The cryptocurrency market is growing by leaps and bounds. Over time, new players of particular interest to users appear on it. Today in our article, we will talk about the Numeraire cryptocurrency: we will look at what underlies it and how it is remarkable in the crypto world.
Let’s start with a bit of historical discourse. The Numeraire cryptocurrency was launched in 2015 in San Francisco, California. It is generally believed that the creation of Numeraire was the start of a fundamentally new hedge fund format — based on artificial intelligence and machine learning. Richard Craib, the creator of this cryptocurrency, has been repeatedly criticized for an unusual approach to forecasting, but in a short period of time, this method has proved its worth.
The history of the development and formation of the Numeraire cryptocurrency is indeed non-trivial. Firstly, a hedge fund was involved in the release of Numeraire, and this decision was innovative for the cryptocurrency space. Secondly, the very essence of a hedge fund involves artificial intelligence. Consequently, all decisions and trading operations are dictated by artificial intelligence — and this approach can definitely be considered revolutionary.
What Is Numeraire?
First, the Numeraire platform aims to introduce dispersion into the very science of data and thereby create the ground for competition among data scientists for the right to develop working forecasting schemes in machine learning. The profit of data specialists directly depends on how effective the model improvements they make are. In addition, data is necessarily encrypted for security and minimizing the factor of personal forecasting, as well as the possibility of retraining. The principle of encryption in Numeraire also has its own peculiarities: it is arranged so that data on financial markets are hidden, but at the same time, the structure of chains of interactions and transformations is preserved. This anonymization method allows you to perform machine learning.
Within the framework of Numeraire, data specialists’ priority is the training they conduct for a model created via artificial intelligence. Training, in turn, is focused on the most accurate prediction of the price movement of a particular stock. The bottom line is that platform users submit their trading algorithms or strategies and deposit a native NMR token to the staking pool. Third-party users can use NMR to bet on the most accurate prediction. If the prediction of a certain participant turns out to be the most accurate, the participant and those who bet on this forecast receive NMR tokens as a reward. When the prediction turns out to be wrong, the participants’ bets burn.
However, data scientists have the opportunity to receive NMR not only during tournaments. Remuneration is also provided for other activities. For example, you can earn NMR by reporting data leakage risks, proposing anti-hacking development proposals, helping translate documentation into different languages, and participating in general or highly specialized team projects.
What Makes Numeraire Unique?
- Numeraire tournament. It is carried out every week among users. It is a collection of forecasts that data specialists form. These forecasts are processed and analyzed. According to the tournament results, the best ones whose predictions turned out to be the most accurate are determined. They are rewarded with corresponding amounts of money in NMR. It is worth noting that the tournament’s prestige is high, as it is considered one of the most challenging competitions in the field of data science.
Thanks to the models put forward for participation in the tournament, Numeraire develops and promotes itself as an active participant in the stock market, thereby increasing its value.
- The Numeraire Signals platform is used to upload stock market predictions, after which they can be compared with the rest of the Numeraire predictions. The signals are expressed as target numeric values and stock tickers. Depending on the bet, rewards are paid for successful signals. Conversely, in case of a failed prediction, NMR stakes are burned.
In conclusion, it should be noted that the demand for Numeraire is also due to the stable and reliable operation of the hedge fund. In this regard, there is an increase in the number of exchanges where you can trade NMR — the token receives well-deserved recognition and distribution. The obvious advantages include a transparent remuneration system and a high level of confidentiality. In a global sense, it contributes to the fact that cryptocurrency covers more expansive areas of application — in all spheres of human activity.