The Wave of the AI Revolution: How Bittensor Reshapes Intelligent Networks through Subnets

The rapid development of artificial intelligence technology is leading us into a data-driven new era. Breakthroughs in areas such as deep learning and natural language processing have made AI applications ubiquitous. The emergence of ChatGPT in 2022 sparked an AI craze, followed by a surge of various AI tools, from text generation to intelligent office assistants. It is expected that by 2030, the market size of the AI industry will reach 185 billion dollars.

However, the AI industry is currently mainly dominated by a few tech giants, which has led to issues such as data centralization and unequal distribution of computing resources. The decentralized philosophy of Web3 offers new possibilities for addressing these challenges. In a distributed network, the development landscape of AI is expected to be reshaped.

As the AI industry is booming, a number of high-quality Web3+AI projects have emerged. Among them, Bittensor has seized a key opportunity - to build an AI algorithm platform with an inherent competitive filtering mechanism to retain the best AI projects. This platform leverages the incentive mechanisms of blockchain to provide new directions for the development of AI algorithms.

Bittensor: Pioneer of Decentralized AI Networks

Bittensor is a decentralized machine learning network and digital goods marketplace. It operates on a distributed computer network managed by multiple parties, addressing issues such as data centralization. Its fair incentive mechanism ensures that rewards are proportional to contributions. The network serves individuals in need of machine learning resources, while also becoming a diversified digital goods trading platform.

Unlike many VC projects, the development of Bittensor is more pragmatic. The project was founded in 2021 by a group of tech enthusiasts and experts, building the blockchain using the Substrate framework. The Alpha version was released in 2022 to validate feasibility, introducing Yuma consensus to protect user privacy. The Beta version and the token economic model TAO were launched in 2023. In 2024, DHT technology will be integrated to improve data processing efficiency, and focus will begin on developing subnets and the digital goods market.

The Bittensor token TAO is similar to Bitcoin in many ways, with a total supply of 21 million coins and halving every four years. TAO is distributed through a fair launch, with no pre-mining or team allocation. Currently, a block is generated every 12 seconds, with each block rewarding 1 TAO, resulting in a daily production of 7200 TAO. These rewards are distributed to subnets based on contribution, which are then allocated to owners, validators, and miners.

Currently, the total number of accounts on the Bittensor network exceeds 100,000, with non-zero accounts reaching 80,000. Over the past year, the TAO price has risen significantly, with a current market value of 2.278 billion USD and a coin price of 321 USD.

Subnet: The Core Architecture of Bittensor

The subnet of Bittensor is the most critical component of its network architecture. Each subnet is a piece of independently running code that establishes specific user incentives and functions while maintaining the same consensus interface as the mainnet. Currently, there are 45 subnets running, excluding the root subnet. It is expected that by mid-2024, the number of subnets will increase from 32 to 64.

The subnet mainly includes three roles: subnet owners, miners, and validators. Subnet owners are responsible for providing the underlying code and setting up incentive mechanisms. Miners improve competitiveness by optimizing the code, and inefficient miners will be replaced. Validators assess subnet contributions and receive rewards, while also being able to stake TAO for additional earnings.

The emission mechanism of the subnet ( determines the distribution of TAO tokens. Typically, 18% is allocated to owners, 41% to validators, and 41% to miners. The subnet contains 256 slots, of which 64 are for validators and 192 for miners. The performance of validators and miners directly affects the ranking and rewards of the subnet.

The newly registered subnet has a 7-day immunity period and a first registration fee of 100 TAO. When all subnet positions are filled, subnets with the lowest emissions and not in the immunity period will be deleted to accommodate new subnets. Therefore, subnets need to continuously improve their efficiency to avoid being eliminated.

Masa is a successful case in the Bittensor network, being the first dual-token reward system, attracting $18 million in funding.

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Innovative Consensus and Proof Mechanisms

Bittensor adopts various consensus and proof mechanisms, among which the most distinctive are the Proof of Intelligence ) PoI ( mechanism and Yuma consensus.

The PoI mechanism requires miners to prove their contributions by completing intelligent computing tasks. These tasks may involve natural language processing, data analysis, and more. Validators assign tasks and assess the quality of the results.

Yuma consensus is the core algorithm that comprehensively considers the staking amount and ratings of validators, eliminates anomalous results, and ultimately determines reward distribution. This mechanism follows the principle of data unawareness, ensuring efficient processing while protecting privacy.

In addition, Bittensor has introduced the MOE mechanism, integrating multiple expert-level subnet models to improve overall performance through collaborative work. Validators can score and rank the expert models, incentivizing continuous optimization.

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Subnet Project Overview

Currently, Bittensor has 45 registered subnets, 40 of which have been named. The top three subnets are:

Subnet 19 Vision: Focused on decentralized image generation and inference, providing access to open-source LLM and image models. Daily average node earnings are approximately $866.

Subnet 18 Cortex.t: committed to building a cutting-edge AI platform, providing high-quality text and image API services. The average daily node revenue is approximately $554.

Subnet 1: The earliest text generation subnet, although it has faced doubts, it still maintains a high ranking.

Other subnets also include various types such as data processing, trading AI, and more. Overall, the earnings from successfully operating nodes are considerable, but competition is fierce, requiring continuous optimization to maintain competitiveness.

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Future Outlook

The combination of AI and Web3 will continue to be a market focus. Bittensor, as a project driven by both technology and market, offers a unique subnet architecture that provides AI teams with a convenient way to access decentralized networks. However, as the number of subnets increases and competition intensifies, the project faces risks of declining returns and the infiltration of subpar projects. The long-term development of Bittensor will depend on how it balances expansion with quality control.

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