Finst

DATA Foundation Focuses on Blockchain for AI Data Copyright and Licensing

The former Story Protocol wants DATA Network and Kled AI to record the origin, licenses, and consent behind training data, just as AI companies around the world face growing legal pressure.

By Luc Vesters
• 2 min read
DATA Foundation Focuses on Blockchain for AI Data Copyright and Licensing

Key Takeaways

  • Story Protocol is now called DATA Foundation and is fully focused on infrastructure for AI training, with an emphasis on dataset provenance, licensing, and consent.
  • DATA Network is building an onchain registry and Trace platform to cryptographically prove data ownership and authenticity without making the data itself public.
  • With Kled AI, Poseidon, and Numo, DATA Foundation wants to verify datasets, reward human contributions, and reduce legal risks around AI data use.

Palo Alto-based crypto company Story Protocol has rebranded and is now called DATA Foundation. The company is shifting its focus fully to infrastructure for AI training, with a special emphasis on recording the origin, licenses, and consent tied to datasets used to train AI models. Avi Patel, founder of Kled, has been brought on as chief data officer to help lead this shift.

Blockchain as a Solution for AI Copyright

The move from Story Protocol to DATA Foundation comes as legal pressure on AI developers and big tech companies keeps growing. They are facing multiple lawsuits over the use of data for AI training, with the main issue being whether datasets were collected with the proper consent. With DATA Network, DATA Foundation is building an onchain registry meant to bring transparency to dataset ownership, licensing, and consent. This system records cryptographic proof of data submissions without making the data itself public.

The platform integrates directly with Kled AI, an opt-in marketplace for human data, where more than 1.1 billion user records have already been registered. This approach is meant to help AI developers verify datasets before using them, meeting the growing need to operate in a legal and ethically responsible way.

Innovations in Data Verification and Compensation

Along with the registry, DATA Foundation is rolling out Trace, an audit and search platform that generates undeniable cryptographic receipts for individual data submissions. This helps prove the authenticity and consent of data without exposing the data itself. There is also Poseidon, an AI-powered project that cleans and evaluates human data, and through the Numo app, pays users in real time with stablecoins for their verified contributions.

Compensation for data contributors is tied to completed transactions, which reduces the risk of needing to front the money. Traditional fiat payments are also supported alongside stablecoins, making payouts less dependent on buyer timing. One key development is a fraud detection protocol designed to make sure the data is real, human, and original, not pirated or AI-generated.

Relevance for European and Global AI Markets

DATA Foundation's approach comes at a time when there are more than 35 lawsuits against AI companies worldwide over the use of training data, including major names in music and publishing. European and other international markets could benefit from transparent, blockchain-based solutions that verify ownership and licensing for AI training data. That could help create a fairer playing field and lower legal risks for developers and users of AI technologies.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.