Bittensor (TAO) Review: What it is and how it works

Bittensor is a project aiming to create a marketplace where artificial intelligence can become a commodity for trading.

So, what is Bittensor? Let’s find out in the following article with AZCoin.

What is Bittensor?

Bittensor is a layer 1 blockchain specialized in storing AI data. It is built with a main blockchain structure and multiple interconnected subnets, similar to the Avalanche structure.

The subnets of Bittensor act as storage for AI data such as text, images, etc., while sharing this data within the Bittensor blockchain to create a decentralized network for AI data.

According to Bittensor, most AI data from companies like OpenAI, Google, etc., cannot be shared externally. In the case where a company wants to develop AI, they need to invest significant initial resources. Therefore, Bittensor aims to leverage the transparency and data-sharing capabilities of blockchain to support businesses in easily developing AI.

What is Proof of Intelligence?

Proof of Intelligence is a consensus mechanism used in the Bittensor network to reward nodes contributing valuable machine learning models to the network. It is a variation of the Proof of Work and Proof of Stake mechanisms used in blockchain networks, but instead of solving complex mathematical problems, Proof of Intelligence nodes are required to perform machine learning tasks to demonstrate their intelligence.

Nodes with machine learning models that produce precise and valuable results have a greater likelihood of being chosen to contribute a new block to the chain and earn TAO tokens as rewards.

Bittensor’s mechanism of action

Bittensor operates using the Proof of Intelligence (POI) consensus mechanism to establish a decentralized network that commercializes artificial intelligence (AI). Instead of solving complex mathematical problems like traditional blockchain networks, subnets in the Bittensor network compete by showcasing their intelligence through tasks related to machine learning. These tasks may involve training and deploying machine learning models, data processing, and other AI-related activities.

The accuracy and value of the results generated by subnets from machine learning tasks determine their chances of being selected to add new blocks to the blockchain. When chosen, subnets receive rewards in the form of TAO tokens from the Bittensor network. This mechanism ensures that subnets capable of performing tasks and contributing actual knowledge are appropriately rewarded. It also incentivizes the development and improvement of machine learning models within the Bittensor network.

Roadmap and Updates

Here are some key milestones of the project:

• 31/2/2021: Mainnet project launched under the name Kusangi
• 21/11/2021: Kusangi ceased operations and hard forked into Nakamoto version
• 8/8/2022: Update to Synapse version
• 12/1/2023: Update to Finney version and introduction of subnet structure for the first time.

Development Team Bittensor

The development team of Bittensor consists of:

• Jacob Robert Steeves, Founder, who has previous experience as a Machine Learning Researcher at Knowm Inc and has worked at Google as a software engineer.
• Ala Shabana, Co-founder, who was a software engineer at VMware and FirmChannel before co-founding Bittensor with Jacob.

Investors and partners

Currently, Bittensor’s investors and partners include major funds in the crypto market such as Digital Currency Group, Polychain Capital, FirstMark Capital, and GSR.

Information about Bittensor

Bittensor Tokenomics

• Token name: Bittensor
• Ticker: TAO
• Blockchain: Bittensor
• Token type: Utility, Governance.
• Total Supply: 21,000,000 TAO

The TAO token is used to reward nodes in the Bittensor network and was released through a fair launch with no tokens sold before 2021. The total supply of TAO is 21,000,000 and rewards will halve every 10.5 million blocks.

Similar projects

• Polkadot: A network that allows blockchains to connect with each other to share data and form a decentralized network.
• Cosmos: A decentralized network of parallel blockchains focused on addressing scalability and usability issues.
• Chainlink: A decentralized oracle network that provides real-world data to smart contracts.

Where can you purchase Bittensor?

You can trade the TAO token on a centralized cryptocurrency exchange. Gate.io is the top choice for purchasing and exchanging Bittensor. The most commonly traded pair on this platform is TAOUSDT, with a trading volume of $7,943,923 in the past day. Other well-known alternatives are Binance and BingX.

For information on how to sign up and review, explore the best crypto exchanges 2024.

Update on Bittensor in 2024

In his article “The promise and challenges of crypto AI applications” on his personal website, Vitalik Buterin discussed the solution to using crypto-related incentives to encourage better AI creation, using Bittensor as an example of this solution. This has led to the TAO token price surging in the following days and is currently trading around $450 – $460.

Furthermore, from January 1, 2024, to the time of writing on February 2, 2024, the TAO token price has increased by over 150%, with a market capitalization of around $2.7 billion, and is still in the development phase.

For safety in your investment journey, it is advisable to review the Evaluation Process on AZCoin.

Conclusion

This is all the information about the Bittensor project. Through this article, AZCoin hopes that readers will grasp the basic information about the Bittensor project to make their own investment decisions. Best of luck in your Bittensor investment journey.