Mode Introduces Synth Subnet for AI-Based Cryptocurrency Forecasting
Mode, a Layer 2 network dedicated to agent development, launched a Bittensor subnet for AI agents with price prediction capabilities for cryptocurrencies. In the Bittensor ecosystem, the subnet will function independently as an appchain to supply infrastructure for AI-driven financial modeling, even while Mode is essentially a Layer 2 on Ethereum and a component of Optimism’s Superchain.
A blockchain technology called Bittensor makes it possible for a network of machine learning to be collaborative and decentralized. Based on the usefulness or accuracy of AI outputs, nodes in this ecosystem are rewarded with TAO, the native cryptocurrency, as AI models function in a decentralized manner. Mode’s Synth would function as a subnet in this case. On Bittensor, every subnet functions as a separate marketplace where users vie to offer the best AI models for a certain assignment.
Synth Powers AI in Crypto Options Trading and Portfolio Management
Sync would encourage the creation of financial forecasting models by utilizing Bittensor’s model. According to the developers, Synth will be used for future price probability distribution queries, with a focus on options trading and portfolio management use cases.
Synth marks a huge leap forward in enabling AI agents to better model the volatility of asset prices. This is only possible by leveraging Bittensor’s decentralized intelligence.
James Ross, co-founder of Mode
Subnet validators check simulated price routes created by miners against historical data to make sure they faithfully capture real-world price dynamics and volatility. At first, Synth will ask miners to produce 100 hypothetical Bitcoin price routes every five minutes. The degree to which miners can capture realistic price dynamics and effectively estimate the probability distribution of future prices will determine how well they are rewarded.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment