Decentralized Networks: A Sustainable Solution for GenAI's Energy Needs

DataHive AI Raises $3.5M Seed to build the world’s largest decentralized data factory for AI. After the Alliance DAO accelerator, we closed a heavily oversubscribed $3.5M Seed round led by 6th Man Ventures, with support from Solana Ventures, Side Door, Wave GP, Nural, Race, DCF, Curved, and top angels: Santiago Santos, Raj Gokal, Anatoly Yakovenko, Geebz + more. The strongest investors back the strongest data play in AI! Join Hive! 🐝 [X (ex. Twitter)](https://x.com/datahiveai) | [Telegram](https://t.me/DataHiveAI)

Blockmate Ventures Inc. has announced a significant expansion of its Bitcoin treasury division with the acquisition of an additional Bitcoin, bringing its total holdings to three. This acquisition was funded from the company's existing cash reserves, highlighting Blockmate's strategic belief in Bitcoin as a vital asset for companies aiming to preserve value and manage risks. The company anticipates that as Bitcoin prices fluctuate, its subsidiaries could enhance profitability by leveraging their capital more effectively, particularly in a rapidly changing market. In addition to its treasury expansion, Blockmate's subsidiary, Blockmate Mining, is making strides towards launching its mining operations. The company has secured a site in Wyoming with a capacity of 200 MW, suitable for either AI or Bitcoin mining. Currently, negotiations are underway to secure low-cost power and infrastructure, as well as potential partnerships for the site. Furthermore, Blockmate is reviewing additional sites for future mining operations, with updates expected to be shared via the TSX Venture Exchange. Meanwhile, Hivello, another venture under Blockmate, continues to lead in the decentralized physical infrastructure networks (DePIN) sector. The platform has made significant progress by listing its $HVLO token on the BingX exchange, enhancing its liquidity and fiat on-ramps. Hivello has integrated 11 DePIN protocols and has successfully removed over 19 million $HVLO tokens from circulation through a buy-and-burn strategy. With a growing user base and the ability to earn passive income, Hivello is well-positioned in a market that currently boasts a $14 billion cap, further solidifying Blockmate's diverse portfolio in the blockchain and Web3 space.

This week, European regulators have intensified their efforts to centralize cryptocurrency oversight, with the European Securities and Markets Authority (ESMA) aiming to gain direct control over exchanges and service providers. This move comes in light of the ongoing fragmentation within the Markets in Crypto-Assets (MiCA) framework across the 27 EU member states, which has led to inconsistent licensing and regulatory challenges. While some policy experts believe that a centralized approach could enhance cybersecurity and streamline licensing processes, others caution that it may stifle innovation, particularly within the crypto and fintech sectors. In parallel, the decentralized finance (DeFi) space is facing scrutiny, with researchers revealing over $280 million in exposure linked to the collapse of Stream Finance, which paused withdrawals after incurring a $93 million loss. In the realm of artificial intelligence (AI) and cryptocurrency, DeepSnitch AI has emerged as a standout project, boasting significant potential for growth. The platform, which has quickly surpassed $490,000 in presale funding at a price of $0.02157, features five specialized AI agents designed to tackle issues such as rug pulls and whale tracking. With its commitment to security, evidenced by successful audits from Coinsult and SolidProof, DeepSnitch AI aims to provide reliable tools for traders navigating the complexities of the crypto market. As the presale continues, early backers have already seen substantial gains, and the project is poised for further momentum, especially with the anticipated altcoin season. In contrast, established projects like Bittensor and Internet Computer are also making headlines. Bittensor recently experienced a price surge following the launch of Europe’s first staked TAO exchange-traded product (ETP), but analysts predict potential consolidation in the near term. Meanwhile, Internet Computer is gradually recovering from a dip, with projections suggesting it could reach $7 by the end of 2025. However, the significant market capitalizations of these projects may limit their percentage gains compared to emerging players like DeepSnitch AI, which offers a unique opportunity for investors seeking high-risk, high-reward scenarios in the evolving landscape of AI-driven cryptocurrencies.

Theta Labs has recently been awarded U.S. Patent 12,462,164 for their innovative "Modular Large Language Model (LLM) Guided Tree-of-Thought System." This patent signifies a significant advancement in how EdgeCloud facilitates the implementation of advanced AI models. The Tree-of-Thought (ToT) system enhances the problem-solving capabilities of Large Language Models by modeling multi-step reasoning as a dynamic search tree. Each node in this tree represents a distinct thought, while the edges signify transitions between various reasoning states or hypotheses, allowing for a more structured approach to AI reasoning. The key innovations outlined in this patent include the operationalization of the ToT system across a distributed environment. Thoughts are treated as independent computational units, enabling them to be computed and verified separately. The branches of the reasoning tree can be distributed across multiple compute nodes, allowing for concurrent exploration of different reasoning pathways. A coordination layer is established to aggregate and prune results in real-time, guiding the overall reasoning process toward optimal outcomes. This collaborative approach promises to enhance the efficiency and effectiveness of AI reasoning significantly. Furthermore, the integration of the Tree-of-Thought system into EdgeCloud's decentralized network of compute resources opens new avenues for AI labs and enterprises. By enabling distributed reasoning, synchronizing trees across nodes, and facilitating multi-model deliberation, the ToT framework enhances the capabilities of LLMs. Additionally, it allows for scalable AI planning and the incorporation of reinforcement learning to improve reasoning quality. This patent not only reinforces Theta Labs' commitment to innovation but also positions them at the forefront of AI development in decentralized environments.

Bittensor's native token, TAO, has experienced a significant decline of 16% within a 24-hour period, dropping to a low of $389. This downturn is part of a broader trend in the artificial intelligence sector, which has seen an overall decline of 9%. The recent losses for Bittensor coincide with Bitcoin's slip to near $100,000 and a total market capitalization decrease to under $3.4 trillion. Analysts remain optimistic about Bitcoin and the overall market, but investors are facing a mix of macroeconomic pressures and sector-specific challenges that are contributing to a risk-off sentiment in the market. Bittensor operates as a decentralized machine learning protocol that incentivizes collaborative AI model training through blockchain technology. The recent price drop for TAO follows a period of profit-taking after a notable rally, which was initially sparked by the launch of Europe’s first staked TAO exchange-traded product (ETP) by Safello. Despite a surge in trading volume by 17% to $712 million, reflecting increased panic selling, bulls have struggled to maintain upward momentum, with TAO's price hovering around $400 after peaking at $488. The broader cryptocurrency market has also faced substantial losses, with over $250 billion in market value evaporating in just 24 hours. This has resulted in a 5.8% contraction in overall market capitalization, now totaling $3.4 trillion. Major cryptocurrencies, including Ethereum, Solana, and XRP, have posted significant losses, and liquidations in derivatives markets have surpassed $1.13 billion. Contributing factors to this downturn include cautious remarks from Federal Reserve officials regarding interest rates and the recent $128 million Balancer exploit, which has heightened concerns about the security of smart contracts in the crypto space.

Bittensor's native token TAO has recently surged by 18%, reaching a price of $490, just shy of the critical psychological barrier of $500. This impressive rise positions TAO at the forefront of daily gainers, outpacing other notable cryptocurrencies, including privacy-focused Zcash, which saw a 15% increase within the same timeframe. The surge in TAO's price is attributed to a combination of institutional advancements and the recent announcement of the world's first staked Bittensor Exchange Traded Product (ETP), launched by Deutsche Digital Assets and Safello. This development has generated renewed interest in digital asset investment products, further propelling TAO's growth. The launch of the ETP, secured by BitGo Europe and based in Liechtenstein, aims to bridge traditional finance with decentralized AI, potentially unlocking significant institutional capital in Europe that has previously been hindered by regulatory challenges. Analysts are optimistic about TAO's price trajectory, suggesting that a sustained close above $500 could lead to a breakout towards $700, with the potential for new all-time highs. Despite the inherent volatility of the cryptocurrency market, the outlook remains bullish, particularly with the upcoming Bittensor halving and major ecosystem upgrades on the horizon. Bittensor has now established itself as the largest AI token by market capitalization, valued at $4.69 billion. This growth comes amid a broader market uptick in AI-related projects, although the overall artificial intelligence token category has seen a slight dip of 1.2% in total market capitalization. Investor enthusiasm for Bittensor is further fueled by recent gains in AI-focused equities from major players like Nvidia and Microsoft. As whale accumulation and halving sentiment continue to build, Bittensor's trajectory is one to watch closely in the coming months.