Mode has introduced Synth, its AI-based prediction tool built on Bittensor.
By Godfrey Benjamin
Edited by Marco T. Lanz
Updated
3 mins read
Mode, a Layer 2 blockchain network built on Ethereum and integrated into Optimism’s Superchain, has made a bold move in its path of innovation. According to The Block, the crypto-friendly financial platform has launched Synth, an advanced AI-powered tool for predicting cryptocurrency prices.
Synth is built to operate within the Bittensor ecosystem, a decentralized network for collaborative artificial intelligence (AI). This combination of blockchain and AI is set to create a game-changing solution for predicting prices and trading in finance.
Synth is designed to help financial experts like traders and portfolio managers by providing accurate forecasts of crypto price movements. Unlike traditional systems that rely on centralized data, Synth taps into Bittensor’s decentralized AI network.
In simple terms, Synth is like a marketplace where AI programs are rewarded for making good predictions about crypto prices. Bittensor is the ideal ecosystem for Synth because it supports decentralized and collaborative AI development.
Its protocol rewards nodes (miners and validators) for participation and the utility of their outputs. This aligns perfectly with Synth’s goals of creating the most accurate financial forecasting tools. Mode’s choice to integrate Synth with Bittensor while being part of Optimism’s Superchain shows its innovative approach.
The Optimism Superchain includes other significant networks like Base, Zora, Aevo, and now Soneium, as reported by Coinspeaker. However, Synth stands out by bridging financial modeling and AI. James Ross, co-founder of Mode, highlighted the importance of this development.
He emphasized 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.
Furthermore, Synth operates using two critical groups: miners and validators. Miners are computers running AI programs that generate simulated price paths for digital assets like Bitcoin BTC $83 710 24h volatility: 3.6% Market cap: $1.66 T Vol. 24h: $33.65 B .
For example, miners produce 100 possible future price scenarios for Bitcoin every five minutes. Meanwhile, validators check the predictions made by miners. They compare the AI-generated forecasts against historical price data to confirm how realistic and accurate they are.
Miners with the most accurate predictions receive rewards in TAO $239.8 24h volatility: 9.9% Market cap: $2.05 B Vol. 24h: $98.18 M , Bittensor’s native cryptocurrency. This process ensures continuous improvement as miners compete to create better models.
Synth helps solve several problems in the financial markets. First, it tackles the difficulty of predicting prices in volatile markets like crypto. Simulating realistic price changes gives more accurate predictions that take market trends and fluctuations into account.
Another issue Synth addresses is the control of financial tools by a few big companies. Using the decentralized Bittensor network, Synth makes prediction tools more open and available to everyone instead of being controlled by a single company.
Finally, Synth helps investors make better decisions by providing accurate forecasts. This is especially useful in options trading and portfolio management, where clear predictions are key to success.
The development of tools like Mode’s Synth reflects a broader trend in the crypto and AI industries. There is a growing demand for tools to predict market trends and volatility more effectively in crypto. Decentralized networks and artificial intelligence are increasingly used to create more accurate, accessible, and innovative solutions.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
