The Bittensor Tao Blockchain For Beginners
The Blockchain and Artificial intelligence industry seem to be dominating other industries. In fact, it’s quite clear that these two most recent technological break through have increased overall productivity and efficiency in every other industry, making everyone enthusiastic about Ai, chat gpt, and Cryptocurrencies.
While most people believe that Blockchain and Artificial intelligence are 2 different concepts, recent development seem to prove that the collaboration of both might just be the beginning of radical disruptions and innovations.
Leading the fusion of Blockchain and AI is a project called Bittensor TAO.
This article will clearly explain everything you need to know about Bittensor TAO.
Introduction To Bittensor Tao Blockchain
Before we look into the full meaning of Bittensor TAO, we have seen that roots of all AI product in circulation has been traced back to particular data giants including Open Ai, Google, NVIDIA, etc. It’s sad how the market is completely monopolized, redering several AI engineers handicapped as they have little recources to develope their ideas. Even when these engineers start, all necessary apparatus needed for exevution are controlled by these same companies, hence AI products created by these engineers have narrowly defined functions.
Soon, we will get to see how Bittensor TAO is Revolutionizing AI development.
What is the Meaning of Bittensor TAO?
Bittensor TAO Blockchain is a decentralized network of AI Models, working simulteneously to effectively generate Artificial Intelligence solution according to queries placed on the system.
This unique Blockchain functions as a proof of Stake and proof of intelligence network. The idea is to decentralized AI technology the same way bitcoin decentralized finance.
Look at Bittensor in the light of the explanation below.
Imagine a group of friends scattered across different countries, each with their own unique skills and interests. They decide to collaborate on a big project, but coordinating everything seems daunting, and then they discover the Bittensor network.
With their discovered blockchain, each friend becomes a node, contributing their expertise and resources. One friend, let’s call her Rose, is a whiz at coding. She sets up her node to offer computational power for tasks on the network. Another friend, Bob, is great at data analysis. He joins the network to share his analytical skills.
As the project progresses, tasks are divided among the friends' nodes in the Bittensor network. Alice’s node crunches data, while Bob’s node analyzes the results. Along the way, they exchange tokens “TAO” as rewards for their contributions.
The uniqueness of Bittensor is that just like real-life collaborations, the friends reach consensus on the best approaches to tackle different aspects of the project. There’s no central authority dictating what they do; instead, they rely on the decentralized nature of the network to ensure transparency and fairness. Everyone contributing their own quota to the project.
In the end, these AI engineering friends are rewarded for their hard work and skill, allowing each friend to contribute their expertise and be rewarded for their efforts.
Bittensor TAO VS Bitcoin Blockchain
While bitcoin blockchain is a proof of work model, and also a network of computers working independently yet collaboratively to provide undisputed accuracy in asset management, Bittensor TAO is a proof of Stake and proof of intelligence model, a network of AI Models providing intelligence and related components for AI development.
In bitcoin blockchain, the work done by miners is the verification of transaction data, while in Bittensor Blockchain, it’s the verification of intelligence.
Bitcoin takes power out of centralized exploitative institutions, creating a decentralized open financial system. BITTENSOR TAO does same to Data giants, creating room for anyone to freely participate in creating AI products without inhibitions.
Who is the Founder of Bittensor TAO?
Everyone belives Jacob Robert Steeves and Ala Shaabana are the founders of Bittensor TAO, yet in the Bittensor TAO white paper, there is a pseudonymous founder of Bittensor TAO called “Yuma RAO”. Notwithstanding, records have it that these two ML research driven visioners remain the cofounders of Bittensor TAO.
History Of Bittensor TAO
Ala Shaabana was a popular researcher at Aidan Gomez’s Company called Cohere for AI before he crossed paths with Jacob Steeves who was working at Google under Eric Schmidt. These two ML experts were very instrument in launching Bittensor TAO ecosystem.
When Was Bittensors TAO Launched?
Bittensor TAO Blockchain was launched in 2019, after the cofounders became dissatisfied with the centralisation of AI Development. In 2019, Jacob Robert Steeves and Ala Shaabana launched the TAO ecosystem where collective intelligence will be rewarded, in a bit to encourage and reward Machine learning engineers who are willing to contribute their various AI Models to the development of the networks architecture.
What are The Core Feature of TAO Bittensor?
The features of Bittensor Tao is summarised in the following;
1. Collective Intelligence and Decentralization
Bittensor simplifies AI development by decentralizing control, shifting power from big corporations to individual developers. It turns digital resources like computing power and data storage into intelligence through peer-to-peer interactions. This makes AI model development cheaper, faster, and opens up endless possibilities.
2. peer-to-peer interactions on the Bittensor network.
Bittensor supports a wide range of AI applications, from training models to real-time data analysis. This unique capability not only speeds up knowledge sharing but also makes AI model development more cost-effective and opens up limitless possibilities through tokenization of intelligence.
3. $TAO, the native digital currency of the Bittensor network.
$TAO, Bittensor’s native currency, incentivizes the creation of top-notch digital goods within subnets. These subnets involve validators and miners striving to produce high-quality digital items off-chain. Contributors, be it data providers, model trainers, or algorithm refiners, earn $TAO tokens as rewards. These tokens are versatile, used to buy data, access AI models, or traded on crypto exchanges for cash.
3.Efficincy through language Flexibility and Architectural Designs.
Bittensor separates blockchain tasks from validation systems, unlike bitcoin and Ethereum, allowing efficient handling of complex operations. It makes validation more advanced and even easier since it’s validation systems can be programmed in languages like Rust, Python, or C++.
4. Perfect Incentive System
Bittensor has a fair reward system that stops cheating and ensures everyone gets rewarded properly. It uses advanced algorithm to judge everyone’s contributions, making sure rewards are fair for all. This helps create a real competitive vibe that pushes AI development forward.
5. Consensus Mechanism
If you’re wondering how Bittensor decides who deserves rewards. The Yuma Consensus (YC) is like Bittensor’s brain, handling this task. It works by getting validators to agree on who’s making valuable contributions whenever new data comes in. This keeps the evaluation fair and flexible, making sure everyone contributing to Bittensor, whether by creating new AI models or improving existing ones, gets fair recognition and rewards.
Bittensor TAO Versus Other Blockchain and AI Platforms
Bittensor is the only platform that unites all AI Models, operating in a competitive landscape that includes other notable platforms striving to optimize AI through blockchain.
Here are some other AI models compared:
OpenAI vs Bittensor TAO
Unlike Bittensor’s decentralized approach, OpenAI’s primarily focuses on centralized AI development, pushing the boundaries of AI capabilities through controlled environments. Bittensor’s decentralized model offers more opportunities for individual contributors to monetize their AI models directly on the blockchain, thus, promoting a more inclusive AI development environment.
SingularityNET vs Bittensor TAO
SingularityNET shares a similar vision with Bittensor in terms of decentralizing AI services but uses a different blockchain architecture. Bittensor’s integration of the Yuma Consensus and specific tokenomics provide a unique incentive mechanism that may offer greater scalability and security than SingularityNET.
Neuralink vs Bittensor TAO
Neuralink focuses on merging human cognition with AI through hardware, which is a different scope compared to Bittensor’s software-centric platform. So, Bittensor provides an accessible platform for users interested in purely software solutions to leverage AI without the invasive approach of hardware.
Google DeepMind vs Bittensor TAO
DeepMind operates as a highly centralized entity under Google’s umbrella, but with significant resources focused on cutting-edge AI research. However, Bittensor democratizes AI by allowing developers globally to contribute and benefit from AI advancements without the need for affiliation with a large corporation.
How to Use Bittensor for AI Development and Deployment
Bittensor offers a unique platform for developers looking to harness the power of decentralized AI. Here’s a simple run-down of how you can start using Bittensor effectively for your AI projects:
Getting Started with Bittensor
Setup: Begin by setting up your Bittensor node. You can do this by downloading the necessary software from the Bittensor website and following the installation instructions.
Documentation: Familiarize yourself with Bittensor’s comprehensive documentation, which provides guidelines on setting up environments, managing dependencies, and starting with basic tutorials.
Developing AI Models with Bittensor
Data Acquisition: Use Bittensor’s decentralized network to access a wide variety of datasets or contribute your own. This access to diverse data sources helps in training robust AI models.
Model Training: The computational resources of the Bittensor network are available for you to train your models. The network’s decentralized nature allows for scalable training processes without the need for expensive local hardware.
Deploying AI Models on Bittensor
Deployment: Once your model is trained, you can deploy it directly within the Bittensor network. This allows other users in the network to access and utilize your AI application in real-time.
Monetization: Set a usage fee for others to use your AI model. Bittensor’s tokenomics provides a seamless way to receive compensation directly through the network’s native cryptocurrency, $TAO.
Collaboration and Improvement of AI on Bittensor
Community Interaction: You can also engage with other developers in the Bittensor community through forums and collaborative projects to enhance your applications.
Continuous Learning: Keep your models updated and improve their performance by continuously learning from network interactions and feedback.
Securing Intellectual Property on Bittensor
You may already wonder: Does Bittensor own the AI developed and deployed on its network by its users? The answer is no. Bittensor operates with a clear policy that the creators retain ownership of their intellectual property. Bittensor’s platform has built-in security features with which users can protect their intellectual property rights as they develop and deploy AI models on the blockchain. Some of these features include Bittensor’s smart contracts for IP Management, encryption and data anonymity, decentralized validation, and transparent record keeping on its immutable ledger.
Technicality of Bittensor’s Blockchain Explained
The Bittensor ecosystem is a world where two revolutionary technologies, AI and blockchain, come together. It was originally supposed to be part of Polkadot as a parachain, but went ahead to make its own blockchain in March 2023. This move unlocked the power of cryptocurrency to reward AI nodes worldwide, highlighting its dedication to decentralized AI.
TAO’s Blockchain technology forms the foundation of Bittensor, guaranteeing transparency and security for everyone involved, whether as subnet owners, validators, or miners. The Bittensor ledger records all network transactions transparently, boosting platform security and trust.
The Bittensor’s blockchain Architecture
Tao is structured into four main layers:
- The miner layer
This is where miners create nodes by hosting and running their diverse AI models. In doing so, they contribute to the intelligence capacity of the ecosystem.
- The validator layer
This layer is saddled with the responsibility of maintaining the integrity of the system through consensus and established operations rules.
- The enterprise layer
This layer is responsible for commercializing the network’s AI capacity in building commercial applications.
- The consumer layer
This layer provide answers to queries imputed by end users. It provides access to generated intelligence across the network.
Bittensor Network Dynamics
In the Bittensor network, subnet mechanics shape the dynamics. Each subnet rewards participants with a single $TAO token, supporting various AI uses. Two main players are involved: validators and off-chain ML miners. They offer AI services by hosting and running models for tasks like data analysis and insight generation.
Becoming a miner in the network is open to anyone with the right gear and software, while becoming a validator typically needs holding a minimum of TAO tokens. The network uses Proof of Intelligence to reward nodes that provide helpful machine-learning models and results. Nodes show their competence by doing ML tasks, and if their results are good, they get picked to add a new block to the chain, earning rewards in $TAO tokens.
This diagram illustrates the fundamental operational flow within the Bittensor network
(1) Incentive Mechanism: Motivates subnet miners and validators by giving them rewards according to their contributions.
(2) Subnet Miners: Carry out functions like data processing and AI model training. They also link with the incentive mechanism, which drives their actions.
(3) Subnet Validators: Check and confirm the actions and contributions of subnet miners, maintaining integrity and adherence to network rules.
(4) Bittensor API: Enables communication between validators and the blockchain, ensuring smooth integration of network activities.
(5) Rewards Distribution: Handled by the Bittensor API, process and assigns rewards to miners and validators, encouraging continued and high-quality involvement.
Why $TAO Cryptocurrency Got Created
Integrating the $TAO Token within the Bittensor network is needed for the functionality of the ecosystem and incentives. $TAO serves as a valuable asset enabling access to services like AI model training, computational resources, and premium features. It also drives active participation by rewarding contributors such as data providers, model trainers, and validators. Again, staking $TAO enhances network security, as validators validate transactions and updates. Finally, holding $TAO grants governance hodlers participation, empowering users to vote on critical decisions shaping the network’s trajectory.
Tokenomics of Bittensor Tao
The economic structure and strategy of the Bittensor network are critical to its sustainability and appeal to investors. Bittensor’s native digital currency, $TAO, underpins all network transactions and incentives. $TAO tokens can be bought on crypto exchanges like Binance and MEXC. They can also be actively traded there.
Here’s a look at some of the key metrics that define Bittensor’s market performance and investment potential as at the time of writing this article.
Market Capitalisation of Bittensor TAO
Currently at $2.59 billion, the market capitalization of TAO tokens makes it the 47th largest cryptocurrency. Market capitalization is calculated by multiplying the current price of the token by its total circulating supply. This metric is vital as it reflects the total market value of the cryptocurrency, providing a quick measure of its overall market strength and size. For investors, a higher market capitalization can imply a more stable investment, as larger market cap currencies tend to be less volatile than those with smaller market caps.
Emission Timeline and Supply of Bittensor TAO
Maximum Supply: The total supply of $TAO tokens is capped at 21 million, similar to Bitcoin’s scarcity model, which is intended to prevent inflation and encourage value appreciation over time.
Emission Timeline: $TAO tokens are to be released over a span of 256 years, ensuring long-term support for the network’s operation. This gradual emission helps mitigate the risk of inflation and promotes steady growth in the token’s value.
Current Price and Valuation of Bittensor TAO- Bittensor TAO Price Prediction 2024
Current Price: Each $TAO token is currently valued at $382.56. The price of the Bittensor TAO, just like every other cryptocurrency is dynamic, influenced by both internal network factors and external economic conditions. Most crypto analysts and enthusiasts have predicted the price of TAO tokens to exceed a thousand dollars come 2025.
Fully Diluted Valuation of Bittensor TAO:
Reflecting the total value of all $TAO tokens at the current price, the fully diluted valuation is $8.04 billion. This figure is also very much important for investors as it represents the theoretical market cap of $TAO, assuming all coins are mined and in circulation.
Circulation and Liquidity of Bittensor TAO
Current Circulating Supply: About 6.77 million $TAO tokens, or 32.25% of the maximum supply, are currently in circulation. This aspect of tokenomics indicates how many tokens are actively being used and available for trading.
Trading Volume: The trading volume of $TAO, which ranks it 108th among all active cryptocurrencies on CoinMarketCap, indicates healthy liquidity. Liquidity is essential as it determines the ease with which tokens can be bought and sold at stable prices.
Token Distribution and Mining of Bittensor TAO
$TAO tokens can only be generated by network activities including mining and staking. At every 10.5 million blocks mined, halving occurs. Halving is planned across 45 years with a total of 64 halvings. This controlled supply mechanism ensures long-term sustainability and value appreciation of the tokens.
Miners play a crucial role in securing the network and validating transactions, for which they are rewarded with $TAO tokens. These rewards are distributed at a rate of approximately one TAO token per block, occurring roughly every 12 seconds, resulting in approximately 7,200 TAO tokens issued daily. This system incentivizes miners to continually contribute to network operations, bolstering its overall health and security.
How Can I Start Mining Bittensor?
To start mining Bittensor, you need a computer with internet access first. After which, you need to get the mining software from the official Bittensor TAO website. As soon as this is set up, you can start mining immidiately by contributing g to the network as occasion demands. As tasks are perform, you can track your earnings with the Bittensor mining calculator.
How To Stake Bittensor ($TAO)
Staking requires locking specific quantities of $TAO tokens to support network functions, enabling you to earn rewards. To earn more rewards by staking TAO tokens, you need to have these tokens first by either purchasing some from exchanges, or participation in mining. When you’ve acquired some of these tokens and have them in a Bittensor wallet that supports staking, you can then proceed to stake for more TAO token rewards that are shared regularly among stakers. You can decide to opt out at anytime after your staking period is complete.
Where and How to Buy Bittensor TAO
Bittensor is listed on almost all popular centralized crypto exchanges including Binance, MEXC, BYBIT, KuCoin, and Coinbase. Simply sign up to any of the supported centralized exchanges where Bittensor TAO is listed and purchase with either Crypto, or cash.
Otherwise, you can get Bittensor TAO on decentralized exchanges like uniswap with other crypto assets like USDT, as soon as you connect your dectralized wallets. It is necessary that you. Copy Bittensor TAO contract address from Coingevko or Coinmarket cap, to avoid being victims of fake TAO addresses.
Bittensor TAO Wallet
Bittensor TAO doesn’t have a dedicated wallet for safeguarding TAO tokens. You can keep your TAO assets in wallets that support Polkadot. An example is the Polkadot JS Wallet. Also, you can keep your Bittensor assets in extention wallets made for chromium browsers like Brave, or chrome. You can search for the Bittensor Wallet Extension, on chrome, install it, and set up your own wallet. Use your network address to receive Bittensor assets when you are all set up.
Feel free to visit the official Bittensor website for more details on the subject. Another resource that will smoothen your processes is the Bittensor Whitepaper called "Bittensor: A Peer-to-Peer Intelligence Market".
Also read official project documentation and tutorials if you encounter any difficulties during your set up process.
Finally, the best place to gain insights about any project is from its community. Join the TAO Bittensor community on Discord, Telegram, Medium, GitHub, LinkedIn, and X.
Conclusion
From all indications, Bittensor seem to be the next crypto project with great utility like Bitcoin and ETH. Nonetheless, like all other crypto projects challenges such as regulations, scalling solutions, and adoption hindrances would have to be solved.
Will Bittensor TAO stand the test of time? Let me hear your thoughts in the comment section.
Stay updated on the latest developments of decentralized AI as they unfold by liking and following this page.
Before you go kindly read!!
Are you in need of customized human written technical content on different topics? As a technical writer, I help companies, blogs, and website expand reach and traffic by providing well researched and detailed explanations of technical/financial subjects in form of SEO articles, Whitepapers, social posts, etc.
Reach out today for premium services at discounted prices.
