The AI Revolution and the Rise of the Bittensor Network

The rapid development of artificial intelligence technology is leading us into a brand new data 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 sparked a boom in the entire AI industry, followed by a surge of various AI tools, such as text-to-video and smart office solutions. The market value of the AI industry is also showing explosive growth, expected to reach a scale of 185 billion dollars by 2030.

However, the current AI industry is mainly dominated by a few tech giants, such as Nvidia, Microsoft, Google, and others. While technological advancements have brought about challenges like data monopolies and unequal distribution of computing resources. The decentralized philosophy of Web3 offers new ideas for addressing these issues and is expected to reshape the landscape of AI development.

In this context, a number of high-quality Web3+AI projects have emerged. Among them, the Bittensor project is unique, creating an AI algorithm platform with built-in screening capabilities through a competitive incentive mechanism of blockchain, providing fertile ground for retaining the best AI projects.

Bittensor is a decentralized machine learning network and digital goods market. It operates on a distributed computer network, effectively addressing issues such as data centralization. Its fair incentive mechanism ensures that the contributions of subnets and nodes are proportional to their rewards. Bittensor also provides individuals with machine learning computing resources and builds a diverse digital goods trading market.

Unlike many high-valued VC projects, Bittensor is more like a geek project with a more pragmatic development history. The project was launched in 2021, released the Alpha version in 2022 to verify technical feasibility, launched the Beta version in 2023, and introduced a token economic model, and in 2024, further improved the technology and expanded application scenarios.

The token TAO of the Bittensor network is similar to Bitcoin in many ways, with a total supply of 21 million coins and a halving event every four years. TAO is distributed through a fair launch, with no pre-mining or team allocation. Currently, a block is generated every 12 seconds, and each block rewards 1 TAO. These rewards are distributed among the subnetworks based on their contributions, and then allocated to the owners, validators, and miners.

The total number of accounts on the Bittensor network has exceeded 100,000, with 80,000 non-zero accounts. Over the past year, the price of TAO has increased by several dozen times, and its current market value is $2.278 billion, with a unit price of $321.

The core of Bittensor is its unique subnet architecture. Subnets can be seen as independently operating code units that establish specific incentive and functional rules while maintaining the same consensus interface as the mainnet. Currently, there are 45 subnets in addition to the root subnet, and this is expected to increase to 64 by May to July 2024.

The subnet includes three roles: owners, miners, and validators. Owners are responsible for providing the underlying code and setting the incentive mechanisms. Miners enhance competitiveness by continuously optimizing the code. Validators are responsible for evaluating the contributions of the subnet and receiving corresponding rewards. The subnet emission rewards are generally distributed to owners, validators, and miners in the ratio of 18%, 41%, and 41%, respectively.

After the subnet registration, there is a 7-day immunity period, and the first registration fee is 100 TAO. When all slots are filled, the new subnet will replace the one with the lowest emission that is not in the immunity period. Therefore, the subnet needs to continuously improve the validator staking amount and miner efficiency to avoid being eliminated.

The Bittensor network employs various innovative consensus and proof mechanisms. Among them, the Proof of Intelligence ( PoI ) mechanism validates participant contributions through intelligent computing tasks. The Yuma consensus allocates rewards based on validator ratings and staking amounts, while ensuring data privacy. Additionally, the MOE mechanism integrates multiple expert models to optimize overall performance.

Currently, in the Bittensor subnet, the 19th Vision, 18th Cortex.t, and 1st text generation subnets are the most关注, with emission shares of 8.72%, 6.47%, and 4.16% respectively. These subnets generate considerable daily returns, but competition is also intense, requiring continuous optimization to avoid being eliminated.

Looking to the future, the Web3+AI field is expected to maintain its popularity in the long term. Bittensor, as a project with both technical strength and market recognition, offers a unique subnet architecture that provides AI teams with an easy entry into the decentralized network. However, with the increasing number of subnets, it also faces challenges such as revenue dilution. The future development of the project still requires continuous attention.