Chainfeeds Summary:
Crypto researcher Jake Pahor has released a research report on Bittensor, providing a brief overview of the project and its subnet architecture, and discussing both bullish and bearish scenarios.
Source:
https://x.com/jake_pahor/status/1847321830488756547
Author:
Jake Pahor
Viewpoint:
Jake Pahor: Bittensor (TAO) is a decentralized open-source network that encourages global collaboration in the development and deployment of artificial intelligence (AI) models. Unlike traditional AI systems controlled by centralized entities, Bittensor adopts a distributed framework where contributors earn TAO tokens based on the performance and utility of their AI models. Since the token launch in 2023, TAO has been one of the best-performing cryptocurrency projects, achieving over 1000% gains in the past year. Bittensor's scalability is enhanced through the network's subnets, which focus on specific machine learning tasks. Subnets facilitate parallel processing and specialization, reducing bottlenecks and allowing the network to scale effectively as it grows. Currently, there are 52 active subnets, with plans to increase to 64 and potentially up to 128 in the future. Subnets can be viewed as dApps on the L1 chain. The incentive design of the subnets is highly competitive, as underperforming subnets will ultimately be replaced by better ones. Bullish catalysts: Growth in the AI market, the intersection of AI and cryptocurrencies, disruption of centralized AI, the decentralized AI market, subnet architecture, institutional interest, and community engagement. Bearish considerations: Security risks, regulatory uncertainty, sustainability and speculative demand, staking dependence, token issuance, scalability challenges, and technical barriers.
Source
