SHORT ANSWER: Bittensor is a decentralized AI network that aims to democratize access to resources used to develop artificial intelligence. It leverages blockchain technology to align incentives among users, miners and validators.
Bittensor, a groundbreaking project at the nexus of blockchain and AI, is on a mission to create a decentralized open-source ecosystem that seeks to solve bottlenecks created by big corporations like Google, Microsoft and IBM.
What is Bittensor?
Bittensor is a protocol seeking to decentralize AI development by leveraging community resources for creating, training, sharing and trading machine learning models. Founded by AI researchers Ala Shaabana and Jacob Steeves, Bittensor was initially launched on Polygon, but in March 2023, it pivoted to focus on its proprietary chain.
AI is the backbone of applications like ChatGPT, Gemini and Claude. Typically, AI development models are siloed from each other, meaning models like Chat GPT are developed separately from other models. Traditionally, developers start from scratch creating these models, allowing only those with high computational resources to pursue development. This structure is a byproduct of large corporations being the only players developing and advancing AI because of their immense resources. This is a problem because AI is becoming increasingly centralized, keeping the power in the hands of a few limiting the growth potential of AI development.
Bittensor aims to address the issue of centralized resources and slow innovation. The Bittensor protocol is an open-source ecosystem democratizing resources for AI development that would otherwise be available only to big corporations. According to its whitepaper, Bittensor aims to create a marketplace where “intelligence is priced by other intelligence systems peer-to-peer across the internet.” Bittensor is the infrastructure that could enable decentralized AI development leading to faster advancements through an incentivized economy, making AI open source and part of the public domain. AI models could develop, learn and develop from each other through community.
How Does Bittensor Work?
The Bittensor protocol uses blockchain to facilitate the collaboration of machine learning models and services through three key participants.
Miners: Nodes (computers) that provide machine learning services like computing and answering questions. TAO, the native currency of Bittensor, is used to incentivize miners to offer these services.
Users: The individuals seeking answers to their questions or looking for machine learning services.
Validators: The decentralized middleman, validators play a crucial role in ensuring the integrity of the network and verifying the proper exchange of resources in the Bittensor network.
Let’s say a user in the Bittensor network submits a request for sentiment analysis on a set of data. Bittensor’s consensus mechanism routes this request to a miner capable of handling the request. After completing the request, the miner sends the completed request to the network, where a validator evaluates the quality and accuracy of the miner’s job. If the validator agrees this request was fulfilled, it gets sent back to the user, and the miner and validator are rewarded with TAO tokens for their services. The user may have to pay smart contract fees for this transaction.
The Bittensor Network Structure
Bittensor uses a unique network structure to achieve its goals. Bittensor uses a consensus mechanism called proof of intelligence (PoI), which borrows aspects from proof-of-work (PoW) and proof-of-stake (PoS) consensus mechanisms. Instead of solving complex mathematical problems in traditional PoW consensus, miners complete machine-learning tasks. The higher the machine intelligence or ability to provide these tasks, the more likely a miner will be selected to add a new block to the blockchain and receive TAO. Miners are added to subnets grouped by their machine intelligence. The Bittensor network is compiled of these subnets, which are connected to the main network or subtensor through the Bittensor API.
To become a validator, you stake TAO like traditional PoS consensus. The number of TAO tokens that can be released is capped at 21 million and gradually released over time through network processes like mining and validating. Scarcity helps incentivize miners and validators to participate to the best of their abilities.
Bittensor vs. Bitcoin
Bittensor's tokenomics are closely modeled after the Bitcoin network. TAO and BTC have a total supply of 21 million tokens, and the amount that can be mined is halved every four years. Bittensor also takes inspiration from Bitcoin’s PoW consensus mechanism but tailors it for machine learning. Bittensor’s goals as a network are different from Bitcoin’s. Bittensor seeks to decentralize AI development through their ecosystem whereas Bitcoin was established as a medium for permissionless peer-to-peer transactions.
What is the Bittensor TAO Token?
TAO is the native cryptocurrency used in the Bittensor ecosystem for fees and payments. It is the primary incentive given to miners and validators for their contributions to the network. TAO must also be staked to become a validator and participate in the network's governance.
TAO is a deflationary asset like gold and Bitcoin, with 6 million out of 21 million TAO tokens in circulation in March 2024. Given the demand for AI resources, the price of TAO has surged from $50 in November 2023 to an all-time high of $757.60 per coin on March 7, 2024. TAO has solidified itself as a top project seeking to decentralize AI using blockchain, making it the preferred choice for many users.
Where to Buy TAO
Here are some of the most reputable platforms to buy TAO:
- Uphold.com
- Gate.io
- MEXC - for users outside the U.S.
Terms Apply. Cryptoassets are highly volatile. Your capital is at risk.
The Future of AI and Crypto
The intersection of AI and crypto is more than pairing two buzzwords together. Centralized corporations control the AI revolution. Projects like Bittensor seek to level the playing field by democratizing the resources needed to advance AI. By leveraging blockchain, Bittensor has created an open-source ecosystem using incentives to foster participation. Bittensor models can develop and leverage each other, growing faster through pooled resources. By breaking traditional barriers, Bittensor contributes to open-source AI, equalizing opportunities for all. Open source development is crucial for advancing AI, as it enables borderless collaboration, transparency and accessibility; accelerates innovation; and ensures that AI's benefits are equitably distributed. The incentivization and consensus mechanisms that blockchain and crypto enable will play vital roles in the future of AI development.
- Exclusive Crypto Airdrops
- Altcoin of the Week
- Insider Interviews
- News & Show Highlights
- Completely FREE
About Gianluca Miller
Gianluca Miller’s crypto journey started in 2019 when he sought alternative assets to diversify his investment portfolio. With a keen interest in innovative technologies, he became increasingly involved in Web3 through trading crypto and participating in DeFi protocols. Over the last few years, he has become a blockchain evangelist, fascinated with the tech’s utility and impactability. Gianluca contributes to Benzinga, is working on a Defi research project through Blockchain UCSB, and continues to expand his Web3 acumen daily. He loves learning, analyzing new projects and market conditions, and building relationships with industry leaders.