On-chain AI loves to say a model is 'stored on-chain.' But a chain commits to a 32-byte hash for cents; keeping the 140 GB it points to retrievable is a separate, recurring, surprisingly centralized bill. The storage math, erasure coding, and the retrieval wall.
An AI agent that retrieves from an untrusted vector DB can't tell the true top-k from a cherry-picked or fabricated one. Re-running the search needs the whole corpus. The 2026 fix: commit the snapshot, then prove the k-th distance is a boundary, not the sort. V3DB proves it 22x faster.
Secure multi-party computation runs a transformer without any party seeing your prompt — at minutes per query and gigabytes per token. BumbleBee's BERT-base: 6.4 GB, 2.55 min; LLaMA-7B: ~8 min/token. The bytes don't go where you'd think, and it's why 'blind' networks fall back to TEEs.
Verification overhead gets the blame, but the real tax on decentralized LLM inference is the batch a single-tenant node can't fill. On identical 8x H100s, Llama-3.3-70B costs about $258 per million tokens at batch 1 and $2.30 at batch 256 — a 112x spread. Why, and how networks fight it.
Decentralized RL splits the actor from the learner across the internet: the policy a worker acts with runs several steps behind the one that learns. INTELLECT-2 held reward at 4 steps stale; SparrowRL cut the broadcast 79x. The bandwidth and staleness taxes, and what the chain secures.
Decentralized AI networks have to turn many validators' subjective quality scores into one reward number. Bittensor's Yuma Consensus uses a stake-weighted median and clips the rest — robust to a <50% bloc. Then a parasite shows up: copying the consensus pays better than producing it.
An MCP tool's description is trusted context the user never sees. Hide an instruction there and a wallet-signing agent will route your USDC to an attacker. MCPTox: the best-aligned model still refused under 3% of these attacks — so the defense can't live in the model.
A perp has no expiry, so only the funding rate pegs it to spot. On Hyperliquid that's an hourly cash flow AI agents now harvest delta-neutral — a $10k position at +0.02%/8h pays ~21.9%/yr. The mechanism, the carry math on real rates, and why it's carry, not alpha.
An on-chain agent acts on facts it reads from an RPC it has to trust. ZK coprocessors swap that trusted read for a proof — and the punchline is succinctness: proving a query over a year of blocks verifies for the same flat ~300k gas as one slot. The mechanism, the anchor problem, real-time proving.
Speculative decoding lets a small, even adversarial, drafter propose tokens that a big model verifies in parallel — and the output is provably the big model's, unchanged. Real drafters land at α ≈ 0.6–0.8 for a ~2× win. But the verifier still runs every token, so it's a latency win, not a trust win.
An on-chain agent reports its work in prose — and some of those sentences are fabricated tool calls. zkML proves the wrong thing at minutes per query. The blockchain already wrote an unforgeable receipt for the actions that matter, and a 12ms signed receipt covers the rest.
Bond-and-slash verifiable AI assumes someone audits. But checking costs money and pays nothing, so a rational verifier won't — the verifier's dilemma. Proof of Sampling fixes it with a bounty, and the math says honest inference holds at a 0.74% sampling rate where nobody ever arbitrates.