In a world where artificial intelligence and blockchain converge, Bittensor (TAO) emerges as an innovative solution redefining how AI models collaborate and evolve in a decentralized ecosystem, aiming to democratize access to advanced AI.
Bittensor (TAO) is a decentralized, open-source, and permissionless network that revolutionizes the development and sharing of artificial intelligence and machine learning models.
Unlike traditional AI development, which remains centralized within a few large organizations like OpenAI, Google, and Meta, Bittensor creates an open, peer-to-peer ecosystem where machine intelligence models can collaborate effectively on a global scale.
This unique approach allows teams to share their knowledge and data, significantly improving the overall performance of machine intelligence. Bittensor aspires to create a kind of “digital collective consciousness,” a global neural network that grows and improves through the collective contributions of its participants.
The fundamental concept of Bittensor is based on transforming machine intelligence into a tradable commodity. Developers create and train data models within the network and are incentivized to exchange their contributions on a peer-to-peer marketplace. This system allows AI experts from around the world to contribute their knowledge, collaborate with other models, and improve the collective intelligence of the network.
Bittensor uses its native token, TAO, for various functions within the ecosystem:
Bittensor represents a radical shift in how machine learning models are developed. By decentralizing the process and allowing models to interact and learn from each other, the protocol not only brings together AI projects that would have been siloed, but also democratizes access to cutting-edge technologies.
The history of Bittensor begins well before the recent explosion of interest in artificial intelligence. It was in 2015 that Jacob Steeves, then an engineer at Google, began developing the fundamental concepts of what would become Bittensor. His inspiration came from studying the Bitcoin network and its revolutionary mechanism.
Steeves was fascinated by how Bitcoin had created a decentralized payment system through an innovative incentive mechanism. He then asked himself a fundamental question: “How could we create a supercomputer more powerful than any centralized entity like a government or company?” The answer, according to him, lay in the incentive mechanisms used by Bitcoin.
This reflection led to the birth of Bittensor, a project aimed at repurposing Bitcoin’s mechanisms to address the considerable needs of the emerging field of AI, particularly in terms of data storage and training machine learning models.
Unlike many crypto projects that “pre-mine” their tokens or distribute them via tools like SAFTs (Simple Agreement for Future Tokens), Steeves chose to follow Bitcoin’s pure path. Participants could only obtain TAO tokens through mining, similar to Satoshi Nakamoto’s original design. Bittensor’s development continued quietly for several years, with a dedicated team working on creating a complex but robust system.
Unlike Bitcoin with its simple transaction model, Bittensor developed a network offering different types of functionalities, where miners participate in different types of competitions depending on the features they provide, and are incentivized by obtaining TAO.
The Bittensor network was officially launched in 2021, even before the advent of ChatGPT in November 2022, which significantly increased public interest in generative AI.
This timing is significant because it demonstrates that Bittensor was not created to ride the wave of AI enthusiasm, but was already in development long before AI became a hot topic.
For a long time, Bittensor remained a relatively unknown project, appreciated primarily by a passionate community of stakeholders, including miners, validators, and developers building on the protocol. However, the project gradually gained recognition, particularly through the support of prestigious venture capital firms.
Polychain, founded by Olaf Carlson-Wee, a former Coinbase employee, played a crucial role in incubating Bittensor since 2019. Other notable investors include Digital Currency Group, founded by Barry Silbert, and Dao5, an investment fund created by Tekin Salimi, formerly of Polychain.
Bittensor’s biggest breakthrough to date was its listing on Binance, one of the world’s largest cryptocurrency exchange platforms. According to Jacob Steeves, the trading volume of TAO on Binance on the first day exceeded the annualized GDP of Peru, a country where he had resided for four years.
This listing, followed by one on Crypto.com, marked an important milestone in the project’s evolution, taking it from a niche project to a more widely recognized cryptocurrency.
Behind the innovative Bittensor project is a visionary whose expertise and passion have shaped this revolutionary technology. Jacob Steeves, the main founder of Bittensor, has played a decisive role in the creation and development of this decentralized artificial intelligence network.
Jacob Steeves is a visionary engineer and entrepreneur based in Peru. Before embarking on the Bittensor adventure, he worked as an engineer at Google, where he gained solid experience in advanced technologies. It was in 2015, while studying the Bitcoin network, that Steeves began to develop the fundamental concepts of what would become Bittensor.
His vision was clear and ambitious: to create a system that could compete with technology giants like OpenAI, Google, and Meta in the field of artificial intelligence, but in a decentralized manner. Steeves was convinced that the real problem wasn’t so much AI taking over the world, but rather the concentration of power in the hands of a few large companies.
In an interview with Fortune, Steeves stated: “The real problem isn’t AI running the world, but what it wants to sell us. The power of humans and the world is so concentrated that we are all simply slaves to these big companies.” This philosophy has guided the development of Bittensor as a decentralized alternative to centralized AI models.
Although Jacob Steeves is the most well-known face of Bittensor, he didn’t work alone. The project was co-founded with Ala Shaabana, who brought complementary expertise to the team. Garrett Oetken holds the position of CTO (Chief Technology Officer), overseeing the technical aspects of network development.
The Bittensor team also includes numerous developers, researchers, and contributors who work together to advance the vision of a decentralized artificial intelligence network. This diverse team brings a wealth of perspectives and skills to the project, contributing to its robustness and continuous innovation.
Bittensor has attracted the attention and support of several renowned investors in the cryptocurrency and technology ecosystem. Among the most important:
The TAO token is the native cryptocurrency of the Bittensor network, playing a central role in its operation and governance. Much more than a simple means of exchange, TAO fulfills several essential functions that allow the network to operate in a decentralized and efficient manner.
One of the primary functions of TAO is its role in network governance. TAO token holders can actively participate in decisions that shape the future of Bittensor by voting on various proposals and changes. This decentralized governance mechanism ensures that network development remains aligned with the interests of its community rather than being dictated by a central authority.
Votes are weighted according to the number of tokens held, meaning that participants with a larger investment in the ecosystem have proportionally more influence on its evolution. This system encourages long-term engagement and alignment of interests between token holders and the overall health of the network.
Staking is another fundamental aspect of TAO’s utility. Users can stake their TAO tokens to participate in the network’s consensus mechanism and earn rewards. This process directly contributes to the security and validation of the Bittensor network.
By staking their tokens, participants become validators who evaluate and verify the quality of miners’ contributions to the network. This validation is essential for maintaining the integrity and reliability of the data and models exchanged on Bittensor.
The staking system also creates an economic incentive for behaviors beneficial to the network. Validators who perform accurate and honest evaluations are rewarded, while those who attempt to manipulate the system may see their rewards reduced or their staked tokens penalized.
TAO serves as a payment method for accessing AI services and applications built on the Bittensor network. This function is particularly important as it allows users to access advanced machine learning models and other AI-related services without going through centralized intermediaries.
Developers and businesses can use TAO to purchase computing resources, access specialized AI models, or pay for data processing on the network. This direct and frictionless economy facilitates innovation and adoption of advanced AI technologies.
One of the most innovative aspects of TAO is its role as an incentive mechanism to stimulate innovation in the field of AI. TAO tokens are awarded to users who contribute valuable data or computing resources to the network.
This reward system encourages active participation and resource contribution to the network, creating a virtuous circle of continuous improvement. The more participants contribute high-quality AI models, relevant data, or computing capabilities, the more they are rewarded in TAO, which in turn reinforces the value and utility of the network.
Like Bitcoin, the total supply of TAO tokens is capped at 21 million, which helps control inflation and preserve the token’s value in the long term. This programmed scarcity makes TAO not only a utility within the Bittensor network but also potentially a store of value.
The distribution of TAO tokens is carefully managed to support the long-term stability of its tokenomics, with a gradual release through mining rewards, staking rewards, and community initiatives.
The Bittensor network stands out for its unique architecture that combines blockchain principles and artificial intelligence to create a decentralized machine learning ecosystem. Understanding how it works requires exploring the different components that interact within this system.
Bittensor’s architecture is designed to facilitate exchange and collaboration between different artificial intelligence models. At the heart of this architecture is a decentralized network of nodes, or “neurons,” that host machine learning models and perform predictions.
These nodes interact via the Bittensor client software, which allows for smooth communication and coordination across the network. This design is inspired by biological neural networks, where computing units interact and learn collaboratively, mimicking neurons in the human brain.
Each neuron in the Bittensor system performs both local and collaborative tasks, processing data inputs and exchanging information with neighboring neurons. This interconnected learning process leads to a constantly evolving and highly intelligent network.
The Bittensor network relies on two main types of participants: miners and validators, each playing an essential role in maintaining and developing the network.
Miners in the Bittensor network offer machine learning services by hosting their models locally. When a client requests a prediction or service, the request is routed to an appropriate miner based on their expertise in the relevant field.
The miner then processes the input using their machine learning model and returns the prediction through the network. This decentralized approach ensures the availability of diverse and specialized machine learning models, while operating in a peer-to-peer manner.
Miners are incentivized to provide accurate and high-quality predictions, as their compensation in TAO tokens directly depends on the evaluation of their contributions by validators.
Validators play a crucial role in maintaining the integrity of the Bittensor network, acting as intermediaries and protecting the network. They query miners, evaluate their predictions, and ensure the accuracy and reliability of the data exchanged.
Validators verify that machine learning outputs generated by miners meet the necessary quality standards. This validation process is essential for maintaining trust in the network and ensuring that users receive reliable, high-quality AI services.
Like miners, validators are also rewarded in TAO tokens for their evaluation and validation work, creating an incentive system aligned with the quality and integrity of the network.
The Bittensor network is organized into subnets, which are specialized networks dedicated to specific functionalities or domains. Currently, Bittensor has 32 subnets, each offering different types of services such as data storage, access to other AI chatbots, scraping, and price oracles.
This modular structure allows for increased specialization and efficiency, as each subnet can focus on a particular aspect of artificial intelligence or machine learning. Participants can choose to join the subnets that best match their skills and interests.
Subnets function as decentralized marketplaces for specific commodities, allowing each to interact and integrate into a unique computing infrastructure. This approach is similar to the abstraction that Ethereum added to Bitcoin to execute decentralized contracts, but applied to digital markets.
To join the Bittensor network, participants must first register a unique key, called a “hotkey.” Registration can be done in two ways:
Once registered, nodes are assigned to a specific subnet based on their expertise in a particular domain.
The blockchain is the backbone of the Bittensor network, providing the necessary infrastructure for a decentralized, transparent, and secure artificial intelligence ecosystem. Understanding the specifics of this blockchain is essential to fully grasp the potential and innovations of Bittensor.
The Bittensor blockchain, known as Subtensor, is built on Substrate, the same framework used by Polkadot. This technological choice is not coincidental: Substrate offers exceptional flexibility and modularity, allowing Bittensor to create a blockchain specifically adapted to the needs of a decentralized artificial intelligence network.
Subtensor operates 24/7, ensuring constant network availability. This blockchain is designed to be auditable and transparent, allowing anyone to verify transactions, token emissions, and AI model evaluations.
The structure of Subtensor is organized around blocks that contain transactions and network state updates. Each block includes information about validator evaluations of miners, TAO token emissions, and other data essential to the network’s operation.
Unlike blockchains like Bitcoin that primarily focus on financial transactions, or Ethereum which emphasizes smart contracts, the Bittensor blockchain is specifically designed to facilitate the exchange and evaluation of artificial intelligence.
This specialization is manifested in several aspects:
Although Bittensor has its own blockchain, the project has also developed integration with Ethereum, thus expanding its reach and interoperability. This integration is particularly evident in the existence of Wrapped TAO (wTAO), a tokenized version of native TAO designed to function on the Ethereum blockchain.
This integration offers several advantages:
The consensus algorithm is a fundamental element of any blockchain, determining how network participants reach agreement on the state of the system. Bittensor distinguishes itself with its unique approach, using a consensus mechanism specially designed for a decentralized artificial intelligence network.
At the heart of Bittensor lies the Yuma Consensus (YC), sometimes also called Proof of Intelligence (PoI). Unlike traditional mechanisms like Proof of Work (PoW) used by Bitcoin or Proof of Stake (PoS) adopted by Ethereum, Yuma consensus rewards participants based on the value of their intellectual contributions rather than their computing power or stake.
Yuma consensus is a critical algorithmic process that runs on-chain within Subtensor, the Bittensor blockchain. Its primary responsibility is to compute token emissions for validators and miners from evaluations performed by validators.
The operation of Yuma consensus can be broken down into several key steps:
This approach ensures that participants are rewarded not simply for their presence in the network, but for the real value they bring to it, creating a meritocratic system that favors quality and innovation.
Bittensor (TAO) has implemented various measures to guard against different types of attacks that could threaten its ecosystem.
Sybil attacks occur when an attacker creates multiple identities to unduly influence the network. Bittensor protects against this type of attack through its staking mechanism. To actively participate in the network as a validator or miner, users must stake TAO tokens, which represents a significant economic cost for anyone attempting to create numerous identities.
Additionally, the Yuma consensus is designed to give more weight to validators with an established history of reliable contributions, making it even more difficult for a new attacker to exert significant influence on the network.
51% attacks occur when an entity controls more than half of the network’s power, potentially allowing them to manipulate the consensus. Bittensor (TAO) reduces this risk through its distributed consensus mechanism that doesn’t rely solely on stake or computing power, but also on reputation established through consistent and accurate evaluations.
The diverse nature of Bittensor’s subnets also complicates the task for a potential attacker, as they would need to dominate multiple specialized markets simultaneously to compromise the entire network.
Like any emerging technology, Bittensor presents a set of advantages and disadvantages that are important to analyze to fully understand its potential and limitations.
Here are the main advantages of the Bittensor (TAO) cryptocurrency:
One of the most significant advantages of Bittensor is its contribution to the democratization of artificial intelligence. In a landscape dominated by a few technology giants like OpenAI, Google, and Meta, Bittensor offers a decentralized alternative that makes AI accessible to a much wider audience.
This democratization manifests at several levels:
Bittensor creates a unique environment where AI models can collaborate and learn from each other on a global scale. This collaboration is facilitated by the network architecture that allows different models to interact and share knowledge.
The benefits of this collaboration include:
Bittensor’s economic incentive system is specifically designed to encourage continuous innovation in the field of AI. By directly rewarding valuable contributions with TAO tokens, Bittensor creates a market where excellence and innovation are financially valued.
Let’s now look at the disadvantages of the Bittensor token.
The technical complexity of Bittensor constitutes one of its main disadvantages. The system combines advanced concepts of blockchain, artificial intelligence, and economics, creating a steep learning curve for new users and developers.
This complexity manifests at several levels:
Bittensor faces considerable adoption challenges, common to many innovative blockchain technologies but particularly pronounced in this case due to its specialization.
These challenges include:
Like any cryptocurrency, the TAO token is subject to significant price volatility, which can create risks for different stakeholders in the ecosystem.
The TAO token, the native cryptocurrency of the Bittensor network, has experienced a remarkable price evolution since its launch. Understanding its price history, recent performance, and predictions for its future is essential for investors and potential participants in the Bittensor ecosystem.
The TAO token has had a particularly interesting price trajectory since its creation. Unlike many crypto projects that start with an ICO (Initial Coin Offering) or pre-distribution, TAO followed an approach closer to Bitcoin, where tokens could initially only be obtained through mining.
According to historical data, the price of TAO experienced a spectacular increase in 2024, with a rise of over 1000% in less than a year. This impressive performance placed Bittensor among the best-performing cryptocurrencies of this period.
A particularly notable moment in TAO’s price history was reaching its all-time high (ATH) on April 11, 2024, when the price exceeded $767.61. This record valuation coincided with a period of increased interest in projects combining blockchain and artificial intelligence.
In 2025, TAO’s price has experienced some consolidation after its strong rise the previous year. At the time of writing this article, TAO’s price is around $316, with a 24-hour trading volume of approximately $222 million.
This consolidation phase is considered normal and even healthy by many analysts, allowing the market to absorb previous gains and establish new support levels before a potential continuation of the bullish trend.
Price predictions for TAO in 2025 vary considerably depending on sources, reflecting the inherent uncertainty in cryptocurrency markets and the innovative nature of the Bittensor project.
According to various analyses and prediction platforms:
Buying TAO tokens is an essential step to participate in the Bittensor ecosystem, whether for investing, using network services, or contributing as a validator. Here’s a comprehensive guide on the different options available for acquiring TAO and the important considerations to take into account.
The TAO token is now available on several major exchange platforms, which has considerably improved its accessibility for potential investors and users.
Here are the 5 best exchanges where you can buy TAO:
For those who prefer decentralized solutions, Wrapped TAO (wTAO) can be traded on various DEXs in the Ethereum ecosystem, such as:
These platforms allow token exchange in a non-custodial manner, which means you keep control of your private keys throughout the process. Nevertheless, we favor specialized platforms like Bitget for buying TAO, because unlike brokers, they allow you to actually trade cryptocurrencies and not just bet on their value.
Here’s a detailed guide to making your purchase on Bitget:
1. Create an account on Bitget
2. Verify your identity (KYC)
3. Deposit funds
4. Buy TAO
Securely storing your Bittensor (TAO) tokens is a crucial step after acquiring them. Different storage options exist, each with its advantages and disadvantages. Understanding these options will allow you to choose the solution most suited to your needs and effectively protect your investment.
Exchange wallets are the wallets provided by exchange platforms like Binance, Crypto.com, or Bitget. When you buy TAO on these platforms, your tokens are automatically stored in these wallets.
These wallets are generally recommended only for short-term storage or for amounts you plan to actively trade.
Software wallets are applications that you install on your computer or smartphone. To store TAO, you can use wallets compatible with the Bittensor network or, for Wrapped TAO (wTAO), Ethereum wallets.
Some popular options include:
Cold wallets or hardware wallets are physical devices specially designed to store your cryptocurrency private keys offline, thus protecting them from online threats.
The most popular options include:
Cold wallets, such as those offered by Ledger, are generally considered the most secure solution for long-term storage of significant amounts.
Bittensor represents a remarkable innovation at the intersection of blockchain and AI, offering a decentralized alternative in a field dominated by a few technology giants. Its sophisticated technical design and well-aligned incentive mechanisms make it a particularly promising project.
Despite significant challenges such as technical complexity and competition from centralized platforms, Bittensor has demonstrated its ability to attract quality talent and investments. Its unique approach of valuing intelligence rather than simply computing power could fundamentally transform AI development.
For investors with a long-term horizon and appropriate risk tolerance, TAO represents an exposure opportunity to two transformative technologies, although the inherent volatility in cryptocurrencies calls for caution and diversification.
Thomas holds a BTS in computer science with a specialization in SEO and is certified in web writing and e-commerce. Passionate about blockchain technology and cryptocurrencies since 2018, he specializes in analyzing crypto market cycles. His journey into GPU mining began in 2019 with ETH before transitioning to KASPA and Alephium (ALPH).
Bittensor is a decentralized network combining blockchain and AI to create an open marketplace for artificial intelligence. TAO is its native cryptocurrency, used for governance, staking and as a means of payment.
The network organizes nodes (“neurons”) into specialized subnets. Miners provide AI services while validators assess their quality, all being rewarded according to the value of their contributions.
Jacob Steeves, a Canadian engineer formerly at Google, developed the fundamental concepts back in 2015 and officially launched the network in 2021.
Around $316.96, after reaching an all-time high of $767.61 on April 11, 2024. Check CoinMarketCap or CoinGecko for the current price.
On centralized exchanges like Binance, Crypto.com and KuCoin, or decentralized platforms like Uniswap for wTAO (Ethereum version).
Preferably use a cold wallet like Ledger or Trezor for long-term storage, carefully protecting your recovery phrase.
Yes, but unlike traditional mining, it involves providing AI services to the network, requiring advanced technical skills.
Bittensor focuses specifically on decentralized AI, with a unique consensus rewarding intellectual value rather than computing power or stake.
Its success will depend on its ability to overcome adoption challenges and compete with the giants of centralized AI, while developing its ecosystem of specialized subnets.
Generally legal in most jurisdictions, although subject to various regulations depending on the country, particularly concerning the exchanges that facilitate its purchase and sale.
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