Artificial Intelligence Meets Blockchain: A Deep Dive into dRPC's Groundbreaking Solutions for Load Balancing and Latency Improvement

During the recent Hack Seasons Conference During our meeting in Brussels, we had the privilege of conversing with Viacheslav Shebanov , the Chief Technology Officer of dRPC In this thought-provoking interview, Shebanov provided a closer look at dRPC's cutting-edge strategies for optimizing RPC nodes and explored the delicate equilibrium needed between decentralization and the practicalities of business operations.

 His views on the future landscape of blockchain technology, the incorporation of AI into their offerings, and the challenges facing the sector give us a compelling insight into the ongoing development of Web3 infrastructure.

Many entrepreneurs find their way into this field due to a particular moment or experience. What led you to Web3?

I have been immersed in the tech realm for over a decade, working with major entities like social media platforms and banking institutions. The events of 2022 opened my eyes to the critical nature of cryptocurrencies.

Initially, I held a more skeptical view, as I was unable to grasp its practical applications. However, a series of occurrences made me realize the importance of financial autonomy and the ability to transact freely—an essential freedom that can be threatened. Cryptocurrency emerged as the solution, prompting me to shift my perspective and actively seek opportunities within the crypto space.

What sets dRPC's approach to RPC nodes apart from traditional centralized providers? What distinct benefits does this bring in terms of network resilience and performance?

We stand out from conventional RPC providers in that we don’t run our own blockchain clients; we leverage community-maintained ones. Generally, if someone is launching such an enterprise, they will manage three key elements: a load balancer, a web interface, and the blockchain clients themselves. Centralized RPC providers typically own all these components.

Our strategy commenced with the decentralization of blockchain clients. We maintain a vetted group of approximately 25 to 30 independent companies through which we channel requests. Our primary focus is the development of an advanced load balancer that helps mitigate issues related to individual providers, freeing our clients from worrying about whether our operation is decentralized or centralized.

One clear advantage of our setup is the extensive range of chains we can support—we currently accommodate over 60 different blockchains. This diversity is achievable because we don’t need to handle all complexities on our end; our providers take care of that. When we decide to integrate a new network, we don’t have to extensively familiarize ourselves with it; we simply find experts who already have that knowledge.

Moreover, our latency performance is commendable, often surpassing many centralized alternatives. Our infrastructure spans multiple locations: Singapore, São Paulo, various parts of Europe, the United States, and Hong Kong. Thanks to our globally distributed network of community providers, managing this international system is fairly straightforward.

Could you explain how dRPC's collaboration with independent third-party partners and public nodes reinforces censorship resistance?

At this stage, I wouldn't claim that it drastically improves censorship resistance. Most providers don't engage in censorship practices, and the current situation regarding censorship isn't alarming enough to pose an immediate threat. However, our decentralized architecture does offer certain benefits in this domain.

A centralized RPC provider is a single entity that oversees the entire infrastructure. If they need to comply with laws or sanctions, they have limited options. In contrast, our structure is more complex, with our 25 to 30 providers operating across different regions and jurisdictions. Some may not need to abide by specific regulations.

Additionally, while we do have a centralized gateway, it consists of code that anyone can implement. If censorship emerges as a significant issue, we could transfer the code to another organization situated in a different legal framework.

Could you please share your perspective on the intersection of AI and blockchain? How does the AI-powered load balancer at dRPC function?

To be honest, I'm not fully convinced about the synergy between blockchain and AI. In our operations, we utilize a simple AI model to predict latency. When clients submit requests, we aim to identify the provider that can respond the quickest. Our AI model analyzes various metrics for each provider, attempting to forecast their latency over the next five seconds. We perform this assessment every five seconds.

This approach allows us to dynamically choose the optimal provider in terms of latency, thereby reducing lag and addressing latency issues from individual providers. While this isn't deeply tied to blockchain usage, it represents a typical application of AI in tech—akin to strategies used in auction-based advertising systems on social media.

Are you considering the implementation of any additional AI solutions?

We remain uncertain. AI should function as a tool. If we recognize a demand, we might explore that path. Our team possesses the necessary skills and experience, yet our focus is not on using AI for its own sake; our priority is to meet customer needs.

Could you discuss some of the most significant technical challenges you face in your journey toward decentralization?

The primary challenge is that clients often don’t prioritize decentralization. It’s not something they specifically require, so we don’t emphasize it too heavily. For us, decentralization is a means to an end. We’re contemplating the possibility of making our pool of providers more open, which could enhance coverage for less popular blockchains, but this introduces a lot of complexity.

Currently, the marketplace is not demanding complete decentralization, and we have to remember that we're a business, not a cause-driven initiative. Our primary focus must remain on our customers' interests.

Do you have any intentions of expanding your offerings?

The Web3 domain is expansive, and there is a clear need for robust infrastructure. Hence, we find ourselves positioned quite well. As the ecosystem evolves, there's an uptick in business inquiries and client engagement. We're continuously considering how to refine our services and adapt our data handling methods within this landscape, yet I cannot share any specifics at this moment.

What are your predictions for the interplay between Web2 and Web3, especially in the financial sector?

I believe that a significant portion of the financial system will gradually transition to blockchain technology. It’s merely a matter of time; however, this process will be lengthy.

How do you view the future of decentralization and its associated challenges?

The future largely hinges on regulatory developments. Issues are likely to escalate as regulatory constraints grow, and these will often conflict across different legal systems. The extent to which Web3 might experience censorship ultimately depends on numerous factors, including interactions between various organizations like ours.

If our efforts are successful, we could potentially diminish the likelihood of censorship within the RPC layer. Nonetheless, it’s vital to remember that challenges exist at multiple levels—L1s, L2s, and beyond. While we've discussed Ethereum censorship extensively, many L2 solutions currently have the capability to censor transactions, as highlighted by recent incidents—such as hacks—that demonstrate how tools like Sequencers can act as censorship mechanisms.

There is no one-size-fits-all resolution. Each issue will require thorough consideration and individual solutions.