I Tried Building an AI-Powered Smart Contract Last Year and It Failed Spectacularly
Had this idea for a contract that would adjust DeFi positions automatically based on market analysis. Seemed straightforward - connect AI model to blockchain, let it make decisions, execute trades.
Reality hit hard. AI models run on centralized servers with APIs that can rate limit you, change pricing, or shut down access entirely. Can’t build trustless systems when half your infrastructure depends on OpenAI not having downtime or deciding your use case violates their terms.
Vanar’s approach with Kayon is different because the reasoning layer runs on-chain instead of requiring external API calls to centralized AI services. When smart contracts need to process complex queries or make decisions, they’re using decentralized compute rather than hoping AWS stays online.
I’m thinking about what becomes possible when AI logic and blockchain execution happen in the same environment. Automated market makers that adapt strategies based on historical patterns. Lending protocols that adjust risk parameters dynamically. Gaming AI that can’t be manipulated because it’s running on validators not controlled servers.
They’re moving to subscriptions where every AI interaction burns or stakes VANRY tokens. So demand comes from actual product usage instead of speculation. That’s rare in crypto where most tokens exist for governance nobody participates in.
What I keep questioning is whether on-chain AI can match the performance of centralized models from OpenAI or Anthropic. Decentralization usually means slower and more expensive. Does the censorship resistance justify the tradeoffs?
The NVIDIA Inception partnership suggests they’re building something technically credible beyond just marketing hype. NVIDIA doesn’t back projects that aren’t solving real compute challenges.
Have you tried integrating AI with blockchain or does the technical complexity keep you building on traditional centralized infrastructure?
