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What is Bittensor (TAO): A Peer-to-Peer Intelligence Marketplace?

TAO Coin is a digital currency to the Bittensor network. The network is open-source and utilizes a consensus mechanism called Proof-of-Intelligence which rewards nodes that provide useful machine learning models and model outputs to the network. 

This model is a combination of Proof-of-Stake and Proof-Of-Work mechanisms, targeting transformations in the field of artificial intelligence (AI). 

Bittensor allows all its users to come up with a market for AI models that promote sharing ideas and rewarding the individuals who helped in developing the model. The ecosystem is a Peer-to-Peer Intelligence Marketplace rendering AI models, their training, and valuation. 

OpenTensor, a non-profit organization, established and launched the Bittensor network blockchain in March 2023. The team that designed and developed Bittensor involved Ala Shaabana (Co-Founder), Jacob Steeves (Founder), and Pedro Ferreira (AI Researcher and ML Engineer)

Bittensor's operational structure consists of three components: subnets, the Subtensor, which is the blockchain element, and the Bittensor API. Each element has an individual function that helps accomplish the processes within the ecosystem.

The native TAO token is the currency of the Bittensor network, facilitating such tasks as staking, governance, and incentivization. Users can stake or delegate TAO to become a part of the network consensus and receive rewards. TAO also encourages users to contribute to the network by paying users who provide computational power and machine learning models. It also allows for decentralized governance where holders can vote on proposals and take care of transaction fees for interacting in the ecosystem. This makes TAO a necessity to uphold Bittensor's decentralized AI structure and community development.

History of Bittensor(TAO)

Bittensor mainnet was launched on March 20, 2023. In March 2016, Jacob Robert Steeves started creating a decentralized machine intelligence market. Steeves and Ala Shaabana officially incorporated Bittensor in 2019, a project that would later explore the avenues of decentralization for both the use as well as the development of artificial intelligence-based systems, all tools being available within a transparent ecosystem of which fundamental currency is TAO, the native token.

The project developed under the aegis of the non-profit OpenTensor Foundation, launched the first-ever blockchain named Subtensor in January 2021 with the introduction of “Kusanagi”. 

Nevertheless, the first version was suspended in May 2021 to sort out issues with the consensus, and a new version was introduced in November 2021 known as “Nakamoto”.

Bittensor was initially designed to serve as a Polkadot parachain called “Finney”  but transitioned to creating its autonomous blockchain in March 2023. Before the transition, implementation of the Finney testnet was completed on January 10, 2023, to test major enhancements to the network such as the addition of subnets and delegation staking. 

With the mainnet inception on March 20, 2023, Finney was the operating state of Subtensor improving the earlier functionality of the kernel code of the network. Subnets, an important component enabling users to create custom reward schemes for particular ML tasks, were launched on 2nd October 2023 and supported different functionalities such as text, image, and web scraping.

How Does Bittensor(TAO) Work?

Bittensor operates on three core components - subnets, the blockchain component(Subtensor), and Bittensor API. 

Subnets are focused marketplaces developed for training and sharing particular types of machine learning models such as text generation models, translation models, and image generation models. Each subnet acts as a closed economic zone in which models are created, assessed, and compensated for in TAO tokens. Individuals, referred to as miners, respond to the requests for the specific model by making available their model, which is credited with a response. 

These responses are then evaluated by validators who also grant rankings and reward them. In this way, it guarantees that the person who provides useful intelligence is rewarded, and the individual who provides trash is rewarded less, thus preserving the standards of the network. Subnets have no restrictions, meaning a user may connect to an already existing subnet or assemble a new one narrowly focused on certain purposes.

The subnets are underpinned by its native blockchain component(Subtensor), which ensures that all aspects of the system are kept decentralized, without any form of central authority, and resistant to conspiracies.

Bittensor API is the intermediary component that links the blockchain to the subnets, allowing for the flow of information and distribution of rewards to miners and validators. 

In this manner, Bittensor takes AI model development crowdsourcing risks off organizations such as OpenAI and Google.

 It allows learning architectures to build on each other’s innovations promoting the development of models in an open way. Moreover, subnets are also accessible to users through programming languages such as Python, Node.js, Go, and Rust.

 Access to the API is free for the time being to advance the use of the platform, however, there are limits on usage to prevent exploitation with high demands for increase of limits requiring justification.

Understanding TAO: Coin Price History 

With the mission of creating a decentralized machine learning network called Bittensor by rewarding trustworthy data and model contributions, TAO cryptocurrency was introduced in January 2021.

It was through a remote-sensing-based diamond mining distribution method that TAO was launched where tokens are given to stakeholders who stake machine intelligence. 

The token suited the purpose of utility and quickly found itself in the decentralized AI ecosystem that was in its infancy during that period.

For the history of the price trends of TAO, it can be stated that the initial price level remained conservative. However, TAO has started normalizing prices in the recent past following the growth in the Bittensor community. On April 15, 2023, the TAO token reached its All-Time-High of $757 demonstrating its worth as a token. All-time-low on the other hand came on December 5, 2021, when the price of the token fell to $30 showing the initial days of market volatility.

As of now, the total maximum supply of TAO is limited to 21 million tokens. As of 2024, 7.4 million tokens are circulating, with tokes still being mined as people upload additional machine learning models and data to Bittensor.

TAO Supported Exchanges

As far as TAO trading services are concerned, there are a total of 29 different unique exchanges which are CEX and DEX"s combined.

• Some of the more popular exchanges where the TAO coin can be traded include but are not limited to Bitget, MEXC, WhiteBIT, KuCoin, Kraken, XT.COM, Binance, Gate.IO, and Phemex, among others.
• Exchange and Trading DEX Platforms: ChangeNOW and other decentralized exchanges with supported TAO pairs are the popular DEXs for TAO trading.
• These include the US markets: Kraken, Binance, Coinbase, MEXC, and Cryptocom Exchange are all available as well.
• Most Common Trading Pairs: The common TAO trading pairs are:
• TAO/USDT, TAO/USD, TAO/EUR, TAO/TRY, TAO/BTC, TAO/USDC

Which wallets support TAO(Bittensor) Token?

Bittensor Wallet: The Bittensor Wallet is purpose-built in the Bittensor ecosystem to facilitate the secure storage of TAO tokens with the utmost ease of all the activities involved in handling the assets. Also with a focus on security, the wallet has several secure backup methods, thereby enabling users to safeguard their assets in case of any losses or thefts.

TAO Coin Price Predictions for the Years 2025-2030

Based on the analysis of the Coinpedia website, the Bittensor (TAO) price predictions for the next upcoming years seem to be the following, from 2025 to 2030:

• 2025: TAO is projected to attain a maximum level of $ 1,108 with a possible minimum value of $510 and an overall expected rate of $809.

• 2026: The market set a price cut so that no more than $1,375 is the projected upper limit, and a price of $626 is the possible lower limit with an average of $1,000.

• 2027: Forecast estimates indicate that TAO’s maximum price would be around $1,725, with a minimum price of $779 and an average price of $1,252.

• 2028: A possible maximum would reach $2181, the minimum $913, and the mean $1547.

• 2029: The value is expected to increase further to $ 2775, the lower range at $1,008 and the mean close to $1,892.

• 2030: Forecast on price action on TAO shows that it may attain a peak value of $3,521 while the prices may in turn dip down to $1,167 with the average price being $2,344.