SCIENTIFICCOIN — ecosystem for scientists with decentralized expert evaluation of innovation.
Blockchain technology may be one of the biggest discoveries of the last decade, nearly as important an innovation as the creation of the Internet.
I’m not going to describe all the advantages of blockchain, but its inherent decentralization holds huge potential for effective interaction between an unlimited number of participants. Such terms as crowdfunding and coworking will be changed substantially in the near future due to decentralization. A new type of crowdfunding, the so-called ICO, appeared on the scene and rapidly increased in numbers and popularity (the term ICO appeared in 2013 as an analog of the IPO, but it uses cryptocurrencies as investment payments. ICO is a type of crowdfunding that gained popularity in 2016 and created a boom in 2017, similar to the dot-com crisis). Yes, probably many ICO projects are deliberate frauds or newbies’ amateur attempts to create their first large business, with nothing but an idea under their belt. Nevertheless, the principle of crowdinvesting has taken root in the global economy and will likely continue to grow.
In the coming years, methods for assessing the viability of scientific projects will change significantly around the world, thanks to the development of Artificial Intelligence and the informatization of society. There is no doubt that improved quality of assessment and reduced implementation costs will bring the field to a new level in advanced countries.
Today such technologies have a huge potential for scientific development across the international community. With the progression of artificial intelligence and big data there is a critical demand for mathematicians, whose fundamental knowledge have gained new value.
Using a hybrid approach with decentralized expert evaluation and mathematical algorithms, we create a reliable evaluation of complex innovative projects, regardless of whether they lie within the basic or applied science sectors.
Transparency and reliability laid down in principles of decentralization will allow the elimination — or at least reduction — of corruption, pandering, or other human errors. Today blockchain technology is successfully used in advanced countries for registration of rights to real estate, banking and many other industries. In short, the main advantage of the technology as a type of distributed ledger is the inability to delete and modify data stored in previous blocks.
It is important to note that money is not always the cause of inefficiency in the existing model. Unfortunately, in the closed scientific community, the opinion of a famous scientist can bring to an end the development of a new technology. Fearing to oppose a well-known scientist, the bosses of a young talent may nip his endeavor in the bud.
People unfamiliar with the scientific community believe that most promising projects should have support and be implemented, but unfortunately science is performed by people subject to the same sins as the rest of us. For example, the vanity of a famous scientist is often the cause of influence on the creations of young minds. Driven by the power of fame and recognition, many good people do not notice that their actions impede young people from surpassing their own works. Also, scientific activities are difficult to assess and the number of experts is limited; there is simply no one to condemn their actions.
Obviously it is impossible to commercialize absolutely all scientific and innovative projects. But modern technologies already allow us to implement evaluation algorithms in the practical activities of state and commercial organizations and to determine the most promising projects in the field of applied science.
Regarding the basic sciences, which are supported worldwide by public resources, the application of this development will be even more cost-effective. According to statistics, only 10% of expenses in basic science can be converted into state revenue or scientific and technical advantage; the rest of the expenses are written off or becomes the result of research published in scientific journals as a property of the world community. Decentralized expert evaluation, which algorithms can be based on the principles necessary for public services, will help to develop basic research in the specified areas, and with a limited budget to determine their importance as well.
We are creating a platform to finance scientific discoveries using the advantages of blockchain. Imagine a situation where the developer of a new technology doesn’t have to search for financing, a situation where the experts appraising a scientific project are as impartial as possible. As a rule, the main problem facing venture investors lies in obtaining unbiased expert opinions. For this purpose, the expert board includes scientists, economists, lawyers, and marketing specialists. But their maintenance requires a lot of money, and the effectiveness of evaluation often depends on proper administration and impartiality of the experts themselves and the people who control these processes.
Decentralization, as the main advantage of the ScientificСoin platform, will eliminate the factor of commercial bribery, of corruption, and reduce the number of intermediaries.
The basis of the ScientificСoin project is a mathematically-based algorithm that works on the same principle as existing project rating methods profitably employed by venture funds, insurance companies, and stock exchanges. When filing an application for a rating of their project, those seeking financing will fill in a form containing precise questions and indicators regarding the project. Then the program will model the rating of the project by the correlation of its characteristics.
In combination with the opinions of tens of thousands of people, even if they aren’t professionally knowledgeable in the question, this algorithm will be maximally effective. The so-called “ wisdom of the crowd” will help thousands of decentralized experts in assessment of commercial value of the scientific projects. The expert will be rewarded for the time he spends on appraising the project, searching for information in the Internet, discovering weak points, omissions and other flaws. Each project that has raised funding via ScientificCoin will pay 5% of the collected amount (these funds are annually distributed among ScientificCoin holders). The most active and successful experts get greater rewards than passive holders of ScientificCoin. Besides, the remuneration of the expert will depend on the importance of the scientist in the scientific world, as well as the weight of his assessment in relation to others.
In addition to the scientists looking for funding of their projects or for remote work, the main users of the ScientificСoin platform are young people aged 18–30 years. They are the most active, but do not own capital to invest in research projects. These youngsters are ready to spend their time on publications in social networks, video blogs, and chatroom discussions ofdifferent trends in the world of innovations; they perceive these actions as something similar to a computer game. If we take the example of cryptocurrency, which is also a kind of innovation, but in the field of information technology, in most cases, the reward for the active promotion is like a rare sword in an online RPG, which they can sell to another participant. These millions of people can funnel their energy toward more important things than pointless blockchain goodies, of which 90% will be forgotten in the near future.
I’m not talking about a useless pastime on Instagram or Facebook where millions of people click on “like” following the marketing experts.
Nevertheless, we live in the information age, and the way of life of modern people has changed significantly despite social state or education level. Let me give you an example regarding the attitude towards personal time among skilled specialists and successful people.
Imagine a situation when you had to use a taxi, but the taxi at the hotel asked for 30 dollars for the trip to your location. You decided to save some money and took Uber, but unfortunately you had to wait 20 minutes longer than you were told when you ordered it, due to a small mistake by the Uber driver, who mixed up the address. In the end, you arrived at your destination for less than 30 dollars, but 20 minutes later than you had hoped. You didn’t miss anything, but you did spend the extra 20 minutes. Will you use Uber again after that, understanding that it wasn’t the service’s fault, but a coincidence of circumstances associated with the human factor? Or will you take a taxi from the hotel? Perhaps you are a high-salaried lawyer, and an hour of your time costs 500 dollars, but you were 20 minutes late and didn’t earn 150 dollars, while saving 15 on the taxi ride. How seriously will you take such a loss?
Most people do not convert their personal time into money, for example reading books, watching movies, routine housework that could be optimized and so on; we don’t count the time spent on it.
Decentralized experts will perform a project appraisal quite responsibly, no worse than full-time experts at a venture fund, but they will not charge hundreds of dollars for their time. It will be nearly a hobby for them, a game, a socially beneficial action, like helping to clean up their neighborhood. The algorithm we have created will not allow them to take the project appraisal frivolously. The influence of an expert’s vote on the rating of a particular project will depend on a lot of factors, including the expert’s evaluation history, their personal details, and the unique qualities of the project.
Compare the working day of a grinding-machine operator to the day of a freelancer whose activity involves writing articles and comments on the net, and so on. The differences between their working conditions help illustrate advantages granted by contemporary technology. They can be expressed in terms of comfort, in the freedom of choosing working place and how they organize their time. The growth of information-processing technology can provide the combination of comfortable conditions and financial advantages for nearly anyone with access to them
Have you ever witnessed an idea or project of yours being discussed in a public forum? Have you observed comments, floods, trolling from people you’d call idlers? And what if their vibrant energy were focused on something positive? Such skills can be very useful for detecting dubious projects, uncovering missing details, flaws and potential scams. People who actively participate in discussions are better able to discover weak points in arguments. Like detectives, they are eager to dig down to the truth, blow the lid off, find all the hidden pitfalls, and deliver a public verdict. The involvement of decentralized experts will provide a lively and unbiased discussion of the projects being offered.
The goals pursued by active commenters, trolls and flooders are material as a rule, their nicknames become recognizable due to such activity, they get followers, obtain the reputation of being an experts (or at least quasi-experts), and hence they obtain a whole range of opportunities to derive financial benefits by using their recognizability. In our case, the financial benefit from their actions will be clearly defined.
The distinctiveness of our platform resides in its use of a hybrid system for project appraisal. With this method, we expect a revolution in the field of venture capital investments and crowdfunding. Most of the existing crowdfunding platforms place projects on their venues after pre-moderation by their own employees. If they had used a reliable algorithm, the number of projects proceeding to the state of fundraising would have been far fewer, and their chances for success much better. For example, the Kickstarter portal cannot keep a staff of professional experts because this is financially impractical.
The users determine the level of a project’s reliability on their own, and they have to collect the information themselves, unlike ScientificCoin where the algorithm will not let the investor see nonviable projects, and topical questions associated with the appraisal of the project’s prospectivity will be raised in the process of an open expert discussion.
Remarkably, the beta-version of our platform has been already launched. Today ScientificCoin platform has a collection of more than 100 promising projects in various fields of applied and basic science.
We have 3 registered companies: Scientific Coin Inc., a parent company in Silicon Valley which has subsidiaries in Switzerland — an authorized cryptocurrency company, and Russia — the creator of the software, mathematical algorithms and other intellectual property.
For a long time we have been working with various scientific institutions.
Our team monthly takes part in various international scientific conferences and blockchain forums, where we familiarize the world community with our platform.
Let’s go back to the essence of the platform and to the expected benefit for scientific developers.
Due to the streamlined process of technological commercialization and short period of their implementation, 90% of projects that successfully attract financing will be applied scientific developments. Firstly, because the attention of investors will be attracted by off-the-shelf technologies with a prototype model and technical documentation and secondly (depending on the completion of their development) the guarantees and profitability for investors will be predictable.
When applied to basic research, ScientificCoin can help scientists shed light on their ideas thanks to the subjective assessment of thousands of people. After all, a fresh perspective on art or literature can bring public recognition to the creator and, as a consequence, instantly materialize its result. But in the case of the theorists, this is an extremely rare phenomenon.
Today many scientists are forced to live off the state, which often because of its bureaucracy kills unprotected theory or technology non-formalized in compliance with some state requirements. As a friend of mine told me, “Science is the satisfaction of one’s own curiosity at the expense of the state”. It may sound harsh, but what would we do without the curiosity of Giordano Bruno?
This research will be supported by small donations from patrons and private individuals.
After placing the project on the platform, the developer will be able to create his own smart contract without applying to IT professionals. Services provided by the platform will allow him to do it automatically when desired, at any time while his project is in search of funding.
Briefly, a smart contract is a program that exists in a particular blockchain environment. The basic principle of a smart contract is the complete automation and reliability of the execution of contractual relations, the terms of which are incorporated in the program code and cannot be changed. Having unimpeded access to the objects of the contract, the smart contract monitors the achievement or violation of the specified conditions and makes independent decisions based on the programmed conditions.
When creating a smart contract on the ScientificСoin platform, it will be possible to account for any technical or financial specifics of the developer, and our task is to create templates for such contracts for easy application to the scientific field. Over the years, legal and technical examples of agreements with the use of fiat currencies, examples of investment, joint development, or gratuitous support of scientific projects have been piled up in state institutions.
Each new template will be offered for worldwide use, or regionally. Unlike nuclear physics, this quite feasible task does not require huge funding or unique knowledge, but it should be obvious that there are immediate benefits for and inclinations toward a revolutionary shift in the financing of science in these days of information-oriented society.
Pardon me for such a grandiose analogy, but what if Alfred Nobel had established his foundation in the blockchain era? Smart contracts can be applied in basic research for effective regulation of expenses, relationships between developers, their colleagues, partners, etc. And most importantly, there is transparency in the flow of funds! Donations of citizens to such organizations as the Red Cross will be available to the public and conveniently audited by anyone.
Besides, cryptocurrency provides a convenient way for transnational transfers. The transaction will be recorded in the blockchain — it’s almost like a sign with your name on a bench in the park, the reconstruction of which was donated to by your grandfather!
At the risk of repeating myself, Scientificcoin does not deposit, create, or control tokens, smart contracts or wallets of creators. Using the Scientificcoin platform and templates of hundreds of smart contracts, a scientific project or a charitable organization that specializes in supporting scientific discoveries will be able to create their own tokens and smart contracts based on the Ethereum blockchain without giving control over them to anyone.
Today, many applied scientific developments are invested in by private individuals; crowdfunding platforms are especially popular. With their help, investment projects creating innovations are successfully funded, slightly transforming people’s everyday life. Here’s an example — the drinking jacket: https://www.kickstarter.com/projects/adv3nture/the-drinking-jacket-the-ultimate-drinking-accessor/description.
Such projects cannot even be called applied science. However, the consumer market responds to quality marketing solutions much better than to poorly visualized innovative technology. The cost of innovation marketing is many times higher than the understandable concept of a “super yoga mat.” I mean no insult to the developers of simple technical innovations; I only point out the inaccessibility of the crowdfunding market for difficult scientific developments that often fall beyond our imagination. In this case, there is the question of how to examine such complex and unique projects.
Below is a short description of how the platform works in relation to scientific projects. Learn more on our site https://scientificcoin.com or from other articles.
# Each project that has been evaluated by a mathematical algorithm and listed for a decentralized expert review is automatically allowed to create a smart contract and seek funds.
#At any time, when the developer/scientist feels like his project has a sufficient number of followers and comments, he creates a smart contract and launches the crowdfunding process for finding investments in his technology.
# Each project is able to create its own smart contract, token, and place the project for finding partners or significant investor.
Fundraising takes place in US dollars, Euros or other popular currency. In the presence of a smart contract, most popular cryptocurrencies can be used as a payment instrument. All funds go directly to the bank account belonging to the scientific project.
Our COO Natasha Madsen met Vitalik Buterin at Stanford blockchain conference on January 31.
A little more about the decentralized evaluation of innovative projects.
Innovation projects have always been difficult to evaluate. In the last century, when making decisions regarding technology investments, we had access only to the opinions of local experts. But with the advent of the Information Age, evaluation periods for start-ups and scientific projects have been shortened and the quality of those evaluations have improved dramatically. As a consequence of these improvements, it became possible for the start-ups themselves to become more complex, and their numbers to grow geometrically. This unstoppable growth of innovation projects was fired by the global economy and the accessibility of resources, thanks to global networks.
Undoubtedly, given the abundance of innovation start-ups combined with the wish of the “crowd” to invest their savings into ventures, we need an instrument to conveniently analyze start-ups which are (as a rule) very complex and always unique. Personally, I often caught myself learning about other cryptocurrency projects just by skimming through them. It’s hard to estimate how many important details I may have missed among hundreds and thousands of phonies.
In my opinion, at the current state of development of internet society, we require * smart * organization of the increasing flow of information (something which Google, Facebook and others have been doing in their fields for a long time) and especially around business processes.
Do you trust the Internet reviews of hotels, consumer electronics and everything else that is sold today? do you think hotel owners can pump laudable reviews for themself? Asking friends or using bots? Today on the Internet there are even services where you can hire thousands of real people who will leave any comment you prefer about you, click “like” or repost in social networks . And they won’t be bots, but real people with different IP addresses, who take only 10 cents for a laudable review, the text of which you will provide them yourself.
Using blockchain technology, we will create a database without the possibility of its centralized moderation, each user’s comment will be recorded without the possibility of deletion. Not only popular, but also adequate comments will be visible to users firstly. The biggest forum on blockchain technology and its derivatives is facing this crisis today https://bitcointalk.org/, where any announcement of the commercial project will not last even 15 minutes on the first page of the topic without the services of expensive PUMPers.
Comments of active users with the status of an expert in a certain scientific field will be displayed in an individual block to separate the opinions of professionals from ordinary users. Once entering the user’s profile, you can read all his comments and view the history of his ratings. The time spent by the user of the platform for reading comments, specific actions and studying the projects will be recorded by Artificial Intelligence, which will allow the user in the future to receive relevant and interesting topics for him in the first place. It’s no secret that such technologies are already used by Google, etc., and they will be developed, but there is no doubt that decentralization, involved in our algorithms, will bring an element of trust.
The work of improving the algorithm will be endless, and for this we have provided a * blockchain vote * where every holder of ScientificСoin will be able to vote and check the results; it’s a pity that such a system will not soon be available to citizens when choosing their own government!
As a rule, most venture investors expect a high return on investments. That is why, as I wrote at the beginning of the article, 90% of the projects will be related to applied science, and most of them will have an off-the-shelf technology. In any case, ScientificCoin platform will make a significant step towards the institution of crowdfunding, and, of course, will change the relationship between business and science through a transparent assessment of profitability, reliability, as well as of social significance of projects.