Codatta x Othentic Partnership: Redefining Decentralized Data Infrastructure with Staking-as-Confidence
Imagine a world where your data contributions not only shape AI innovation but also earn you rewards while preserving your privacy. The decentralized web is making this vision a reality. Today, we’re thrilled to announce a groundbreaking partnership with Othentic, a leader in modular decentralized infrastructure. This collaboration introduces a cutting-edge approach to building decentralized data infrastructure, leveraging Othentic’s AVS stack and Codatta’s staking-as-confidence mechanism to create a seamless, scalable, and trust-enhanced data pipeline for advancing artificial general intelligence (AGI).
Staking-as-Confidence Mechanism under EigenLayer
Data quality is crucial to Codatta. We believe a staking approach will improve the accuracy of user-provided data.
In detail:
- Each user decides to submit their information through User Annotation. Before submitting the information, they can choose whether to stake their assets. If they stake assets for the annotation, the information is more credible. Authentic user annotations can significantly enhance the value in various business scenarios.
- Users can stake to ensure the authenticity of their submitted User Annotations, thereby reducing the cost of obtaining accurate information (lowering the difficulty of requiring users to submit real identity information). Conversely, if a staked User Annotation is found to be incorrect, the staked assets of the corresponding user will be slashed.
We aim to implement this staking-as-confidence mechanism within the EigenLayer environment, where rewards and slashes are directed at Node Operators. Individual stakes within the Operator cannot be targeted separately. After discussing with the Eigenlayer and Othentic team, at the implementation level, we decided to choose a solution as illustrated in above image. All users related to slashing will be handled by the delegated operator. Users will stake their assets to the operator, who will be responsible for submitting the correct data and ensuring its quality. When a data challenge occurs and is validated successfully, the operator will be slashed and will deduct the corresponding amount from the stake account of the users they represent. We’ll implement the AVS shortly.
Following flowchart is the design of our onchain process based on Eigenlayer (User’s demographic annotation data as an example):
Othentic Stack is AVS development framework, orchestrates the development of low-level AVS infrastructure. Underlying complexities around consensus, Operators, networking, messaging, and attestations are abstracted away, allowing us to reduce noise and accelerate time-to-market.
Codatta & Othentic: A Perfect Synergy
Since launching in April 2024, Codatta has empowered over 230,000 users to contribute high-quality datasets across sectors like healthcare, robotics, and AI search. Our mission is clear: democratize data ownership and enable users to drive AI advancements. However, scaling this vision requires tackling critical challenges:
- Ensuring Accuracy: How can we guarantee data reliability without overly complex verification processes?
- Building Infrastructure: A robust, secure system is essential to manage decentralized contributions effectively.
Othentic’s infrastructure is tailor-made for Codatta’s vision. By integrating Othentic’s programmable consensus engines and configurable slashing mechanisms, Codatta can implement staking-as-confidence at scale. Additionally, Othentic’s Attestation Center ensures that only verified, high-quality data enters the pipeline, further enhancing its utility for applications like Web3 advertising, AI search, and healthcare solutions.
Transforming Decentralized Data Management
Our partnership focuses on three transformative goals:
- Enhancing Data Integrity
With staking-as-confidence, users stake assets to signal trust in their data contributions. Data quality could be challenged by community members or data demanders, fraudulent submission will lead to stake slashing, while accurate data earns rewards. This innovative mechanism ensures high-quality inputs for use cases like advertising, Dapp feeds recommendations etc.
2. Building Scalable Infrastructure
Codatta leverages Othentic’s AVS framework to decentralize its data validation processes. This approach enhances scalability and reliability across diverse sectors while abstracting away technical complexities. For example, in the crypto address labeling sector, Codatta leverages AVS to validate the activeness of addresses using on-chain data. This ensures accurate and reliable labeling while sparing users from managing intricate validation protocols.
3. Empowering a Strong Data Economy
Through privacy-preserving Data Vaults, users maintain full control over their personal information while earning meaningful rewards for their contributions. This creates a user-centric ecosystem where quality and integrity are paramount.
Turning Vision into Action
Proven Success
In a recent experiment on Telegram, we tested the power of staking-as-confidence:
- 322% Ad Engagement Boost: Data-backed strategies outperformed random approaches.
- Improved Accuracy: Staked users produced consistently higher-quality annotations.
- Credibility Correlation: Higher stakes led to greater data reliability, validating the system’s potential.
These results showcase how staking mechanisms elevate data quality while fostering trust in decentralized ecosystems.
Technical Integration
Codatta and Othentic are actively working on implementing the integrated staking-as-confidence system, with several milestones on the horizon:
- AVS Deployment: Launching actively validated services powered by Othentic to handle Codatta’s user annotations.
- Staking Infrastructure: Implementing solution 3 (a hybrid operator-user staking model) within the EigenLayer ecosystem to enhance staking security.
- Expanding Use Cases: Exploring new verticals and data types, including behavioral data for AI personalization and analytics.
Building the Future of Web3 Data
This partnership is more than a technical milestone — it’s a step toward reshaping how we interact with data and AI in the decentralized world:
- For Data Contributors: Earn rewards while preserving privacy through a secure, incentivized system.
- For AI Development: Access high-quality, user-driven datasets to accelerate innovation.
Codatta and Othentic are leading the charge to make decentralized systems more accessible, efficient, and impactful. We invite you — developers, users, and visionaries — to join us in shaping the next chapter of the Web3 revolution.
Meet Codatta
Codatta is the decentralized data platform that connects AI developers with data creators to co-train AGI. Codatta is currently engaged in diverse annotation frontiers, including crypto annotation, healthcare pathology annotation, and robotics annotation. It also offers tailored solutions to meet unique business needs.
