Mining Overview

Mining in Cortensor plays a critical role in maintaining the decentralized AI inference ecosystem. At its core, mining enables the processing of AI inference tasks and ensures the continuous functionality of the network. Miners contribute computational power to execute tasks such as data processing, large language model (LLM) inference, and task validation. The mining process is guided by the Proof of Useful Work (PoUW) system and Proof of Inference (PoI) to validate tasks and ensure meaningful contributions.

Even during idle periods, when there are no immediate user requests, miners are incentivized by the network to perform background tasks such as pre-emptive data generation and AI model training. This ensures that computational resources are utilized efficiently, and miners continue to earn rewards even when demand is low. Additionally, miners earn more direct rewards when serving specific user requests, where users pay for AI inference services. This dual reward system—network incentives during idle time and user payments for on-demand services—ensures a continuous flow of tasks and fair compensation for miners, keeping the network active and efficient.

The PoUW state machine is a structured framework that governs the workflow within the network. It controls the flow of tasks through various states: Request, Create, Prepare, Start, Precommit, and Commit. The PoUW system ensures that each Miner Node is assigned tasks fairly and efficiently, while preventing dishonest behavior and ensuring timely task completion. The state machine operates with the interaction of Miner Nodes and Oracle Nodes, the latter of which monitors state transitions and requests the network to move forward if time constraints are exceeded.

Cortensor employs PoI and PoUW mechanisms to validate the accuracy and utility of AI inference tasks. PoI ensures that the AI model's output is verified by measuring the similarity of embedding vectors, while PoUW validates the usefulness of the work performed by the miners. Together, these mechanisms ensure that miners perform valuable computations and are rewarded for legitimate, high-quality work.

In the PoUW state machine, Miner Nodes perform tasks assigned by the network, while Oracle Nodes monitor progress and request state transitions when tasks are completed or when time constraints are not met. Oracle Nodes ensure that no single point of failure occurs by requesting the reassignment of tasks to another Miner Node if the original miner fails to complete the task in time. This process maintains fairness and efficiency within the network and ensures timely task execution.

Mining Rewards and Incentives

Miners in the Cortensor network are rewarded based on their contributions to the system, with rewards scaled by their performance and the importance of the tasks they complete. Even during idle periods, miners can earn rewards by processing background tasks, ensuring continuous participation and resource optimization. The Proof of Useful Work system promotes fairness in task allocation and rewards, encouraging long-term participation and innovation within the network.

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