The AI Revolution and the Rise of Bittensor

Rapid Development of AI Technology

In recent years, artificial intelligence technology has developed rapidly, achieving significant breakthroughs in fields such as deep learning and natural language processing. The emergence of ChatGPT in 2022 has sparked a surge in the AI industry, with various AI applications springing up like mushrooms after rain. It is expected that by 2030, the AI market size will reach $185 billion.

However, the AI industry is currently mainly monopolized by a few tech giants, leading to issues such as data centralization and uneven resource allocation. The decentralized concept of Web3 provides new ideas for addressing these challenges. Against this backdrop, a number of high-quality Web3+AI projects have emerged, among which Bittensor stands out by building an AI algorithm platform with an inherent screening mechanism through blockchain technology.

Bittensor: The Pioneer of Decentralized AI Networks

Bittensor is a decentralized machine learning network and digital goods marketplace. It has the following features:

• Decentralized architecture solves issues such as data centralization.
• Fair incentive mechanism, rewards are proportional to contributions
• Provide machine learning computing resources for individuals
• Support diversified digital commodity trading

Bittensor was founded in 2021 by a group of technical experts, using the Substrate framework to build the blockchain. The development history of the project is as follows:

• 2022: Released Alpha version, validated feasibility; introduced Yuma consensus.
• 2023: Release of the Beta version and launch of the TAO token incentive model.
• 2024: Introduce DHT technology to improve data storage efficiency; begin expanding subnet ecosystem.

Bittensor adopts a fair distribution model, with no pre-mining, and a total supply of 21 million TAO. Currently, 7,200 TAO are produced daily, distributed to various subnetworks and their participants based on contribution.

As of now, the Bittensor network has over 100,000 accounts, of which 80,000 are active accounts. The price of TAO tokens has surged in the past year, with a current market value of approximately $2.278 billion and a coin price of $321.

Subnet: The Core of the Bittensor Ecosystem

The Bittensor network consists of multiple subnets, each with unique functions and incentive mechanisms. The main roles in the subnet are:

• Subnet owner: provides the basic code and sets the incentive mechanism.
• Miner: Run servers, participate in competition
• Validator: Evaluate subnet contributions to earn staking rewards

The ranking of subnets depends on the amount of staked tokens by validators and the efficiency of miners. New subnets have a 7-day immunity period, after which they may be replaced by new subnets with higher rankings. Currently, there are a total of 45 subnets, which are expected to increase to 64 between May and July this year.

Innovative Consensus and Proof Mechanism

Bittensor employs various mechanisms to ensure network security and efficiency:

• PoI( Proof of Intelligence ): Miners prove their contribution by completing intelligent computing tasks.
• Yuma Consensus: Distributing rewards according to validator ratings, protecting privacy.
• MOE mechanism: integrates multiple expert models to collaboratively solve problems

Popular Subnet Projects

The currently popular subnet includes:

• Vision(19 No. ): Decentralized image generation, daily income approximately $866/node
• Cortex.t(18 No. ): AI platform, providing text and image APIs, daily revenue approximately 554 USD/node
• Subnet 1: The earliest text generation subnet

Other subnet projects include data processing, trading AI, and other types.

Future Outlook

Bittensor, as a representative project of Web3+AI, has a broad prospect:

• The concept of AI continues to be popular, attracting a large amount of funding.
• The unique subnet architecture lowers the migration threshold for AI projects.
• The competition elimination mechanism promotes continuous optimization of subnets.

But there are also risks:

• The increase in the number of subnets may dilute earnings.
• Be cautious of low-quality projects entering.

Overall, Bittensor has pioneered a brand new decentralized AI ecosystem model that is worth keeping an eye on for its development.