Bittensor

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This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Bittensor?

Bittensor (TAO) is a decentralized, open-source, and permissionless machine learning network that transforms machine intelligence into a tradable commodity. It creates a peer-to-peer marketplace where AI models are shared, trained, and ranked by value, incentivizing collaboration and innovation in AI development. The TAO token is used for rewards, staking, governance, and payments within the network, fostering a decentralized economy for AI development.

How is Bittensor used?

Bittensor (TAO) is a decentralized machine learning protocol that uses its native token, TAO, for various purposes within the network. Here are the key ways TAO is used:

  1. Governance: TAO tokens are used to vote on proposals and changes to the Bittensor network, ensuring decentralized decision-making.

  2. Staking: Users can stake TAO tokens to participate in the consensus mechanism and earn rewards, contributing to the network's security and validation.

  3. Payment: TAO tokens are used as a means of payment for accessing AI services and applications built on the Bittensor network. This includes purchasing machine learning models and other AI-related services.

  1. Transaction Fees: TAO is used to pay for transaction fees and smart contract execution within the network, facilitating the exchange of machine learning models and services.

  2. Incentivization: TAO tokens are rewarded to users who contribute valuable data or computational resources to the network, incentivizing participation and driving innovation.

  3. Validation: Validators use TAO tokens to validate the responses and predictions provided by miners, ensuring the integrity and quality of the data and models being exchanged within the network.

These uses of TAO tokens create a robust and incentivized ecosystem for decentralized machine learning, fostering collaboration and innovation within the Bittensor network.

How do I store Bittensor?

To store Bittensor (TAO) tokens securely, you can follow these steps:

  1. Create a Hardware Wallet:

    • Use a factory reset smartphone to create a DIY hardware wallet. This ensures your keys are generated offline, reducing the risk of exposure to the internet.
    • Download the Polkadot Vault app and generate your public and private keys. Store the 24-word mnemonic securely, as it serves as your private key to access the wallet.
  2. Use a Software Wallet:

    • Install the Bittensor Wallet Chrome Extension. This will create a wallet account address and provide a 12-word mnemonic, which you must keep safe to prevent unauthorized access to your TAO tokens.
  3. Store Mnemonics Safely:

  • Always keep your mnemonic in a secure location, known only to you. Losing the mnemonic can result in the loss of your TAO tokens.
  1. Use a Ledger Device:

    • You can also store your TAO tokens using a Ledger device with the Xverse wallet, ensuring secure management of your assets.
  2. Additional Options:

    • For more decentralized storage, consider using a Keystone hardware wallet or other hardware wallet solutions.

By following these steps, you can securely store your Bittensor (TAO) tokens and protect your assets from unauthorized access.

How to buy Bittensor?

To buy Bittensor (TAO) tokens, follow these steps:

  1. Choose a Crypto Exchange: Select a reputable cryptocurrency exchange that supports Bittensor (TAO) trading. Popular options include KuCoin, Binance, CoinEx, gate.io, and MEXC.

  2. Create an Account: Register on the chosen exchange by providing your email address, mobile phone number, and country of residence. Create a strong password and ensure account security by setting up Google 2FA, anti-phishing code, and trading password.

  3. Verify Your Account: Complete the Know-Your-Customer (KYC) process by submitting personal information and a valid Photo ID. This step is necessary to increase withdrawal limits and unlock additional features like crypto loans and staking.

  1. Add a Payment Method: Add a credit/debit card or bank account to your verified exchange account. This will enable you to deposit funds and purchase Bittensor (TAO).

  2. Buy Bittensor (TAO): Use your deposited funds to buy Bittensor (TAO) on the exchange. You can do this by transferring stablecoins like USDT to the exchange and then exchanging them for Bittensor (TAO) on the spot market.

  3. Store Your Bittensor (TAO): You can store your Bittensor (TAO) in your exchange account or withdraw it to a non-custodial wallet for greater control over your private keys.

Remember to research each exchange's fees, security features, and supported currencies before making a purchase.

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History of Bittensor

Bittensor, also known as TAO, was founded by Jacob Robert Steeves and Ala Shaabana with the goal of creating a decentralized market for machine intelligence. The platform aims to bridge the powers of artificial intelligence (AI) and blockchain technology, providing a peer-to-peer ecosystem where users can create, train, and share machine learning models.

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How Bittensor works

Bittensor (TAO) is a decentralized blockchain network designed to foster the development, training, sharing, and trading of artificial intelligence (AI) and machine learning (ML) models. Here's a detailed overview of how it works:

Network Architecture

Bittensor operates as a decentralized network, similar to a global brain, where each node or "neuron" represents a distinct machine learning model. These models collaborate across the network, processing information and providing intelligent responses, facilitating a communal approach towards AI and ML advancements.

Registration and Subnets

To participate in the Bittensor network, users register a hotkey by solving a proof of work (POW) or paying a fee. Once registered, a node becomes part of a subnet, which is a specific domain or topic within the network. Each subnet has its own set of registered nodes and associated machine learning models.

Validators and Miners

Validators play a crucial role in the network. They validate the responses and predictions provided by the miners. Validators ensure the integrity and quality of the data and models being exchanged within the network. Miners, on the other hand, perform various tasks and share computational power to support the network.

Tokenomics

The native cryptocurrency of Bittensor, TAO, has multiple functions:

  • Rewards: TAO is used to incentivize miners to perform tasks and share computational power.
  • Staking: Participants must stake TAO to become validators, which is a form of collateral to encourage honest behavior.
  • Governance: TAO holders can participate in governance by proposing changes and voting on protocol upgrades.
  • Fees and Payments: TAO is used for transaction fees and smart contract execution, as well as to pay for machine learning services provided by the network.
Token Supply and Distribution

The total supply of TAO tokens is capped at 21 million, mirroring the deflationary model of Bitcoin. The tokens are distributed gradually in the form of mining rewards and other incentives. As of mid-February 2024, the circulating supply is over 6 million, or almost 30% of the total supply.

Wallet Management

TAO tokens can be stored and managed in compatible wallets that support the Polkadot ecosystem, such as the Polkadot JS Wallet. Users can send and receive TAO tokens, view their transaction history, and manage other aspects of their TAO holdings directly from their wallet.

Key Features
  • Decentralization: Bittensor eliminates intermediaries and central authorities, allowing for direct peer-to-peer interaction between AI developers and users.
  • Innovation: The platform promotes collective innovation, accelerating the development of AI and ML models through shared knowledge and resources.
  • Scalability: Bittensor can efficiently scale, catering to growing demands in AI computations and services.
  • Security and Transparency: The transparent nature of blockchain ensures that all transactions and data exchanges within Bittensor are secure and verifiable.
Applications and Future Plans

Bittensor aims to become the world’s first neural internet, where AI models amalgamate to form a comprehensive neural network. The network already supports various applications, such as personal AI assistants and AI-generated Twitter responses. The project hopes to eventually be used by other AI companies to validate the quality of their machine learning algorithms and for companies of all sizes to leverage and pay for AI models available on the network.

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Bittensor's strengths

Bittensor (TAO) has several strengths that contribute to its innovative approach to decentralized machine learning:

  1. Decentralized Marketplace: Bittensor creates a peer-to-peer marketplace for machine learning models and services, allowing providers and consumers to interact directly. This decentralized approach fosters collaboration and the rapid expansion of knowledge.

  2. Incentivization Mechanism: The protocol incentivizes participation and contributions through a token-based economy. Miners and validators are rewarded with TAO tokens for their computational resources, accurate predictions, and other valuable contributions. This mechanism encourages active participation and maintains the network’s stability and efficiency.

  3. Consensus Mechanism: Bittensor uses a consensus mechanism that incorporates game-theoretic scoring methods, including the Shapley Value, to assess the performance and reliability of models within the network. This ensures that valuable nodes are rewarded and the network remains secure.

  1. Subnets and Validators: The network is divided into subnets, each with its own set of registered nodes and associated machine learning models. Validators play a crucial role in ensuring the integrity and quality of the data and models being exchanged within the network, providing an interface for users and applications.

  2. Tokenomics: TAO has a total supply capped at 21 million, similar to Bitcoin, and is distributed gradually through mining rewards and other incentives. This deflationary token has seen significant growth, becoming the largest AI crypto coin by market cap.

  3. Robust Technical Performance: Despite market volatility, TAO has displayed robust technical performance, with a tenfold growth in five months leading up to February 2024. This growth is attributed to its unique approach to decentralized machine learning and the increasing interest in AI-related cryptocurrencies.

  1. Industry Backing: Bittensor is backed by industry giants such as Digital Currency Group and Foundry, indicating the potential of the project and its ability to attract significant support.

These strengths collectively contribute to Bittensor's innovative approach to decentralized machine learning and its rapid growth in the AI crypto space.

Bittensor's risks

Bittensor (TAO) is associated with several risks, including:

  1. Volatility Risk and Liquidity Risk: The price of TAO can fluctuate significantly, and liquidity issues may make it difficult to buy or sell the token quickly enough to respond to market changes.

  2. Short History Risk: Bittensor is a relatively new project, which means it lacks a long history of performance and stability.

  3. Demand Risk: The success of TAO depends on the adoption rate of Bittensor, which is uncertain and subject to competition from other AI platforms like OpenAI.

  1. Forking Risk: The possibility of forks in the blockchain can impact the stability and value of TAO.

  2. Code Defects: Bugs or security vulnerabilities in the code can compromise the integrity of the blockchain and the value of TAO.

  3. Regulatory Risk: Changes in laws and regulations can negatively affect the use, transfer, exchange, or value of TAO.

  1. Electronic Trading Risk: Technical issues or outages in electronic trading systems can disrupt trading and impact the value of TAO.

  2. Cyber Security Risk: Hacking and other cyber security threats can compromise the security of the blockchain and the value of TAO.

  3. High Risk Rating: Bittensor receives a high risk rating from InvestorsObserver analysis, indicating that the token is susceptible to manipulation due to limited trading and can be highly volatile.

  1. Lack of Disclosure Obligation: The TAO community and Bittensor co-founders are not legally obligated to disclose material information to the public, which can make it difficult for investors to make informed decisions.

These risks highlight the potential challenges and uncertainties associated with investing in Bittensor (TAO).

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Did Bittensor raise funds?

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Bittensor’s team

  • Jacob Robert Steeves: Founder.
  • Ala Shaabana: Founder.
  • Jacqueline Dawn: Director of Marketing.
  • Saeideh Motlagh: Blockchain Architect.
  • James Woodman: Team member.
  • Steffen Cruz: Team member.

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The fundamental analysis assistant for crypto value investors.

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