Bittensor (TAO) is a decentralized network that connects and incentivizes the development of machine learning models.
Artificial Intelligence (AI), now prominent around the world, helps power anything from chatbots to self-driving cars. However, AI’s potential remains largely untapped and can be limited by centralized control and siloed data. Bittensor aims to change this by creating a decentralized network for AI to help create a collaborative environment where machine learning models can interact and learn from each other.
To do this, Bittensor prioritizes machine learning collaboration where a network of interconnected AI models work together to solve complex problems and advance AI.
TAO, Bittensor’s native cryptocurrency is used for network participation and as rewards for those who participate in its decentralized governance.
Who created Bittensor (TAO)?
Bittensor was created in 2021 by the Opentensor Foundation, an organization founded by Jacob Steeves and Ala Shaabana. Steeves, the CEO, a machine learning and decentralized systems expert previously worked on projects related to distributed computing and AI. Shaabana has software engineering and blockchain technology background.
Unlike many crypto projects that rely on traditional fundraising models, Bittensor opted for a fair distribution approach for its native token, TAO. This model prioritizes community participation, ensuring a more equitable distribution of tokens and encouraging widespread adoption.
How Does Bittensor Work?
Bittensor is a decentralized network of interconnected machine learning models who contribute unique processing power to enable overall collective intelligence. Instead of having one central server that does all the work, Bittensor spreads the work across many different mining machines.
Miners, also called subnet miners, contribute their machine-learning models to the network, and are rewarded with TAO for their contributions.
Subnets
A subnet on the Bittensor network is a market where participants contribute their computing power to perform specific tasks, like responding to text prompts or providing storage space. There are two primary roles within a subnet:
- Subnet miners: Execute specific tasks assigned by the subnet validators and receive TAO rewards based on the quality of their work.
- Subnet validators: Providing tasks to miners and evaluating the quality of their results. They also earn rewards for ensuring overall subnet quality improvement.
Thus, a subnet is an environment where miners compete to provide the best results and validators oversee the process. This incentivized structure encourages participation and drives the advancement of the network's collective intelligence.
Yuma consensus mechanism
The Yuma consensus mechanism is a type of Delegated Proof of Stake (DPoS), and TAO token holders can delegate their tokens to trusted validators who produce blocks and uphold the integrity of the blockchain.
Yuma is used to determine reward distribution within each subnet by evaluating the performance of miners. Rewards are calculated and distributed according to these evaluations every 12 seconds.
How is the TAO token used?
TAO serves multiple purposes in the Bittensor Network.
Validators stake TAO to secure the network by validating transactions and earn rewards for their contributions. Other participants use TAO to pay for transaction fees when they perform network functions like registering a new AI model or submitting queries to subnets.
Additionally, TAO is used for governance within Bittensor, and token holders can vote on proposals that influence network upgrades, parameter changes, and funding allocations, among other things.
Token distribution
Bittensor's TAO has a capped supply of 21 million tokens, which are distributed through mining and validation.
Bittensor compensates miners who contribute computational power and innovative neural networks, and validators who ensure the integrity of the network.
The block reward is currently set at 1 TAO per block and is evenly split between miners and validators. The Bittensor protocol produces new blocks (and thusnew tokens) at a consistent rate. As of October 2024, 7,200 TAO are minted daily, an amount that will be reduced to 3,600 TAO per day following the first halving. The annual production of new TAO is automatically halved over time until the total supply reaches 21 million TAO.
Bittensor Network essentials
- Bittensor is a decentralized network that fosters AI model collaboration, overcoming centralized AI limitations by enabling models to interact and learn collectively.
- The network uses subnets where miners and validators collaborate, with the Yuma consensus mechanism ensuring fair reward distribution and blockchain integrity.
- TAO, Bittensor's native token, facilitates network participation, transaction fees, and governance, with a capped supply of 21 million distributed through mining and validation.