CloudChain: Decentralized Marketplace for AI Compute Resources

Monika Malik

Keywords: Decentralized AI, Blockchain, Smart Contracts, Token Economy, Privacy Preservation, AI Marketplace, Dis- tributed Storage

Abstract:

These issues have emerged as central to the rapid
expansion of artificial intelligence (AI) due to what can be
broadly described as the constraints of centralization of arti-
ficial intelligence infrastructures serving commercial purposes,
such as restricted access to the smaller developer community,
concentration of principal computational power, and biases in
the distribution of artificial intelligence services. CloudChain,
a decentralized AI compute resources market, built upon a
blockchain presented in this paper helps to overcome these
difficulties. CloudChain is a decentralized AI storage, a de-
centralized contract, and a token incentive system, which en-
sure transparent, trustless, and equitable interactions between
the AI providers and the AI consumers. The framework in-
cludes privacy-protecting measures, such as encryption and zero-
knowledge proof, to guarantee privacy and security of sensitive
datasets and guarantee auditability and adherence to SLA. Smart
contracts can be used to automate the process of allocating
tasks, rewarding, and resolving disputes, as well as to track
the quality of the service provided by the contracting parties
and their compliance with the agreements. CloudChain can be
used to create cooperation between large-scale providers of these
services and cooperative nodes that make use of AI resources
to establish fairness, transparency, and efficiency in their use. A
30-day simulation of major cloud providers (AWS, Google Cloud,
Azure, Hetzner, Lambda Labs) and community-based nodes was
done to validate the proposed framework by measuring the key
performance indicators and metrics including token allocation,
latency, throughput, SLA compliance, and resource utilization.
Findings showed that CloudChain is an effective method to
balance workloads, achieve high service quality, and deliver
equal rewards to all providers of heterogeneous resources. The
framework is a democratized, safe, and practical way to use AI
compute resources, enabling independent developers and smaller
organizations to access the AI ecosystem and keep privacy and
trust. The design of CloudChain prepares a more welcoming,
decentralized infrastructure of AI, which promotes innovation,
interoperability, and future collaborative sustainability in AI
marketplaces.

Submission Number: 2