Decentralizing AI: Insights from xTAO's Karia Samaroo

The recent 48-hour internet shutdown in Afghanistan has raised significant concerns regarding the vulnerability of decentralized technologies, particularly blockchain. This blackout, which affected approximately 13 million people, revealed a critical weakness: the reliance of blockchain networks on centralized internet service providers. While blockchain is designed to facilitate secure and censorship-resistant transactions, the outage highlighted how interruptions in internet connectivity can severely impact its functionality. This situation underscores the urgent need for alternative internet infrastructure solutions that can support blockchain operations even when traditional providers are unavailable. On October 1, 2025, the Taliban administration ordered a near-total internet blackout, which was later attributed to technical issues with fiber optic cables. However, the timing and scale of the disruption raised alarms about potential censorship and government control over internet access. The event not only disconnected millions from the digital realm but also disrupted numerous blockchain activities, revealing a significant challenge for decentralized networks. The incident serves as a stark reminder that while blockchain technology holds the promise of censorship resistance, it remains vulnerable to external disruptions. In response to the Afghanistan blackout, advocates for decentralized connectivity are calling for solutions that ensure blockchain networks can operate independently of centralized internet providers. Projects like Roam Network are at the forefront of this movement, aiming to create decentralized wireless networks powered by user contributions. By leveraging crowdsourced data on mobile signal strength, Roam seeks to provide reliable internet access even during outages. Other initiatives, such as World Mobile and Helium, are also working to establish large-scale decentralized networks that reduce reliance on centralized infrastructure. The urgency of developing these solutions has never been clearer, as the potential of blockchain technology hinges on the availability of a decentralized internet backbone.

The recent Token2049 conference in Singapore highlighted the emergence of Decentralized Physical Infrastructure Networks (DePIN) as a transformative force in the blockchain space. Initially met with skepticism, the concept of individuals contributing to decentralized networks through installations like weather stations has gained traction, with thousands of stations now operational worldwide. Participants at the conference expressed a strong desire to engage with and profit from the infrastructure that supports both online and offline activities. DePIN is no longer a niche topic; it has become a central theme of discussion, with many experts predicting that it will surpass Decentralized Finance (DeFi) in value and significance. DePIN represents a shift in the cryptocurrency narrative, moving from a focus on capital to capacity. Investors and creators at Token2049 emphasized the importance of building actual networks that have tangible impacts on the world. Unlike traditional infrastructure, which is often hindered by centralized processes and high upfront costs, DePIN allows users to become operators immediately, thus facilitating faster deployment and greater participation. This model not only enhances utility but also attracts consumers, creating a self-sustaining ecosystem. As the demand for real-time, verifiable data grows, particularly in the AI economy, DePIN is positioned to become the foundational layer for various applications, including climate intelligence and grid optimization. Looking ahead, the potential for DePIN is significant, especially as regulatory clarity begins to emerge. The transition from pilot projects to fully operational networks is underway, with companies like WeatherXM leading the way by providing hyperlocal meteorological data through decentralized means. As industries increasingly seek reliable weather data amid climate challenges, DePIN could redefine the landscape of decentralized infrastructure, potentially onboarding millions into the Web3 ecosystem. The momentum observed at Token2049 suggests that DePIN is not just an alternative to DeFi but may become a cornerstone of the decentralized economy, focusing on broader societal impacts beyond mere financial transactions.

Barry Silbert, the founder of Digital Currency Group (DCG), has launched Yuma Asset Management, a new fund aimed at investing in artificial intelligence (AI) networks, particularly focusing on the Bittensor platform. Initially seeded with $10 million, Yuma is designed to support early-stage teams developing decentralized AI infrastructure. Silbert expressed a renewed excitement about the potential of Bittensor, stating that it represents a significant utility in AI, distinguishing it from what he terms as speculative "AI pretenders." The fund aims to provide institutional investors with structured exposure to the convergence of crypto and AI technologies. Silbert's enthusiasm for Bittensor is rooted in its ability to deliver practical applications, such as BitMind, a tool that identifies deepfake images. This focus on utility serves as a counterpoint to numerous crypto projects that he believes lack substantive technology and are merely capitalizing on the AI hype. Yuma's fundraising strategy is tailored for high-risk investors, targeting wealthy individuals and institutions willing to embrace the potential for total loss in exchange for the chance of monumental gains. The fund's structure is designed to appeal to institutional capital, with comparisons being drawn to established market indices like the Nasdaq and Dow Jones Industrial Average. The launch of Yuma comes at a pivotal moment following a tumultuous period for DCG, which has faced regulatory challenges, layoffs, and fraud allegations in the wake of the FTX collapse. This strategic move not only signifies Silbert's return to the forefront of the crypto landscape but also reflects a broader shift in the crypto-political climate post-presidential election. With Bittensor's market valuation currently around $3 billion, Silbert's ambition for Yuma appears to be both bold and calculated, aiming to harness the potential of AI in the evolving crypto ecosystem.

Grass, the flagship product of Wynd Network, has successfully raised $10 million in a bridge funding round co-led by Polychain Capital and Tribe Capital. This funding, primarily structured as a token purchase, highlights the growing investor confidence in Grass's mission to decentralize internet connectivity and enhance AI data access. Previously, Grass had secured funding through Seed and Series A rounds, but this latest round was unplanned and comes at a crucial time as the project experiences rapid growth and adoption. Grass operates as a decentralized bandwidth network built on the Solana blockchain, allowing users to monetize their unused internet capacity by selling their 'view of the internet.' This innovative system enables companies and developers to access public web data at scale, which is essential for training and improving AI models. Users are rewarded with the native GRASS token, which serves as the primary vehicle for value accrual and governance. Co-founder Andrej Radonjic emphasized that Grass addresses the access challenges AI developers face when building or training models across the open web, thereby solving a significant bottleneck in data collection for AI. The recent funding round marks Polychain Capital's third investment in Grass, reflecting their strong belief in the company's potential. Grass has reported impressive growth, with 8.5 million monthly active users and collaborations with around 20 companies, including nonprofits and academic institutions. As the project continues to evolve, it aims to transition from providing training data to offering real-time inference data, which is crucial for generative AI systems. With its unique approach, Grass is positioned to redefine data pipelines for AI, shifting control from centralized tech companies to a decentralized global network, thus leading the charge in the intersection of AI and decentralized infrastructure.

Recent developments in the cryptocurrency and blockchain sectors highlight significant movements and investments. Notably, the UAE family office Kanoo Group has announced its decision to purchase Bitcoin, further solidifying its position in the digital asset space with assets under management totaling $20 billion. Additionally, SpaceX, the aerospace company founded by Elon Musk, reportedly holds $1 billion worth of Bitcoin, showcasing the growing acceptance of cryptocurrencies among major corporations. In the realm of blockchain technology, the DePIN project Grass has successfully completed $10 million in bridge financing, with participation from notable investors such as Polychain and Tribe Capital. This funding marks a continuation of support from Polychain, which has previously invested in Grass during its seed and Series A rounds. Furthermore, ZKsync has launched the Atlas upgrade for its ZK Stack, aimed at enhancing enterprise blockchain performance. This upgrade introduces a high-performance sequencer capable of processing up to 30,000 transactions per second, significantly improving efficiency for enterprise applications. On the regulatory front, the Federal Reserve's monetary policy remains a focal point, with a high probability of rate cuts anticipated in the coming months. Fed Governor Milan has expressed concerns regarding the decline in the neutral rate and its implications for policy tightening, while also maintaining an optimistic outlook on inflation. Meanwhile, Nakamoto plans to issue $250 million in convertible bonds to bolster its Bitcoin holdings, reflecting ongoing interest in cryptocurrency investments amid evolving market conditions.

Bee Maps, a decentralized mapping startup previously known as Hivemapper, has successfully raised $32 million to enhance its blockchain-based cartography network. The funding round was led by prominent investors including Pantera Capital, LDA Capital, Borderless Capital, and Ajna Capital, marking it as one of the largest in the Decentralized Physical Infrastructure Network (DePIN) sector. The platform incentivizes users with HONEY tokens for capturing real-world footage via Bee Dashcams, which is then processed by AI to identify roadwork, new signage, and infrastructure modifications. This decentralized approach aims to deliver more accurate and diverse geographical data compared to traditional centralized systems, as highlighted by a spokesperson from Pantera Capital. In its next phase, Bee Maps is focusing on accessibility by introducing a new $19 monthly Bee Membership Plan, which replaces the previous hardware fee of $589. This strategic move is expected to significantly increase user participation by lowering the barrier to entry for contributors. The platform has already secured data and integration partnerships with major players such as Volkswagen, Lyft, and Mapbox, allowing its live mapping feeds to be utilized in navigation tools and AI training models. As the DePIN sector continues to thrive, Bee Maps is positioned to capitalize on the growing demand for real-time, precise data in various industries. In a related development, the DePIN market is witnessing a surge, with a reported 28% increase in on-chain activity since July. Solana has emerged as the second most active blockchain for DePIN projects, following Ethereum. Meanwhile, the launch of Snorter, a new token and Telegram sniper bot, is gaining attention for its speed and efficiency in automating trades. Analysts from 99Bitcoins suggest that such utility bots could signal the next phase of the crypto bull market, particularly as they help users navigate the increasingly complex landscape of tokenized infrastructure projects. As the market evolves, both Bee Maps and Snorter are poised to play significant roles in shaping the future of decentralized applications and infrastructure.