0G Labs Analysis: Deep Dive on the Modular L1 Blockchain Focused on AI Applications | BSCN (fka BSC News)

0G Labs operates as a modular Layer 1 blockchain, explicitly designed for artificial intelligence applications, and provides infrastructure for decentralized AI workloads through its decentralized AI operating system.

0G Labs, also referred to as Zero Gravity Labs or 0G, develops a decentralized AI operating system known as dAIOS. This system functions as a modular Layer 1 blockchain tailored for AI tasks, supporting scalable and verifiable on-chain AI processes. The platform addresses data silos and high costs in centralized AI systems by using blockchain technology to enable global access to AI training and inference

The project describes itself as the largest AI Layer 1 for storage, compute, and scale. It integrates modules for compute, storage, and data availability to handle AI-specific demands, such as trustless inference and cryptographic security.

The blockchain's architecture enables EVM compatibility, allowing developers to deploy applications using Solidity without requiring major adjustments. This setup supports a range of decentralized applications, from AI agents to financial tools, all while maintaining low operational costs

How 0G Labs Came into Existence?

0G Labs was established in 2023 in San Francisco, drawing from expertise in blockchain, AI, and traditional technology sectors. The company's CEO, Michael Heinrich, previously held roles at Bridgewater Associates, Bain & Company, Microsoft, and the Y Combinator-backed startup Garten. CTO Ming Wu brings experience as a blockchain researcher, Web3 practitioner, and AI platform specialist. Another co-founder, Fan Long, has ties to Conflux, a separate blockchain project.

The project originated to tackle constraints in centralized AI, including limited data access and expensive infrastructure. By combining blockchain's decentralization with AI needs, 0G Labs aimed to create a system where AI operations could occur on-chain in a transparent manner

Early development focused on modular components to ensure scalability, leading to partnerships and funding rounds that supported its growth in the intersection of crypto and AI. Participation in events like the Autonomous Agent AI x Web3 Hackathon at ETHDenver in February 2024 highlighted early roadmap discussions.

Funding Details for 0G Labs

0G Labs has secured $359 million in funding. This includes a $35 million pre-seed round in March 2024 led by Hack VC, with participation from Bankless, Delphi, Animoca Brands, and OKX Ventures. A $40 million seed round followed in November 2024, again led by Hack VC, and involved investors including Delphi, OKX, Polygon, and Samsung Next.

A $250 million token purchase commitment was made by the 0G Foundation in November 2024 Node sales in 2024 and 2025 raised over $30 million, allocating 150 million tokens. The $88.88 million ecosystem fund supports grants and development. The node sale aimed to create a decentralized AI operating system that operates transparently under community influence.

Understanding the 0G Chain: A Blockchain Optimized for AI Workloads

The 0G Chain forms the core of the 0G Labs ecosystem, providing infrastructure for decentralized AI tasks. It combines scalable execution with multi-consensus validation to support high-performance AI applications. As part of the decentralized AI operating system, the chain enables on-chain storage of training data, models, and related components. It offers instant finality, zero gas fees, and compatibility with the Ethereum Virtual Machine, which reduces barriers for developers transitioning from other networks.

The chain's design focuses on handling AI's data-intensive requirements, such as large datasets and computational demands. It achieves this through modular components that separate concerns such as data availability, storage, and computation, allowing for targeted optimizations. This structure supports applications in decentralized finance, gaming, and AI agent development, with over 350 integrations across 236 projects as of July 2025.

Architecture and Key Components

The architecture of the 0G Chain is modular, comprising interconnected layers for chain execution, storage, data availability, and computation. The chain layer handles transaction processing and consensus, using a proof-of-stake mechanism with validators. Storage nodes manage decentralized data persistence, connected via a peer-to-peer network where data blocks are distributed for redundancy. Here’s the breakdown:

Modular Architecture

The 0G Chain employs a modular design that separates consensus from execution, improving flexibility, scalability, and the speed of innovation.

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

Key Technical Advantages:

• Independent Upgradability: The execution layer can adopt new EVM features, such as EIP-4844 for data blobs, account abstraction, or novel opcodes, without affecting the consensus layer.
• Focused Optimization: Upgrades to the consensus layer, such as those aimed at improving performance or security, do not affect the EVM or execution processes.
• Accelerated Development: The decoupling enables parallel development and faster iteration, facilitating the quick integration of new technologies.

Optimized Consensus

Utilizes a customized version of CometBFT (previously Tendermint) with tuned parameters to balance performance and security.

• Achieves over 2,500 transactions per second (TPS), far surpassing traditional blockchain networks.
• Provides sub-second finality for near-instant transaction confirmations, which is essential for AI applications requiring low latency.
• Ensures consistent operation under high loads through adjusted block production intervals and timeout settings.

Scaling Features

• DAG-Based Consensus: A planned upgrade to a Directed Acyclic Graph (DAG) structure for improved efficiency. This supports parallel transaction processing to eliminate bottlenecks from sequential blocks. Furthermore, it eliminates the limitations of linear blockchains for higher throughput
• Shared Security Model: Implements shared staking to bolster network security, enabling validators to secure multiple services at once, enhancing capital efficiency for stakers.
• Additional Scalability: Includes plans for multiple parallel consensus networks, dynamic capacity expansion, and automatic load balancing to handle growing demands.

AI Optimizations

Built with data structures tailored for AI-scale processing, emphasizing an AI-first architecture rather than retrofitting existing designs. The blockchain focuses on high throughput and efficiency for workloads like model training and inference, addressing challenges such as Ethereum's low 15 TPS and high costs.

EVM Compatibility

• Fully supports the Ethereum Virtual Machine, enabling direct deployment of existing Ethereum smart contracts without modifications.

Node Types and Validator System

• Validators: Nodes that stake 0G tokens to participate in the network, using CometBFT for Byzantine fault tolerance. Validators earn rewards from block production, transaction fees, and staking yields based on stake proportion. They are selected via Verifiable Random Function (VRF) to ensure fairness, prevent collusion, and promote decentralization.
• Overall Network: Operates as a permissionless, globally distributed validator set under proof-of-stake consensus.

Scalability and Performance

• Delivers 2,500 TPS through optimizations in CometBFT, efficient block production, and rapid finality. Maintains high performance for AI-specific applications, solving issues like slow speeds and elevated costs in other blockchains.

How the 0G Chain Works

Transactions on the 0G Chain begin with user submissions via wallets or applications, which are then processed by validators in blocks. Consensus is achieved through multi-consensus validation, combining proof-of-stake with additional checks for AI verifiability. Data is sharded across storage nodes, ensuring availability through gossip protocols.

For AI workloads, the chain supports trustless inference, where models run on-chain with proof-of-inference to verify results. Training large models, with up to 100 billion parameters, is performed on decentralized clusters, resulting in a 95% reduction in costs compared to centralized alternatives. Cross-chain interactions are facilitated by bridges, such as those using Chainlink's CCIP for asset transfers.

The process involves staking for validators, where users delegate their tokens to receive rewards. Daily compounding and instant rewards at token generation enhance participation. Developers deploy smart contracts using familiar tools like Solidity, with sample scripts available for frameworks.

0G Labs Testnet: Comprehensive Details on the Galileo Network

The testnet for 0G Labs, known as Galileo or V3 Testnet, serves as a testing environment for developers to build and deploy AI-focused applications on the modular Layer 1 blockchain without incurring real costs.

The Galileo Testnet represents the third iteration of 0G Labs' public testing network, launched on April 23, 2025. It builds on the previous Newton Testnet (V2), which recorded 2.5 million unique wallets, 354.2 million transactions, and over 529,300 smart contracts deployed. Galileo focuses on enhancing performance for decentralized AI applications, incorporating the latest Ethereum upgrades from the Shanghai and Cancun-Deneb hard forks, with preparations for the upcoming Pectra release

The network prioritizes modular infrastructure to support AI-native workloads, including model training and inference, in a decentralized environment. As a full-stack platform, the testnet enables users to experiment with 0G's decentralized AI operating system, featuring storage, compute, and data availability capabilities. It operates without real financial risks, enabling developers to test applications in a simulated environment that mirrors the upcoming mainnet

The testnet has seen significant adoption, with over 300 partners and integrations across decentralized finance, gaming, and AI agents.

Current Status and Milestones

The Galileo Testnet remains active following a relaunch on May 14, 2025, which addressed initial stability issues. The relaunch introduced a new chain ID of 16601 to support future scaling and included upgrades for long-term security and performance. Earlier, on April 21, 2025, 0G Labs announced the deprecation of the Newton Testnet (V2) to shift focus to Galileo, with a final snapshot taken at block 4,084,400 for archival purposes. No data or states migrated from V2 to V3, requiring users to start fresh.

Key milestones include:

• Initial launch on April 23, 2025, with enhanced EVM compatibility and a 70% increase in network speed over V2.
• Relaunch in May 2025 to resolve bottlenecks, incorporating dedicated RPC nodes for improved scalability.
• Early adoption report released in June 2025, highlighting one month of operations with thriving AI dApps.
• Validator nodes made publicly available on June 24, 2025, allowing community participation in securing the network.
• The Ecosystem preview campaign on Galxe was launched in July 2025, encouraging the exploration of testnet dApps.

The testnet has processed millions of transactions since launch, demonstrating robustness for AI workloads. Recent activities, such as the public release of Battle of Agents on July 28, 2025, show ongoing developer engagement.

How to Participate in the Galileo Testnet

Participation is open to developers, validators, and users interested in testing AI dApps. To get started:

• Add the Galileo network to a compatible wallet, such as MetaMask. Network details include Chain ID 16601, RPC URL (e.g., recommended for third-party providers in production), and an explorer at chainscan-galileo.0g.ai.
• Request test tokens from the official faucet at Users can claim 0.1 $OG testnet tokens daily after connecting a Twitter/X / account or completing tasks
• Deploy smart contracts using sample scripts provided in the documentation for frameworks such as Hardhat or Foundry.
• Interact with dApps such as Battle of Agents (for AI debates and betting), JAINE (AI-optimized DEX), TradeGPT (prompt-based trading), or Euclid Protocol (cross-chain liquidity).
• Run a node: Validator nodes are permissionless and utilize a proof-of-stake consensus mechanism. Stake testnet $OG tokens to participate, with rewards based on proportion. Storage nodes handle data persistence via peer-to-peer networks.

Community events, such as AMAs and hackathons, provide additional opportunities for engagement. For example, a July 2025 Galxe campaign offers previews of testnet dApps.

Incentives and Rewards

While the testnet does not involve real financial rewards, participation may position users for potential mainnet incentives. Sources indicate a community rewards allocation of 9.69% from the $0G token supply, with 15% for AI alignment nodes

Airdrop guides suggest that tasks such as claiming faucet tokens, deploying contracts, and interacting with dApps could qualify users, although no official confirmation exists. Validator rewards on the testnet simulate staking yields, compounding daily.

The $88.88 million ecosystem growth fund supports grants for testnet builders, including gas credits and hackathon prizes

0G Ecosystem Update: H1 2025 Overview

The 0G ecosystem has experienced rapid adoption during the first half of 2025, establishing itself as infrastructure for AI-native applications in areas such as decentralized finance and decentralized physical infrastructure networks.

According to a blog post published on July 16, 2025, the 0G platform has expanded its role in supporting decentralized AI operations. This update covers developments from January to June 2025, including new integrations, partnerships, and community activities. The ecosystem now includes over 350 integrations across 236 projects, with more than 92,000 AI alignment nodes contributing to network operations.

0G Labs Ecosystem Overview### Key Highlights

In H1 2025, 0G focused on enhancing its modular Layer 1 blockchain for AI workloads. Testnet advancements, such as the Galileo V3 relaunch in May, improved scalability and EVM compatibility. The platform processed millions of transactions on the testnet, preparing for the mainnet launch, which is targeted for Q2-Q3 2025. An $88.88 million ecosystem growth fund continued to provide grants, gas credits, and rewards through the Guild program.

Statistics from the period include over 300 partners, deployment of more than 529,300 smart contracts, and engagement from 8,000 validators. Adoption in AI applications addresses needs such as terabyte-scale storage and GPU compute, reducing costs compared to centralized providers that exceed $10,000 per month.

Ecosystem Map and Integrations

The ecosystem map categorizes projects, reflecting integrations in decentralized finance, physical infrastructure, gaming, computing, social tools, NFTs, security, identity, and infrastructure services.

Decentralized Finance (DeFi)

Projects in DeFi leverage AI for yield optimization and staking. Zer0Pulse functions as an AI-powered yield aggregator, while Gimo Finance manages liquid staking. Other integrations include the Euclid Protocol for cross-chain liquidity, as well as user interfaces, and CygnusFi for DeFi tools. Additional developments cover AI-powered credit strategies, real-time risk assessment, and real-world asset-backed lending.

Decentralized Physical Infrastructure Networks (DePIN)

DePIN projects focus on on-demand resources. AethirCloud operates GPU markets, Hyperbolic Labs supports AI cloud training, IoTeX enables physical intelligence, FogWorks manages data servers, GAIB builds AI economic layers, and Spheron handles hosting and storage.

Gaming

Gaming features AI Layer 2 solutions, such as Carv, for enhanced experiences. Initiatives such as Fully On-chain Gaming Summer, which ran from July to August 2024, influenced H1 2025 gaming integrations with events and quests.

Compute

Compute integrations emphasize GPU and storage efficiency. Partnerships with NetMind, which began in December 2024 and extended into 2025, focused on GPU integration for training and inference, as well as co-development of AI agents.

Launchpad and Social

Launchpads and social tools include Galxe, which was launched in July 2025 for on-chain questing and user acquisition campaigns. KaitoAI provides information platforms, SwissBorg manages wealth, Fjord Foundry handles token sales, and 0GAIverse supports iNFT platforms.

NFTs

NFT marketplaces like Defungiz utilize the ERC-7857 standard for intelligent NFTs, which tokenize AI models. Zerrow, a community project, introduced Galxe campaigns in July 2025.

Security and Privacy

Security features privacy-preserving data tools, with integrations for verifiable agent frameworks like VeriFAI.

Identity

Identity solutions support roll-up infrastructure and user verification in AI applications.

Roll-up Infrastructure Services

Services include smart contract automation and cross-chain analytics from Sc0pe, offering AI-driven insights.

Partnerships and Collaborations

Over 300 partnerships span technology and AI sectors. Key collaborations include Spectra Labs on PolitiFAI, an AI media conglomerate, and VeriFAI, with a roadmap released in January 2025. NetMind partnerships focused on compute efficiency. Recent additions include Galxe for growth, Akindo, Chainlink, Octane Security, QuickNode, and Beacon Protocol, all of which are scheduled for events in July 2025.

The Guild program highlighted projects like zer0, H1uman, and Avinasi Labs in March 2025, using AI and blockchain for web3 advancements. The Global Accelerator Program, launched in June 2025 in collaboration with Web3Labs, provides six-month support for decentralized AI projects.

Events and Community Engagement

Community activities included AMAs with Battle of Agents on testnet and Galxe campaigns for ecosystem previews in July 2025. Events featured the AI Hacker Hub and AI Summit at Cannes in July 2025, as well as participation as an official conference partner at Korea Blockchain Week 2025 in September, with a dedicated 0G Stage.

Polls and chats in July 2025 gathered user feedback on ecosystem previews. The Guild highlighted contributions, including the development of developer tools, hackathons, and educational initiatives.

Future Plans

Post-H1 plans include mainnet launch in Q3 2025, enabling full intelligent NFT transfers and agent deployments. Ongoing research funding and hackathons aim to scale decentralized finance and AI. Ecosystem grants from the $88.88 million fund will continue supporting builders.

Roadmap for 0G Labs

Roadmap Overview

• 0G Labs follows a structured roadmap with phased testnet developments leading to mainnet launch, emphasizing progressive enhancements in storage, consensus, AI integrations, and performance to support scalable decentralized AI applications.

Past Milestones

• Pre-seed launch in 2024 marked the initial funding and foundational setup for the project.
• Newton Testnet focused on testing storage and consensus mechanisms to ensure reliable data handling and network agreement.
• Galileo Testnet introduced integrations for AI agents, enabling on-chain deployments and interactions.
• V3 Testnet, launched in May 2025, brought performance enhancements, including optimizations for higher throughput (peak 2,500 TPS) and EVM compatibility, with over 339 million transactions processed, 6 million active accounts, and 8,000 validators as of August 2025.
• Announcement of the $88 million ecosystem fund in February 2025 to support grants, developer tools, and growth initiatives.
• Release of research papers alongside global roadshows in locations such as Singapore, Hong Kong, and Nigeria to promote the platform and gather feedback.

Q1 to Q2 2025 Focus

• Emphasis on testnet expansions, including the implementation of cross-chain bridges for interoperability and staking dashboards for user participation in network security and rewards.

Mainnet Plans

• Scheduled for Q2 to Q3 2025 (July-September), the mainnet launch aims to enable full features like intelligent NFT (iNFT) transfers using standards such as ERC-7857, agent deployments for AI interactions, and a tokenized AI economy to facilitate on-chain economic activities.
• Partnerships, such as with Midas for real-world asset tokenization, are set to deploy directly on mainnet, integrating compliant financial instruments with AI execution layers.

Current Status (as of August 7, 2025)

• Operations continue on the Galileo testnet, with mainnet launch described as imminent but not yet active, aligning with Q3 2025 targets; no confirmation of launch has been announced, and testnet remains the primary environment for testing and development.

Post-Mainnet Plans

• Includes allocation of research funding to advance AI technologies, organization of hackathons to encourage developer innovation, and scaling efforts for decentralized finance (DeFi) and AI applications to handle increased adoption and complex workloads.

Events and Outreach

• Upcoming events such as the DePIN Expo in Hong Kong in August 2025 and hack.summit in Seoul in September 2025 demonstrate ongoing global outreach to engage communities and showcase progress.
• Early 2024 events at ETHDenver featured panel discussions on the roadmap, with a particular focus on decentralized AI strategies and future milestones.

Testnet Overview in Documentation

• The Galileo testnet is detailed in the docs as a cost-free environment for testing applications, providing network specifications, third-party RPC endpoints for connectivity, and guides for developers to deploy without real financial risks.

Frequently Asked Questions

What is 0G Labs' primary focus?

0G Labs develops a modular Layer 1 blockchain for decentralized AI applications, emphasizing scalable compute, storage, and data availability.

When is the 0G token launch expected?

The $0G token generation event is scheduled for Q3 2025, but as of August 7, 2025, it remains pre-launch and is not tradable.

What are 0G Labs' key technical metrics?

The Testnet shows 339 million transactions, 6 million active accounts, 8,000 validators, and a peak throughput of 2,500 TPS, with storage costs 100 times lower than those of alternatives.

Sources

• Official 0G Labs Website:
• Forbes Article on AI Training Breakthrough:
• 0G Documentation:
• 0G Labs Token Purchase Commitment:
• 0G Whitepaper: whitepaper.pdf