Emerging in 2021 from former Google engineer Jacob Steve and blockchain entrepreneur Ala Shaabana, BitTensor combines decentralized blockchain technology with AI to create a network of competition-based markets called subnets. With high-profile backers like Barry Silbert and ex google figure heads, BitTensor uses its TAO token and novel Proof of Intelligence consensus to incentivize the development of advanced AI models. Let’s take a look…
BitTensor is a project that wants to combine blockchain and AI development as it operates as a decentralized network where AI models are deployed by miners across 93 subnets to compete based on specific criteria. From there validators assess these outputs, and miners earn TAO tokens relative to their performance.
Similar in a way that it can be dubbed as the “hunger games for AI”, it is a place where the best model earns the greatest rewards with the overarching goal to drive the top-performing AI models to the top.
Launched in 2021 by the Opentensor Foundation. The brains behind BitTensor is Jacob Steve, a former Google AI engineer and an avid supporter of Bitcoin and Ala Shaabana that took the underlying philosophies of Bitcoin and adapted them to the AI landscape. The project started initially on Polygon but shifted its focus to its own proprietary chain in March 2023.
One of the most notable supporters of BitTensor is Barry Silbert, the founder of Digital Currency Group (DCG), a major player in the cryptocurrency world. Another influential figure involved with BitTensor is David Lawee, former CMO turned VP at Google, and founder of Capital G, Google’s investment arm.
Lawee, alongside Ala Shabbana, co-founder of Open Tensor Foundation, established Crucible Labs to further support the growth of BitTensor subnets.
This review of Bittensor (TAO) was created for informational purposes. This article is not intended for promotion.
In crypto we don’t like centralization at all. We have the similar reaction of disgust when we take a look at the centralization level of AI nowadays. As we see that similar to big Tech companies, only a few are in control, and their concentrated power only will serve their own interest.
Among other bad things this can lead to scenarios where a small group of people might use AI technologies to dominate others or influence the collective consciousness.
A call for blockchain that hopefully can provide a decentralized framework where data is immutable and transparent and where all contributions could be recorded in a tamper-proof system. A decentralized AI…
To achieve this BitTensor works with a Proof of Intelligence (PoI) which is a new variant of a consensus mechanism that incentivizes nodes in its decentralized network and creates effective machine learning models.
Unlike traditional consensus models like Proof of Work or Proof of Stake, PoI focuses on evaluating and rewarding as an incentive mechanism. Instead of solving cryptographic puzzles like in Proof of Work networks, BitTensor nodes perform machine learning tasks.
In this way it is peer-to-peer evaluated where the quality of each node’s AI output is evaluated by other nodes on the network.
The BitTensor network is composed of multiple platforms called “subnets,” which are competition-based markets that anyone can create or join. Each subnet has a specific purpose and represents a different application that can be performed.
Imagine subnets as individual games within a grander arena, each with participants (miners) and judges (validators). Miners work on solving specific AI tasks, like predicting Bitcoin prices, and validators ensure the accuracy and quality of these solutions.
For example, BitTensor has the following subnets with each their functions such as…
Subnets are essentially small-scale AI projects or companies within the $TAO ecosystem. They operate like startups within a decentralized framework to secure funding and operational capabilities through $TAO tokens. Similar to VC-backed AI companies in the traditional corporate world.
Subnets have subnet tokens that are at this time only available on the BitTensor platform. But given the rising interest and validation from platforms like crypto exchanges such as Kraken, it’s plausible that we might soon see subnet tokens listed.
BitTensor has also integrated Ethereum Virtual Machine (EVM) compatibility into its Subtensor blockchain. This allows developers to deploy Ethereum-based smart contracts and decentralized applications on BitTensor’s infrastructure.
This hopefully overcomes previous limitations so that applications can operate more efficiently by reducing transaction costs and improving transaction speeds.
Alongside the subnets, there are also some tools that can be handy when understanding BitTensor. These include;
Taohub: TAO token tracking and network monitoring
The BitTensor platform uses TAO tokens to reward miners and validators for their contributions to the network’s intelligence and a weight for decentralized governance.
With the total supply of TAO tokens is 21 million, and with half of the total TAO supply that has been issued, the rate at which new TAO are created will be reduced by 50% (BitTensor Halvening).
TAO was launched without pre-mined tokens or ICOs, and the transaction cost is 0.000000150 TAO.
Unlike many other cryptocurrency projects, BitTensor did not engage in any pre-mining, initial coin offering (ICO), or allocating tokens to insiders, advisors, or venture capitalists. Instead, every single TAO token is earned by miners and validators who contribute their machine intelligence to the network; this also means BitTensor’s token distribution does not follow a traditional vesting schedule.
Staking TAO tokens on the BitTensor network allows holders to support network security and operations while earning rewards. Users can either run a subnet validator node or delegate their tokens to existing validators for staking, with no lock-up period;
The Dynamic Tao update has simplified the incentive structure but also ensures that subnet owners are motivated to focus on broad market appeal rather than narrow interests.
BitTensor aims high as it wants to findIn a way to create a ‘digital hive mind,’ or global neural network that grows and improves AI through collective contributions of its participants.
However the competition within subnets to produce the best outputs makes sense if properly implemented. But problems arise when this competition extends horizontally across different subnets, which must compete for a larger share of inflation rewards.
There are doubts about the ability of BitTensor subnets to compete in core generative AI tasks against open-source projects. For instance, another large language model, which is freely available, sets a high standard that BitTensor subnets currently do not surpass.
Although BitTensor offers some level of decentralization, it is important to note that it is not open source. While participation in a subnet is open to anyone, the internal mechanics are not transparent.
Although this doesn’t stop them from chasing their own vision, as they want to achieve true decentralization without any dependency on its original creators or any central foundation.
The goal is for BitTensor to function autonomously. And even the long-term dream for BitTensor, looking 20 to 25 years ahead, is for it to become as ubiquitous as the internet or TCP/IP. We’ll see how that turns out…
For those new to the BitTensor ecosystem, starting small is advisable. Initially, acquiring some Tao tokens—the primary currency of the BitTensor network—can provide a foundational understanding of the system’s mechanics. As investors become more familiar with Tao, they can explore investing in subnet-specific alpha tokens.
Like any investment in the crypto space, engaging with BitTensor and its subnets carries risks. The volatility is substantial, and while the rewards can be high, the value of investments can also fluctuate widely.
BitTensor represents a significant step forward in combining blockchain technology with AI to solve complex problems. It is the biggest project that focuses on making AI more decentralized and becoming the hub for AI in crypto.
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