duct itself. Bittensor has a lot of room for imagination, but it also faces many challenges.output: Title: Bittensor: A Decentralized AI Infrastructure

Bittensor is a decentralized AI infrastructure used by AI developers to build and deploy machine learning models or other AI-related developments.

the productivity improvement brought by AI technology and the improvement of people's lives.output:Preface

With the progress of data, computing power, and algorithm research in recent years, AI development has made great breakthroughs, especially the emergence of OpenAI GPT-4. The arrival of the basic LLM large model represented by it has promoted the improvement of productivity and the transformation of social efficiency.

However, the disadvantages of these closed-source large models represented by GPT-4 have also been revealed, namely, centralized models usually have restrictions on third-party integrations, which undermines the scalability and interoperability of AI agents based on centralized models.

Therefore, large open source models such as the Llama series have been sought after by more and more researchers, but open source does not mean transparency, and it also faces many challenges.

The main difficulty is that for most contributors, open source AI development does not have any economic incentives. Even if there are some competition rewards, these are usually one-off. Subsequent improvement and development work still needs to be done out of love. Unless it reaches a certain scale and has a large community of followers, there will be more possibilities for income and more contributors to continue to improve.

Therefore, the Bittensor AI project attempts to use web3 token mining to make open source AI development more sustainable, verifiable and efficient. Through Yuma Consensus, we introduce and align resources and research miners, validators, and AI project subnet creators, making the entire AI research more transparent and decentralized. Anyone can participate in AI contributions and win the rewards they deserve.

The performance of tokens in the secondary market also confirms people’s expectations. The price has increased from more than 50 US dollars in September 2023 to more than 500 yuan in December 2024, a 10-fold increase!

Recently, Bittensor’s investor and founder of Digital Currency Group established Yuma, an accelerator dedicated to incubating subnet projects within the Bittensor ecosystem, and served as its CEO, demonstrating his confidence in and potential for the Bittensor project.

Of course, the success of any project cannot be without doubts. Bittensor has also had a lot of FUD since its inception. In this article, we summarize many questions that have not been fully answered, and try to understand Bittensor's future positioning and possibilities in the decentralized AI track through research and analysis.

What is Bittensor?

Founded in 2021 by a team from Toronto, Canada, including Jacob Robert Steeves, Ala Shaabana, and Garrett Oetken, Bittensor is a decentralized AI infrastructure used by AI developers to build and deploy machine learning models or other AI-related developments. Many Web3 AI projects, whether or not they already have their own blockchain, can access Bittensor's blockchain "subtensor" and become one of its subnets.

What is a Subnet?

Subnets form the core of the Bittensor ecosystem. Each Bittensor subnet is an independent incentive-based competitive market. Anyone can create a subnet, customize the tasks to be performed by the subnet, and design an incentive mechanism (in the machine learning analogy, the incentive mechanism can be understood as a target loss function that can guide model training towards the desired results). You only need to pay a registration fee (in TAO) to create a subnet, and you can get a netuid for the subnet. Note that a subnet creator does not need to assume the operating tasks within the subnet, but transfers the right to operate the subnet tasks to others.

The task of operating the subnet provides another way for others to participate, that is, to join an existing subnet. If you join an existing subnet, there are two ways to participate: as a subnet miner or a subnet validator. In addition to paying the registration fee denominated in TAO (if you are a validator, you also need to stake TAO), he only needs to provide a computer with sufficient computing resources, and register the computer and his wallet to a subnet, and run the subnet miner module or subnet validator module provided by the subnet builder on this computer (both modules are Python code in the Bittensor API).

How does the competitive market for subnets work?

Here’s how the subnet competition works: Let’s say you decide to become a subnet miner. The subnet validator will assign you some tasks to complete. Other miners in the subnet will also receive tasks of the same type. After all subnet miners complete their tasks, they submit the results to the subnet validator.

Subnet validators will then evaluate and rank the quality of the tasks submitted by the subnet miners. As a subnet miner, you will be rewarded (in TAO) based on the quality of your work. Similarly, other subnet miners will also receive corresponding rewards based on their performance. At the same time, subnet validators will also be rewarded for ensuring that high-quality subnet miners receive better rewards, thereby