Key Takeaways:
- Bittensor (TAO) is a decentralised blockchain network designed to enhance the collaboration of artificial intelligence (AI) and machine learning models with a peer-to-peer ecosystem.
- The protocol operates on a unique consensus mechanism called Proof of Intelligence (PoI), which rewards participants based on the value of their contributions.
- TAO serves multiple roles in the Bittensor ecosystem, including as a utility token for accessing AI services and a staking token for network security.
- Bittensor addresses key challenges in AI development by facilitating collaborative knowledge sharing amongst AI models.
- The network employs game theory principles to reward high-performing subnets with TAO tokens, ensuring continuous improvement and innovation.
Introduction to Bittensor (TAO)
Artificial intelligence (AI) has become the technological zeitgeist with the launch in 2022 of ChatGPT by OpenAI. In 2023, over US$42.5 billion was raised to fund the development of AI, and Web3 projects are actively integrating the technology into the core of blockchain networks.
Bittensor, in particular, stands out as an innovative project that seeks to bring disconnected machine learning (ML) models together and enhance the development of more powerful AI models.
What Is Bittensor?
Bittensor is a decentralised blockchain network that redefines the development and sharing of AI and ML models. Unlike traditional AI development, which is centralised within a few large organisations, Bittensor creates an open, peer-to-peer (P2P) ecosystem where machine models can collaborate effectively across the globe.
This unique approach allows teams to share insights and data, which enhances the overall performance of machine intelligence. Bittensor envisions the outcome to be similar to a ‘digital hive mind’, a global neural network that grows and improves through the collective contributions of its participants.
Bittensor decentralises AI by treating machine intelligence as a tradeable commodity. Developers create and train data models within the network and are incentivised to trade their contributions in a peer-to-peer marketplace. This allows AI experts from around the world to contribute their knowledge, collaborate with other models, and improve the collective intelligence of the network. Through this, Bittensor achieves three specific goals.
- It accelerates the development of AI and ML models by encouraging experts to collaborate globally.
- Democratising AI makes it accessible to a much broader community beyond the technology giants.
- It creates a thriving economy for machine intelligence by rewarding contributions and participation through TAO tokens.
In essence, Bittensor represents a shift in how ML models are being developed. By decentralising the process and allowing models to interact and learn from one another, the protocol not only brings together AI projects that would have been siloed, but also democratises access to cutting-edge technologies.
How Does the Bittensor Protocol Work?
Much like a well-oiled machine composed of multiple moving parts, the Bittensor protocol also consists of frameworks and infrastructures that drive the decentralised ML framework.
Proof of Intelligence (PoI) Consensus Mechanism
The Bittensor network uses a unique consensus mechanism known as Proof of Intelligence (PoI). Sometimes known as the ‘Yuma Consensus’, the mechanism rewards participants for the value of their ML contributions, as opposed to mining or staking tokens like in traditional blockchain networks.
The more accurate and valuable the output, the more likely participants would be selected to validate transactions and receive rewards in the form of TAO tokens. This incentive model is grounded in game-theoretic principles and utilises the Shapley value framework to assess each model’s contribution based on its performance.
Network Architecture
The core of the Bittensor protocol is a decentralised network composed of nodes, or ‘miners’, which host ML models and perform predictions. These nodes interact through the Bittensor client software, facilitating seamless communication and coordination across the network.
Registration Process
To join the Bittensor network, participants must first register a unique hotkey. Registration can be achieved by solving a Proof of Work (PoW) problem, or by paying a fee through the ‘recycle_register’ method. Once registered, nodes are assigned to a specific subnet based on their expertise in a particular domain, enabling them to contribute ML models related to that area.
Validators and Model Evaluation
Validators play an important role in maintaining the integrity of the Bittensor network, acting as intermediaries and safeguarding the network. They query miners, evaluate their predictions, and ensure the accuracy and reliability of the data exchanged by verifying that the ML outputs generated by miners meet the necessary quality standards.
Mining and Service Provision
Miners in the Bittensor network offer ML services by hosting their models locally. When a client requests a prediction or service, the request is routed to an appropriate miner based on its expertise in the relevant domain.
The miner then processes the input using its ML model and sends the prediction back through the network. This decentralised approach ensures the availability of diverse and specialised ML models, all while operating in a peer-to-peer manner.
Incentives and TAO Tokens
The Bittensor protocol incentivises miners and validators to contribute computational resources, accurate predictions, and other valuable services by rewarding them with TAO tokens. This incentivisation is key to maintaining active participation and ensuring the network’s stability and efficiency.
What Challenges Is Bittensor Addressing?
Bittensor addresses two major challenges in AI development: the compute bottleneck and inefficiencies in algorithmic innovation. By decentralising access to ML models and creating an open, collaborative environment, Bittensor makes high-level AI development more accessible to smaller developers and research teams.
Additionally, its framework enables knowledge transfer between AI models, avoiding the redundancy of starting new models from scratch, driving faster innovation. Bittensor’s design draws inspiration from biological neural networks, where computational units interact and learn collaboratively, much like neurons in the human brain.
Each neuron in Bittensor’s system performs both local and collaborative tasks, processing data inputs and exchanging insights with neighbouring neurons. This interconnected learning process leads to a continuously evolving and highly intelligent network.
What Is the Utility of the TAO Token?
The TAO token serves multiple purposes within the Bittensor ecosystem, acting as a:
- Utility token for accessing AI services
- Staking token to secure the network
- Governance token to vote on improvement proposals
The total supply of TAO tokens is capped at 21 million, mirroring the supply limit set by Bitcoin. This fixed supply helps control inflation and preserve the token’s value over time. The distribution of TAO tokens is also carefully managed to support the long-term stability of its tokenomics, with a gradual release through mining rewards, staking rewards, and community initiatives.
A bridged version of the token, known as Wrapped TAO (wTAO), represents a tokenised version of the native TAO token. It is designed to operate on the Ethereum blockchain and allows for seamless interoperability and transferability between the Bittensor and Ethereum ecosystems.
Game Theory Design
An intriguing aspect of the TAO token is its game theory design. The Bittensor network employs a Darwinian competition model that spans across subnets, validators, miners, and client applications. This creates competition within its ecosystem, ensuring that only the most efficient, reliable, and innovative subnets are rewarded with higher emissions of TAO tokens. Conversely, subnets that lack innovation or fail to meet performance standards may receive fewer incentives or be removed from the network.
This approach maintains fairness and ensures continuous improvement within the network. By constantly adjusting the incentive mechanisms based on performance and contributions, the system evolves to address emerging challenges and opportunities.
Crypto Wallet Compatibility
While there is no dedicated wallet from Bittensor to store TAO tokens, users can use compatible wallets like the Crypto.com App wallet. Users interested in holding TAO tokens can do so by buying them in the Crypto.com App or on the Crypto.com Exchange.
Where to Buy Bittensor (TAO) Tokens
Buying and holding TAO tokens is a straightforward process, thanks to their availability on multiple cryptocurrency exchanges. One of the most convenient options for purchasing TAO tokens is through the Crypto.com App, which supports a range of trending cryptocurrencies, including UXLINK and Moonwell, plus popular ones like Bitcoin, Ethereum, and Solana.
Simply follow these steps to begin:
1. Download the Crypto.com App, available free on the Apple App Store or Google Play Store.
2. Complete the simple sign-up process.
3. Fund the account using bank transfer, PayPal, Apple Pay, or a debit/credit card. Allow one to three business days for bank transfers.
4. Once the funds are transferred, TAO tokens can be purchased.
Conclusion
The Bittensor protocol enables engineers to freely fine-tune and contribute to AI models, creating a global pool of computing power and creativity. As AI rapidly evolves, Bittensor and its TAO token are set to drive significant progress and accommodate new applications, making cutting-edge AI accessible and advancing the field in new, innovative ways for blockchain.
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