereum in her MIT dorm room. This experience highlighted the potential of decentralization in cryptocurrencies. She later delved into AI research at the MIT AI Lab, recognizing the crucial role of data, which inspired the inception of VANA.

VANA’s mission is to apply the decentralization concept of cryptocurrencies to data and AI, enabling individuals to own their data and use it to train AI models.

## Data Ownership Mechanism

Kazlauskas explained that under Web2 platforms, user data remains within the applications they use and is owned by the platform, though legally, the users own the data. VANA employs a non-custodial data management approach, allowing users to link and control their data through their wallets, thus facilitating AI model training and ownership.

## Bridging AI and Blockchain

Traditional AI significantly relies on centralized resources and vast amounts of data. Big Tech companies can only use publicly available data for AI training, a scenario that experts refer to as the ‘Data Wall’ due to the dearth of fresh data. By leveraging blockchain, VANA aims to decentralize ownership, enabling multiple individuals to pool their data and create AI models. Consequently, these models can utilize private data, potentially surpassing the performance of centralized AI models. This innovative structure allows individuals to jointly develop and own AI through participation in a data DAO.

## Confirming Data Ownership on the VANA Network

VANA utilizes technology from the Solid Project, devised by MIT’s Tim Berners-Lee, allowing individuals to store their data on personal servers and use it for AI training as needed. This setup ensures users have direct control over their data. Additionally, contributors to data DAOs gain ownership of AI models created using their data.

## Current Projects and Tokenomics

VANA’s Reddit Data DAO is active on the testnet, with 140,000 Reddit users pooling their data to train AI models known for their wit and humor – a capability absent in centralized models. Other initiatives include LinkedIn Data DAO and Fashion Data DAO.

Regarding data supply and demand, data is virtually boundless, though its demand often goes unrecognized. Earlier this year, Reddit user data was sold for $2 million, illustrating the high value of user data, though corporations typically reap the profits. VANA aims to return this value to users. Reddit Data DAO has already secured its first data buyer, with fashion companies showing interest in purchasing data for trend prediction.

VANA’s tokenomics mirror Ethereum’s deflationary model, with a small data transaction fee levied within the network. Each dataset has a unique token, such as Reddit Data Tokens for the Reddit dataset, allowing for the valuation of specific data contributions.

## The Significance of Decentralized AI and Blockchain

Centralized enterprises dominate data and AI technology. However, enabling individuals to own and develop AI models is crucial, as it allows users to control and benefit from their AI contributions. Without ownership, individuals face the threat of job displacement by AI. Decentralization and ownership enable users to see AI as an economic agent acting on their behalf, making the establishment of decentralized AI and data ownership essential.

## Future Plans

Currently in the testnet phase, VANA plans to launch its mainnet by the end of the year, collaborating with various data DAOs to build a decentralized AI ecosystem. The potential innovations resulting from the fusion of AI and blockchain by VANA are highly anticipated.