# Chromia Introduces First On-Chain Vector Database: Bridging AI and Blockchain

## Cost Efficiency and Ease of Development:
Chromia’s PostgreSQL-based vector database aims to reduce AI-blockchain application development costs by 57%, offering an integrated blockchain environment.

## Future Development Directions:
Plans include focusing on EVM indexing, AI inference capabilities, and expanding the developer ecosystem to lead AI technology innovations in the Web3 market.

### The Current State of AI and Blockchain Integration
The integration of AI and blockchain technologies has long attracted industrial interest. Centralized AI systems present issues like transparency, reliability, and dependency, which blockchain technology can address. Although the market for AI agents grew significantly in 2024, most projects only superficially connected AI and blockchain technologies. Many leveraged the speculative fervor of the cryptocurrency market for funding and marketing, leading to substantial devaluations, sometimes exceeding 90%.

The failure to create true synergy between the two industries stems from multiple factors, including the high technical complexity and rapidly changing nature of on-chain data utilization. If data could have been leveraged as easily as in traditional markets, tangible results might have been achieved before the interest waned.

This situation mirrors the separation between Romeo and Juliet; the two technologies exist in different realms without a meeting ground for real fusion. To truly harness the strengths of AI and blockchain, there is a clear need for a foundational infrastructure that maintains high performance and cost efficiency. In this context, vector database technology, which is driving recent AI innovations, gains significance.

### The Necessity of Vector Databases
Vector databases have gained attention as AI applications become widespread and outgrow the limitations of traditional databases. These databases store complex data like text, images, and sounds in mathematical forms, supporting searches for similar items. Unlike standard databases that locate exact titles like “kitten,” vector databases can find contextually related content such as “cat,” “dog,” and “wolf.”

For instance, if a friend responds to “How are you feeling today?” with “The sky is really clear!” we understand they’re in a good mood, even without the word “good.” Vector databases similarly comprehend and seek information based on meaning, not exact word matches, making them indispensable for AI systems.

In conventional markets, the value of vector database solutions has been recognized, attracting large investments in companies like Pinecone ($100 million), Weaviate ($50 million), Milvus ($60 million), and Chroma ($18 million). However, the Web3 ecosystem lacked these solutions, making AI and blockchain integration still seem distant.

### Chromia’s On-Chain Vector Database
Chromia offers a PostgreSQL-based Layer 1 relational blockchain, enhancing efficient development with relational databases and distinguishing itself with superior data processing capabilities. Recently, Chromia integrated PgVector functionality into its blockchain through “Chromia Extension,” marking the beginning of AI and blockchain convergence. PgVector is an open-source tool for swift similar data searches within PostgreSQL databases. This technology, already utilized by leading market services like Supabase, affirms its established position.

This integration equips Chromia to deliver Web3 services on par with traditional markets and is pivotal for the Mimir mainnet upgrade in March 2025, accelerating AI and blockchain technology convergence.

### An All-in-One Integrated Environment: Complete Fusion of Blockchain and AI
One of the biggest challenges for developers merging AI and blockchain has been the complexity. Traditional blockchain development required linking multiple external systems—storing data on the blockchain, operating AI models on external servers, and separately establishing vector databases. This convoluted structure often resulted in inefficiencies, rising costs, increased development time, and heightened hacking risks due to data transfers across multiple systems.

Chromia tackles these issues by integrating vector databases directly into the blockchain. All processes occur within the blockchain: user queries are converted to vectors, similar data is searched on-chain, and results are returned—all within a unified environment. This integrated approach simplifies development, cutting down the need for external services and complex code, reducing both time and costs. Additionally, it enhances transparency, as all data and processes are recorded on the blockchain, marking the beginning of seamless blockchain and AI integration.

### Cost Efficiency: Superior Price Competitiveness
Blockchain services are often perceived as inconvenient and expensive. Traditional blockchains charge gas fees per transaction, with costs surging on busier chains, deterring enterprises from adopting blockchain solutions. Chromia addresses these inconveniences with an efficient architecture and a distinctive business model, replacing traditional gas fee models with an SCU (Server Computing Unit)-based rental model similar to AWS or Google Cloud. Users rent SCUs with Chromia’s cryptocurrency ($CHR) on a weekly basis, enjoying predictable costs, and efficient resource management.

Chromia’s vector database outperforms traditional Web2 services in both performance and costs, operating at 57% lower costs ($727/month for 2 SCUs + 50GB). This cost efficiency stems from the optimal on-chain environment and decentralized network structure, minimizing service margins unlike centralized services like AWS and GCP.

The decentralized network not only reduces costs but also improves service stability, with multiple nodes ensuring high availability even during single-node failures. Consequently, the costs of establishing high-availability infrastructure and maintaining dedicated support teams are significantly reduced.

### Initiating Blockchain and AI Integration
In just a month since its introduction, Chromia’s vector database has been pivotal in realizing various innovative ideas. To support this rapid development, Chromia offers grants for builders to cover vector database usage costs. Builders can now experiment with low risk on diverse projects—decentralized financial services integrated with AI, transparent content recommendation systems, user-centric data sharing platforms, and community-based knowledge management systems.

For instance, Tiger Labs’ ‘AI Web3 Research Hub’ uses Chromia’s vector embeddings to research Web3 projects and on-chain data, employing AI agents to deliver instant data access stored on-chain. Combined with Chromia’s EVM indexing, the hub supports multi-chain analyses, increasing project support breadth and offering transparent recommendation processes.

As more use cases emerge, Chromia’s vector database will accumulate extensive data, strengthening the ‘AI flywheel’ structure. Blockchain app-generated text, images, and transaction data will be systematically stored as numerical patterns, serving as core training material for AI, enabling continuous performance improvements. Enhanced AI-powered apps attract more users, creating a cycle of growth where increased user data leads to further ecosystem development.

### Chromia’s Future
Post the Mimir mainnet launch, Chromia will focus on 1) strengthening EVM indexing, 2) expanding AI inference capabilities, 3) and broadening the developer ecosystem. Aimed at making data queries accessible and innovating index solutions, Chromia plans to revolutionize blockchain development by simplifying complex data querying techniques.

### EVM Indexing Innovation
Simplifying blockchain technology has been a significant barrier for developers. Chromia’s indexing solution aims to overcome this by redesigning query processes, accelerating game developers’ analysis of blockchain-based item transactions, and enabling swift financial transaction tracking for DeFi projects.

### Expanding AI Inference Functions
Chromia’s recent AI inference expansion on its testnet emphasizes open-source AI model support, reducing barriers to machine learning model integration. This expansion strategy synchronizes with the rapid model development, supporting robust AI model execution in decentralized environments.

### Developer Ecosystem Expansion Strategy
To maximize vector database potential, Chromia actively pursues partnerships across innovative fields like AI-powered application development, enhancing network utilization and demand. This strategy aims to provide platforms that enable developers to create real value, powered by advanced data indexing and AI inference features.

### Conclusion
Chromia’s on-chain vector database stands poised to lead the blockchain and AI integration market. The innovative concept of on-chain vector databases, unmatched in existing ecosystems, showcases Chromia’s technological prowess. Its cloud-service-like resource rental model, with predictable costs and a significant cost advantage (57% cheaper than Web2 vector databases), sets a new paradigm for AI application development on blockchain.

However, Chromia’s key challenges lie in market perception and developer ecosystem expansion. Effective communication strategies to convey the unique programming language (Rell) and complex technical concepts are crucial. Continuous technological innovation and ecosystem expansion are essential to maintain its leading position and fend off competitive blockchain platforms.

Long-term success will depend on verifying use cases and sustaining the token economy. The impact of the SCU rental model on token value, effective developer adoption strategies, and the creation of practical business applications will be critical factors in Chromia’s growth.

In conclusion, Chromia is well-positioned in the Web3 and AI integration market, but converting technical innovation into market value requires continuous development, ecosystem growth, and strategic communication. The successful execution of these tasks over the next one to two years will determine Chromia’s long-term success.