Deep diving on modular L1 blockchain focused on AI applications

25 Min Read
25 Min Read

0g is good Works as a modular Layer 1 Blockchainexplicitly designed for artificial intelligence applications, providing infrastructure for distributed AI workloads through distributed AI operating systems.

Also known as Zero Gravity Lab or 0g, 0G Lab develops a distributed AI operating system known as Daios. The system acts as a modular layer 1 blockchain tailored to AI tasks, supporting scalable and verifiable on-chain AI processes. The platform addresses the data silos and high costs of centralized AI systems by using blockchain technology to enable global access to AI training and inference.

This project describes itself as the largest AI layer 1 of storage, calculations, and scale. Integrates computing, storage and data availability modules to handle AI-specific requests such as untrusted inference and encryption security.

Blockchain architecture is enabled EVM Compatibility allows developers to deploy applications using Solitaire without the need for large tweaks. This setup supports a variety of distributed applications, while maintaining all the operating costs, from AI agents to financial tools.

How did 0G Lab exist?

0G Labs was founded in San Francisco in 2023 and is drawn from expertise in the blockchain, AI and traditional technology sectors. The company’s CEO, Michael Heinrich, previously played a role in the startup Garten, a combination of Bridgewater Associates, Bain & Company, Microsoft and Y. CTO Ming Wu brings experience as a blockchain researcher, Web3 practitioner and AI platform specialist. Another co-founder, Fanlong, has a relationship with another blockchain project, Conflux.

The project has now tackled the constraints of centralized AI, including limited data access and expensive infrastructure. By combining decentralising blockchain with AI needs, 0G Lab aims to create systems in which AI operations occur on the chain in a transparent way.

Early development has led to partnerships and funding rounds that focus on modular components to ensure scalability, supporting growth at the intersection of crypto and AI. Participation in events such as the Autonomous Drug AI X Web3 Hackathon held in Esdenver in February 2024 highlighted early roadmap discussions.

0G Lab Funding Details

0G Lab is protected $359 million in funding. This includes a $35 million seed round In March 2024, Hack VC led by joining the group from Bankless, Delphi, Animoca Brands and OKX Ventures. A $40 million seed round was followed in November 2024, once again led by Hack VC, with the next investors from Delphi, OKX, Polygon and Samsung involved.

a $250 million token purchase commitment Created by the 0G Foundation in November 2024. Node sales In 2024 and 2025, they raised over $30 million and allocated 150 million tokens. $888,800 Ecosystem Fund Support grants and development. Node sales are intended to create a distributed AI operating system that operates transparently under the influence of the community.

Understanding 0G Chain: Blockchain Optimized for AI Workloads

0G Chain forms the core of the 0G lab ecosystem and provides the infrastructure for distributed AI tasks. It combines scalable execution with multiple consensus verification to support high-performance AI applications. As part of a distributed AI operating system, chains allow on-chain storage for training data, models, and related components. Provides instant finality, zero gas fees, and compatibility with Ethereum Virtual Machine, reducing barriers for developers migrating from other networks.

Chain design focuses on AI processingArchitecture and key components

The 0g chain architecture is modular and includes interconnected layers for chain execution, storage, data availability, and calculations. The chain layer uses a proof stake mechanism using validators to handle transaction processing and consensus. Storage nodes manage the persistence of distributed data connected over a peer-to-peer network where data blocks are distributed for redundancy. This is the fault:

Modular Architecture

The 0G chain uses a modular design that separates consensus from execution and increases flexibility, scalability and speed of innovation.

  • Consensus Layer: This layer is responsible for network contracts, including validator coordination, block production, and ensuring security and finality.
  • Run layer: This handles state management, smart contract execution, transaction processing, and maintains compatibility with Ethereum Virtual Machine (EVM).

Key technical advantages:

  • Independent upgradeability: The execution layer can employ new EVM features such as data blobs, account abstractions, or new opcode EIP-4844 without affecting the consensus layer.
  • Focused optimization: Upgrading the consensus layer, such as those intended for improved performance or security, does not affect the EVM or the running process.
  • Acceleration of development: Decoupling enables parallel development and faster iteration, encouraging rapid integration of new technologies.

Optimized Consensus

To balance performance and security, we use a customized version of CometBFT (formerly Tendermint) with tuned parameters.

  • It achieves over 2,500 transactions per second (TPS), far exceeding traditional blockchain networks.
  • It provides seconds sub finality for instant near transaction checks, essential for AI applications that require low latency.
  • Adjusted block production intervals and timeout settings ensure consistent operation under high loads.

Scaling function

  • Doug-based consensus: A planned upgrade to directional circular graph (DAG) structures for improved efficiency. This supports parallel transaction processing that eliminates bottlenecks from sequential blocks. Furthermore, it eliminates the limitations of a linear blockchain with higher throughput.
  • Shared Security Model: Sharing staking to enhance network security, allowing baritators to secure multiple services at once, and increasing capital efficiency for the takers.
  • Additional scalability: It includes multiple parallel consensus networks, dynamic capacity expansion, and plans for automatic load balancing to handle growing demand.
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AI Optimization

Built with data structures tailored to AI scale processing, it emphasizes AI-first architecture rather than renovating existing designs. Blockchain focuses on high throughput and efficiency of workloads such as model training and inference, addressing challenges such as Ethereum’s low 15 TP and high cost.

EVM compatibility

  • Fully support for Ethereum Virtual Machine, allowing you to directly deploy existing Ethereum smart contracts without any changes.

Node Types and Validator Systems

  • Validator: Node that uses cometBft for Byzantine fault tolerance to bet 0g tokens to join the network. Validators earn rewards from yields based on block production, transaction fees, and stake percentages. They are selected via verifiable random functions (VRFs) to ensure fairness, prevent collusion, and promote decentralization.
  • Overall network: It operates as an unauthorized, globally distributed validator set under the consensus of proof.

Scalability and performance

  • It offers 2,500 TP through CometBFT, efficient block production, and rapid finality optimization. Maintains high performance for AI-specific applications and solves problems such as slow speeds and rising costs for other blockchains.

How the 0g chain works

Transactions in a 0G chain start with user submissions via a wallet or application and are processed by the barters in the block. The consensus is achieved through multi-consensus verification, combining proof demonstration with additional checks of AI validation. Data is covered throughout the storage nodes and is available through gossip protocols.

For AI workloads, the chain supports untrusted inference. In this case, the model runs on-chain with the proof of introduction to see the results. Training large models with up to 100 billion parameters is performed in distributed clusters, reducing costs by 95% compared to intensive alternatives. Cross-chain interaction is facilitated by bridges, such as those using ChainLink’s CCIP for Asset Transfers.

This process involves imposing users to delegate tokens and receive rewards. Daily compound interest and immediate rewards for token generation enhance participation. Developers can deploy smart contracts using familiar tools such as Solidity and use sample scripts in the framework.

0G Lab Testnet: Comprehensive details of the Galileo network

Test Net For 0G Labs, known as Galileo or V3 TestNet, it serves as a test environment for developers to build and deploy AI-focused applications on modular layer 1 blockchains without any real cost.

The Galileo Testnet represents the third iteration of 0G Lab’s public test network, launched on April 23, 2025. It is based on the previous Newton Testnet (V2), which has deployed 2.5 million unique wallets, 3.542 million transactions and over 529,300 smart contracts. Galileo is focused on improving performance for distributed AI applications, and incorporates the latest Ethereum upgrades from Shanghai and Cancun-Deneb hard forks, ready for upcoming Pectra releases.

Networks prioritize modular infrastructure to support AI native workloads, including model training and inference in distributed environments. As a full stack platform, testnets allow users to experiment with 0G distributed AI operating systems with storage, calculations, and data availability capabilities. It works without any real financial risk and allows developers to test their applications in a simulated environment that reflects future mainnets.

The testnet has a critical adoption of over 300 partners and integrated decentralized finance, gaming and AI agents.

Current Status and Milestones

Galileo’s testnet remained active after the May 14th, 2025 renewal, addressing early stability issues. This renewal introduces a new chain ID of 16601 to support future scaling and includes upgrades for long-term security and performance. Previously, on April 21, 2025, 0G Lab refused to let Newton Testnet (V2) shift focus to Galileo and took the final snapshot at block 4,084,400 for archive purposes. No data or state migrated from V2 to V3, and the user requested a fresh start.

Important milestones include:

  • Initial release on April 23rd, 2025. EVM compatibility has been improved over V2, and network speeds have been increased by 70%.
  • Reboot in May 2025 to resolve the bottleneck and incorporate a dedicated RPC node to improve scalability.
  • The Early Adoption Report, released in June 2025, highlights AI Dapps’ prosperity and a month’s business.
  • The validator node was released on June 24, 2025, allowing the community to participate in securing the network.
  • Galxe’s ecosystem preview campaign was launched in July 2025 and facilitated the investigation of TestNet Dapps.

Testnet has handled millions of transactions since its launch, demonstrating the robustness of AI workloads. Recent activities, such as the public release of the Battle of Agents on July 28, 2025, have shown ongoing developer engagement.

How to join the Galileo Testnet

Participants, validators, and users interested in testing AI DAPPS are open to participants. To get started:

  • Add the Galileo network to a compatible wallet, such as a meta mask. Network details include Chain ID 16601, RPC URL (recommended for third-party providers in production), and Explorer. Chainscan-Galileo.0g.ai.
  • Request a test token from the official faucet https://faucet.0g.ai. Users can charge a $0.1 TestNet token daily after connecting Twitter/X/accounts and completing tasks.
  • Deploy smart contracts using sample scripts listed in framework documentation such as Hardhat and Foundry.
  • Interact with DAPPs such as Agent Fight (for AI discussion and betting), Jaine (AI-Optimized Dex), TradeGPT (Prompt-based trading), and Euclid Protocol (Cross-Chain Liquidity).
  • Run Node: Validator nodes are not authorized and use the consensus mechanism of demonstration. Pile Testnet $og Tokens provide rewards based on percentage. Storage nodes handle data persistence over a peer-to-peer network.
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Community events such as Amas and Hackathons offer additional opportunities for engagement. For example, the July 2025 Galxe campaign offers a preview of TestNet Dapps.

Incentives and rewards

Although the testnet does not include true financial rewards, participation may place users in potential mainnet incentives. According to sources, community reward allocations show 9.69% from the $0G token supply and 15% of AI alignment nodes.

Airdrop Guide Although there is no official confirmation, we suggest that tasks such as charging a faucet token, deploying contracts, and interacting with DAPPS are entitled to the user. Validator rewards on Testnet simulate staking yields and compound interests every day.

The $88.88 million Ecosystem Growth Fund supports Testnet Builder grants, including gas credits and Hackathon Awards.

0g ecosystem update: H1 2025 Overview

The 0G Ecosystem has experienced rapid adoption in the first half of 2025 and has established itself as an infrastructure for AI-Native applications in areas such as distributed finance and distributed physical infrastructure networks.

According to Blog post published on July 16, 20250G platform has expanded its role in supporting distributed AI operations. This update covers developments from January to June 2025. This includes new integrations, partnerships and community activities. The ecosystem includes over 350 integrations across 236 projects, with over 92,000 AI alignment nodes contributing to network operations.

Overview of the 0G Lab Ecosystem

Overview of the 0G Lab Ecosystem

Important highlights

In H1 2025, 0G focused on enhancing the modular layer 1 blockchain for AI workloads. Advances in the testnet, such as the reboot of the Galileo V3 in May, have improved scalability and EVM compatibility. The platform processes millions of transactions on the testnet and prepares for the launch of the mainnet for Q2-Q3 2025. The $88.88 million Ecosystem Growth Fund continued to provide grants, gas units and rewards through the Guild Program.

Statistics for this period include over 300 partners, over 529,300 smart contract deployments and engagement from 8,000 baritlers. Adoption in AI applications meets needs such as terabyte-scale storage and GPU calculations, reducing costs compared to centralized providers that exceed $10,000 per month.

Ecosystem maps and integration

Ecosystem Maps classify projects reflecting the integration of distributed finance, physical infrastructure, games, computing, social tools, NFT, security, identity, and infrastructure services.

Decentralized Finance (defi)

The defi project leverages AI for yield optimization and staking. Zer0pulse acts as an AI-driven yield classifier, while Gimo Finance manages liquid staking. Other integrations include the Euclidean protocol for cross-chain fluidity, the user interface, and Cygnusfi for defi tools. Additional developments cover AI-powered credit strategies, real-time risk assessments, and real-world asset support loans.

Decentralized Physical Infrastructure Network (depin)

The Depin project focuses on on-demand resources. Aethircloud runs the GPU market, Hyperbolic Labs supports AI cloud training, IoTex enables physical intelligence, Fogworks manages data servers, Gaib builds AI Economic Layers, and Sparlon handles builds hosting and storage.

game

The game will feature AI Layer 2 solutions such as CARV to enhance the experience. Initiatives such as the Fully Chain Game Summer, which took place between July and August 2024, influenced the integration of the H1 2025 game with events and quests.

I’ll calculate it

Calculating integration highlights GPU and storage efficiency. The partnership with NetMind began in December 2024 and expanded in 2025, focusing on GPU integration for training and inference, as well as the joint development of AI agents.

LaunchPad and Social

LaunchPads and Social Tools include Galxe, which was launched in July 2025 for a chain quest and user acquisition campaign. Kaitoai provides information platforms, Swissborg manages wealth, Fjord Foundry Handles Token Sales, and 0Gaiverse supports INFT platforms.

NFTS

The NFT market, like Defungiz, uses the ERC-7857 standard for intelligent NFTs that tokenize AI models. Zerrow, a community project, introduced the Galxe campaign in July 2025.

Security and Privacy

Security works with data tools that provide privacy with integration of verifiable agent frameworks such as Verifai.

Identity

The Identity Solution supports rollup infrastructure and user verification in AI applications.

Rollup Infrastructure Services

The service includes SC0PE’s smart contract automation and cross-chain analysis, providing AI-driven insights.

Partnerships and collaboration

Over 300 partnerships span the technology and AI sectors. Major collaborations include Spectra Labs from AI media conglomerate Politifai and Verifai, where the roadmap was released in January 2025. The NetMind Partnership focuses on computational efficiency. Recent additions include Galxe for Growth, Akindo, Chainlink, Octane Security, QuickNode, and Beacon Protocol. All of these are scheduled for the event in July 2025.

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The guild program highlighted projects such as ZER0, H1UMAN, Avinasi Labs in March 2025, using AI and Blockchain to advance Web3. Launched in June 2025 in collaboration with Web3Labs, the Global Accelerator program provides six months of support for distributed AI projects.

Events and Community Engagement

Community activities included AMA with agent fights in the July 2025 Ecosystem Preview Testnet Campaign. The event included the AI ​​Hacker Hub and AI Summit held in Cannes in July 2025, showing their participation as official conference partners at Korean Blockchain Week Week in September.

The July 2025 poll and chat attracted user feedback on ecosystem previews. The guild highlighted its contributions, including developing developer tools, hackathons and educational initiatives.

Future plans

The Post-H1 plan includes the launch of the mainnet for the third quarter of 2025, allowing for fully intelligent NFT forwarding and agent deployment. Ongoing research funding and hackathons aim to expand decentralized finance and AI. Ecosystem grants from the $88.88 million fund continue to support builders.

0G Lab Roadmap

Roadmap overview

  • Following a structured roadmap with the development of phased testnets that leads to the launch of the mainnet, 0G Lab supports scalable, distributed AI applications, highlighting progressive enhancements in storage, consensus, AI integration and performance.

Past Milestones

  • The 2024 pre-seed launch marked the initial funding and basic setup for the project.
  • Newton Testnet focused on testing storage and consensus mechanisms to ensure reliable data processing and network contracts.
  • Galileo TestNet introduces AI Agent integration, enabling deployment and interaction over the chain.
  • Released in May 2025, V3 TestNet brings performance enhancements, including higher throughput optimizations (Peak 2,500 TPS) It has EVM compatibility, over 339 million transactions processed, 6 million active accounts, and 8,000 barters for August 2025.
  • The $88 million ecosystem fund was announced in February 2025 to support grants, developer tools and growth initiatives.
  • Release of research papers that promote the platform and collect feedback, along with global roadshows in places such as Singapore, Hong Kong, Nigeria and more.

Q1 to Q2 2025 Focus

  • It focuses on expanding testnets, including the implementation of cross-chain bridges for interoperability and staking dashboards for user participation in network security and rewards.

Mainnet Plan

  • The mainnet release scheduled for Q2 to Q3 2025 (July to September) is Intelligent NFT (INFT) Transfer using standards such as ERC-7857, agent deployment of AI interactions, and tokenized AI economy to promote economic activity in the chain.
  • The real-world asset tokenization partnership with MIDAS is set up to deploy directly to MainNet, integrating compliant financial products with the AI ​​execution layer.

Current Status (as of August 7, 2025)

  • Galileo’s testnet operations continue, with mainnet launches explained to be imminent but not yet active, consistent with third quarter targets. No launch confirmations have been announced, and the testnet remains the main testing and development environment.

Post Mainnet Plan

  • It includes allocating research funds to advance AI technology, hackathon organizations to drive innovation for developers, and scaling efforts for distributed finance (DEFI) and AI applications, as well as efforts to handle increased adoption and complex workloads.

Events and Outreach

  • Upcoming events such as the Depin Expo in Hong Kong in August 2025 and the Seoul hack Hack.Summit in September 2025 show an ongoing global outreach to engage the community and showcase their progress.
  • The early 2024 event at Ethdenver featured a panel discussion on the roadmap that focuses specifically on distributed AI strategies and future milestones.

Document Testnet Overview

  • Galileo’s testnets are detailed in detail as a cost-free environment for testing applications, network specifications, third-party RPC endpoints for connections, and a cost-free environment for providing guides for developers to deploy without any real financial risk.

FAQ

What is the main focus of 0G Labs?

0G Lab develops modular layer 1 blockchain for decentralized AI applications, highlighting scalable calculation, storage, and data availability.

When is the expected launch of the 0g token?

The $0g token generation event is scheduled for the third quarter of 2025, but as of August 7, 2025 it remains in advance and is not available for trade.

What are the key technical indicators for 0G Labs?

The testnet shows 339 million transactions, 6 million active accounts, 8,000 validators, and 2,500 TP peak throughput, with storage costs 100 times lower than the alternative.

sauce

  • Official 0G Lab website: https://0g.ai/
  • Forbes article on AI training breakthroughs: https://www.forbes.com/sites/digital-assets/2025/08/01/ai-training-gets-10x-faster-95-cheaper-with-decentralized-strategy/
  • 0G Documentation: https://docs.0g.ai/
  • 0G Lab Token Purchase Commitment: https://www.theblock.co/post/326241/crypto-ai-startup-0g-labs-funding-token-commitment
  • 0g White Paper: https://docs.0g.ai/whitepaper.pdf

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