Bittensor (TAO): Pioneering Decentralized Machine Learning

Since 2023, AI (artificial intelligence) and ML (machine learning) algorithms have been taking the business world by storm. And even with the commence of the new year in 2024, the symbiotic integration of AI and ML continues to be a driving force, reshaping how businesses operate, make decisions, and engage with their customers. The blockchain industry isn’t indifferent to the current AI revolution we’re all witnessing. A number of crypto projects are actively leveraging AI and ML models to deliver decentralized, blockchain-based solutions.

One of the most exciting projects in this rapidly growing niche is Bittensor (TAO), a platform that can be described as a massive decentralized ML computer. More precisely, the Bittensor protocol is a decentralized machine learning network where miners provide access to their ML algorithms and models, while clients use the outputs of these algorithms and models for their own applications.

Key Takeaways:

• Bittensor is a decentralized marketplace that brings together providers and consumers of ML algorithms and models.

• It uses a competitive ML output selection process known as Proof of Intelligence (PoI), whereby the most accurate ML model out of many is provided to a client’s request. This helps consumers of ML access quality algorithms and also encourages R&D in the ML development field.

• Its native token, TAO, drives the entire Bittensor network. Like Bitcoin (BTC), TAO has a maximum supply of 21 million tokens.

What Is Bittensor?

Bittensor (TAO) is a decentralized machine learning protocol that acts as a marketplace for providers and users of algorithms in the domains of AI and ML. Miners provide the algorithms by contributing their processing power and ML models to the network. Clients who require ML algorithms as inputs for their own solutions pay in the protocol’s native crypto token, TAO, for access to them. Currently, clients can access ML models across more than 30 various domains, including some of the most popular ones such as text prompting, machine translation, data scraping, image generation, time series prediction and more.

Bittensor’s ML providers don’t operate in isolation. The models communicate over the network to exchange data and provide the best possible solutions to clients' queries.

A competitive process in action selects the best model when Bittensor’s miners handle client requests for ML computations. The miners’ individual solutions are assessed for the quality of the solutions provided. Those who consistently provide the most accurate solutions to client queries can expect more rewards from their work. This competitive process ensures clients can obtain the most accurate solutions to their ML queries.

Bittensor was originally built using Substrate, a blockchain development framework within the Polkadot (DOT) ecosystem. From its November 2021 launch to March 2023, the platform operated as one of the numerous parachains linked to Polkadot. Since March 2023, Bittensor has used its own blockchain network, which is optimized for ML computation and use cases.



What Does Bittensor Aim to Achieve?

The key aim of the Bittensor project is to make ML and AI models and algorithms available to a broader user base. While sophisticated AI and ML models are being introduced every month, access to them is often reserved for corporations with deep pockets and solid in-house expertise. By providing a decentralized and affordable network of ML algorithms, Bittensor democratizes access to these solutions, making them available for small businesses, technology startups, boutique analytics consultancies and even solopreneurs involved in the field of AI and ML technologies. As a result of opening the network to more people, AI and ML technologies will experience a rapid acceleration in growth.

Another aim of Bittensor’s platform is to provide ML computation without the need for massive hardware to handle it. In order to work effectively, ML models typically require a tremendous amount of computational power. By providing a decentralized platform where computation takes place on miners’ computers, Bittensor relieves clients from the need to own powerful (and expensive) hardware.

Finally, Bittensor promotes further R&D in the field of ML, thanks to the exchange of data between miners’ algorithms. The competitive nature of algorithm selection used by Bittensor improves the quality of ML output delivered to clients. It also helps miners improve their models through the learning and adaptation process.

How Does the Bittensor Protocol Work?

Providers of ML algorithms first need to join Bittensor by applying as miners. A miner on the protocol is somewhat different from the archetypical blockchain miner you would encounter on Bitcoin (BTC) or other networks with mineable cryptocurrencies. Miners on Bittensor mine crypto by providing their algorithms to clients’ requests. They do later participate in the block validation activity, but the actual consensus mechanism on the Bittensor network isn’t based on Bitcoin-style proof of work (PoW) mining.

After a node is registered as a miner, it’s assigned to a specific subtensor/subnet most relevant to the type of ML algorithms it provides. Bittensor offers a variety of subnets, such as text generation, text training, storage, audio, image generation, predictive analytics and more. When a client requires some ML computations, the request is directed to the subnet most aligned for the task. 

Client requests are processed in a distributed fashion, with multiple miner nodes interacting with each other and offering their inputs.

TAO Bittensor's Consensus Mechanism

Bittensor’s consensus mechanism can be described as a two-step process. First, there’s the consensus related to the best output provided to a client request. As noted earlier, Bittensor uses a competitive process called Proof of Intelligence (PoI) to select the most accurate model for a request. It rewards miners who contribute higher quality models to the network and, as a result, have a higher chance of being selected to validate transaction blocks. Given how computationally demanding machine intelligence algorithms are, successful miners are typically required to contribute a significant amount of processing power to the network.

The elements of a competitive race (on this platform, in the form of algorithm selection) and computational power expenditure make this first step of Bittensor’s consensus quite similar to PoW. A classic PoW system also features a race to solve a computational puzzle and significant processing power expenditures. However, this PoW-like step of Bittensor’s consensus isn’t designed to add validated blocks to the network’s ledger.

The actual block validation activity occurs in the second step of the overall consensus process. Miners selected at the first step (PoI) for their quality ML contributions get the chance to validate transaction blocks. The second step of Bittensor’s consensus represents classic proof of stake (PoS) validation. Miners need to stake their TAO funds on the platform to participate in block validation activity. Additionally, TAO holders can delegate their staked TAO to a subnet validator and earn a portion of their staking rewards.

The two-step consensus mechanism makes Bittensor a unique platform in the blockchain world. Very few chains or protocols are based on such a combination of what is essentially a “quasi-PoW” and a PoS algorithm.

Bittensor vs. Bitcoin

In addition to Bittensor’s PoW-like mechanism in the first step of its consensus process, it has also modeled its native cryptocurrency’s tokenomics to closely resemble those of Bitcoin. For these reasons, Bittensor is often compared to the world’s largest cryptocurrency network. However, the PoW process employed by Bittensor is very different from Bitcoin’s own PoW.

First of all, miners on Bittensor provide their computing power to enable ML algorithms on the network. In contrast, Bitcoin miners use their computational resources to solve a random puzzle. The laborious PoW process on Bitcoin is designed to secure the network against takeovers, prevent spam and add transaction blocks to the ledger. While all of these are noble responsibilities, mining activity on Bitcoin doesn’t provide any qualitative input into the system beyond ensuring its security and viability.

Secondly, Bitcoin miners add actual transaction blocks to the blockchain via the PoW process. Bittensor miners, whose primary role is to provide ML algorithms, might also end up validating blocks if they’re successful enough at the algorithm provision stage. Hence, the actual validation of blocks on Bittensor is based on PoS, not PoW.

It should also be noted that Bitcoin was created as a chain for secure, decentralized cryptocurrency transfers and storage, nothing more than that. On the other hand, Bittensor offers a platform that focuses on specific applications of AI and ML algorithms, not just asset transfers and storage.

What Is the TAO Token?

As the Bittensor platform's native cryptocurrency, the TAO token is a critical element of its ecosystem. Miners can earn TAO by providing their ML algorithms to client queries, and clients use TAO to pay for access to ML algorithms and processing. The token is also used in the staking process to validate transaction blocks. Miners selected as validators need to stake TAO in order to participate in generating blocks. Platform users can also delegate TAO to active validators to earn a share of block rewards.

TAO’s tokenomics closely resembles that of BTC. Like BTC, TAO is a capped crypto with a maximum supply of 21 million. Currently, the token’s total and circulating supplies stand at around 5.97 million. The entire supply of 21 million tokens is scheduled to be fully released via block rewards by 2046. And just as with Bitcoin, TAO has block reward halving built into its operational mechanism.

Currently, miners and validators share one TAO per block between them as a reward. The first halving event is scheduled to take place in September 2025, with subsequent halving events occurring every four years.



Staking TAO

Earlier, we noted that the last step of Bittensor’s consensus mechanism involves typical PoS validation. The platform also supports stake delegation. You can easily stake your TAO funds on the platform by delegating them to your preferred validator.

You don’t need to join the platform as a miner or user of ML algorithms to participate in staking. Anyone can acquire TAO tokens from the market and stake them via the delegation process to earn crypto rewards. One great feature of TAO staking is that it’s noncustodial, which means you can unstake at any time. Unlike many other PoS platforms, Bittensor staking involves no minimum lockup periods, which makes TAO staking very flexible.

If you choose to stake TAO, you’ll need to use one of the supported crypto wallets. Besides its own native wallet, as of mid-December 2023 Bittensor supports two others for TAO staking — Polkadot-JS and Talisman. 

Bittensor (TAO) Price Prediction

As of Jan 4, 2024, TAO Bittensor was trading at $246.46, or 37.3% lower than its all-time high of $394 achieved on Dec 14, 2023. That price is also 701.1% higher than its all-time low of $30.83, registered on May 14, 2023.

The token’s rapid ascent began in late October, buoyed by the increasing enthusiasm for AI-focused blockchain solutions. Between Oct 24, 2023, when the token traded at around $52, and Dec 14, 2023, TAO appreciated by 570%. Nevertheless, the bullish sentiment for Bittensor TAO has faded slightly since Dec 14, as its price has gradually declined from almost $400.

Long-term forecasts for TAO are bullish. DigitalCoinPrice predicts the token will rise to $654.29 in 2025 and $1,892.65 in 2030, while PricePrediction expects it to trade at $587.04 in 2025 and $3,912.78 in 2030. Nevertheless, if you plan to invest in TAO, it’s important to conduct comprehensive research and evaluate its growth potential before making your investment decision, despite the token’s current buoyant performance and confident long-term forecasts.

Closing Thoughts

Currently, AI and ML are probably the fastest-growing technological areas, and projects that synergize these technologies with blockchain are experiencing unprecedented growth. As one of the most innovative and sophisticated ML projects, Bittensor is among the biggest beneficiaries of this boom. The future looks bright for Bittensor and its TAO token. Because the current wave of AI and ML popularity is unlikely to abate any time soon, Bittensor’s platform is well-positioned to take advantage of current developments.

Bittensor’s key strength is that it isn’t just another venture jumping on the AI bandwagon. The platform offers a valuable and rare service that benefits both the end-users of ML algorithms and providers of the technology. Moreover, Bittensor advances machine learning science by allowing a decentralized exchange of data between model providers. ML models on the network communicate and learn from each other, improving their accuracy and capability. As such, Bittensor is quickly shaping up as one of the prominent forces at the junction of AI and blockchain. With the growing synergy between these technologies, we’ll likely hear more about Bittensor in 2024 and beyond.







#Bybit #TheCryptoArk