Decentralization

Ormi’s decentralized data layer is a high-throughput, subnet-based data warehouse architecture built on the InterPlanetary Linked Data (IPLD) framework. By leveraging zero-knowledge proof-of-query, it connects high-performance database shards to create a decentralized, highly available data layer with optimized data locality. Anchored to Ethereum via EigenLayer for cryptoeconomic security, Ormi enables on-demand, infinitely scalable horizontal scaling. Designed as a co-processor for smart contracts, it supports query- and compute-intensive operations, while also serving enterprise applications that require access to on-chain data and computational resources.

The Value to Web3

The need for a platform that supports both data storage/data warehousing and scalable analytics across blockchains and off-chain systems is increasingly critical. The current state of Web3 use cases is still predominantly single-chain, focusing on simple, logic-based smart contract applications. However, with the shift toward multi-chain and scalable architecture, we are seeing DApps increasingly adopt multi-chain setups. With co-processing needs beyond the capabilities of traditional oracle providers, DApps now require queries from multiple chains and off-chain data sources.

Smart contracts, such as those powering Uniswap and Aave, manage billions of dollars in a trustless and permissionless manner. However, they lack advanced, data-driven functionality due to the absence of a decentralized data query layer. For instance, in Aave, new borrowers receive the same rates as long-term users with significant on-chain history, resulting in poor capital efficiency. This limitation exists because smart contracts in the Ethereum Virtual Machine (EVM) have access only to limited on-chain data, such as wallet balances and transaction details, while vast amounts of historical blockchain data stored on archive nodes remain inaccessible.

Decentralized oracle networks (DONs) like Chainlink have partially addressed this issue by providing access to simple data points, such as token prices. However, they are unable to process complex queries or handle large datasets (e.g., aggregating transaction volumes in liquidity pools). While oracles facilitated the initial wave of decentralized finance (DeFi) innovation, more sophisticated data capabilities are necessary for the next stage of growth.

These limitations extend beyond finance. In Web3 gaming, smart contracts cannot integrate off-chain data, such as in-game actions or NFT activities, making it challenging to reward players based on specific achievements. Current solutions often rely on centralized off-chain infrastructure, which undermines the decentralized and trustless principles of Web3. No trustless solution has fully addressed the data processing constraints inherent to smart contracts.

The Value to Enterprises

These trends extend beyond blockchain-native companies as crypto integrates into mainstream finance, assuming custodial roles for digital assets. The demand for analytics and insights will grow, requiring data encompassing blockchains, off-chain assets, and customer metadata for comprehensive intelligence and the de-anonymization of on-chain transactions.

In the emerging market of harnessing vast amounts of on-chain transaction data, no unified, one-stop platform currently exists for both traditional enterprises and crypto-native organizations to access this data as easily and affordably as in traditional web environments. There is no Web3-native equivalent of Snowflake (a leading cloud data warehouse, which held the largest software IPO as of 2020).

Today, the Web3 data warehouse industry is valued at $75 billion, with growth rates in the double digits. With the acceleration of AI, which fundamentally relies on these data warehouse platforms, the industry’s growth is projected to increase by 40% per year. Ormi’s data layer aims to replicate the impact Snowflake had on traditional web data, providing a one-stop solution for data queries and a compute layer for blockchain data, along with decentralized co-processing and AI integration.

The Missing Query Co-processing Layer for Web3

In traditional SaaS applications, business logic generally follows a straightforward three-step process: retrieving a query result, executing an action based on that result, and updating the system’s state. For instance:

Travel booking systems query available flights or accommodations, present the most relevant options to users, and record booking details.
E-commerce platforms check product availability, process purchases, and update inventory levels.
Social media platforms retrieve user-related content, apply algorithms to rank posts, and adjust engagement metrics.
Lenders assess a borrower’s creditworthiness, run approval algorithms, and update the borrower’s account with loan details.

In Web3, this model is incomplete. Blockchains provide a state management layer, and smart contracts handle business logic execution, but the query layer is missing. This gap limits the potential of decentralized applications (DApps). Ormi’s decentralized data layer fills this void by acting as a “query coprocessor,” enhancing the data processing capabilities of smart contracts and enabling more advanced operations across blockchain networks.

How Ormi Data Layer Differs from TheGraph or Filecoin

Most innovation in the decentralization of the data layer has focused on the filesystem level (e.g., Arweave, Filecoin), which provides object storage with true decentralization but suffers from slow performance. Though fully decentralized, these systems are not capable of high-performance querying or computing. On the other end of decentralization is the application logic layer (e.g., The Graph), which supports single-purpose decentralized applications but offers limited flexibility and lacks decentralization at the data layer.