Learn what is Bittensor about, and how its TAO crypto token is making artificial intelligence more accessible and decentralised.
What is Bittensor?
Bittensor is a blockchain network that aims to change how artificial intelligence (AI) and machine learning (ML) models are developed and shared.
Currently, AI development is controlled by a few large organisations like Google and Meta, but Bittensor is breaking the mould by creating an open, peer-to-peer (P2P) ecosystem where machine models can collaborate and evolve across the globe.
This approach encourages the sharing of data and insights, which could lead to improved performance and continuous growth in the collective intelligence of AI models within the network.
Bittensor’s Layer-1 network, Subtensor, was originally developed as a Polkadot parachain called Finney. The project subsequently launched its own chain, Nakamoto, in March 2023 to reduce its reliance on the Polkadot ecosystem.
At the heart of Bittensor’s network is a unique marketplace where machine intelligence is treated as a tradeable commodity. Developers can build, train, and exchange their AI models, all while earning rewards in the form of Bittensor coins, or TAO crypto tokens.
This structure incentivises global collaboration among AI experts, allowing them to contribute to and benefit from the collective pool of knowledge. Overall, the Bittensor network aims to foster a ‘digital hive mind’, or a global neural network that becomes smarter through the active participation of its users.
What Consensus Mechanism Does the Bittensor Protocol Use?
The Bittensor network employs the Yuma consensus, a consensus mechanism that distributes computational resources across a peer-to-peer network of nodes. The unique consensus combines both proof-of-work (PoW) and proof-of-stake (PoS) mechanisms to maintain the network integrity of Bittensor.
Nodes validate transactions and generate new blocks through computational work, which is verified by other nodes in the network, and successful validations are rewarded with tokens.
In addition to a PoW mechanism, the Yuma Consensus also integrates a PoS mechanism to encourage long-term participation. Nodes must hold tokens to engage in the consensus process, incentivising them to act in the network’s best interests while ensuring decentralisation and security.
Additionally, one notable feature of the Yuma consensus is its ability to scale seamlessly. The consensus mechanism enables the distribution of AI processing tasks across a large number of nodes, meaning that the network can handle increasingly complex computations and larger datasets as more nodes join.
The more participants in the network, the greater its computational power, which leads to faster and more efficient AI model development. The combination of mechanisms and scalability makes Yuma highly adaptable for decentralised AI applications, enhancing the efficiency of AI model development across a global network.
How Does the Bittensor Protocol Work?
The Bittensor protocol facilitates the exchange of machine learning (ML) models among its participants, which consist of miners, users, and validators.
Network Miners
Miners share their ML models and computational resources with the network, thereby addressing the protocol’s AI tasks. Miners receive the native TAO crypto tokens in return for their contributions. Users utilise this cryptocurrency to request answers or tasks from the AI, and the network employs a consensus mechanism to evaluate the best responses based on various parameters.
Network Validators
Validators maintain the integrity and quality of the data and models within the Bittensor network. They validate the predictions generated by querying the miners for answers and evaluating the quality of the responses.
The validation process ensures that only accurate, reliable outputs are produced and rewarded, which is essential for sustaining the ecosystem’s credibility. This collaboration between miners and validators fosters a robust environment for AI development and deployment.
Bittensor Subnets
What is Bittensor’s architecture? It is structured around decentralised subnets, each employing an incentive-based mechanism to encourage competition among miners. The 32 active subnets function like classical neural networks, where nodes represent either subnet validators or miners.
Validators form the input layer, receiving inputs from the external environment, while miners constitute the hidden layer, interacting only with validators. This design ensures that the subnets operate effectively, with the blockchain facilitating the reward system, and the Bittensor crypto API linking the subnets to the blockchain.
To simplify the concept of the Bittensor network, we can liken the architecture of a subnet to a school.
- The validators act as teachers, who receive instructions to engage their students in a particular class activity.
- The teachers relay the instructions to their students (miners), who try to compete to see who can do the task better.
- The teacher (validator) marks their work and gives good grades to students whose answers are the most accurate.
- The teacher then submits the grades to the school system, which may be connected to other schools with their own results (subnets and blockchain network).
What are the Benefits of the Bittensor Network?
Accelerates AI and ML Model Development
What Bittensor does is speed up the development of AI and machine learning models by enabling already-trained models to collaborate on tasks and solve new problems. This significantly reduces the time and resources required for model training, as multiple models can work together in a decentralised network, enhancing the overall efficiency of AI development.
Democratises AI by Making It Open-Source
One of Bittensor’s key crypto goals is to make AI open-source and part of the public domain. By allowing anyone to access and use pre-trained machine learning models, the platform opens up AI technology to a wider audience, removing the need for individuals or organisations to develop models from scratch.
Creates Opportunities for Participation
Bittensor offers opportunities for various participants to engage with the network. Those with computational resources can contribute as miners, sharing their machine-learning models and earning TAO crypto tokens. Meanwhile, token holders can participate as validators, ensuring the quality and accuracy of the models and responses within the network.
What is the Tokenomics of the Bittensor Coin (TAO Token)
The TAO token is the native utility currency of the Bittensor network, designed to incentivise the production and validation of machine intelligence. Bittensor had a fair launch in January 2021, with no pre-mined tokens or ICOs, ensuring every TAO token reflects genuine machine learning work.
The tokenomics of Bittensor’s TAO token shares similarities with Bitcoin’s decentralised, anti-corporate ethos, promoting unbiased intelligence through a peer-to-peer network. Miners and validators play crucial roles in the network, earning TAO crypto tokens by contributing and verifying machine learning models.
Each block rewards one TAO, which is split equally between miners and validators. A predictable decrease in supply means that mining TAO crypto becomes increasingly competitive as the network grows, pushing miners to optimise their operations. Eventually, the maximum supply will cap at 21 million Bittensor TAO tokens, with miners transitioning to receiving payments for specific tasks as issuance stops.
The value of TAO tokens is determined by supply and demand dynamics within the Bittensor crypto network. As miners contribute intelligence, each TAO is linked to the work they produce and verified by validators. Holding TAO grants access to a network of decentralised resources and markets, with demand driven by validators, miners, and others who wish to influence the network’s governance.
However, the limited supply and decreasing issuance rate also contribute to the token’s volatility. Additionally, Bittensor TAO holders can delegate their tokens to validators and earn staking rewards, with validators distributing 82% of their rewards to delegates.
Where Can You Buy Bittensor (TAO) Crypto?
TAO crypto tokens are available on the following centralised exchanges:
- Crypto.com
- KuCoin
- MEXC
- Kraken
- Binance
- BingX
Bittensor Is Making AI Accessible To All
The Bittensor Protocol allows engineers to enhance and share AI models without restrictions, creating a global network of computational power and creativity. As AI technology progresses at a rapid pace, Bittensor is poised to drive substantial advancements and support the development of new applications, ensuring that cutting-edge AI is within everyone’s reach.
Disclaimer: This information is intended for general knowledge and informational purposes only, and does not constitute financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.
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