Creating a Human-like Chatbot: A Step-by-Step Guide to Training ChatGPT

Paulina Lewandowska

27 Jan 2023
Creating a Human-like Chatbot: A Step-by-Step Guide to Training ChatGPT

Introduction

It's difficult to create a chatbot that can have appropriate and realistic conversations. The GPT-2 model, which stands for Generative Pre-training Transformer 2, has been refined for conversational tasks after being trained on a vast amount of text data. In this post, we'll go through how to train a ChatGPT (Chat Generative Pre-training Transformer) model so that it may be adjusted to comprehend conversational cues and respond to them in a human-like manner. We'll go into detail about the crucial elements in this approach and how they help to produce a chatbot that can have conversations that flow naturally.

How ChatGPT was made?

ChatGPT is a variant of GPT (Generative Pre-training Transformer), which is a transformer-based language model developed by OpenAI. GPT was trained on a massive dataset of internet text and fine-tuned for specific tasks such as language translation and question answering. GPT-2, an advanced version of GPT, was trained on even more data and has the ability to generate human-like text. ChatGPT is fine-tuned version of GPT-2 to improve its performance in conversational AI tasks.

Training ChatGPT typically involves the following steps:

Collect a large dataset of conversational text, such as transcripts of customer service chats, social media conversations, or other forms of dialog.

What to bear in mind while doing this?

  • The dataset should be large enough to capture a wide variety of conversational styles and topics. The more diverse the data, the better the model will be able to handle different types of input and generate more realistic and appropriate responses.
  • The data should be representative of the types of conversations the model will be used for. For example, if the model will be used in a customer service chatbot, it should be trained on transcripts of customer service chats.
  • If possible, include a variety of different speakers and languages. This will help the model to learn how to generate appropriate responses in different contexts and for different types of users.
  • The data should be diverse in terms of the number of speakers, languages, accents, and cultural background.
  • Label the data with the context of the conversation, such as topic, intent, sentiment, etc.
  • Be sure to filter out any personal information, sensitive data, or any data that could be used to identify a person.

Preprocess the data to clean and format it for training the model. This may include tokenizing the text, removing special characters, and converting the text to lowercase.

A crucial part of training a conversational model like ChatGPT is preprocessing the data. It is beneficial to organize and clean the data so that the model can be trained with ease. Tokenization is the act of dividing the text into smaller parts, like words or phrases, in more detail. This assists in transforming the text into a format that the model can process more quickly. An application like NLTK or SpaCy can be used to perform the tokenization procedure.

Eliminating special characters and changing the text's case are further crucial steps. Converting the text to lowercase helps to standardize the data and lowers the amount of unique words the model needs to learn. Special characters can cause problems while training the model. In data preparation, it's also a good idea to eliminate stop words, which are frequent words like "a," "an," "the," etc. that don't have any significant meaning. It's also a good idea to replace dates or numbers with a specific token like "NUM" or "DATE" when preparing data. In data preparation, it's also a good idea to replace terms that are unknown or not in the model's lexicon with a unique token, such as "UNK." 

It is crucial to note that preparing the data can take time, but it is necessary to make sure the model can benefit from the data. Preprocessing the data makes it easier for the model to interpret and learn from it. It also makes the data more consistent.

Fine-tune a pre-trained GPT-2 model on the conversational dataset using a framework such as Hugging Face's Transformers library.

The procedure entails tweaking the model's hyperparameters and running several epochs of training on the conversational dataset. This can be accomplished by utilizing a framework like Hugging Face's Transformers library, an open-source natural language processing toolkit that offers pre-trained models and user-friendly interfaces for optimizing them.

The rationale behind fine-tuning a pre-trained model is that it has previously been trained on a sizable dataset and has a solid grasp of the language's overall structure. The model can be refined on a conversational dataset so that it can learn to produce responses that are more tailored to the conversation's topic. The refined model will perform better at producing responses that are appropriate for customer service interactions, for instance, if the conversational dataset consists of transcripts of discussions with customer service representatives.

It is important to note that the model's hyperparameters, such as the learning rate, batch size, and number of layers, are frequently adjusted throughout the fine-tuning phase. The performance of the model can be significantly impacted by these hyperparameters, thus it's necessary to experiment with different settings to discover the ideal one. Additionally, depending on the size of the conversational dataset and the complexity of the model, the fine-tuning procedure can need a significant amount of time and processing resources. But in order for the model to understand the precise nuances and patterns of the dialogue and become more applicable to the task, this stage is essential.

Evaluate the model's performance on a held-out test set to ensure it generates realistic and appropriate responses.

A held-out test set, which is a dataset distinct from the data used to train and fine-tune the model, is one popular strategy. The model's capacity to produce realistic and pertinent responses is evaluated using the held-out test set. 

Measuring a conversational model's capacity to provide suitable and realistic responses is a typical technique to assess its performance. This can be achieved by assessing the similarity between the model-generated and human-written responses. Utilizing metrics like BLEU, METEOR, ROUGE, and others is one approach to do this. These metrics assess how comparable the automatically generated and manually written responses are to one another.

Measuring a conversational model's capacity to comprehend and respond to various inputs is another technique to assess its performance. This can be accomplished by putting the model to the test with various inputs and evaluating how well it responds to them. You might test the model using inputs with various intents, subjects, or feelings and assess how effectively it can react.

Use the trained model to generate responses to new input.

Once trained and improved, the model can be utilized to produce answers to fresh input. The last stage in creating a chatbot is testing the model to make sure it can respond realistically and appropriately to new input. The trained model processes the input before producing a response. It's crucial to remember that the caliber of the reaction will depend on the caliber of the training data and the procedure of fine-tuning.

Context is crucial when using a trained model to generate responses in a conversation. To produce responses that are relevant and appropriate to the current conversation, it's important to keep track of the conversation history. A dialogue manager, which manages the conversation history and creates suitable inputs for the model, can be used to accomplish this.

Especially when employing a trained model to generate responses, it's critical to ensure the quality of the responses the model generates. As the model might not always create suitable or realistic responses, a technique for weeding out improper responses should be in place. Using a post-processing phase that would filter out inappropriate responses and choose the best one is one way to accomplish this.

Conclusion

Training a ChatGPT model is a multi-step process that requires a large amount of data. The GPT-2 model with its ability to generate human-like text and fine-tuning it with conversational dataset can lead to very powerful results which might be extremely helpful in everyday life. The process of training is essential in creating a chatbot that can understand and respond to conversational prompts in a natural and seamless manner. As the field of AI continues to evolve, the development of sophisticated chatbots will play an increasingly important role in enhancing the way we interact with technology. Interested? Check out our other articles related to AI!

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Applying Game Theory in Token Design

Kajetan Olas

16 Apr 2024
Applying Game Theory in Token Design

Blockchain technology allows for aligning incentives among network participants by rewarding desired behaviors with tokens.
But there is more to it than simply fostering cooperation. Game theory allows for designing incentive-machines that can't be turned-off and resemble artificial life.

Emergent Optimization

Game theory provides a robust framework for analyzing strategic interactions with mathematical models, which is particularly useful in blockchain environments where multiple stakeholders interact within a set of predefined rules. By applying this framework to token systems, developers can design systems that influence the emergent behaviors of network participants. This ensures the stability and effectiveness of the ecosystem.

Bonding Curves

Bonding curves are tool used in token design to manage the relationship between price and token supply predictably. Essentially, a bonding curve is a mathematical curve that defines the price of a token based on its supply. The more tokens that are bought, the higher the price climbs, and vice versa. This model incentivizes early adoption and can help stabilize a token’s economy over time.

For example, a bonding curve could be designed to slow down price increases after certain milestones are reached, thus preventing speculative bubbles and encouraging steadier, more organic growth.

The Case of Bitcoin

Bitcoin’s design incorporates game theory, most notably through its consensus mechanism of proof-of-work (PoW). Its reward function optimizes for security (hashrate) by optimizing for maximum electricity usage. Therefore, optimizing for its legitimate goal of being secure also inadvertently optimizes for corrupting natural environment. Another emergent outcome of PoW is the creation of mining pools, that increase centralization.

The Paperclip Maximizer and the dangers of blockchain economy

What’s the connection between AI from the story and decentralized economies? Blockchain-based incentive systems also can’t be turned off. This means that if we design an incentive system that optimizes towards a wrong objective, we might be unable to change it. Bitcoin critics argue that the PoW consensus mechanism optimizes toward destroying planet Earth.

Layer 2 Solutions

Layer 2 solutions are built on the understanding that the security provided by this core kernel of certainty can be used as an anchor. This anchor then supports additional economic mechanisms that operate off the blockchain, extending the utility of public blockchains like Ethereum. These mechanisms include state channels, sidechains, or plasma, each offering a way to conduct transactions off-chain while still being able to refer back to the anchored security of the main chain if necessary.

Conceptual Example of State Channels

State channels allow participants to perform numerous transactions off-chain, with the blockchain serving as a backstop in case of disputes or malfeasance.

Consider two players, Alice and Bob, who want to play a game of tic-tac-toe with stakes in Ethereum. The naive approach would be to interact directly with a smart contract for every move, which would be slow and costly. Instead, they can use a state channel for their game.

  1. Opening the Channel: They start by deploying a "Judge" smart contract on Ethereum, which holds the 1 ETH wager. The contract knows the rules of the game and the identities of the players.
  2. Playing the Game: Alice and Bob play the game off-chain by signing each move as transactions, which are exchanged directly between them but not broadcast to the blockchain. Each transaction includes a nonce to ensure moves are kept in order.
  3. Closing the Channel: When the game ends, the final state (i.e., the sequence of moves) is sent to the Judge contract, which pays out the wager to the winner after confirming both parties agree on the outcome.

A threat stronger than the execution

If Bob tries to cheat by submitting an old state where he was winning, Alice can challenge this during a dispute period by submitting a newer signed state. The Judge contract can verify the authenticity and order of these states due to the nonces, ensuring the integrity of the game. Thus, the mere threat of execution (submitting the state to the blockchain and having the fraud exposed) secures the off-chain interactions.

Game Theory in Practice

Understanding the application of game theory within blockchain and token ecosystems requires a structured approach to analyzing how stakeholders interact, defining possible actions they can take, and understanding the causal relationships within the system. This structured analysis helps in creating effective strategies that ensure the system operates as intended.

Stakeholder Analysis

Identifying Stakeholders

The first step in applying game theory effectively is identifying all relevant stakeholders within the ecosystem. This includes direct participants such as users, miners, and developers but also external entities like regulators, potential attackers, and partner organizations. Understanding who the stakeholders are and what their interests and capabilities are is crucial for predicting how they might interact within the system.

Stakeholders in blockchain development for systems engineering

Assessing Incentives and Capabilities

Each stakeholder has different motivations and resources at their disposal. For instance, miners are motivated by block rewards and transaction fees, while users seek fast, secure, and cheap transactions. Clearly defining these incentives helps in predicting how changes to the system’s rules and parameters might influence their behaviors.

Defining Action Space

Possible Actions

The action space encompasses all possible decisions or strategies stakeholders can employ in response to the ecosystem's dynamics. For example, a miner might choose to increase computational power, a user might decide to hold or sell tokens, and a developer might propose changes to the protocol.

Artonomus, Github

Constraints and Opportunities

Understanding the constraints (such as economic costs, technological limitations, and regulatory frameworks) and opportunities (such as new technological advancements or changes in market demand) within which these actions take place is vital. This helps in modeling potential strategies stakeholders might adopt.

Artonomus, Github

Causal Relationships Diagram

Mapping Interactions

Creating a diagram that represents the causal relationships between different actions and outcomes within the ecosystem can illuminate how complex interactions unfold. This diagram helps in identifying which variables influence others and how they do so, making it easier to predict the outcomes of certain actions.

Artonomus, Github

Analyzing Impact

By examining the causal relationships, developers and system designers can identify critical leverage points where small changes could have significant impacts. This analysis is crucial for enhancing system stability and ensuring its efficiency.

Feedback Loops

Understanding feedback loops within a blockchain ecosystem is critical as they can significantly amplify or mitigate the effects of changes within the system. These loops can reinforce or counteract trends, leading to rapid growth or decline.

Reinforcing Loops

Reinforcing loops are feedback mechanisms that amplify the effects of a trend or action. For example, increased adoption of a blockchain platform can lead to more developers creating applications on it, which in turn leads to further adoption. This positive feedback loop can drive rapid growth and success.

Death Spiral

Conversely, a death spiral is a type of reinforcing loop that leads to negative outcomes. An example might be the increasing cost of transaction fees leading to decreased usage of the blockchain, which reduces the incentive for miners to secure the network, further decreasing system performance and user adoption. Identifying potential death spirals early is crucial for maintaining the ecosystem's health.

The Death Spiral: How Terra's Algorithmic Stablecoin Came Crashing Down
the-death-spiral-how-terras-algorithmic-stablecoin-came-crashing-down/, Forbes

Conclusion

The fundamental advantage of token-based systems is being able to reward desired behavior. To capitalize on that possibility, token engineers put careful attention into optimization and designing incentives for long-term growth.

FAQ

  1. What does game theory contribute to blockchain token design?
    • Game theory optimizes blockchain ecosystems by structuring incentives that reward desired behavior.
  2. How do bonding curves apply game theory to improve token economics?
    • Bonding curves set token pricing that adjusts with supply changes, strategically incentivizing early purchases and penalizing speculation.
  3. What benefits do Layer 2 solutions provide in the context of game theory?
    • Layer 2 solutions leverage game theory, by creating systems where the threat of reporting fraudulent behavior ensures honest participation.

Token Engineering Process

Kajetan Olas

13 Apr 2024
Token Engineering Process

Token Engineering is an emerging field that addresses the systematic design and engineering of blockchain-based tokens. It applies rigorous mathematical methods from the Complex Systems Engineering discipline to tokenomics design.

In this article, we will walk through the Token Engineering Process and break it down into three key stages. Discovery Phase, Design Phase, and Deployment Phase.

Discovery Phase of Token Engineering Process

The first stage of the token engineering process is the Discovery Phase. It focuses on constructing high-level business plans, defining objectives, and identifying problems to be solved. That phase is also the time when token engineers first define key stakeholders in the project.

Defining the Problem

This may seem counterintuitive. Why would we start with the problem when designing tokenomics? Shouldn’t we start with more down-to-earth matters like token supply? The answer is No. Tokens are a medium for creating and exchanging value within a project’s ecosystem. Since crypto projects draw their value from solving problems that can’t be solved through TradFi mechanisms, their tokenomics should reflect that. 

The industry standard, developed by McKinsey & Co. and adapted to token engineering purposes by Outlier Ventures, is structuring the problem through a logic tree, following MECE.
MECE stands for Mutually Exclusive, Collectively Exhaustive. Mutually Exclusive means that problems in the tree should not overlap. Collectively Exhaustive means that the tree should cover all issues.

In practice, the “Problem” should be replaced by a whole problem statement worksheet. The same will hold for some of the boxes.
A commonly used tool for designing these kinds of diagrams is the Miro whiteboard.

Identifying Stakeholders and Value Flows in Token Engineering

This part is about identifying all relevant actors in the ecosystem and how value flows between them. To illustrate what we mean let’s consider an example of NFT marketplace. In its case, relevant actors might be sellers, buyers, NFT creators, and a marketplace owner. Possible value flow when conducting a transaction might be: buyer gets rid of his tokens, seller gets some of them, marketplace owner gets some of them as fees, and NFT creators get some of them as royalties.

Incentive Mechanisms Canvas

The last part of what we consider to be in the Discovery Phase is filling the Incentive Mechanisms Canvas. After successfully identifying value flows in the previous stage, token engineers search for frictions to desired behaviors and point out the undesired behaviors. For example, friction to activity on an NFT marketplace might be respecting royalty fees by marketplace owners since it reduces value flowing to the seller.

source: https://www.canva.com/design/DAFDTNKsIJs/8Ky9EoJJI7p98qKLIu2XNw/view#7

Design Phase of Token Engineering Process

The second stage of the Token Engineering Process is the Design Phase in which you make use of high-level descriptions from the previous step to come up with a specific design of the project. This will include everything that can be usually found in crypto whitepapers (e.g. governance mechanisms, incentive mechanisms, token supply, etc). After finishing the design, token engineers should represent the whole value flow and transactional logic on detailed visual diagrams. These diagrams will be a basis for creating mathematical models in the Deployment Phase. 

Token Engineering Artonomous Design Diagram
Artonomous design diagram, source: Artonomous GitHub

Objective Function

Every crypto project has some objective. The objective can consist of many goals, such as decentralization or token price. The objective function is a mathematical function assigning weights to different factors that influence the main objective in the order of their importance. This function will be a reference for machine learning algorithms in the next steps. They will try to find quantitative parameters (e.g. network fees) that maximize the output of this function.
Modified Metcalfe’s Law can serve as an inspiration during that step. It’s a framework for valuing crypto projects, but we believe that after adjustments it can also be used in this context.

Deployment Phase of Token Engineering Process

The Deployment Phase is final, but also the most demanding step in the process. It involves the implementation of machine learning algorithms that test our assumptions and optimize quantitative parameters. Token Engineering draws from Nassim Taleb’s concept of Antifragility and extensively uses feedback loops to make a system that gains from arising shocks.

Agent-based Modelling 

In agent-based modeling, we describe a set of behaviors and goals displayed by each agent participating in the system (this is why previous steps focused so much on describing stakeholders). Each agent is controlled by an autonomous AI and continuously optimizes his strategy. He learns from his experience and can mimic the behavior of other agents if he finds it effective (Reinforced Learning). This approach allows for mimicking real users, who adapt their strategies with time. An example adaptive agent would be a cryptocurrency trader, who changes his trading strategy in response to experiencing a loss of money.

Monte Carlo Simulations

Token Engineers use the Monte Carlo method to simulate the consequences of various possible interactions while taking into account the probability of their occurrence. By running a large number of simulations it’s possible to stress-test the project in multiple scenarios and identify emergent risks.

Testnet Deployment

If possible, it's highly beneficial for projects to extend the testing phase even further by letting real users use the network. Idea is the same as in agent-based testing - continuous optimization based on provided metrics. Furthermore, in case the project considers airdropping its tokens, giving them to early users is a great strategy. Even though part of the activity will be disingenuine and airdrop-oriented, such strategy still works better than most.

Time Duration

Token engineering process may take from as little as 2 weeks to as much as 5 months. It depends on the project category (Layer 1 protocol will require more time, than a simple DApp), and security requirements. For example, a bank issuing its digital token will have a very low risk tolerance.

Required Skills for Token Engineering

Token engineering is a multidisciplinary field and requires a great amount of specialized knowledge. Key knowledge areas are:

  • Systems Engineering
  • Machine Learning
  • Market Research
  • Capital Markets
  • Current trends in Web3
  • Blockchain Engineering
  • Statistics

Summary

The token engineering process consists of 3 steps: Discovery Phase, Design Phase, and Deployment Phase. It’s utilized mostly by established blockchain projects, and financial institutions like the International Monetary Fund. Even though it’s a very resource-consuming process, we believe it’s worth it. Projects that went through scrupulous design and testing before launch are much more likely to receive VC funding and be in the 10% of crypto projects that survive the bear market. Going through that process also has a symbolic meaning - it shows that the project is long-term oriented.

If you're looking to create a robust tokenomics model and go through institutional-grade testing please reach out to contact@nextrope.com. Our team is ready to help you with the token engineering process and ensure your project’s resilience in the long term.

FAQ

What does token engineering process look like?

  • Token engineering process is conducted in a 3-step methodical fashion. This includes Discovery Phase, Design Phase, and Deployment Phase. Each of these stages should be tailored to the specific needs of a project.

Is token engineering meant only for big projects?

  • We recommend that even small projects go through a simplified design and optimization process. This increases community's trust and makes sure that the tokenomics doesn't have any obvious flaws.

How long does the token engineering process take?

  • It depends on the project and may range from 2 weeks to 5 months.