AI On The Blockchain

Hey, what's going on guys? Bit Tensor or Tau is an AI project built on a blockchain. It's often described as a micro cap coin, but if you look at their stats page, the market cap is 286 based on the current supply of 5.19 million, which would put it at rank number 113. So it's not really a market cap, but it's one of the, if not the biggest AI projects. It's been around since March and has a max supply of 21 million, similar to Bitcoin. However, it has something called recycling, where if you register a node, you have to give up some Tau tokens. Open Tensor is the developer team behind it and they are committed to developing AI technology.

Bit Tensor is an open source protocol that powers a scalable decentralized neural network. The system incentivizes the production of AI models within a blockchain infrastructure and rewards performance with a custom digital currency. The network consists of thousands of nodes, each containing a machine learning model. All nodes work collaboratively to extract semantic meaning from a massive collection of text data. The system awards the most value-producing nodes, so the digital token represents the quality and quantity of representational knowledge in the system.

Think of Bit Tensor as two projects - a machine learning project and a crypto project. The machine learning part is not on the blockchain, but the Tau incentive and the blockchain are. Validators and miners play a role in the system. Validators ask miners questions, and the miners find answers to those questions. The answers are then ranked, and validators issue Tau tokens. 50% of the tokens go to validators and 50% to miners. The validators perform spot checking for the other AI models being trained. The project is still evolving, and there are no fees currently, but there are ideas for a fee model in the future. It's built on substrate and owns a parachain slot, but has not connected to the Polkadot relay chain.

Bit Tensor is an interesting project, and it will be exciting to see what tools and applications are built using Tau or Bit Tensor on the backend.

Let me know what you guys think of Bit Tensor in the comments.