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AI and Crypto Tokens

Instead of a few "God-models" dominating the AI landscape, we're likely to see a world with many smaller, specialized models:

  1. Rug risk: Developers want to avoid dependence on a single closed-source company.
  2. Cost-performance trade-off: Smaller, specialized models can be more cost-effective for specific tasks.
  3. Vertical integration: Entrepreneurs will seek competitive advantages by building their own specialized models.
  4. Privacy concerns: Organizations may be reluctant to entrust sensitive data to large, generalized models.

Synergy​

Cryptocurrency provides unique advantages for the AI ecosystem:

  1. Coordination Layer: Crypto rails can facilitate collective coordination without centralized control.
  2. Open, Permissionless API: Allows AI agents to access services and transfer value autonomously.
  3. Trustlessness: Provides cryptographic assurances for execution and access.
  4. Censorship-Resistance: Offers unstoppable intelligence outside of government control.

Tech Stack​

Key areas where crypto and AI intersect:

  1. Data Centers and Compute: Decentralized compute for training and inference.
  2. Data: Crypto incentives for data collection, preparation, and marketplaces.
  3. Models: Efforts to create decentralized, community-owned AI models.
  4. Applications: AI agents leveraging crypto rails for autonomous operations.

Bittensor​

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