🌵 The Intersection of Crypto & AI 🌵

Big Brain Breakdown

Market Metrics

Total Crypto Market Cap: down 0.6% to $2.492T
Total AI Sector Market Cap: down 2.4% to $26.3B

Top Movers (24hrs):

📈Zero1 Labs (DEAI): up 10.7% to $0.3295
📈Arc (ARC): up 9.6% to $0.02528
📈Humans.ai (HEART): up 9% to $0.000989

Daily News

🟠 Hyperbolic has raised $7 million to create an open AI ecosystem and economy that rewards contributors, aiming to become the leading Open-Access AI cloud environment.

🟠 Filecoin just dropped its ecosystem update for the month of July, which features partnerships with SingularityNET, Nulkai, Bagel Network, Theoriq, has added 35 PiBs of client pipeline, and FIL-backed stablecoin.

🟠 Today was a huge day of launches for infrastructure solutions. Eclipse launched its Solana VM Ethereum Layer 2, Movement Labs launched its testnet, and Irys announced its new data-centric Layer 1.

🟠 BitMindAI launched a Bittensor subnet (SN 34) that challenges miners to develop AI models for detecting AI-generated media, with validators assigning jobs based on accuracy scores.

🟠 Morpheus announced another DeAI summit on August 12th in Toronto Canada during Canadian Crypto Week.

🧠 Big Brain Breakdown

This week, inspired by an article from Watchmaker at the Opentensor Foundation, we're exploring the concept of "supercommodities".

Before we dive into supercommodities, what is a (non-super) commodity?

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. Think oil, gold, wheat, or coffee. They're valuable because they're essential inputs for various industries and products, and their standardization allows for efficient global trade. The estimated total annual value of the global commodity market for 2023 exceeds $12 Trillion, so you could say it’s “pretty big”.

In the article, Watchmaker introduces the concept of supercommodities as a digital evolution of traditional commodities. But what exactly are they?

Supercommodities are purely digital assets produced in decentralized ecosystems. They share some characteristics with traditional commodities but have unique features:

1. Just like traditional commodities, multiple producers compete to create supercommodities, however, only the best is chosen. Unlike traditional commodity markets where lower-quality variants still have value, supercommodity markets are a winner takes all situation.

2. Supercommodities are entirely digital but have real-world applications. They are not typically finished products but rather raw digital commodities that are used to create user-facing digital outputs.

3. They are created in a decentralized ecosystem without a central authority, relying purely on cryptographic algorithms for security, trust and incentives.

4. Thanks to the decentralized, permissionless ecosystem they operate in, they can interact with each other, potentially creating new value through combinations of multiple supercommodities.

Examples and Potential Uses

Bittensor has identified several potential supercommodities:

1. AI and Machine Learning Models: High-quality, specialized AI models could be traded as supercommodities.

2. Compute Resources: Computational power could be allocated and traded more efficiently.

3. Predictive Analytics: From financial forecasts to weather predictions, high-quality predictive models could become valuable supercommodities.

4. Digital Infrastructure Components: Building blocks for future digital services, analogous to how traditional commodities are essential for physical infrastructure.

We also think there are many other things that could be supercommodities, for example:

• Data Validation and Cleaning Algorithms

• Cryptographic Proof Generation

• Decentralized Data Storage

• Image and Video Processing Services

• Fraud Detection Models

• Decentralized Identity Verification

The concept of supercommodities opens up some pretty cool possibilities:

1. New Markets: Just as we have markets for oil or gold, we could see the emergence of markets for trading AI models or compute power.

2. Democratized Access: These markets could make powerful digital resources more accessible to a wider range of users and businesses.

3. Accelerated Innovation: The competitive nature of supercommodity production could drive rapid advancements in AI and other digital technologies.

4. Investment Opportunities: As these markets develop, new investment vehicles could emerge around supercommodities.

Bittensor isn't just theorizing about supercommodities; they're actively working to make them a reality. Their subnet system is designed to produce various digital assets that could be considered supercommodities, from protein folding predictions to machine learning inferences.

The Bittensor ecosystem, with its native token TAO, provides the infrastructure for supercommodity production. Validators in the network continuously rank producers, ensuring only the highest quality supercommodities are rewarded.

Meme of the Day

Happy anniversary Ethereum! Now please just go higher….