What KITE wants to do is quite grand - connecting AI to the real world. But frankly, the hardest part is not on the blockchain side, but how to safely move real-world assets on-chain. This involves three core interface issues.

First, there is the input problem of data and events. Smart contracts need real-world data to make decisions, such as "when the temperature in a certain area reaches 40 degrees, trigger insurance compensation" or "whether the verification node has completed the rendering task." It sounds simple, but there are many pitfalls. Is the data source trustworthy? Is it a centralized server or a distributed sensor? What if the data has been tampered with? More complicated is that some event determinations are not simply yes or no—judgments like "task completed and quality meets standards" require computational oracles, not just simple data oracles.

There are also pitfalls in privacy and compliance. Sensitive data such as medical and financial information is protected by law, and putting it on-chain in plain text is asking for trouble. There are several possible breakthrough ideas for KITE. One is a diversified oracle network, creating multiple independent oracles to balance each other and challenge and penalize abnormal data. Two is to introduce TEE (Trusted Execution Environment), allowing sensitive data to be processed in this "black box", only outputting verifiable proofs or result hashes. Three is simply to build a dedicated data oracle ecosystem on the KITE network - incentivizing the community to operate specialized data collection and validation nodes.

Secondly, there is the output problem of physical execution.