The Future of Work - Bittensor TAO Simple Explanation

[00:00:00]In Bitcoin, all the miners do is they just buy these specialized hardware rigs called ASICs, and all those things do is you plug in electricity, they generate a lot of hashes really quickly, which gives a miner a better chance at getting the next Bitcoin block reward, but nothing is actually like produced from that. Like, we don't have anything tangible at the end of it. And so, this is kind of the biggest critique that we hear about Bitcoin. So, then the question becomes, what if we could have Bitcoin's decentralized infrastructure, you know, the really good parts about Bitcoin, but we take a look at what the miners are doing, and all the power that is being consumed, and all that computation that is happening. What if we could take that power and computation, and what if we could use it? What if we could use that computational power to train AI, or provide AI inference, or just even just sell that compute to somebody who will actually use it for something productive. And that is what BitTensor is doing. The main distinction between Bitcoin and BitTensor is that BitTensor requires miners to do valuable work. And you may have heard that BitTensor is doing something with AI. AI works well with BitTensor, but as I'm going to explain in this video, that's not all it does. There's many things that are being produced on BitTensor. We've got training AI, we've got AI inference, we've got compute, we've got hosting, we've got AI agent code generation, we've got data scraping, we've got defect detection, and those are like a lot of AI kind of related topics, but outside of that umbrella, we've got other stuff happening, like advertising and influencer marketing, and weather forecasting. So, there's a lot of different ways you can mine BitTensor, and each of these ways has to be valuable. And you're probably asking yourself, well, how how do you know it's valuable, right? Well, this is where competition comes into play. There is a crap load of competition within BitTensor. There is competition between the miners that are trying to produce a particular commodity. The easiest one to explain is the weather forecasting subnet within BitTensor. So, miners compete there to predict the weather the best. The ones who turn out to be most accurate are rewarded the most. And so, there's this competition between weather forecasters to see who can predict the weather the best. And so, that's just layer one of the competition within BitTensor. I just listed off about 10 different ways that you can mine on BitTensor. These are called subnets.

[00:02:32]Now, there's competition between each of those subnets as well. So, subnets are competing to produce the most valuable commodities on BitTensor because if they do that, they get more Tao, BitTensor Tao. So, these subnets are competing with each other to produce the most valuable commodity on BitTensor and they are rewarded in BitTensor's cryptocurrency Tao. They're rewarded in that cryptocurrency if their commodity is more valuable. And the same with the miners that are competing to produce that commodity. So, it's a market throughout from the production of the commodities to the commodities themselves. So, when people say that BitTensor does something with AI, that's true, but it's not quite the full story.

[00:03:16]What's happening is that miners are collaboratively competing to train AI the quickest. Or they're competing to produce AI inference. Or they're competing to produce the cheapest, most reliable storage. Or they're competing to best predict the weather. Or they're competing on advertising or influencer marketing. But, I just want you to know that the types of subnets that are possible on BitTensor are endless. You can be ridiculously creative in the commodities that are being produced here. Now, lastly, remember at the very beginning I said that, you know, what if we could take that compute power that Bitcoin miners are kind of like wasting.

[00:03:54]What if we could sell that? Well, that's the essence of the kind of end of the loop of Bittensor. We want to actually be selling the commodities that are being produced, and that is happening on many Bittensor subnets already. Again, I don't have time in this video to go over them all, but there's many subnets that come to mind. Shoots, Liam, Targon, Bitcast, these are all subnets within Bittensor that use the Bittensor infrastructure in order to procure the commodities that they're selling. So, you're probably asking yourself, like, "Travis, this this sounds just way too good to be true. Like, there's got to be some sort of crypto Ponzi thing that where the creators are going to dump on everyone or something like that." Well, the really good news here is that the founders of Bittensor have a lot of respect for Bitcoin and its sort of immaculate conception of Bitcoin, where there wasn't any of these ICOs or pre-mines or VC allocations beforehand.

[00:04:50]There's no team allocation, none of that garbage. It's just 21 million maximum supply just like Bitcoin and four-year halvings just like Bitcoin. And everybody who is participating within the network, when they got in, they could start mining immediately. It always has been completely permissionless to mine on Bittensor, just like Bitcoin. If you don't know what permissionless means, it means that you don't have to ask anybody to interact with Bittensor. You can mine on it, you can create your own commodities on it, you can trade within the market system within Bittensor. All that stuff is completely permissionless. So, we've got, you know, the scarce token that was fair launched, it's decentralized, it's open source, it's permissionless. It's got all these really good attributes of Bitcoin, plus the only way that you can mine Bittensor is by producing valuable work. So, when people say, you know, they think that Bitcoin is going to be the future of money and whatnot, you know, I would tend to agree with them.

[00:05:54]It's it's very possible that that is the direction that the world is heading, but I would view Bittensor as the future of work. There is so much economic productivity happening on Bittensor in such a way that I think Satoshi Nakamoto, you know, the creator of Bitcoin, I'm sure Satoshi would very much resonate with the principles of the Bittensor network. If you're interested in learning about Bittensor at a deeper level, I have a playlist in the description and at the bottom of your screen here. It'll help you get up to speed with the network very quickly.