Bittensor’s TAO cryptocurrency is an innovative project at the intersection of blockchain and artificial intelligence (AI). This text is an overview of Bittensor, its vision, technology, and current trading data related to $TAO crypto coin.
Vision and Purpose of Bittensor
Decentralized AI: Bittensor aims to create a decentralized AI company, offering an alternative to the centralized control of technology giants. It addresses large technical barriers and seeks to be accessible to both technical and non-technical audiences.
Technological Innovation of TAO
- Beyond Bitcoin: While Bitcoin introduced the concept of decentralized currency and the original digital commodity market, Bittensor expands this concept. It is essentially a language for writing numerous decentralized commodity markets (‘subnets’) under a unified token system, aiming to direct digital market power towards AI.
- Functionality for Various Stakeholders: For developers, it provides a language to write markets for bespoke commodities like compute. For customers, it offers cheaper access to resources without intermediaries. The overarching goal is to create Machine Intelligence in an open and equitable manner.
- TAO Token: The TAO token is transferable and censorship-resistant, operating on a decentralized blockchain. Miners around the world work to reduce the cost of mining TAO, thereby contributing to the digital product of intelligence.
- Value-Creating Markets: Bittensor focuses on building value-creating markets, differing from Bitcoin’s focus on securing its network. It allows building multiple intertwined sub incentive systems with real-world value.
- Separation of Core Functions: Bittensor separates its chain’s core functioning from the running of validation systems. This allows for the use of various programming languages and off-chain tools, enabling data-heavy and compute-intensive operations.
- Yuma Consensus (YC): YC is the mechanism running on Bittensor’s chain, acting as a CPU. It transforms various incentive mechanisms into an incentive landscape, reaching consensus around probabilistic truths like intelligence.
Business and Ethical Implications
- Decentralized Organizations: Bittensor enables the creation of decentralized organizations, competing with large corporations by providing a unified token framework for AI, storage, and compute teams.
- Open Ownership and Control: It promotes open ownership systems, aiming to distribute control and ownership to a broad base, countering the risks of centralized control, especially around AI.
- Ethical Standpoint: Bittensor aligns with the ethos of decentralization, mirroring Bitcoin’s philosophy but extending it to digital resources like AI, emphasizing the need for decentralized control to prevent corruption and bias.
The Bittensor whitepaper presents a novel concept for a decentralized market for machine intelligence, leveraging peer-to-peer networking and blockchain technology. It proposes a framework where intelligence systems are measured and priced by other intelligence systems within the network. Peers in the network rank each other by training neural networks, with high-ranking peers rewarded monetarily. The system utilizes a digital ledger to accumulate scores and manage rewards, aiming to create a collectively run intelligence market that continually produces newly trained models and pays contributors who create value.
To prevent collusion and ensure honest contribution, Bittensor introduces an incentive mechanism that maximizes rewards for honestly selected weights, making the system resistant to collusion. The network operates through a stake-weighted machine learning objective, with the distribution of stake serving as an incentive for minimizing loss-objectives. The whitepaper also outlines methods for standardizing inputs and outputs, reducing network bandwidth, and extracting knowledge, thereby enabling the creation of a high-resolution intelligence market. This market rewards participants for producing and sharing knowledge, fostering a collaborative environment for machine intelligence development and application.
The Bittensor whitepaper outlines the concept of a decentralized market for machine intelligence, leveraging peer-to-peer networking and blockchain technology. Key points from the whitepaper are:
- Market for Intelligence: Proposes a market where machine intelligence is priced by other intelligence systems, with peers ranking each other and being monetarily rewarded for their contributions.
- New Measurement Framework: Suggests measuring machine intelligence by other intelligence systems, allowing for a broader application of intelligence, monetization of legacy systems, and niche opportunities for diverse systems.
- Network Composition: The network comprises multiple functions (peers) holding network weight (stake), aiming to minimize a loss-objective. The stake is distributed as an incentive to peers who help in this minimization.
- Incentive Mechanism: Introduces an incentive function to avoid collusion, rewarding peers based on their contributions to the network and their connectivity within it.
- Bonds for Incentives: Adapts the incentive mechanism with bonds to encourage the selection of correct weights and prevent collusion.
- Consensus and Network Operations: Details the process for running a peer in the network and reaching consensus. This involves data broadcasting, response integration, and using a gating function for input processing.
- Tensor Standardization and Conditional Computation: Standardizes inputs and outputs using tensor modalities and employs conditional computation to reduce network bandwidth and select peers.
- Knowledge Extraction and Learning Weights: Utilizes knowledge extraction techniques like distillation for offline model evaluation and learning weights to rank peers based on their information-theoretic significance.
- Addressing Collusion: Considers scenarios of collusion within the network and proposes methods to maintain honest network dominance and prevent dishonest behavior.
- Concluding Framework: Highlights the establishment of a collaborative and high-resolution intelligence market, rewarding participants for producing and sharing knowledge.
Trading Data (as of the latest update)
- Price and Market Data: The live price of Bittensor’s TAO is $333.16, with a 24-hour trading volume of $15,180,135. It has a market cap of approximately $1.74 billion, a circulating supply of 5,225,553 TAO coins, and a maximum supply of 21,000,000 TAO coins.
Bittensor, with its TAO cryptocurrency, presents a unique blend of blockchain technology and AI, focusing on decentralization and the creation of value-generating markets. Its approach to separating core blockchain functions from validation systems is a key innovation, aiming to democratize AI and computing resources while fostering an ethical, decentralized digital ecosystem.
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P.S. nothing here is financial advice. Purely educational content. The above links are affiliate.