Bittensor (TAO): The World's First AI-Powered Neutral Internet

Bittensor (TAO): The World's First AI-Powered Neutral Internet ChatGPT has introduced how Artificial Intelligence (AI) capabilities can be implemented in various sectors and make work in those sectors easier.

Along with the growth of AI, opinions regarding its future are also still mixed, ranging from stating that AI will replace human jobs to AI will co-exist with humans.

While the opinions surrounding it are still mixed, it cannot be denied that the potential of AI is still very significant and could create industries worth trillions.

As a crypto enthusiast, you must be thinking about how crypto can fit into the AI narrative and what crypto projects have already adopted AI to utilise its potential.

In this article, we will discuss one crypto project that will answer these thoughts, which is capitalising on the early momentum of AI that sets it apart from the majority of crypto projects.

What is Bittensor?

Bittensor is a project that focuses on creating a neutral internet ecosystem, where AI-based applications can collaborate with each other to maximise their goals.


This project is a protocol that is useful for uploading, downloading, sharing, and storing all things related to AI implementation mechanisms so that they can be accessed by everyone.

The trick is to form a decentralised network containing all things related to AI implementation, such as code, data, and algorithms, where all these things will be treated as commodities that can be traded.

Through this commoditisation process, users can exchange through trading or free sharing in order to implement the mechanisms obtained into their own AI to create better AI.

In simple terms, Bittensor will act as a marketplace, similar to Tokopedia or Shopee, but will only focus on things like code, data, and algorithms, which can be implemented into each other's AI.

Not only these raw components, Bittensor also provides a platform for service transactions such as data storage and machine learning development services.

Everything is done through a decentralised network like any other blockchain, where everything happens in a decentralised manner so that all goods and services transacted are transparent but with encryption only for the transacting parties.

In addition, Bittensor has its own token called TAO that investors can use for various things in its ecosystem.

Components of the Bittensor Protocol Infrastructure

Bittensor consists of several components that make up its overall network and infrastructure. There are seven main components that make up Bittensor to become an innovative protocol in the AI world.

1. Network Architecture
The first is the network architecture where like any other blockchain, Bittensor also contains nodes called miners that keep the network alive.

Each node runs the Bittensor client software just like the majority of nodes on the blockchain, so all nodes can communicate with each other.

2. Registration Process
Bittensor operates on a registration system, where nodes that wish to participate in the network must either register by solving a mathematical problem similar to Bitcoin's Proof of Work blockchain, or pay a registration fee.

3. Subtensor
After successfully registering, nodes will be assigned to a subnet, which are specialised networks that are divided according to use within the overall Bittensor network.

Bittensor operates on a subnet system where there are multiple small networks within one large network, each of which has its own function. These small networks are called Subtensors.

Each subtensor or small network has nodes that are different from each other, so that all processes are fair and no node can move in multiple places.

4. Validator
Outside of these nodes that act as miners, there are validators that act as a place to validate the data provided by miners.

Validators ensure that all data, code, and everything that is transacted changes hands accurately so that no user is disadvantaged.

5. Miner
Miner in Bittensor provides machine learning services by storing and sharing machine learning models on the network and its local memory storage.

When a user requests a prediction model from the machine learning service, the miner sends a request to the Bittesor network. Then the majority of nodes or miners in the network search for subtensors that are suitable for the user's model request.

Once found, the nodes or miners from the specified subtensor will send the data or model request requested by the user, so that the user can implement the data or model request to his AI or personal application.

6. Consensus Mechanism
Bittensor uses a consensus mechanism called Yuma which later turned into Proof of Intelligence. This mechanism is a combination of Proof of Work and Proof of Stake.

This mechanism ensures that all transactions occur securely and there are no defects in any transaction that occurs.

The goal of creating this mechanism is to ensure the security of Proof of Work but the scalability, efficiency, and fairness to nodes of the Proof of Stake mechanism.

This mechanism is the reason why there are miners and validators that operate separately in the Bittensor network, as it aims to combine both the network drivers of Proof of Work and Proof of Stake.

7. Miner and Validator
Incentives All miners and validators in the Bittensor network are rewarded for their contributions to the network.

The incentive or reward given to miners and validators is TAO, the official token of the Bittensor ecosystem.

TAO is the main transaction tool in the Bittensor ecosystem, so not only is it used as a reward, TAO is also used as a means of payment for network users.

Who are the Founders of Bittensor?

The founder of Bittensor operates anonymously under the pseudonym Yuma Rao, which is also the basis of the name of the consensus mechanism that Bittensor used before the current mechanism.

While the founder is unknown, Bittensor has a team operating under the name Bittensor Foundation.The team contains several individuals with experience in the tech, AI, data, and machine learning industries.

Some notable names are Ala Shaabana who has a doctorate in computer science and is a researcher in the field of machine learning, with work experience in several well-known companies such as Instacart and VMware.

Jacob Steeves is also one of the well-known names in the Bittensor team with a bachelor's degree in maths and computer science and a researcher in machine learning with experience at Google.

The Bittensor team ensures that the project continues to be successful and adopts all new innovations in the field so that it can continue to grow and develop according to the industry and user needs.

TAO Token

As previously mentioned, Bittensor operates with its usability token called TAO.

TAO has a fixed supply of 21 million and is like Bitcoin in that it will halve every four years.

This means that every four years, the amount of TAO entering the market will be halved compared to the previous four years, making the rewards for validators and miners continue to decrease every four years.

For now, for every block created, one TAO will be distributed as a reward to miners and validators every 12 seconds, where 0.5 TAO will go to miners and 0.5 TAO will go to validators.

The purpose of this mechanism is to create a fair but slow inflationary system so that the value can continue to appreciate normally.

The amount of TAO in circulation is currently at 3.4 Million TAO or about 16% of the entire TAO supply.

To facilitate the appreciation of the value of TAO and reduce inflation, Bittensor introduced a locking system for TAO owned by validators and miners.

The higher the amount of TAO locked, the higher the rewards for validators and miners will be, reintroducing Bitcoin's node system where the higher the capital, the higher the rewards, but by locking TAO instead of computing power.

Understanding AI Challenges

One of the challenges for the growth of the AI industry today is that all high-performance and high-performance AI is only circulating among large companies and institutions, due to cost and access restrictions.

Ala Shaabana, co-founder of Bittensor, emphasises two main problems with the current AI industry.

Firstly, there is a lack of collaboration between AI algorithm creators, resulting in individualisation and limited growth.

The second is the lack of computational capability that limits many parties from accessing higher AI capabilities.

Bittensor emerges to solve these problems so that everyone can gain access to AI, opening up space for more AI-based innovation and faster growth in the AI industry.

Through the collaboration and decentralisation system, as well as the computational sharing system brought from the public blockchain mechanism, all the problems Ala Shaabana mentioned earlier, can be solved through Bittensor.

Conclusion

Bittensor is one of the noteworthy innovations in the AI industry as it combines blockchain and crypto mechanisms to defeat the centralised and individualistic nature that hinders the growth of AI today.

While still in its early stages, Bittensor has high potential with long-term goals, making it a project to watch for long-term investment.

But keep in mind, with high potential comes high risk, so investors need to maintain risk management and use a good long-term investment strategy along with the project's growth.