Bittensor

Bittensor Overview

• Open-source protocol for AI development through blockchain incentives.
• Decentralized network where Miners host and collaborate on Machine Learning (ML) models.
• Functions as an on-chain oracle connecting off-chain ML nodes

What is Bittensor?

Bittensor is an open-source protocol designed to drive AI development through a blockchain-driven incentive infrastructure. It functions as a decentralized network where Miners host ML models, collaborate, and learn from each other. This network operates as an on-chain oracle that connects and orchestrates off-chain ML nodes. The result is a mixture-of-experts (MoE) network, where multiple models optimized for different capabilities are combined to create a more powerful overall model.

How Does Bittensor Work?

Bittensor operates as a decentralized mixture-of-experts (MoE) network. It is not "on-chain ML" but rather a network of Validators connecting and orchestrating off-chain ML nodes (Miners). This setup creates a robust ML architecture where multiple models optimized for different capabilities are combined to form a stronger overall model.

What makes Bittensor unique?

AI Legos

Bittensor's "AI legos" approach allows for the rapid scaling and compounding of AI capabilities. This concept is similar to the "money legos" architecture that drove innovation in decentralized finance (DeFi). By enabling incremental resources to be added to the network, Bittensor can scale its AI capabilities much faster and more efficiently than traditional, siloed models.

Market Opportunity

The potential market for AI and ML technologies is enormous, with estimates suggesting it could reach $1.6 trillion and $305 billion, respectively, by 2030. Bittensor's unique approach positions it well within this landscape, and offers a competitive edge over other decentralized ML compute solutions like Gensyn, which do not utilize a MoE model.

Tokenomics

Total Supply: 21,000,000𝞃

Launch History: Initially launched as Kusangi on January 3, 2021, halted in mid-May 2021, and migrated to Nakamoto on November 2, 2021. The Finney network was launched on March 20, 2023.

Halvening: The total token issuance determines the halvening point. TAO used for recycling registrations is burned back into the unissued supply, leading to a lengthening halvening date. The next halvening is scheduled for November 12, 2025.

Block Rewards: A block is mined approximately every 12 seconds, rewarding miners and validators with 1 TAO per block. This results in 7,200 new TAO being issued into circulation every 24 hours, split evenly between miners and validators. Once half of the total supply is issued, the issuance rate is halved. With 12 seconds per block, this leads to a halvening approximately every 4 years. Each subsequent halvening event occurs at every half marker of the remaining amount to be issued until all 21 million TAO are in circulation.