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OORT disrupts the AI data labeling industry using blockchain and WEB3

This article is not investment advice
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Introduction

Artificial Intelligence (AI), as the forefront of today's technology, relies on vast amounts of data for training and optimization. Data annotation, as the cornerstone of AI development, is particularly important. Recently, OORT's flagship product in the data annotation field, DataHub, began testing and quickly iterated to version 2.0, allowing 10,000 participants during the testing period. This article will delve into the current state of AI data annotation globally and in China, including worker wages, and discuss the advantages of oortech utilizing blockchain and Web3 technology for data annotation.

Global AI Data Annotation Status

Market Size and Demand:
The global AI data annotation market has shown rapid growth in recent years. According to a report by market research firm Grand View Research, the global data annotation market is expected to reach $6 billion by 2027, with a compound annual growth rate of 22.5%. This growth is driven by the demand for AI applications in various fields such as autonomous driving, healthcare, and intelligent customer service.

Working Models and Costs:
Global data annotation primarily relies on outsourcing, including full-time employees, part-time workers, and crowdsourcing models. In the United States and Europe, full-time annotators typically earn over $30,000 annually, while annotation in developing countries through outsourcing or crowdsourcing benefits from relatively low labor costs. For example, in India and the Philippines, annotators' monthly salaries usually range from $200 to $500, with different types of annotation work affecting wage levels.

China AI Data Annotation Status

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Market Size:
As one of the largest AI application markets globally, China also has a tremendous demand for data annotation. According to a report by iResearch, the size of China's data annotation market is expected to reach approximately 10 billion RMB by 2025, and it is anticipated to maintain rapid growth in the coming years.

Labor Situation and Costs:
China's data annotation market is mainly composed of young labor, part-time university students, and some low-skilled labor. Wages for annotators vary by city. For instance, in cities like Beijing and Shanghai, full-time annotators earn around 4,000 to 5,000 RMB per month, while in second- and third-tier cities, this figure typically ranges from 3,000 to 4,000 RMB.

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Oortech is pioneering the use of blockchain and Web3 technology to create the data annotation platform "DataHub," which has the following significant advantages:

Data Transparency and Traceability:
The inherent immutability of blockchain technology ensures the transparency and traceability of each annotation process. All details of data annotation are recorded on the blockchain, allowing users and clients to clearly see the flow and processing of data, effectively preventing data fraud and tampering, and enhancing the reliability of AI model training data.

Decentralized Trust Mechanism:
Through the decentralized nature of blockchain, the data annotation platform can operate without intermediaries, directly connecting data demanders and annotators. Smart contracts play a crucial role in this process, automatically executing task assignments, annotation quality reviews, and payment disbursements, reducing the trust costs and management expenses associated with centralized intermediaries.

Smart Contracts and Automated Operations:
Smart contracts in Web3 can preset task and reward mechanisms. Once annotation work is completed and approved, smart contracts automatically execute payments. Annotation results that do not meet standards will trigger corresponding penalty mechanisms, improving work efficiency and result accuracy while reducing operational costs associated with manual processes.

Global Collaboration and Resource Optimization:
Blockchain and Web3 platforms break geographical limitations, utilizing global labor resources. Through a cryptocurrency reward mechanism, they attract annotators from around the world to participate, forming a 24/7 collaborative network that increases task completion speed and ensures data diversity and quality.

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Incentive Mechanism:
In the traditional data annotation industry, access to data annotation tasks is crucial. Many studios have gone out of business due to a lack of work, and most tasks are passed through many hands, resulting in minimal benefits reaching data annotation workers. However, Oort's DataHub leverages the token economy in Web3, allowing annotators to receive timely and first-hand rewards, and earn platform tokens to participate in the long-term benefits of the platform ecosystem. Oortech can allocate tokens to annotators based on participation and data quality, creating positive incentives to attract more high-quality annotators.

Privacy Protection:
Blockchain combined with privacy protection technologies (such as zero-knowledge proofs) ensures privacy security during the data annotation process. Annotators can guarantee that their personal data is not exposed while participating in tasks, and data demanders can ensure that original data will not be misused or leaked, complying with data privacy protection laws and regulations worldwide.

Conclusion
The global and Chinese AI data annotation markets are in a rapid development phase. As AI technology continues to advance, the importance of data annotation becomes increasingly prominent. However, traditional data annotation models face numerous challenges in transparency, security, and efficiency. Oortech provides a more efficient, secure, and transparent solution by introducing blockchain and Web3 technology, breaking through the bottlenecks of traditional models, and further promoting the development of the AI data annotation industry, which will completely disrupt the traditional AI data annotation industry.

Conclusion
In the future, as technology continues to improve and application scenarios expand, the application prospects of blockchain and Web3 in the field of data annotation will become even broader. Oort will inevitably become the leader and frontrunner in this niche segment of data annotation under the wave of AI.

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