Proof-of-Useful-Work: A Decentralized AI Economy with Post-Quantum Security
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[Submitted on 22 Jun 2026]
Summary
This research paper proposes a decentralized AI economy that replaces traditional Proof-of-Work (PoW) blockchain consensus with a "Proof-of-Useful-Work" mechanism, where nodes are rewarded for performing machine learning tasks (inference and training) instead of solving hash puzzles. The authors present a three-layer architecture separating compute, validation, and economic coordination, formalized through a closed-loop token economy model. They argue that this approach offers dual advantages: economic value from useful ML computation and post-quantum security resilience, since Grover's algorithm provides only quadratic speedup against hash puzzles but doesn't accelerate ML linear algebra, while Shor's algorithm threatens classical blockchain signatures but can be addressed through post-quantum migration to lattice-based and hash-based standards.
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Key quotes
· 5 pulledProof-of-Work blockchains secure consensus through hash puzzles, producing no external value.
We propose a decentralized AI economy where nodes are rewarded for useful machine-learning work, i.e., inference and training, instead of ineffective hashing method.
Our proposed three-layer architecture separates compute, validation, and economic coordination.
While existing Grover's algorithm provides only a quadratic speedup against hash puzzles, it does not accelerate ML-native linear algebra.
Useful-work consensus thus offers both economic and quantum-security advantages over classical proof-of-work.
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