Harnessing the power of decentralization for fraud detection and compliance system. Learn how Palaidn leverages the Bittensor Network to offer robust fraud detection for the blockchain community.
🚫The Problem:
The current fraud detection landscape, particularly in centralized systems, poses significant challenges. Users face data breaches and privacy issues, leading to a lack of trust in online transactions. Additionally, centralized fraud detection systems are prone to inefficiencies and high operational costs, making them less accessible for smaller organizations.
Cryptocurrency transactions are particularly vulnerable, with frequent hacking attempts targeting wallets and network vulnerabilities. The decentralized nature of cryptocurrencies makes it difficult to implement traditional fraud detection methods, leading to substantial financial losses and compromised network integrity.
💡The Solution:
Palaidn emerges as a revolutionary solution, utilizing blockchain technology to create a decentralized and incentivized fraud detection environment for crypto transactions. By distributing control and data across a decentralized network, Palaidn enhances transparency and trust, making fraud detection more efficient and cost-effective.
🔗Useful Links:
1. Validators, Miners, and Palaidn Core:
Validators create and manage fraud detection campaigns.
Miners analyze transactions and report fraudulent activities. They are rewarded with TAO tokens for identifying genuine frauds. Palaidn Core serves as the central platform for managing detection campaigns, analyzing reports, and validating miners' findings.
2. Incentive Mechanism:
Miners are incentivized with TAO tokens based on the accuracy of their fraud detection reports. This system ensures cost-effective fraud detection for clients while substantially rewarding miners for their contributions.
Palaidn leverages Bittensor’s decentralized network to distribute fraud detection tasks among miners.
Initially, Palaidn will focus on demonstrating its fraud detection capabilities within the Bittensor ecosystem, incentivizing participation.
This will potentially serve as a powerful tool for ensuring the integrity and security of the Bittensor network.
By harnessing the collaborative efforts of the network's participants, Palaidn aims to significantly enhance the security and trustworthiness of Bittensor, establishing a robust foundation for the future growth of both Palaidn and Bittensor.
The start of the Palaidn Network will be focus on creating an open-source existing fraud database. This initial phase is crucial as it will enable miners to train their models on real-world data, enhancing the effectiveness of the network's fraud detection capabilities. For the first month, we will run the subnet to grow the list of existing frauds and identify all wallets that have been tainted in the process.
By building this comprehensive fraud database, Palaidn aims to provide a solid foundation for its fraud detection system. Miners will be incentivized to contribute to this database, ensuring a robust and continuously updated resource for the entire network. This campaign will not only demonstrate Palaidn's capabilities but also foster a collaborative effort to enhance the security of the Bittensor ecosystem.
The data collected and processed by the Palaidn Network will be utilized by PayPangea, one of the fastest growing decentralized wallets. Since its launch in February, PayPangea has amassed 2M accounts, highlighting its rapid adoption and the trust it has garnered in the crypto community. By integrating Palaidn's fraud detection capabilities, PayPangea aims to enhance the security and reliability of its wallet services, providing its users with unparalleled protection against fraudulent activities.
🌐Decentralization
Palaidn emphasizes decentralization by ensuring a broad distribution of miners and validators, enhancing the system's security and trust.
💰Cost-Effectiveness
By operating on low-cost systems and incentivizing miners with TAO tokens, Palaidn offers an economical solution for fraud detection.
💎Accuracy
The incentive mechanism encourages miners to accurately identify fraudulent activities, enhancing the quality of fraud detection.
⭐Competition
Miners are motivated to outperform each other in identifying genuine frauds, ensuring high-quality detection and reporting.
September 2024
- Subnet launch
- Add user interface for easy address check
October 2024
- Integrate Subnet 13 for data sourcing
- Add more sources of data
- API for wallet and transaction check
Q4 2024
- AI for wallet and transaction scan
2025
- Free and paid tiers, pay usage with TAO
- Double revenue source for our miner and validators
- Create a Bittensor wallet (coldkey & hotkey).
- Register your hotkey to Subnet 14.
- Create a PayPangea account PayPangea.com and get API key. Paypangea is a free decentralised wallet that we use for web3 authentication. You will find your API key under Profile settings on the top right corner.
- Create a Alchemy account Alchmemy.com and get API key. More info here: Alchemy instructions
- Hardware requirements:
- VPS with Ubuntu v.22 or higher
- Python v3.12 or higher
- Open communication ports
- No active Firewall preventing communication between your Miner and Validators.
- Git clone the Palaidn repo, install the needed packages, and start your Miner’s script.
To begin using this repository, the first step is to install Bittensor. Bittensor is a prerequisite for running the scripts and tools provided here.
You can find detailed installation instructions for Bittensor in the official documentation here.
Please make sure to follow the installation steps carefully to ensure that Bittensor is properly set up on your system before proceeding with any other operations.
If you encounter any issues during the installation process, refer to the troubleshooting section in the Bittensor documentation or reach out to our support team for assistance.
Before proceeding, you'll need to create a wallet. A wallet is required for managing your digital assets and interacting with the functionalities provided by this repository.
Detailed instructions on how to create a wallet can be found in the official documentation here.
Please ensure that you follow the steps outlined in the documentation carefully to set up your wallet correctly.
To fully utilize the functionalities provided by this repository, it is necessary to register within the Palaidn.com Subnetwork (UID 14).
btcli subnet register --netuid 14 --wallet.name <name> --wallet.hotkey <name>Prerequisites:
- Ensure that you have Python 3.12 or a later version installed on your system.
- Run your local Subtensor, instructions on how to install Subtensor locally can be found here: Subtensor Installation Guide
git clone https://github.com/palaidn/palaidn_subnet.git
cd palaidn_subnet
python3 -m pip install -e .For auto-update function we require nodejs and npm installed, so in case you do not have it installed yet, install it with:
sudo apt install nodejs npm -yPlease install pm2 with the following command
sudo npm install -g pm2To verify that PM2 has been installed successfully, you can check its version:
pm2 --versionTo ensure that your processes managed by PM2 start automatically when the system boots, you can set up PM2 as a service:
pm2 startupFor instructions on setting up and running a Palaidn validator, please refer to our Validator Guide.
If you need any help, fell free to reach to us on official Discord channel.
For instructions on setting up and running a Palaidn miner, please refer to our Miner Guide.
If you need any help, fell free to reach to us on official Discord channel.