Definition ∞ On-Chain Inference refers to the execution of artificial intelligence model predictions or decision-making processes directly on a blockchain. This involves representing AI models as smart contracts or verifiable computations that can be run and validated by network nodes. Performing inference on-chain provides transparency, immutability, and censorship resistance to AI outputs.
Context ∞ The integration of On-Chain Inference is a nascent but rapidly developing area within the Web3 AI economy. It addresses the challenge of bringing verifiable and trustworthy AI capabilities to decentralized applications. While computational costs remain a significant hurdle, advancements in zero-knowledge proofs and specialized AI subnets are paving the way for more practical and scalable on-chain AI operations.