AI Revolution and Bittensor: Reshaping Collective Intelligence Networks

Background of the AI Revolution

The rapid development of artificial intelligence technology is leading us into a data-driven new era. Breakthroughs in areas such as deep learning and natural language processing have made AI applications ubiquitous. The birth of ChatGPT in 2022 ignited the AI industry, resulting in a series of AI tools such as text-to-video and automated office solutions. The market value of the AI industry has also skyrocketed, with an estimated value of $185 billion by 2030.

However, the AI industry is currently dominated by a few tech giants, which brings challenges such as data centralization and uneven distribution of computing resources. The decentralization concept of Web3 provides new possibilities for addressing these issues. Against this backdrop, a number of high-quality Web3+AI projects have emerged.

Bittensor seized this opportunity to build an AI algorithm platform with a built-in filtering mechanism through competitive and incentive mechanisms of blockchain, aiming to retain the highest quality AI projects.

Bittensor Development Context

Bittensor is a decentralized incentivized machine learning network and digital goods marketplace. It operates on a distributed computer network, addressing issues such as data centralization. The network rewards subnets and nodes through a fair incentive mechanism, providing services to individuals in need of machine learning resources.

Unlike many highly valued projects, Bittensor is a more fair and meaningful geek project. Its development history includes:

• 2021: Created by technology experts, built on the Substrate framework.
• 2022: Released Alpha version, validated the feasibility of decentralized AI
• 2023: Launch of the Beta version, introduction of the token economic model TAO
• 2024: Integrate DHT technology to improve data storage efficiency

The total supply of Bittensor's token TAO is 21 million, halving every four years. The tokens are distributed through a fair launch, with none reserved for the team and investors. Currently, a block is generated every 12 seconds, with each block rewarding 1 TAO.

As of now, the total number of accounts on the Bittensor network has exceeded 100,000, with the number of non-zero accounts reaching 80,000. The price of the TAO token has increased several times in the past year, with a current market capitalization of $2.278 billion and a coin price of $321.

Subnet Architecture

The Bittensor protocol is a decentralized machine learning protocol that allows network participants to exchange machine learning capabilities and predictions. The network consists of a set of nodes managed by subnetworks, employing a mechanism of survival of the fittest.

Subnets are the most important component of the Bittensor network and can be seen as independently running code that establishes unique user incentives and functions. Currently, there are 45 subnets, and this is expected to increase to 64 by July 2024.

The subnet includes three roles: subnet owners, miners, and validators. The subnet emission is the reward distribution mechanism, with generally 18% allocated to subnet owners, 41% to validators, and 41% to miners. The subnet needs to continuously improve the staking amount of validators and the efficiency of miners to avoid being eliminated.

Consensus and Proof Mechanism

The Bittensor network employs multiple consensus mechanisms, including:

• PoI mechanism ( intelligence proof ): Miners prove their contribution by completing intelligent computing tasks.
• Yuma Consensus: Validators score based on task completion and input into the consensus algorithm.
• MOE mechanism: integrates multiple expert-level sub-models to work collaboratively and improve efficiency.

These mechanisms ensure the security of the network, the quality of data, and the efficient utilization of computational resources.

Main Subnet Projects

Currently, Bittensor has 45 registered subnets, among which subnet 19, 18, and 1 are receiving significant attention:

• Vision 19: Focused on decentralized image generation and inference
• 18th Cortex.t: Build cutting-edge AI platform, providing text and image response
• Subnet 1: Decentralized subnet for text generation

The daily earnings of these subnets are considerable, but new nodes need to use high-performance equipment and optimize algorithms to survive in the competition.

Future Development

Bittensor, as an innovative project in the Web3+AI field, has the following advantages and challenges:

• The popularity of AI concepts continues to rise, with a broad market outlook.
• The project architecture combines both technical and market support.
• The subnet mechanism reduces the difficulty for AI teams to migrate to decentralized networks.
• The competitive elimination mechanism encourages projects to continuously optimize.

However, as the number of subnets increases, it also faces the risks of project quality control and declining returns. Bittensor needs to seek a balance between expansion and quality to maintain long-term competitiveness.