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Hyperledger Besu For Healthcare: Improving Data Management And Security
October 09, 2023
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I recently came across an exciting technological solution called Hyperledger Besu that has the potential to revolutionize the healthcare industry. With its focus on improving data management and security, Hyperledger Besu offers a promising solution to the numerous challenges faced by healthcare organizations.

This article will explore the key features and benefits of using Hyperledger Besu in healthcare, highlighting its potential to enhance data privacy, streamline operations, and ultimately improve patient care. So let’s dive into the world of Hyperledger Besu and discover how it can transform the healthcare landscape.

Benefits of Hyperledger Besu in Healthcare

Increased data security

In the healthcare industry, data security is of utmost importance. Hyperledger Besu provides enhanced security measures to protect sensitive patient information and other healthcare data. As a permissioned blockchain platform, Hyperledger Besu ensures that only authorized parties can access and modify data. Through its robust encryption and cryptographic techniques, it offers protection against unauthorized tampering and ensures the integrity of the data.

Improved data management

Data management is a crucial aspect of healthcare, as it involves the storage, retrieval, and sharing of patient records and other healthcare-related information. Hyperledger Besu offers a comprehensive solution for efficient data management. With its distributed ledger technology, it enables secure and streamlined storage and retrieval of data. This eliminates the need for multiple data copies and reduces the chances of data inconsistency. Furthermore, Hyperledger Besu allows seamless data sharing among authorized participants, facilitating collaborative efforts and improving overall data management in healthcare.

Enhanced interoperability

Interoperability is vital in the healthcare industry, as it involves the seamless exchange of data between different systems and organizations. Hyperledger Besu plays a significant role in promoting interoperability by providing standardization and data exchange protocols. It ensures that data can be shared and understood across different platforms, enabling efficient collaboration and integration of healthcare systems. With Hyperledger Besu, the barriers to achieving interoperability in healthcare can be significantly reduced, leading to improved patient care and outcomes.

Understanding Hyperledger Besu

Overview of Hyperledger Besu

Hyperledger Besu is an enterprise-grade, open-source blockchain platform developed by the Linux Foundation. It is built on the Ethereum public blockchain and is designed specifically for enterprise use cases. Hyperledger Besu supports both public and private networks, providing flexibility and scalability for various industries, including healthcare. It enables organizations to build and deploy blockchain-based applications, facilitating efficient data management and secure transactions.

Key features of Hyperledger Besu

Hyperledger Besu offers several key features that make it suitable for healthcare applications. One of its notable features is its permissioned blockchain architecture, which ensures that only authorized participants can join and interact with the network. This enhances data security and privacy in healthcare settings. Hyperledger Besu also supports smart contracts, enabling the execution of self-executing business logic in a transparent and secure manner. Additionally, it provides a consensus mechanism and scalability options to accommodate the demands of the healthcare industry.

Data Security in Healthcare

Importance of data security in healthcare

Data security is critical in the healthcare industry due to the sensitive nature of patient information. As healthcare organizations increasingly adopt digital systems for storing and managing data, the risk of unauthorized access or data breaches also increases. Protecting patient privacy and ensuring the confidentiality, integrity, and availability of healthcare data are paramount to maintaining trust and avoiding legal and reputational consequences.

Challenges of data security in healthcare

Healthcare data faces various challenges in terms of security. The sheer volume of data generated, coupled with the interconnectedness of healthcare systems, makes it challenging to implement comprehensive security measures. Furthermore, healthcare data often needs to be shared across multiple entities, including healthcare providers, insurers, and researchers, which introduces additional vulnerabilities. The use of legacy systems and lack of standardized security protocols also pose significant challenges to maintaining data security in healthcare.

Potential risks and breaches

Data breaches in the healthcare industry can have severe consequences, both for individuals and organizations. Personal health information can be exploited for identity theft, fraud, or other malicious purposes. Moreover, breaches can lead to the compromise of patient confidentiality and trust, resulting in reputational damage for healthcare providers. Additionally, regulatory penalties and legal liabilities can arise from non-compliance with healthcare data security regulations. Therefore, it is imperative to implement robust measures to mitigate potential risks and breaches.

Hyperledger Besu for Data Security

Role of Hyperledger Besu in ensuring data security

Hyperledger Besu offers several features and functionalities that contribute to data security in healthcare. By implementing a permissioned blockchain network, only authorized participants are granted access to the network and can verify and validate transactions. This ensures that sensitive healthcare data remains within a trusted network and prevents unauthorized access. The immutability of the blockchain technology further enhances data security by making tampering with data virtually impossible.

Encryption and cryptographic techniques used in Hyperledger Besu

Hyperledger Besu leverages encryption and cryptographic techniques to safeguard the confidentiality and integrity of healthcare data. It utilizes public-key cryptography to establish secure communication channels and authenticate network participants. Additionally, data stored on the blockchain is encrypted to protect it from unauthorized access. The use of such advanced encryption and cryptographic techniques ensures that healthcare data remains secure throughout its lifecycle.

Data Management in Healthcare

Data storage and retrieval challenges in healthcare

The healthcare industry faces significant challenges when it comes to data storage and retrieval. The sheer volume of patient records and medical data generated daily requires efficient storage solutions that can handle large datasets. Traditional data management systems often struggle to meet these demands, leading to delays and inefficiencies. Moreover, retrieving relevant patient data quickly and accurately poses a considerable challenge, particularly in emergency situations where timely access to information can be critical.

Benefits of using Hyperledger Besu for data management

Hyperledger Besu addresses the data management challenges in healthcare by providing a distributed ledger system. This distributed ledger allows for the storage and retrieval of large volumes of healthcare data in a secure and efficient manner. Unlike traditional databases, the decentralized nature of Hyperledger Besu eliminates the need for a central authority, reducing the risk of data manipulation and corruption. This ensures that healthcare data can be easily accessed and shared, leading to improved efficiency and better patient outcomes.

Improved Data Management with Hyperledger Besu

Data privacy and ownership

Hyperledger Besu enables improved data privacy and ownership in healthcare. With its permissioned network, healthcare organizations can maintain control over their data and decide who has access and authority to modify it. This empowers patients to have more control over their own health information, allowing them to grant or revoke access to their data as required. By placing data ownership in the hands of patients and healthcare providers, Hyperledger Besu promotes trust and transparency in healthcare data management.

Efficient data sharing and consent management

Hyperledger Besu simplifies the process of data sharing in healthcare by providing a secure and transparent platform for consent management. Through smart contracts, patients can grant specific permissions to different entities, ensuring that data is shared only with authorized parties. The use of blockchain technology also enables real-time auditability of data access and sharing, enhancing transparency and accountability. The seamless data sharing facilitated by Hyperledger Besu improves care coordination and enables more comprehensive healthcare delivery.

Data lifecycle management

The lifecycle management of healthcare data is streamlined with Hyperledger Besu. The blockchain platform enables a clear record of all transactions and modifications made to the data, ensuring a transparent and auditable data trail. Data provenance and audit logs provided by Hyperledger Besu help in maintaining data integrity and traceability. This is particularly important for compliance with data retention and deletion policies, regulatory requirements, and clinical research purposes. By simplifying data lifecycle management, Hyperledger Besu ensures data is stored, accessed, and deleted in a compliant and responsible manner.

Interoperability in Healthcare

Importance of interoperability in healthcare

Interoperability refers to the ability of different healthcare systems and applications to exchange and interpret data seamlessly. Interoperability plays a vital role in improving patient care by ensuring that healthcare information can flow freely between systems, regardless of the technology or vendor used. It enables efficient care coordination, reduces duplication of effort, and enhances clinical decision-making. Achieving interoperability is crucial for creating a connected healthcare ecosystem that delivers comprehensive and personalized patient care.

Challenges of achieving interoperability in healthcare

Achieving interoperability in healthcare is a complex task due to several challenges. Healthcare organizations typically use disparate systems and technologies, often developed by different vendors, making it challenging to establish interoperable connections. Additionally, varying data standards and formats hinder the seamless exchange of data. Different privacy and security regulations across jurisdictions further complicate interoperability efforts. Overcoming these challenges requires a concerted effort from healthcare stakeholders and the adoption of interoperable solutions like Hyperledger Besu.

Enhanced Interoperability with Hyperledger Besu

Standardization and data exchange protocols

Hyperledger Besu promotes enhanced interoperability through the adoption of standardized protocols and formats for data exchange. By adhering to established standards, healthcare systems can communicate and interpret data seamlessly, regardless of the underlying technology. Hyperledger Besu supports widely recognized healthcare data standards like HL7 (Health Level Seven) and FHIR (Fast Healthcare Interoperability Resources). This ensures that healthcare organizations can achieve meaningful data exchange and integration, enabling comprehensive patient care across different systems.

Smart contracts for seamless data exchange

The Smart contracts provided by Hyperledger Besu play a significant role in achieving seamless data exchange. Smart contracts are self-executing agreements that automatically enforce predefined rules and conditions. In the context of healthcare, smart contracts can facilitate the exchange of patient data while ensuring privacy and security. By enabling trustless transactions and automating data exchange processes, smart contracts remove the need for intermediaries and reduce the complexity and cost associated with achieving interoperability in healthcare.

Regulatory Compliance and Hyperledger Besu

Ensuring compliance with healthcare regulations

Compliance with healthcare regulations is a primary concern for healthcare organizations. Hyperledger Besu helps address regulatory compliance challenges by offering traceability, immutability, and data transparency. The blockchain’s immutable nature ensures that once data is recorded, it cannot be altered retroactively, providing an auditable trail of all transactions. This enables healthcare organizations to demonstrate compliance with data protection regulations, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States or the General Data Protection Regulation (GDPR) in the European Union.

Auditability and transparency with Hyperledger Besu

Hyperledger Besu provides auditability and transparency, two essential aspects of regulatory compliance. All transactions recorded on the blockchain are visible to authorized participants, allowing for real-time monitoring and auditing. This enhances the ability to detect and prevent unauthorized access or modification of healthcare data, ensuring compliance with industry regulations. By leveraging the transparency and auditability features of Hyperledger Besu, healthcare organizations can meet regulatory requirements and maintain the highest standards of data security and privacy.

Case Studies: Hyperledger Besu in Healthcare

Real-world examples of Hyperledger Besu implementation in healthcare

  1. Patient-centric health records: Hyperledger Besu has been used to develop patient-centric health record systems that empower patients to control their health data and share it securely with healthcare providers.
  2. Supply chain management: Hyperledger Besu has been implemented in healthcare supply chain management to ensure the authenticity and traceability of pharmaceutical products. By using a blockchain-based system, counterfeit drugs can be identified and removed from the supply chain, ensuring patient safety.
  3. Clinical trials and research: Hyperledger Besu has been leveraged to streamline the management of clinical trial data. By securely storing trial data on the blockchain, researchers can ensure data integrity and transparency in the research process, facilitating collaboration and knowledge sharing.

Benefits and outcomes

The implementation of Hyperledger Besu in healthcare has led to numerous benefits and positive outcomes. These include enhanced data security and privacy, improved interoperability, streamlined data management workflows, and increased patient control over health information. The use of Hyperledger Besu has also facilitated regulatory compliance and auditability, reducing the risk of data breaches and non-compliance with healthcare regulations. By harnessing the power of blockchain technology, Hyperledger Besu has the potential to revolutionize data management and security in the healthcare industry, ultimately leading to better patient care and outcomes.

 

In conclusion, Hyperledger Besu offers significant advantages for healthcare organizations seeking to improve data management and security. By addressing the challenges of data security, data management, and interoperability, Hyperledger Besu enables healthcare providers to enhance patient care, streamline workflows, ensure regulatory compliance, and foster trust in the healthcare ecosystem. With its robust features and capabilities, Hyperledger Besu is poised to revolutionize the way healthcare data is managed and secured, ultimately benefiting both patients and healthcare organizations.

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Dr. Jack Kruse is a neurosurgeon, quantum clinician, author and the CEO of Kruse Longevity Center.

Full Video Presentation: Dr. Jack Kruse / Nourish Vermont 2017
https://youtu.be/d7qjh4BIGbc?si=EMZgfVF1Cm7kY7Zh

Continued Learning:👇📚
Optimize Your Health in the Modern World with Dr. Jack Kruse
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Scammers have found a new way to exploit those "Verify you're human" captchas. If a prompt asks you to type in a series of commands (like Windows + R followed by Control V), DO NOT DO IT.

This isn't a security check—it's a trick to force you to download and run malware on your device. 💻☣️

Once they have your credentials, they can:
📧 Steal your email account.
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How to stay safe:
✅ Real human verification will never ask you to type in complex system commands. They'll only ask for letters, numbers, or to click on a picture.
✅ If you’ve already done this, disconnect from the internet immediately, run a malware scan from a different device, and update your passwords. 🛡️

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Chutes is gaining attention as a decentralized AI inference platform that claims to combine real usage, cryptographic verification, confidential computing, and open-source infrastructure into a working production system. The thesis is simple: instead of trusting Big Tech clouds with AI workloads, users get a distributed compute layer built around verification and privacy.

🔑 Key points

🔹 Chutes is live in production and reportedly scaled to more than 1,170 active GPU nodes, including large numbers of Nvidia H200s and Blackwell-class hardware.

🔹 The platform says it has processed nearly 38 trillion tokens since launch across 53 deployed applications and more than 700,000 registered users.

🔹 The team reportedly cut unprofitable usage programs, reduced total token volume, and still improved revenue efficiency, with revenue per GPU rising sharply after removing subsidized traffic.

🔹 Chutes is using post-quantum cryptography, trusted execution environments, and Nvidia confidential ...

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🔑 Key points

🔹 Jamie Dimon reportedly called the CLARITY Act a threat to the financial system, arguing it could allow crypto firms to offer yield-like products while avoiding the capital, reserve, and oversight burdens traditional banks face.

🔹 Senator Cynthia Lummis pushed back publicly, framing the issue as a global strategic race and warning that if the U.S. does not set digital asset standards, other powers will.

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👉 Coinbase just launched an AI agent for Crypto Trading

Custom AI assistants that print money in your sleep? 🔜

The future of Crypto x AI is about to go crazy.

👉 Here’s what you need to know:

💠 'Based Agent' enables creation of custom AI agents
💠 Users set up personalized agents in < 3 minutes
💠 Equipped w/ crypto wallet and on-chain functions
💠 Capable of completing trades, swaps, and staking
💠 Integrates with Coinbase’s SDK, OpenAI, & Replit

👉 What this means for the future of Crypto:

1. Open Access: Democratized access to advanced trading
2. Automated Txns: Complex trades + streamlined on-chain activity
3. AI Dominance: Est ~80% of crypto 👉txns done by AI agents by 2025

🚨 I personally wouldn't bet against Brian Armstrong and Jesse Pollak.

👉 Coinbase just launched an AI agent for Crypto Trading

🚨 Barry Silbert’s Yuma puts a full-throttle bet on Bittensor as top capital allocators build around TAO 🚨

Barry Silbert has turned DCG’s Yuma into a Bittensor-focused subsidiary, signaling one of the strongest institutional convictions yet behind TAO. The article argues this is part of a broader pattern: major crypto investors are not treating Bittensor like a fleeting AI trade, but like infrastructure worth building around.

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🔹️ Barry Silbert backed Bitcoin, Ethereum, and Coinbase early, and now he is leading a subsidiary built around Bittensor.

🔹️ Through DCG, Silbert launched Yuma to accelerate, build, and manage capital inside the Bittensor ecosystem.

🔹️ Stillcore Capital is described as one of the largest dedicated TAO funds, with Jason Calacanis attached as a consulting partner.

🔹️ Stillcore’s stated goal is to own about 1% of TAO’s circulating supply while backing high-conviction subnets.

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🔹️ Spot HYPE ETF volume has nearly reached $900 million early in its launch window.

🔹️ The trading activity is being read as a sign of strong institutional demand.

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🔹️ The early volume suggests ETFs can quickly become a major access point for institutional capital.

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How USDC Wins the Hyperliquid Deal🤔
 
USDC "wins" the Hyperliquid deal by securing dominant distribution and deeper integration into one of crypto's fastest-growing on-chain perpetuals platforms, in exchange for sharing most of the USDC reserve yield (up to ~90%) back with Hyperliquid.
 
Background on the Deal: Hyperliquid had ~$5–6B in USDC deposits (a huge chunk of total USDC supply, often cited around 7–8%). Previously, the interest/yield on those reserves (~$180–250M annually at prevailing rates) mostly flowed to Circle (issuer) and Coinbase (key partner/treasury handler), with little returning to Hyperliquid.
 
In late 2025, Hyperliquid ran an RFP for a native stablecoin (USDH) to capture that revenue. Native Markets won the community vote, and USDH launched as an "Aligned Quote Asset" (AQA).
 

In May 2026, Native Markets sold USDH brand assets to Coinbase. USDH is being sunsetted over time (with feeless conversions/redemptions to USDC/fiat), and USDC becomes the primary/official Aligned Quote Asset on Hyperliquid. Coinbase acts as the main treasury deployer; Circle handles minting, redemptions, and cross-chain (e.g., CCTP).

 

How USDC Wins: 🔑 Key Advantages

Massive, sticky distribution in a high-growth venue: Hyperliquid is a leading on-chain perp DEX. USDC gains preferred status as the quote asset for most trading pairs, reducing friction vs. bridging/swapping other stables. This concentrates liquidity, improves efficiency, and funnels more capital flows through USDC.

  • Deep on-chain integration: Builds on prior Native USDC + CCTP launches. Coinbase's involvement adds fiat on/off-ramps and institutional trust. USDC was already dominant (~95% of stables on the platform); this formalizes and expands it.
  • Regulatory and brand alignment: Ties USDC to a high-profile, high-volume platform at a time when USDC has gained transaction volume momentum (surpassing USDT in some months post-regulatory clarity like GENIUS). It strengthens USDC's positioning vs. USDT (which dominates on centralized venues like Binance).
  • Longer-term consolidation play: Analysts see this as part of stablecoin market consolidation around established players with liquidity and infrastructure. Fewer conversion layers = better efficiency for USDC.
     

The Trade-Off (and Hyperliquid's Win)Hyperliquid gets ~90% of the reserve yield (estimates: $135–160M+ annually at current balances, potentially scaling to $300–500M with growth), funneled into protocol revenue/HYPE buybacks. This is roughly double what they got from USDH and turns stablecoin balances into a resilient revenue stream (less volatile than trading fees).

For Circle/Coinbase, they give up a big share of yield (analysts estimate $60–80M hit to combined EBITDA) but retain/expand USDC's role as the backbone stable on a major platform. It's a strategic distribution win over building or competing with a new native coin.

 
🎯Bottom Line: USDC trades some margin for premier, high-volume real estate in perpetuals/DeFi trading—the exact use case driving massive on-chain dollar demand. This cements its lead in the evolving stablecoin wars, especially as platforms demand better economics. The deal highlights shifting power dynamics: big platforms now negotiate hard for yield share.

 

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Handshake Wants to Be the Front Door to Bittensor’s Agent Economy

In this Beanstock interview, Harry Jackson of Subnet 58 (Handshake) lays out a thesis that’s worth understanding even if you never buy a single SN58 alpha token. He also explained where Bittensor’s agentic layer is heading.

We wrote the high-value distillation:

The one-line thesis

Handshake wants to be the front door to the agent economy on Bittensor. The Amazon-like gateway where AI agents discover, pay for, and stack together skills from across all 128 subnets.

Why this matters now
  • There’s a critical distinction Harry emphasized: AI is intelligence, but agents need tooling. An LLM without payment rails, plugins, and workflow infrastructure is “a young person trying to cut a tree down with a pen knife.”
  • Agent-to-agent commerce is on the edge of going viral. Harry’s prediction for the tipping point: a woman in her 40s lets her agent do her shopping end-to-end (research, stock check, autonomous payment), posts it to social media, and it becomes the “four-minute mile” moment everyone copies.
  • Bittensor is uniquely positioned because agents don’t care about marketing or pretty UIs. They only care about best-in-class products and services. That’s exactly what Bittensor’s 128 subnets produce.

The product reality (what’s currently shipping)

  • Handshake is live with paying users generating a few thousand USD in revenue as of today. The business model: 2% of every transaction on the platform.
  • The flywheel is Amazon-like: better skills → more agents arrive → providers get distribution → more skills get added → cycle repeats.
  • The headline product on the way is Axiom. This is an agent that trades subnets while you sleep. Built around the realization that what the Bittensor community wants from agents isn’t generic skills; it’s more TAO. Each “hole” they find in the agent becomes a new tradeable skill on the marketplace.

The investment angles (read these carefully)

  • The moat is data, not distribution. Every workflow run by an agent generates failure data, success data, payment data. No outside competitor can replicate that without running the marketplace itself.
  • The metric Harry tells you to judge them on is revenue. Not agent count. Not user count. Revenue, which is publicly visible on-chain via the front page of their site. He’s basically inviting investors to hold him to it.

  • The pitch for emissions: the biggest TAM in Bittensor is the agent market, and Handshake is the most integrated subnet, meaning if Handshake wins, the subnets it routes to all win too. Bullish on agents + bullish on Bittensor = bullish on Handshake by transitive logic.

Where Harry stands on the Conviction

  • On the conviction upgrade and locked alpha: he’s fine with it. Handshake is a revenue-focused company, so locked alpha isn’t a survival issue. He acknowledges it’ll be harder on research-stage subnets that need to raise external capital, but argues most subnet founders are thinking long-term, not short-term extraction.
  • On the broader vibe: he just got back from Bittensor events in Spain and San Francisco. He observed that the overwhelming reality of the ecosystem is people working hard to build the best products. “It’d be a lot easier in some ways to build a company outside of Bittensor.” The only reason to do it on Bittensor is if you actually want the moonshot.

Full interview below:

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🚨The State Of Bittensor (TAO)🚨
Greg Schvey | COO at Yuma Group

Last week at the @YumaGroup Summit I had the opportunity to present on The State of Bittensor. That presentation is in the thread below. If you choose to read it, I'd ask that you keep the following three things in mind:

  1. This is just one guy's view of what was the most relevant for a 25-minute talk; a difficult filter for such a dynamic industry.
  2. The slides were designed to supplement a talk; I've done my best to replicate what I recall of the talk in the accompanying X posts.
  3. The topic of the Summit was "The Tipping Point" - a candid assessment of what could lead to Bittensor's breakout success and what evidence we see of that today - which also thematically anchored this presentation.

Let's dive in:

We are in the most important race in human history – the race for intelligence itself. AI has advanced beyond the point of no return. As an example of what I mean: Ramp is a widely used financial services platform for companies. They looked at spending and revenue across their clients since the launch of ChatGPT: Companies who did not spend on AI have had flat revenue for the last three years. The top quartile of AI spenders have grown revenue by more than 100%.

We are already at the point where investing in AI is a matter of survival. But what exactly are we getting for the hundreds of billions being spent? Right now, its overwhelmingly going to corporations who have repeatedly shown they don’t have our best interest in mind.

 

 

Claude Opus 4.6 – the leading deep thinking model, had a measured hallucination rate of 16% in February. Then, without telling anyone, Anthropic throttled its reasoning – presumably to reduce GPU utilization – and didn’t tell anyone. Hallucinations climbed to 33% - a 98% increase.

They only admitted it after third party benchmarking proved it. And they were still charging everyone at the same price the whole time. Even since my talk last week, they've supposedly been found to be throttling people simply because HERMES.md was in their commits. You may say, "well there are solid open source options..."

 

 

Yes, open source models have gotten very good, but they’re not immune to capture either. Try asking DeepSeek what happened in Tiananmen Square and then let me know if that’s the intelligence you want to trust.

 

 

This needs to be addressed right now or it will be too late. To give you a sense of what I mean, this is a chart of the total annual commits on GitHub. That’s 500% growth since the launch of ChatGPT in 2022. From 200M per year to a one billion in 2025. 2026 is on track for **14 billion** The genie is out of the bottle – there is no going back; we are already at the exponential inflection point.

This reminds me of many years ago: Bitcoin shined a light on how much our rights were impacted when we became dependent on private companies to run our day-to-day lives.

Your right to privacy? That doesn’t extend to your bank account. Your "money" is just a ledger at a private company, available for interrogation and suspension at any time. Bitcoin gave us back the sovereignty of our wealth.

Similarly, we’ve depended on things like privacy of our medical records and attorney client privilege for our entire lives. What do you think is going to happen when a private company’s servers are giving you legal and medical advice? Who are you going to trust for that intelligence? The company that lobotomized its top model? The model constrained by the foreign governments? As I said at the beginning, we’re in the most important race in human history and Bittensor well may be our best shot at winning.

 

 

One of the things about having a different model to produce intelligence is it requires an economic system suited to it. Subnets are the intelligence and economic engines that drive Bittensor’s value. That’s why the Summit was themed around The Tipping Point: understanding how subnets can reach breakout success and what we can do to help.

To summarize Bittensor's intelligence economics: miners create intelligence for which they earn subnet tokens. In many cases they sell those tokens to fund operations, putting downward pressure on token prices and decreasing the incentive to mine (similar to bitcoin). In parallel, if that intelligence is being used to generate real world value, one of the parties who benefits from that value (e.g. the Operator monetizing it, institutions using intelligence commodities to advance their research, etc.) can buy the subnet tokens to keep token prices elevated and sustain the miner incentive.

Investors get to participate in this process, often supporting token prices before the commercial value of intelligence is realized, and/or subsequently holding an asset that parties gaining fundamental value from the intelligence (eg Operator or others) will need to purchase at some point in the future if they want to maintain sufficient incentives for the intelligence machine to continue running.

For Bittensor to succeed, this value loop has to work. So, to understand the State of Bittensor, we have to take a look at how that’s going today and what that means for the network overall.

 

 

One of the many unique features of Bittensor is that subnets are native to the protocol. That is not the case on most crypto networks where the true utility lives in smart contracts with no direct tie to network value.

As an example, Polymarket has seen 800% growth in volume this year. Users can bet any arbitrarily large amount of value on Polymarket for a few cents of network fees. There is nothing tying that to value of the network’s native token, which is down 80% over the same period as Polymarket’s amazing success.

 

 

Conversely, Bittensor subnets are intrinsically linked to $TAO. If you want $1,000 worth of subnet exposure, you first need $1,000 of TAO. We analyzed subnet pool data surrounding the announcement of @tplr_ai's recent training run and normalized across them by indexing them to a starting level of 100.

As shown by the orange line, there was no material change in pool size for non-Templar subnets over the observation period. There was however, major inflow into Templar’s pool. Given Bittensor’s unique network model, we saw a direct correlation to the change in TAO price over the same period. As value flows into subnets, the whole network benefits. A rising boat lifts the tide, so to speak.

 

 

That can go both ways. When Sam left, we saw something similar in reverse; as value was exfiltrated from the network, it started in Covenant subnets and dragged TAO down with it. You know what else we saw in the data though? For all of the noise about concerns of Bittensor’s future, the other subnet pools were mostly unchanged.

The event was interesting because it reminded me of the early days of bitcoin: people would say Bitcoin was only used by drug dealers on the internet. I'd stare at them aghast because in the same breath they told me that an open, permissionless network was used to reliably move money anywhere in the world in minutes by the most untrustworthy people on the planet and yet they didn't understand how the technical feat required to achieve that would create tremendous value.

The Covenant situation is similar: people were concerned about the operator's exit, rather than realizing the only reason we care is because a ground-breaking technical innovation was achieved. But even bigger than that: Bittensor has 128 subnets currently, each striving to generate value for themselves and, transitively, the network as well.

 

 

And we’re seeing that occur – Templar was not unique in that regard. The same pattern emerged around the Intel publication on @TargonCompute. The non-Targon pools remained largely unchanged. Targon saw heavy inflows. TAO price climbed with it.

Again: rising boats lift the tide. And there are many boats in Bittensor right now.

 

 

We’re seeing major technical innovations at an increasing rate.

Just a few examples from the last couple weeks:

@QuasarModels just announced a custom attention architecture targeting 5M token context windows.
 
@IOTA_SN9 developed a technique that compresses data flowing between distributed GPUs by 128x with little to no loss in training quality, increasing viability of training large AI models across internet-connected machines worldwide.
 
We're seeing the building blocks start to form whereby competitive large generalized models can eventually be built. In the meantime, we're also witnessing more targeted, niche players start to pull ahead in their respective fields.
 
During the presentation, I gave the example of @resilabsai achieving 90% accuracy on their home valuation model, making it the most performant open source model and quickly approaching state of the art. Quite literally as I was explaining this during the talk, @markjeffrey pointed out they had just achieved 98% accuracy.
 
In the time between when I prepared the presentation and actually presented, they went from best open source to at or near state of the art - only further highlighting the unique value of Bittensor's open, competitive intelligence creation cycle.
 
 
And the tech that’s being built on Bittensor is getting real attention from serious players. Again, just a few examples of many: Harvard partnered with @Chutes on research about AI inference efficiency. Valeo – an auto company with $20B in annual revenue – is working with @natix on an AI model for self-driving cars. @zeussubnet- the weather forecasting subnet, is the only party in the world allowed to use data WeatherXM’s network of global weather sensors for commercial purposes. And there are in fact many subnets already commercializing their intelligence.
 
 
 
Most of us are already aware of Chutes seven-figure ARR, but a few other examples:
 
@LeadpoetAI– which uses their Bittensor subnet to source sales leads, announced earlier this year that they crossed $1M ARR
 
@Bitcast_network– the content creation platform built on their subnet competition – is already operating profitably
 
@lium_io– a hardware subnet – has bought more than 4,000 TAO worth of their token
 
Remember the economic model I outlined earlier; we’re seeing real evidence that it’s starting to work across many subnets. Intelligence built on Bittensor, capturing value in the real economy, and bringing it back into the network.
 
Action shot of this slide courtesy of @Tom_dot_b
 
 
That’s why when we look at Bittensor we like to look at Total Network Value (TNV);
$TAO market cap is only part of the story in Bittensor. TNV = market cap of TAO + market cap of subnets – tao in the pools [as not to double count] The actual value of this network is already higher than most people realize. And notably, subnets make up an increasing proportion of TNV – recently crossing 35% - as value continues to flow into the pools.
 
 
 
Interestingly, we recently noticed a change in TNV: In particular, despite all the volatility in TAO, the dramatic subnet issuance curves, etc. - the combined subnet market cap had been remarkably consistent around $750 million for most of the last year, until recently.
 
It’s nearly doubled over the last few months – a clear breakout in the trend. If you were looking for Tipping Point, it might look something like this...
 
 
 
I hear a lot that that value is relatively concentrated in the largest subnets. And the market cap distribution does indeed reflect that, but that’s not necessarily a bad thing.
 
 
 
This is the market cap distribution of the S&P 500. Many healthy economic systems tend towards Pareto distributions. And so what if some subnets are worth more? As we showed earlier, this is an ecosystem that will win or lose *together* And we’re seeing that play out every day.
 
 
 
We track announcements of subnets utilizing each others infrastructure and intelligence. Just as an example, we identified at least eight subnets who announced that they use Chutes for inference. But we have dozens of similar examples of cross-subnet collaboration across many subnets like
 
What’s notable about this:
 
1. Collaboration seems to be happening at an increasing pace as subnets continue to mature and build out contiguous pipelines of AI infrastructure
 
2. Keeping money circulating within an economy creates a money multiplier. Capital circulating within a single economy without leaving creates economic value for each party it passes through, without having to bring in new capital. That’s uniquely possible here because of the diversity of infrastructure built on Bittensor.
 
This network is not 128 discrete growth drivers; it’s increasingly functioning as an interconnected graph, which has substantially more stickiness and value And the pace is about to increase dramatically:
 
 
 
We’re starting to see increasing agents operating on Bittensor: subnets mined by agents, subnets operated by agents...
 
Consider the Bittensor value flywheel:
 
-An intelligence goal is established
-Miners compete to achieve the goal
-That produces intelligence
-Intelligence generates value
 
That’s happening today, as we’ve seen earlier in this discussion.
 
As agents get more capable, that flywheel spins faster and faster. Permissionless entry means any agent can compete. Protocol-native economic incentives mean good work gets rewarded. Bittensor is uniquely advantaged for agentic speed over guarded, centralized alternatives with corporate procurement cycles.
 
That also means exploits will be found faster. But, it also means solutions that harden the network against them will be found faster as well.
 
Accordingly the impact of the network primitives – incentives, accessibility, governance, security, reliability, and all the infrastructure we’re building around the network - have an exponentially larger impact. It is critical that we get these right. The time to nail this, is right now. If we don’t someone else will.
 
 
 
The good news is, for now, Bittensor seems to be in the lead The 30-day moving average of Daily active wallets just crossed a record, approaching 10,000 Up 100% just in the last year.
 
 
 
We’re also seeing subnet ownership increasingly diversify and distribute. The median number of holders of subnet tokens at 2,000 is a 10x increase since the dtao launch a year ago. And at Yuma, we spend a lot of effort and resources to help broaden that access.
 
 
 
Yuma currently partners with 16 custodian and wallet providers to bring Bittensor access to the masses As an institutional-grade validator, the relationships and service we offer give them the confidence to make TAO staking available to millions of end users.
 
During the Summit, we announced that BitGo’s clients will now have access to subnet token staking through our partnership, making subnet investing available to customers of one of the world’s largest custodians.
 
 
 
We also help people gain access to subnets via investment vehicles. The Yuma Composite Fund gives investors access to a market-cap weighted portfolio of subnets through traditional investment structures. The Yuma Large Cap Fund gives investors concentrated exposure to Bittensor's largest subnets.
 
Our institutional asset management team handles everything from initial subnet token purchases, to portfolio rebalancing, custody, and reporting. The appeal for institutions is obvious, but even for the Bittensor native, it’s an amazingly simple way to get access to a broadly diversified portfolio, rebalanced regularly.
 
Between the breakout performance of subnets, the attractive staking rewards, and benefits of diversification, the Yuma funds have outperformed TAO materially year to date [as of when the presentation was created] Nearly 3x outperformance relative to TAO.
 
 
 
And last but definitely not least, our subnet accelerator has helped a wide range of companies access Bittensor. We help them acquire subnet slots, design incentives, provide marketing assistance, review pitch decks, make introductions to other investors, etc. At Yuma we deeply believe in the power of subnets and have helped many of the network's leading intelligence providers start and succeed.
 
 
 
Disclaimer: For informational purposes only.  Nothing herein should be construed as financial, investment, legal, or tax advice.  This material does not constitute an offer to sell or a solicitation of an offer to buy any securities or tokens.  Investing in digital assets involves significant risk, including the potential loss of principal.  Subnet tokens do not represent equity or ownership interests in any entity.  Performance comparisons and index references are illustrative only and not indicative of future results.  Charts and indices are based on methodologies and assumptions that may change and may not reflect actual market conditions or liquidity.
 

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