AI Meets Crypto: Bittensor Ecosystem on the Verge of Dominance

Bittensor (TAO), a leading project in the AI narrative, is facing scrutiny over its utility. Despite criticism, the Bittensor ecosystem boasts a thriving network of subnets and DeFi projects. Subnets like Nous (LLM fine-tuning) and Proprietary Trading Network (quantitative trading) offer valuable services, while TaoPad, Tensorplex Stake, and TaoBank enhance the utility of TAO. Additionally, liquid staking via RivusDAO and TAO perps on Hyperliquid further expand trading options. The integration of TAO into the MultiversX ecosystem and Sturdy's AI DeFi subnet demonstrate a growing adoption and use of Bittensor's capabilities.

AI x Crypto: The Bittensor Ecosystem on the Rise

Amid the fervent buzz surrounding the ongoing crypto bull market, the convergence of artificial intelligence (AI) and blockchain technology has emerged as one of the most captivating investment themes. Bittensor (TAO), a pioneer in this narrative, has garnered significant attention for its innovative approach to democratizing AI development. Recently, however, doubts have surfaced on Crypto Twitter regarding its utility, with some skeptics dismissing it as vaporware.

Undeterred by these criticisms, we delve into the intricacies of the Bittensor ecosystem, highlighting its impressive subnets and the burgeoning DeFi landscape surrounding TAO.

Bittensor: Decentralizing AI Innovation

Bittensor seeks to revolutionize the creation of AI-driven use cases by establishing an open and decentralized marketplace where users can seamlessly share and leverage machine learning models. Its core concept revolves around an interconnected neural network of machine intelligence, accessible to all for building specialized subnets that harness collective intelligence to power a vast array of AI projects.

Currently, the Bittensor ecosystem encompasses 32 distinct subnets, each tailored to a unique use case. From voice-to-text capabilities for applications to image generation, AI-powered search engines, advanced trading strategies, and even fine-tuning Large Language Models (LLMs), the possibilities are virtually limitless.

Notable subnets include:

• Subnet 6 (Nous Fine-Tuning Subnet): Led by the esteemed Nous Research team, this subnet specializes in fine-tuning LLMs using synthetic data from Subnet 18 (Cortex.t Subnet). Miners compete to improve their models, earning rewards based on their performance. This approach enables LLMs to adapt to real-world scenarios.
• Subnet 8 (Proprietary Trading Network): A playground for algo traders, Subnet 8 allows users to develop quantitative models for market analysis and forecasting. The best algorithms, based on profitability, earn TAO rewards. This subnet demonstrates the viability of building businesses on Bittensor.

New Subnets and Intense Competition

Bittensor's popularity has sparked a surge of interest from reputable teams eager to register their subnets. Notable examples include:

• Subnet 3 (MyShell TTS): Dedicated to democratizing access to top-tier Text-to-Speech models.
• Subnet 5 (Open Kaito): Committed to making Web3 information universally accessible by organizing and interpreting its vast data.
• Subnet 30 (WomboAI): Home to the immensely popular WOMBO app, empowering creativity through AI.

Over 200 subnets are currently in testnet, awaiting registration on the mainnet, each with unique objectives and reward structures. The intense competition ensures only the most innovative subnets prevail, fostering the continued growth and development of the Bittensor ecosystem.

Bittensor's Thriving DeFi Ecosystem

In parallel with its subnet landscape, the Bittensor DeFi ecosystem is rapidly maturing. Within just six months, over ten applications have emerged, offering a diverse range of financial products centered around Bittensor and its native token, TAO.

Key DeFi applications include:

• Tensorplex Stake (stTAO): Enables users to stake their TAO on the Ethereum network, earning yield while contributing to the Bittensor network.
• TaoPad: A launchpad for projects focused on decentralized AI, fostering the growth of the TAO ecosystem.
• TaoBank: A lending and borrowing protocol that allows users to leverage their TAO holdings without selling, facilitating DeFi strategies like looping.
• Tao Accounting System (TAS): Introduces token standards to the Bittensor network, enabling the creation and trading of TRC-20 tokens.
• RivusDAO: Provides liquid staking services for TAO, enabling users to earn staking rewards while maintaining liquidity.
• Hyperliquid: Offers perpetual trading for TAO, allowing users to long or short the token with up to 5x leverage.

In the MultiversX ecosystem, several DeFi products have emerged around TAO, including liquid staking, lending, and liquidity pools.

Sturdy's AI DeFi Subnet

Sturdy, a leading lending protocol, plans to launch a subnet on Bittensor to optimize the allocation strategies of its aggregator vaults. This subnet will enable miners to compete for TAO rewards by developing the best strategies, ultimately benefiting users with improved rates.

Conclusion

The Bittensor ecosystem is undeniably experiencing a period of rapid growth and innovation. The increasing interest from established entities, the growing user engagement, and the expanding DeFi landscape suggest that Bittensor holds genuine promise, dispelling any notions of vaporware.

While the project is still in its nascent stages of development, its commitment to decentralizing AI development and fostering a thriving DeFi ecosystem positions it as a potentially transformative force in the convergence of AI and blockchain technology.