State of Bittensor #3

In recent months, Bittensor and $TAO have made remarkable strides. The launch of Bittensor's unique feature, the subnets, marked a significant milestone, and the market began to recognize the technological innovation that Bittensor represents.

The only blockchain for AI applications is rapidly becoming its own universe. This has made it hard to keep up, so we decided to write a monthly "State of Bittensor" to keep our community updated on the latest and greatest from Bittensor's growing open-source community of builders. Let's get to it.

TL/DR

• $TAO stats
• Subnets
• New Bittensor-related tokens
• Closing thoughts

$TAO stats

$TAO price action

Over the past month, $TAO has fallen from $750 to $450. Currently, Bittensor has fallen to the 35th biggest project based on market cap.

$TAO and $WTAO holders

As the network grows, so does the number of $TAO (and $WTAO) holders. In total, there are now roughly 120,000 token holders!

Staking stats

Currently, there 88% of all circulating $TAO is staked. This is partially why $TAO is so volatile, as the floating supply is low, meaning there aren’t that many tokens available when demand increases. The staking APY is 15%, while validators rake in 19%.

Subnets

Simply put, subnets are network components that specialize in a specific AI-related task that the entire Bittensor ecosystem can use. Since the essential network feature went live, the maximum number of currently available subnets, 32, has been reached. Below is the complete list of current subnets.

If someone registers a new subnet within a couple of days the fee goes up even more. As Bittensor is trying to use open and fierce competition and incentives to make all cylinders fire properly, poor performing subnets are literally kicked off. This keeps everyone on their toes. But as subnets start to do well and there's only a maximum (at the moment) of 32 subnets, the competition to set up a subnet is high. So high that the cost to register a subnet on Bittensor skyrocketed to $6.7 million due to increased demand, reflecting the Bittensor hype in the crypto space.

Subnet in the spotlight: Cortex.t

Cortex.tstands at the forefront of artificial intelligence, offering a dual-purpose solution that caters to the needs of app developers and innovators in the AI space. This platform is designed to deliver reliable, high-quality text and image responses through API usage, utilizing the decentralized Bittensor network.

Cortex. t is a game-changer in app development. By focusing on delivering value to clients, they address the common data inconsistencies that often plague app development. Cortex.t seamlessly integrates with the Bittensor network, allowing developers to tap into the power of multiple subnets and modalities. Whether they choose to build directly onto an existing validator or use an API key from Corcel, developers can be assured of the stability and reliability of Cortex. t.

Cortex.t is a transformative platform that uses advanced AI models to generate synthetic prompt-response pairs. This unique method creates a comprehensive dataset of interaction. The process involves recycling model outputs back into the system, using a prompt evolution and data augmentation strategy similar to Microsoft's approach in developing WizardLM. This distils sophisticated AI models into smaller yet efficient counterparts, mirroring the performance of their larger predecessors. This democratizes access to high-end AI technology, fostering innovation and customization.

New Interfaces and Tokens

What's quite telling is that while Bittensor's architecture highlights one unified incentive system through $TAO, several Bittensor-adjacent tokens have started to appear. These are tokens for (d)apps that provide access to the Bittensor ecosystem and a token from a Bittensor validator used to attract more stakers/delegators. Here's a couple I ran into thus far and liked thus far.

TensorScan AI

TensorScan AI changes the Ethereum Virtual Machine wallet analysis by harnessing the power of the Bittensor blockchain for decentralized computing. Based on transaction history and behaviours, the platform uniquely categorizes EVM wallets into various investor types, such as Diamond Hand, Ape, and Rug-Puller. This provides critical insights into wallet owners' trading habits and investment strategies. At the heart of their user experience is the TensorScan AI browser extension, designed for seamless integration with Etherscan.io. This tool allows users to effortlessly view the category of each wallet and the overall holder score of tokens directly on Etherscan pages. The solution also addresses the challenge of analyzing complex blockchain transaction data by leveraging Bittensor's scalable, decentralized computational resources. This ensures the platform remains efficient and capable of handling the vast data throughput necessary for real-time analysis.

Net Tensor

Net Tensor is an aggregated and modular blockchain solution that can handle various tasks. It combines Layer 1, offering super-fast speeds, with Layer 2, providing scalability for Ethereum. It also extends smart contract capabilities to Bitcoin and the Bittensor Network. It brings Smart Contracts into Bitcoin as a Layer 2, and it brings the same capability to the AppChain on the Bittensor Network. This enables the creation of DeFi applications, NFTs, and many other functionalities currently not feasible directly on Bitcoin or the Bittensor Network.

One of the standout features of Net Tensor is its Application Chain service. This service allows users to collaborate with Large Language Models (LLMs) from various providers, including OpenAI, Hugging Face, and Lang Chain. This functionality is particularly useful for natural language processing applications that rely on interaction with language models. By providing a smooth interface, Net Tensor makes it easy for users to complete tasks, enhancing productivity and efficiency.

TAS Protocol

The TAS Protocol is a decentralized AI project building the next era of fungibility on the Bittensor Network. The TAS subnet will enable the creation of TRC-20s on the TAO blockchain, which can unlock TRC-20 trading, TAO-FI, and so much more. This is similar to inscriptions on Bitcoin.

TAS will also build a bridge connecting the Ethereum and Tao blockchain networks. This project aims to facilitate the seamless transfer of rewards and assets between these two distinct ecosystems, fostering interoperability and unlocking new possibilities for users and developers. The bridge will be a vital link, allowing ETH holders to access and participate in TAO-based initiatives and vice versa. This interchain connectivity will broaden the scope of decentralized applications and promote a more inclusive and interconnected blockchain landscape.

TAS Protocol is building a cross-network incentive mechanism with $TAO revenue sharing, aligning subnet validators, miners, and TAS backers. $TAS will be staked with a proportional delegation of $TAO to TAS's official subnet validator. All $TAO emissions and TAS Protocol Revenue will be proportionally distributed back to staked token holders.

Closing thoughts

The Bittensor ecosystem is really just getting started with subnets gaining more and more traction. However, in this short amount of time, all 32 subnet slots have been filled, with the subnet ecosystem potentially expanding to 1028 subnets in the coming months.

Bittensor is rapidly become a microcosm and we can’t wait to see what AI products get released next. It will also be interesting to see how long it will take before the subnet competition starts to become fierce with subnets feeling the pressure of being replaced. We’ll keep you in the loop and until next month!

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