The AI Revolution and the Rise of Bittensor

The rapid development of artificial intelligence technology is leading us into a data-driven new era. Breakthrough advancements in fields such as deep learning and natural language processing have made AI applications ubiquitous. The emergence of ChatGPT in 2022 has further ignited the entire AI industry, followed by a surge of various AI tools such as text-to-video and automated office solutions. It is expected that by 2030, the market value of the AI industry will reach $185 billion.

However, the AI industry is currently dominated by a few tech giants, and this trend of centralization has also brought challenges such as data monopoly and uneven distribution of computing power. The decentralized concept of Web3 provides new possibilities for addressing these issues and is expected to reshape the current landscape of AI development.

Against this backdrop, a batch of Web3+AI projects has emerged. Among them, the Bittensor project has seized a key gap - by utilizing the competitive and incentive mechanisms of blockchain, it has built an AI algorithm platform with its own filtering mechanism, retaining the highest quality AI projects.

Bittensor is a decentralized incentivized machine learning network and digital goods marketplace. It operates on a distributed computing network, addressing issues such as data centralization. Its fair incentive mechanism ensures that network rewards are proportional to contributions. Bittensor also provides services to individuals in need of machine learning resources, forming a diverse digital goods trading market.

Unlike many high-valued VC projects, Bittensor is a more equitable and meaningful technology project. It was created by a group of technical experts driving a decentralized AI network, built on the Substrate framework. The project has gone through stages such as concept formation, technical validation, and network expansion, gradually introducing innovations such as the Yuma consensus and TAO token economic model.

The Bittensor token TAO is similar to Bitcoin in many ways, with a total supply of 21 million coins and a halving every four years. TAO is distributed through a fair launch, with no allocation reserved for the founding team and investors. Currently, a block is generated every 12 seconds, with each block rewarding 1 TAO, distributed to various subnets and their participants based on contribution.

The Bittensor network currently has over 100,000 accounts, of which more than 80,000 are non-zero accounts. In the past year, the TAO price has surged, currently with a market value of $2.278 billion and a coin price of $321.

The Bittensor protocol supports network participants in exchanging machine learning capabilities and predictions. The network consists of multiple subnets, employing a survival of the fittest mechanism. Subnets are the most critical part of the network architecture, including three types: local, testnet, and mainnet. Currently, there are a total of 45 subnets, expected to increase to 64 by mid-2024.

There are three roles in the subnet: subnet owners, miners, and validators. Subnet owners are responsible for providing the underlying code and setting up incentive mechanisms. Miners competitively iterate on servers and mining code. Validators measure subnet contributions and receive staking rewards. The subnet emission rewards are distributed to these three roles in the proportions of 18%, 41%, and 41%.

After the subnet registration, there is a 7-day immunity period, and the first registration fee is 100 TAO. When the positions are full, the subnet with the lowest issuance and not in the immunity period will be deleted to accommodate new subnets. Therefore, subnets need to strive to increase the staked amount of validators and the efficiency of miners to avoid being eliminated.

Bittensor adopts the innovative Proof of Intelligence ( PoI ) mechanism and Yuma consensus. PoI verifies the contributions of participants through intelligent computational tasks. Yuma consensus allocates rewards based on validator scores, ensuring data privacy and fair rewards. The network also introduces the MOE mechanism to integrate multiple expert models, enhancing overall performance.

Currently, the number of Bittensor subnets has reached 45, among which subnet 19, 18, and 1 are receiving more attention, mainly providing services such as image generation and text response. New registered nodes can achieve considerable daily earnings if they reach the average level. However, they also face fierce competition and need to continuously optimize to avoid being eliminated.

Looking ahead, the Web3+AI field is expected to maintain its popularity in the long term. Bittensor, with its unique architecture and technological innovations, provides a decentralized development path for AI projects. However, with the increase in the number of subnets, it also faces challenges such as declining revenues. The future development of the project still requires ongoing attention.