The stock market is big factor when it comes to the distribution of funds but even more important is the value data science has added to information in the recent decade. Numeraire (NMR) joins the big Hedge Funds in Silicon Valley in a race to realize profits from derivatives through its blockchain technology that integrates the aspects of AI in predicting financials.
The Numeraire is an ERC20 Ethereum based token, smart contracts that are executed within the blockchain are represented by the ETH tokens. The beauty of Numeraire’s source code to its smart contract is a public availability to interested users. The minted Numeraire are sent to Numerai. The NMR smart contract dictated that there will never be more than 21 million Numeraire minted. Numerai sent 1 million Numeraire to data scientists based on their historical ranking on Numerai’s leaderboard.
The smart contract started to mint a fixed number of Numeraire weekly after its initial distribution which a target of the max 21 million NMR to be minted. By performing well in Numerai’s machine learning competition, data scientists earn Numeraire on an ongoing basis. When data scientists are confident of the predictions they have made, they send Numeraire to the Numeraire Ethereum smart contract. The predictions are given time to be realized, the data scientists Numeraire (NMR) tokens value depend on the accuracy of their predictions.
How Does It Work
The smart contracts within the platform have a protocol that organizes tournaments, participants who are the data scientists compete for rewards set aside in a pool. The Numeraire ETH based smart contract distributes the rewards in the pool to data scientists. Auctions are submitted to the platform; data scientist bid as to whether they will make correct predictions that businesses will make an extra dollar. The value of a bid is represented by the confidence level of a bidder, c.
The data scientists are ranked in descending order of confidence c until the prize pool is depleted. Data scientists whose predictions are well in line are rewarded by having their NMR tokens returned, the auction mechanism is dictated by the smart contract. Poor performers within the platform risk losing all their NMR value if their tokens are destroyed. The ETH blockchain enables public verifiability of Numeraire (NMR).
What To Expect From NMR In 2018!
The stock market remains to be big players to most developed economies, investors get to earn ROI through the market and give an opportunity for ideas to grow into Fortune 500 companies. Numeraire integrates the world of Finance and data science which are both a kill for any investor with long term investment plans.
Reputation on the platform
The NMR team has been working to incorporate reputation on their protocol. This way user will be able to assess the history of data scientists and eventually avoid agency problems that are common in fund management or advisory.
Zero Computational Power
Crypto enthusiasts understand that mining consumes a lot of power making it costly to obtain some coins. The Numeraire (NMR) token aims at enabling its users to make computations at a zero power cost. The Network will use AWS AMI which is inclusive of all machine learning software, this will also link Numerai’s API that is the vehicle for predictions to Numerai forever. This platform will be able to identify and ping AI that are connected to it for the most recent predictions.
ICO & Price Analysis
NMR is a Nano Cap token that currently stands at position 244 in market capitalization. The token is traded on popular exchanges such as Upbit and Bittrex, NMR is also listed in CryptoDerivates which is quite obvious given its stock market related nature. The coin has been bullish over the last seven days increasing its price and volume traded by 27% & 609% respectively. There is currently 1.29 million of Numeraire (NMR) in supply with the token trading comfortably over the $ 30 mark. The token is quite risky with a 5 day volatility of 73%, surprisingly this is a low categorized Nano Cap token ranking 22 out of 330 in volatility.