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The decentralized AI space is rapidly evolving, with innovative platforms finding new ways to optimize resources and enhance machine learning (ML) capabilities.
Nodepay is one such platform. It allows users to contribute their unused internet bandwidth by turning it into real-time data pipelines for AI training and development.
The startup announced it has secured $7 million in its second funding round. The new investors include IBC. Elevate Ventures, IDG Capital, Mythos, Optic Capital and Funders.VC. Existing investors such as Animoca Brands, Mirana, OKX Ventures, JUMP Crypto, and Tokenbay Capital also participated.
By converting unused internet bandwidth into valuable data streams Nodepay’s platform enhances AI systems with accurate and timely information. This not only improves performance but also allows for continuous refinement through user feedback, making systems more responsive and effective over time.
A key asset for Nodepay is its large global community. Users run privacy-protected nodes and earn rewards for sharing their spare bandwidth, which creates a real-time data source. With the new funding, Nodepay aims to further enhance its collaborative model. More specifically, it aims to continue commercializing its infrastructure to provide greater value to its partner AI labs and community users.
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“Our mission is to develop solutions that create tangible value for both AI developers and its end users,” shared Darren Nguyen, co-founder of Nodepay. “We give contributors a share in the AI ecosystem they help fundamentally build.”
Founded in 2024, Nodepay is looking to capitalize on two key opportunities: unused internet bandwidth and the growing demand for accurate and diverse data to train AI models.
Currently, AI providers typically gather data from the open internet, scraping content like blog posts, social media updates, and comments. However, this method overlooks the value of unused bandwidth. Nodepay allows users to share their spare bandwidth, turning it into real-time data streams.
So, why does data volume or diversity matter? Data volume and diversity are crucial because they ensure AI models are trained on a wide range of real-world scenarios. This improves their accuracy and adaptability. The more diverse and abundant the data, the better the AI can generalize and perform in various contexts.
Another key advantage is how Nodepay addresses the issue of user data being used without permission. With Nodepay, users opt-in voluntarily. They share their bandwidth and data with full consent, ensuring privacy and transparency in the process.
Nodepay’s platform consists of a web3-focused decentralized answer engine, reinforcement learning for more accurate model output, and gamified human verification. The platform uses blockchain technology to provide decentralized services and validate transactions. The Singapore-based startup claims that combining these components fosters a collaborative, innovative, and fair AI ecosystem.
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Nodepay seems keen to integrate AI and blockchain technology. It uses blockchain for greater transparency and security, eliminating the need for a centralized authority. In addition, users are rewarded with cryptocurrency for their contributions.
The Node Points can be exchanged for cryptocurrency tokens based on the number of hours connected to the platform. Nodepay also said it plans to launch Solana, a major blockchain network.
Eric Le, investment director of IDG Capital, said, “The team at Nodepay is democratizing the AI economy by providing a platform that allows users to share directly in the value they create. We’re proud to support their vision of making AI more accessible and beneficial to all.”
By involving individuals from around the world, Nodepay is creating a shared approach where everyone can contribute to and benefit from advancements in technology. The startup is already serving 1.5 million active users worldwide. Many companies are exploring ways to make AI development more inclusive and rewarding for contributors. Earlier this month, Sahara AI launched a new platform rewarding users for building AI training data sets.
With fresh capital in its wallet, Nodepay is set to expand its infrastructure, rewarding contributors while improving data collection through decentralized networks.
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