BitTensor (TAO) Complete Guide: The Innovative Future Where AI and Blockchain Meet
Hello! AI like ChatGPT and GPT-4 are hot topics these days. But what happens when these AI technologies and blockchain meet? BitTensor (TAO) provides the answer. I will explain it step by step so that even cryptocurrency beginners can easily understand. Let's take a look at the innovation that the meeting of AI and blockchain will bring.
Introducing BitTensor (TAO)
In a word, BitTensor can be described as ""blockchain for AI."" Existing AI development was monopolized by large companies such as Google and OpenAI, but BitTensor decentralized it so that anyone around the world can participate in AI development.
Simply put, BitTensor is an ecosystem where AI models compete and cooperate with each other. It is a system where AIs compete with each other like a Pokemon battle and the AI that shows the best performance is rewarded. In this process, TAO tokens are paid as a reward, which is the core driving force of the BitTensor ecosystem.
🤖 Interesting comparison: If conventional AI development is about studying alone in a university lab, BitTensor is like a global study group where geniuses from all over the world gather to solve problems together!
The exciting history of BitTensor
The beginning of BitTensor is really interesting. It is a project that started in 2021 by researchers from OpenAI and AI researchers from the University of Cambridge. The founders started with the fundamental question, ""Why should AI development be concentrated only in a few large companies?""
The mainnet was first launched in late 2021, and it started with simple text generation AI at the beginning. However, it has now grown into a huge ecosystem covering various AI fields such as image generation, voice recognition, and natural language processing. In particular, interest in BitTensor has exploded since 2023 along with the ChatGPT boom.
Currently, thousands of AI models are participating in the BitTensor network, and millions of AI inferences are performed every day. This is truly amazing growth!
BitTensor's innovative working principle
Let's take a simple example to understand how BitTensor works. Imagine that you asked, ""Draw a picture of a cat."" In a traditional system, one AI would draw the picture, but in BitTensor, multiple AIs draw the picture at the same time.
Then, other AIs evaluate these pictures. ""Which picture looks the most like a cat?"" ""Which picture is the prettiest?"" And so on. The AI with the best evaluation is rewarded with TAO tokens, and the AIs that evaluated well are also rewarded.
The important thing in this process is the concept of 'Subnet'. Each subnet is specialized for a specific AI task. For example, there is a text generation subnet, an image generation subnet, a data analysis subnet, etc. In each subnet, a competition takes place to find the best AI in that field.
💡 Summary of Key Concepts: BitTensor is like the AI Olympics. It is a system where AIs compete in various categories (subnets) and the winner receives a prize (TAO)!
Amazing Real-World Uses of BitTensor
BitTensor's applications are really wide-ranging. First, in the content creation field, many creators are already using BitTensor. It is used for writing blog posts, creating marketing copies, and creating social media content.
It is also causing innovation in the data analysis field. Companies are using BitTensor's AI models to analyze customer data or predict market trends. In particular, the financial sector is increasingly using it to establish investment strategies or analyze risks.
Personally, the most interesting application case is the education field. BitTensor's AI tutors analyze each student's learning pattern and provide customized education. I think this is an innovation that can completely change the existing uniform education system.
It is also attracting attention in the medical field. BitTensor's AI models are being used in medical image analysis, symptom diagnosis assistance, drug interaction analysis, etc. Of course, it is still in a supporting role, but the future possibilities are endless.
BitTensor Exchange Complete Guide
Choosing an exchange to purchase BitTensor (TAO) is really important. Currently, TAO can be traded on major global exchanges such as Binance, Huobi, KuCoin, and Gate.io. Unfortunately, it is not listed on domestic exchanges yet, but you can easily purchase it through overseas exchanges.
The most important thing when choosing an exchange is trading volume. Since TAO is a relatively new coin, you need to choose an exchange with sufficient trading volume to trade at the desired price. Please note that Binance boasts the largest trading volume.
Check the fee structure carefully. The maker fee and taker fee are different, and they also vary depending on the VIP level. If you are planning a long-term investment, it is also a good idea to check the withdrawal fee.
⚠️ Trading Tips: TAO is quite volatile. Since there are frequent spikes and drops, I recommend using limit orders rather than market orders!
Passionate BitTensor Community
The BitTensor community is truly unique. Unlike most crypto communities that focus on simple price discussions, the BitTensor community is centered around technical discussions. The Discord server has discussions about the development of new AI models every day.
The official Telegram group is where developers directly participate to answer technical questions, and you can get the latest news on new subnet releases. The r/BitTensor subreddit on Reddit is also very active, with many in-depth analysis articles.
What's particularly impressive is the activity of the developer community. On GitHub, open source projects are actively being developed, and you can see developers reviewing each other's code and discussing improvements. I think this healthy community culture is one of Bittensor's great strengths.
How to operate a safe Bittensor wallet
Choosing a Bittensor wallet is a little different from other cryptocurrencies. Since TAO uses the Substrate framework based on Polkadot, it is best to use a dedicated wallet.
The official Bittensor Wallet is the safest and most feature-rich. It may be difficult at first because it is CLI (command line interface)-based, but once you get used to it, it becomes the most powerful tool. In addition to simply storing TAO through the wallet, you can also stake or participate in subnets.
If you're concerned about security, using the Polkadot.js wallet is also a good choice. It can be installed as a browser extension, so it's convenient to use, and it's a wallet verified in the Polkadot ecosystem, so it's also very secure.
If you prefer a hardware wallet, Ledger Nano S/X is also supported. However, the setup can be a bit complicated, so follow the official guide carefully. And be sure to keep the recovery phrase in a safe place!
🔐 Security Tips: When creating a TAO wallet, be sure to manage the coldkey and hotkey separately. Cold keys are used for asset storage, and hot keys are used for network participation!
Things to know before investing in BitTensor
If you are considering investing in BitTensor, you should approach it very carefully. Above all, unlike other cryptocurrencies, TAO's technical understanding has a great impact on the success of your investment. Without a basic understanding of AI and blockchain technology, it is difficult to judge the true value of the project.
When analyzing the market, don't just look at the simple price chart. You should comprehensively consider the number of active network users, the status of new subnet launches, and the degree of performance improvement of the AI model. In particular, trends in major AI companies and regulatory changes can also have a significant impact on the price of TAO.
Also clearly recognize the investment risks. BitTensor is still a project in its early stages, and there are significant technical and competitive risks. If large companies like Google and OpenAI launch similar services, BitTensor's competitiveness may weaken.
Above all, emotional investment is prohibited. Do not invest hastily due to FOMO (Fear of Missing Out) or be overjoyed or depressed by short-term price fluctuations. It is advisable to invest by looking at the project's development potential from a long-term perspective.
⚠️ Investment Warning: This article was written for informational purposes, not investment advice. All investments should be made at your own discretion and responsibility, and you should always conduct sufficient research and receive expert advice before investing. In particular, keep in mind that TAO is a high-risk investment product.
🚀 Future Outlook: With AI technology rapidly developing, the importance of decentralized AI platforms like BitTensor is expected to increase. However, do not forget that technological advancement and investment returns are separate issues!
So far, we have looked at comprehensive information about BitTensor (TAO). The future of the convergence of AI and blockchain is truly exciting, but at the same time, do not forget that there is great uncertainty. Whether it is an investment or a technical interest, a careful and balanced approach is always required. If you have any questions, please contact us in the comments at any time! Let's watch the future of AI and blockchain together! 🤖✨