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one of the best threads that we came across when researching $TAO and @opentensor
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AI is the next big wave to ride into the crypto bull market.
And I think I have found a project that is a very solid candidate for that.
That project is $TAO and I have compiled this mega thread with MANY hours of research. I cover everything from Team, Tokenomics and a bit of Technicals. SO...
Here it is for you😘:
Leggooo…..
-----------------------------------------------------
What is Bittensor ?
Bittensor is the project launched by the @opentensor Foundation. But what is it actually ?....
Bittensor is a mining network like Bitcoin, but with incentives to encourage miners to contribute compute power and knowledge in a decentralized machine learning network.
The network launched in November of 2021 and underwent many updates since 2022.
✨Catch Phrase: Incentivizing Intelligence✨
The Bittensor protocol operates on a peer-to-peer basis. Bittensor leverages distributed computing to train and deploy machine learning models. It taps into the computational resources provided by a decentralized network of participating nodes on the blockchain.
These nodes contribute their computing power to collectively process and validate AI models. (This is very important !) This distributed net of nodes allows to enhance the scalability and efficiency of AI training processes significantly.
Participants are rewarded for providing their computational power or valuable data with the native $TAO token, so that bittensor can establish an open source ecosystem of machine learning models. Hence the tag line : ✨Incentivizing Intelligence✨ 👀
The result is a collectively run intelligence market which continually produces newly trained models and rewards participants for valuable contributions.
-------------------------------------------------------
Structure of $TAO ecosystem
Blockchain layer
The ranking of models is based on their ability to generate useful information, independent of the specific task or dataset they were trained on. By adjusting the criteria for evaluating machine intelligence, the network can incentivize the development of intelligence.
The market system employs a digital ledger to document rankings and offers incentives to researchers, enabling them to directly monetize their efforts in the field of machine intelligence.
It consists of two foundational layers: the AI layer and the blockchain layer.
Blockchain Layer:
The Blockchain layer is built on a Polkadot Substrate, as the foundational layer for enforcing consensus, ensuring peer identity, and incentivizing network participants.
This layer operates below the AI layer and facilitates communication between the two layers. To ensure fair distribution of incentives among peers, the network employs a staked weighted trust mechanism based on consensus. Peers are motivated to rank each other, with higher-ranked peers receiving additional rewards.
Instead of relying on rankings from individual peers, the blockchain layer depends on collective rankings from all peers involved. Peers are required to register their wallets and unique cryptographic keys to participate and submit rankings.
These cryptographic keys play a crucial role as they are utilized for signing transactions and communication requests, This method serves as the primary means of identification for peers within the network.
-------------------------------------------------------
AI layer functionality
The AI layer contains the bittensor kernel. But what is the bittensor kernel ?
The Bittensor kernel refers to the core component within the network that provides the underlying functionality and infrastructure for machine learning operations. It encompasses the essential algorithms and mechanisms that enable the decentralized peer-to-peer ML protocol to function effectively.
As a side note:
The foundation of this functionality are multiple nodes (“neurons“) and synapses. The combination of both are extremely crucial to all machine learning algorithms.
-------------------------------------------------------
Machine Learning :
Bittensor incorporates various machine learning algorithms to facilitate the training and optimization of AI models. These algorithms enable the extraction of patterns, making predictions, and improving the performance of the models. But currently, the network focuses on large language models (LLM) and has set 4 unique synapses for text-related tasks at time of writing this.
(I have only found out about 4 yet, there may exist more tho.)
Bittensor allows developers to leverage these algorithms within the platform to build and enhance their AI models.
-------------------------------------------------------
Value Proposition
The demand for compute in training AI models is rapidly increasing which leads to high costs and centralized control. As model sizes grow, computation costs will continue to rise.
AI supercomputers rely on specialized hardware controlled by a few centralized corporations such as Google Cloud, Amazon Web Services and more.
However, establishing a shared, decentralized global compute network can offer a more cost-efficient and scalable solution.
This shift to decentralized networks is a next logical step in the future. Also note that this idea is not extremely new. This is why overall compute will probably move to decentralized networks over time.
TLDR:
🔹 extremely unique selling point
🔹first decentralized mining network for machine intelligence
🔹sensible approach in legitimate and convincing combinations of crypto and AI
I think Decentralized Computing as a sector is promising.
----------------------------------------------------
Market Position/Competitor Analysis:
As of my knowledge there is no other cryptocurrency project that tackles the issue that $TAO is working on. Other crypto x AI tokens target different problems and use cases.
I have heard of Gensyn but they do not have a token (yet ?).
-------------------------------------------------------
Investors:
Polychain Capital
Digital Currency Group -> FirstMark Capital
-------------------------------------------------------
Tokenomics
The tokenomics of $TAO are based on those of $BTC. Total supply is 21 million $TAO tokens.
Capped total supply is intended to limit inflation.
Tokens are emitted gradually through rewards, staking rewards and community-driven initiatives. Besides, $TAO is used for governance and most importantly for accessing AI services and applications built on the Bittensor network.
There is no other possibility to use the AI functionalities within bittensor without purchasing $TAO. This naturally drives the demand for TAO, increasing its value.
Inflation is supposedly 7200 $TAO daily, although I was not able to verify this information. Sources of supply are the validators and miners. Every 12 seconds 1 $TAO is mined and split 50/50.
FDV is $1,105,193,788 according to coingecko.
Also note there were no private or seed rounds for VCs. Tokens were traded OTC in the beginning.
The team itself has as many tokens as they have been mining. This mining principle is also what basically determines their business strategy. The business model of the foundation is based on mining $TAO on the network in order to sustain it.
Not clear to me yet what the revenue model will evolve into in the future, as everything is still early, as I would argue.
-----------------------------------------------------
Team
Ala Shabbana
Co-Founder since Dec 2019 -> almost 4 years
PhD in Computer Science
Extensive experience in Software Engineering -> more than 7 years
2 years experience as Machine Learining Researcher
Jacob Robert Steeves
@const_reborn
Co-Founder since more than 7 years
Bachelor of Applied Science (BASc), Mathematics and Computer Science
previously Software Engineer at Google
Machine Learning Researcher as well
Other notable members:
Yuqian Hu
MSc in Physics
Experience as Research Assistant and ML Engineer since 2 years specializing in Deep Learning at Bittensor
Steffen Cruz
PhD, Experimental nuclear Physics
A grades in all graduate courses
More than 3 years experience in ML and Data Science
Pedro Ferreira
Extensive experience with more than 3 years in SWE (Fullstack)
2 years experience as ML Engineer and joint Bittensor recently
TLDR
Overall team includes individuals with solid experience in Software Engineering and Machine Learning. Apart from that they have a Director of Human Resource and one Marketing Director. The team is overall not too big.
-------------------------------------------------------
Partnerships:
They have no partnerships whatsoever with any entity.
Not super ideal, you may argue they don't need one.
Debatable
-----------------------------------------------------
Influencer Flower Power + Community
Influencers that support the project include:
@JumperWave
@DreadBong0
@Wauwda
@CryptoWizardd
@EricCryptoman
Community strength is not comparable with those of $KAS or $DIONE for example imo, but still good. Community is supportive and helped recover discord account after a hack. You can find plenty of small accounts that actively support the project too.
Bonus:
Numerical Comparison of Social Engagement between $KAS and $TAO:
Kaspa
89.3K Followers
419 Tweets
Average Views on 11 Random Tweets 48.1 K -> almost 80 % of followers
Rough estimate of average likes 250 likes per tweet
=> extremely strong numbers
Opentensor Foundation
40.2 K Followers
521 Tweets
Average Views on 11 Tweets 16.15 k -> almost 45 % of views from followers
Usually more than 100 Likes per tweet - rough estimate on average 120 likes per tweet -> 0.3 % of follower count
=> weaker numbers than KAS, but still healthy numbers, not bad
-------------------------------------------------------
That is all I have. Thank you for giving this thread a read if you have made it this far 😆. I would appreciate if you like, share, retweet the thread as I worked very hard on this one!
-------------------------------------------------------
At the end pls note I am invested in $TAO and therefore def. biased, so still please DYOR and dont FOMO. I don’t want you to lose money 🥲. I gave an honest and transparent overview. No need to lie.
Tagging some people that inspire me and would benefit from this (ofc not full list):
@iWantCoinNews
@CryptoMocro_
@BraverCrypto
@BenjiGanar
@KryptoInsider1
@1_Point_618
@SebastianWols17
@CryptoGirlNova
@Sykodelic_
@astralcryptocat
@evert_scott
@Darkwolvesme
@BrianneFrey
@SarahCrypto2000
@Oculus_Crypto
@Altcoin_Gold
@KAPOTHEGOAT01
@CryptoShiro_
Sahil out 😘

Thanks & welcome to @GetLoudLA @DrOmbenimushii @aheadsphd @AlGlobalKyiv! Image via #Pxfuel.
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