Investing In Bittensor (TAO) – Everything You Need to Know

Bittensor (TAO) seeks to improve AI (Artificial Intelligence) and ML (Machine Learning) systems through a decentralized approach. The protocol combines a proprietary blockchain,  peer-to-peer market, and flexible utility token to streamline access to and the development of advanced AI resources. According to company documentation, the goal is to create a collaborative “hivemind” for these tools to help drive innovation and adoption by the masses.

What Problems Does Bittensor Attempt to Fix?

There are many issues that the AI and ML markets continue to struggle to overcome. Bittensor relieves many of these pain points via its decentralized blockchain-based model. For example, the network helps to bring the AI and ML movements under one envelope to support a collaborative movement. It accomplishes this task via a unified token strategy that provides rewards and access to AI network collaborators.

Fractured Innovation

One of the biggest issues faced in the AI market is its fractured state. There are a variety of firms competing alongside many developers to create and train AI models currently. The Bittensor approach is to promote and incentivize the sharing of knowledge in the sector. As such, users can create new models or improve on the current models Bittensor offers. Best of all, they secure rewards for their efforts.

Developer Restrictions

Another issue that Bittensor reduces is developer restrictions. The network is flexible in terms of programming languages, which helps onboarding new developers seeking to create systems and markets. Currently, you can code in Rust, Python, C++, and many other popular options. This approach enables those who don't have previous blockchain experience to create using programming languages they are experienced in.

Source – Grandview Research – AI Market Data

Lack of Scalability

The decentralized nature of Bittensor and its use of a custom blockchain and consensus model provide the network with vertical scalability. The platform supports high performance and can process and transfer advanced AI algorithms in real-time. This scalability makes it ideal for large-scale adoption and use in commercial markets.

Benefits of Bittensor

Bittensor is an open-source protocol that streamlines the integration and innovation of AI systems. The network uses blockchain tech to remain transparent, efficient, and auditable. Notably, this structure is more secure than centralized options and offers more security.

Multiple Expert Models

One of the biggest draws to Bittensor's model is that it combines the collective innovation of the market. Training AI systems collaboratively and sharing data sets provides better results due to how AI and ML systems learn. Additionally, combining these models with blockchain networks enables advanced real-time monitoring capabilities.

How Does Bittensor Work?

Bittensor operates on a custom-built blockchain. Interestingly, it originally launched on the Polkadot network as a Polkachain before the developers ultimately decided to launch a separate network. The new system separates the validation processes from the computational actions. As such, the network can handle much more throughput than single-layered competitors.

Bittensor Marketplace

The Bittensor Marketplace connects creators and those seeking access to advanced AI and ML learning models. Developers can share their data sets and secure returns in the form of TAO tokens. This market aims to create reliable and tradable machine intelligence commodities.

Miners

Miners in the Bittensor ecosystem host and serve AI models to the community. These providers secure returns using AI models to answer particular queries on the network. Each network query then gets revalidated by larger AI models to improve massive ML systems.

Subnets

Network nodes are organized into subnets of specific knowledge tasks. These subnets leverage unique AI models. This approach enables these systems to quickly gather exact data points to improve the ML algorithms.

Token -TAO

TAO is the main utility token for the Bittensor project. The token shares many qualities with Bitcoin, including a 21M total issuance and a similar mining rewards halving structure. Additionally, TAO users may stake their tokens to secure passive returns. It's also vital in the community governance mechanism.

Consensus

Bittensor leverages a new consensus mechanism called Proof-of-Intelligence to provide validity and scalability to the network. Interestingly, this system leverages miners like a PoW system. However, Bittensor miners perform ML processes rather than exert energy on mathematical equations, as in Bitcoin's structure. In the Bittensor ecosystem, the most accurate results get rewarded as the successful miner and receive the reward.

Governance

Bittensor uses a community governance protocol to help provide transparency to its users. Any Bittensor token holder can stake their TAO to gain access to this system. The more tokens you stake, the more weight your vote holds. This structure is common in the DeFi market as it ensures interested parties act in a manner conducive to the good of the project since they have the most to lose if it fails.

History

Bittensor entered the market in March 2023 intending to drive AI innovation and collaboration. The network's development and support come from the non-profit organization OpenTensor.  Notably, the project's founders include former Google dev, Jacob Robert Steves.

AI is a Booming Market with Future Growth Predicted

When you review recent AI market statistics you notice an uptrend. The global AI market exploded over the last 2 years thanks to innovative new technologies like ChatGPT. According to a recent report, AI accounted for $136B in 2022. The same report predicts the market to expand to +1394B by 2029.

AI vs ML

AI and ML are two phrases thrown around recently that are often confused or used interchangeably. Notably, AI refers to creating computers that can mimic human cognition. These machines can learn and complete complex tasks. In comparison, ML, or ‘machine learning', is a subset of AI. It specifically leverages massive datasets to provide added flexibility and accuracy.

How to Buy Bittensor ‘TAO'

Currently, Bittensor (TAO) is available for purchase on the following exchanges.

Uphold – This is one of the top exchanges for United States & UK residents that offers a wide range of cryptocurrencies. Germany & Netherlands are prohibited.

Uphold Disclaimer: Terms Apply. Cryptoassets are highly volatile. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Binance – Accepts Australia, Singapore, UK, and most of the world. Canadian & USA residents are prohibited. Use Discount Code: EE59L0QP for 10% cashback on all trading fees. 

Gate.io – This exchange was established in 2013 and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canadian residents are prohibited.

Bittensor (TAO) – Driving AI Learning through Collaboration and Incentivization

Bittensor has a smart approach to the AI market. They understand that this tech needs to become more available and less confusing before it's ready to see widespread adoption. Their unique strategy, including the marketplace and goal of expanding innovation and adoption transparently, provides many benefits to users and creators. As such, Bittensor continues to be a  project to keep an eye on moving forward.

You can learn more about exciting blockchain projects here.