Altcoin Spotlight: Bittensor (TAO)
The cryptocurrency world is constantly changing as certain coins rise to prominence while others fall from popularity. An altcoin that is currently rising in popularity is one by the name of Bittensor.
Are you curious about what Bittensor is and what it does? We have everything you need to know and more in this blog article, so keep reading.
What is Bittensor?
Bittensor is a blockchain network that works directly to improve and develop AI and machine learning models. Those who contribute models or software to the system are rewarded in TAO, the native cryptocurrency of the Bittensor network.
The more people who contribute to the peer-to-peer system, the larger it grows. As a result, Bittensor has been come to know as a hive mind model.
The purpose of Bittensor is to make AI more decentralized. While AI is somewhat easy to train, it takes a large amount of data to do so, something which only large companies like IBM and Google are able to contribute currently. Bittensor is an open-source alternative, allowing a variety of individuals to contribute in order to create AI and machine learning technology that isn’t tied to a large corporation.
Related: The Surge of AI: What it Means for the Future
How Does Bittensor Work?
Bittensor TAO is run by miners, but instead of solving complex math problems like in other cryptocurrencies, Bittensor miners contribute knowledge to the network. When they do so, they are rewarded with TAO currency.
Users can buy TAO currency and use it to pay for AI and ML solutions or task completion. When a request is made, the Bittensor system uses a consensus mechanism to evaluate all possible answers before choosing the best one. The current consensus mechanism used is POS or proof-of-stake. Therefore, the validators with the most stake in the system are given preference when it comes to validating answers.
Currently, the Bittensor platform is divided into subnets, each one devoted to a particular task or topic. This allows individuals desiring to use the system a more streamlined approach for choosing the right section to get their desired solution.
Bittensor is built on the Substrate framework, just like the other popular blockchain project, Polkadot.
Related: AI in Blockchain and Bitcoin Technology
Who Created Bittensor?
Bittensor was invented by AI researchers Jacob Steeves and Ala Shaabana. It was originally invented to be part of the Polkadot blockchain before branching off to become its own project in March 2023.
Is Bittensor a Good Project?
Bittensor is currently operating in a moral gray area. Unfortunately, no matter how much you don’t want AI involved in our world, it is becoming part of the everyday lives of people around the globe. Whether or not you want AI in your life, it is coming, and Bittensor aims to give individuals a non-corporate decentralized version, which is a noble pursuit.
Here’s the problem, though. AI isn’t decentralized currently because large companies are the only ones with the funds to develop it. Bittensor is built on a proof-of-stake consensus mechanism…meaning that only individuals with enough money to stake Bittensor are able to contribute. See the problem?
Not only that, but since launch, Bittensor has been quickly backed by several large companies—many of which already have the means to invest in AI—but they want to get on board with the “decentralized” version as well. Including large conglomerates like Coinbase and Polychain.
Which brings us to our other issue with this cryptocurrency, one unit of TAO currently costs $433 per token, meaning the average individual is unable to invest in Bittensor…meaning we are right back where we started and Bittensor itself is basically owned by large companies. Sure, its owned by 10 large companies instead of one (like Google based AI) but we don’t believe this is truly the solution it meant to be when Bittensor was created.
The average person is priced out of investing or staking Bittensor, meaning it isn’t as decentralized as the creators had hoped. And we have a feeling it will only become more and more centralized the larger, and more expensive, it gets. If the creators truly wanted to create a centralized version of AI, they should have gone with a proof of work or other type of consensus method besides proof of stake to give the average person a chance.
Should You Invest in Bittensor?
From an investor’s standpoint, Bittensor sure seems like a decent investment. While it is still a bit riskier than Bitcoin or Ethereum, AI does seem to be the future and it is highly likely that despite the steep initial cost, a return is likely going to come your way.
However, it is important to note that AI is currently unregulated, but many governments around the world are looking at regulating it. If this is the case, then the project could be in trouble in the future if it isn’t within the eventually established parameters.
Plus, from a social and humanitarian standpoint, we don’t feel that Bittensor is truly as “accessible” as they make it out to be…so we aren’t sure if it is a good idea to invest in said project. But, if you are looking at it from solely a monetary standpoint, it likely isn’t a terrible investment.
Of course, Bittensor is still in its early days, and it is highly likely that it will adapt and change in the coming months and years. So, invest in it at your own risk.
Overall, Bittensor isn’t the worst altcoin project we have ever come across, as they certainly are more open about their processes and intentions than most. We can tell with clarity that this project isn’t a scam, though we do have several questions about their eventual intentions.
In the end, we recommend approaching an investment in Bittensor with caution, though there are many worse projects out there. Just be aware of political and social climates prior to placing your investment. If you are new to the investing and cryptocurrency world, we recommend a simpler investment in Bitcoin, Ethereum, or Solana instead.
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