【Bittensor】Decentralized AI network to facilitate development, sharing, and collaboration of AI models / Subtensor (blockchain) and Subnet (small AI-specific network) work together / @opentensor

could be the foundation for the web3×AI era.

Good morning.
Mitsui from web3 researcher.

Today I researched "Bittensor".

🤖Overview｜What is Bittensor?
⚙️Structure｜"Yuma Consensus"
💧Tokenomics｜TAO token with a total supply of 21 million tokens and a half-life every 4 years
🤝Ecosystem｜Subnet information
📈Transition and Outlook｜Booming Growth in 2024
💬Remarks and Discussion｜The Ecosystem is the Moat

---

🧵TL;DR

• Bittensor is a decentralized AI network, creating an ecosystem that rewards TAO tokens to those who contribute to AI development in a decentralized way.

• Subtensor (blockchain) and Subnet (AI-specific small network) work together to execute, evaluate, and distribute rewards for AI models.

• Roles are shared by miners, validators, subnet owners, and stakers, and rewards are concentrated on valuable contributions through Yuma consensus and Dynamic TAO.

• TAO is an incentive design with an issuance cap and half-life, creating a sustainable token economy inspired by Bitcoin.

---

🤖Overview｜What is Bittensor?

"Bittensor" is a decentralized AI network that uses blockchain to facilitate the development, sharing and collaboration of AI models.In contrast to the status quo dominated by large, centralized companies (such as OpenAI and Google), Bittensor aims to create a peer-to-peer economic modelin which contributors to AI (providers of computational resources, AI models, and data) are directly rewarded.We aim to create an open ecosystem where contributors to AI (providers of computational resources, AI models, and data) are directly rewarded.

The entire picture is as follows.

Although it looks a bit complicated, it has two main functions that can be broadly categorized

• Subtensor (Blockchain): a blockchain built on the Substrate framework, this chain records scores, balances, and transactions for all participants and manages the distribution of rewards from TAO token issuance.

• Subnet: Bittensor consists of a number of independent Subnets.Each Subnet is a community dedicated to a specific AI task.

There is a blockchain that records everything, and there are countless Subnets tied to it.Each Subnet is not a blockchain, but a community dedicated to a specific AI task.

They are designed to be one ecosystem, with incentives offered by Subtensor to Subnets, Subnets competing with each other, and data learners and providers (validators and miners) within Subnets also competing with each other.

The whole of this refers to the "Bittensor" project.

I will explain the details of how it works later, but to facilitate this understanding, I will introduce the thought underlying the design of "Bittensor".

It is the "Bitcoin" philosophy.

About pageSee Bittensor references and applies the following core ideas from Bitcoin.

• The Power of Decentralized Systems: Bittensor, like Bitcoin, employs a decentralized system that functions without a centralized manager.Whereas Bitcoin created a decentralized currency, Bittensor aims to be a decentralized AI company.

• Market Mechanisms and Incentive Design: Bitcoin rewards computational capacity in the form of mining to secure the system.Bittensor does the same, offering incentives to network participants through tokens called TAOs to promote the provision of valuable computing resources.

• Open participation and censorship resistance: Like Bitcoin, Bittensor is an open system where anyone can participate without permission and is censorship resistant.It has "unclosable" characteristics and participants receive direct and ongoing rewards.

• The purest form of capitalism: As described as "this is capitalism in its purest form," Bittensor follows the market principles of bitcoin and promotes competition to increase efficiency andIt promotes competition to increase efficiency.Participants will continually seek cost savings and efficiencies.

• Anti-Fragility: Like Bitcoin, Bittensor aims to be a system that is strong against external attacks and challenges (anti-fragility).It has a built-in mechanism that naturally eliminates bad competitors.

• Preventing Corruption by Decentralizing Power: Just as Satoshi believed that the centralization of power over money leads to corruption, Bittensor seeks to prevent monopolies by decentralizing ownership of powerful technologies such as artificial intelligence.Bittensor seeks to prevent monopolization by a small number of companies and individuals by decentralizing ownership of the powerful technology of artificial intelligence.

• Social Transformation through Technology: Just as Bitcoin sought to transform the financial system, Bittensor seeks to transform the development and ownership structure of artificial intelligence.Through the concept of "open ownership" we aim for a more democratic and ethical future for AI.

Bittensor essentially seeks to apply Bitcoin's revolutionary market design and incentive structure to the field of artificial intelligence, providing a decentralized alternative to centralized AI development by technology giants.

The same is also true for the adoption of validators and miners in the naming of the players in that ecosystem and the half-life of the system every four years.

---

⚙️ Mechanism｜Incentive model for each entity "Yuma Consensus"

Now, let us explain in detail how it works.

I will once again put up an illustration of the overall picture.

First, we will explain Subnet.