Bittsensor Price Today

The current real-time Bittsensor price is $458.61 . TAO price has plummeted by 6.6% in the last day and decreased by 17.38% in the last seven days. It’s important to note that the current Bittsensor market capitalization is $3,384,973,450. The maximum supply is 21,000,000.00 TAO coins, with a circulating supply of 7,380,936.00. TAO is ranked #40 in terms of market cap.

The Fundamentals of Bittensor 

Bittensor (TAO) is an innovative cryptocurrency project aiming to reshape machine learning by implementing decentralized blockchain technology. The project will effectively create a Decentralized Physical Infrastructure Network (DePIN) of self-hosted machine-learning models that clients can call to fulfill specific requests. 

To achieve its goal of reshaping machine learning, Bittensor is building a decentralized Artificial Intelligence (AI) marketplace where producers are connected directly with consumers, enabling them to profit from their services. Bittensor aims to ensure its marketplace can operate in an entirely trustless and transparent manner. 

Bittensor was conceived in 2015 by Jacob Steeves and Ala Shaabana. However, the project and its native TAO cryptocurrency were not officially launched until 2023. Initially built on a Polkadot parachain, Bittensor now operates on its own blockchain. The founders cited companies like OpenAI, and Google building centralized AI tools as justification for the project. 

Understanding How Bittensor Works

Bittensor blends machine learning with blockchain technology to create something more than the sum of its parts. Machine learning models self-hosted as part of the decentralized network are trained on specific data sets to equip them for certain tasks. Network participants can train these machine learning models through mining to earn crypto rewards. 

In contrast to Proof-of-Work networks like Bitcoin, which reward miners for validating transactions, Bittensor miners provide machine learning services. Miners host a machine-learning model on physical hardware connected to the network. When a client requests a prediction, it’s sent to the Bittensor network and then routed to a miner registered for that service.

Bittensor states that the network’s core technology is a consensus mechanism that reaches an agreement regarding how rewards and client requests are distributed to participants. To operate as a subnet validator on the network, people are required to stake TAO tokens. However, only 64 participants who stake the most TAO are considered validators. 

Why Bittensor is Unique

While some crypto projects prefer to remain closed-source so people cannot review the code, Bittensor has opted for an open-source approach, meaning anyone can view the code behind the project. As such, many people have reviewed Bittensor, helping to patch any issues and improve the network’s overall security. 

Bittensor has created a unique reward mechanism to ensure that all network participants are fairly compensated for their efforts. The system automatically distributes TAO tokens to people who have pledged computational resources, provide accurate predictions, and offer other valuable services to the network. 

Bittensor utilizes a variation of the Proof-of-Work (PoW) like in Bitcoin and Proof-of-Stake (PoS) consensus mechanisms called Proof-of-Intellegence. The mechanism requires nodes to perform machine-learning tasks instead of solving cryptographic equations. The more accurate a node’s output, the greater its chance of being selected to add a block to the network and earn rewards. 

Bittensor Price History

Bittensor is a relatively new cryptocurrency project, yet it already has had a volatile history. The TAO token launched in March 2023 at $93.3974, 66.15% lower than today’s valuation. 

Despite a strong demand for AI-centric projects, Bittensor struggled to find its footing following its release. TAO fell to around $47.50 soon after its launch, where it stayed until October. As the crypto market became healthier and the AI narrative garnered attention, TAO exploded, rising from $85.26 at the start of November to $379.03 by mid-December

Going into 2024, demand for TAO slowed down, and the market corrected, leading the asset to bottom out at around $229.79. However, as the Bittensor network grew and investors were drawn to the project, TAO went parabolic, climbing to an all-time high of $730.21 in March. Since then, the asset has fallen sharply, but TAO still commands a price of $458.61 today.