How does Daneel work?
Many of you have asked us; how does Daneel work and what will it be able to do. For those who haven’t seen the video yet, you can see a brainstorming video with the technical team, the core team and several advisors building on the development of Daneel. Following that, we’ve decided to go deeper into the development process of the product itself with this article, to give an understandable explanation to anyone.
Daneel can be deconstructed into multiple parts: the Daneel brain, public API, Daneel’s voice and the user interface. Let’s get to it!
Daneel’s brain (BigData/A.I/Machine learning)
The brain module is the most critical part. We are collecting a big quantity of unstructured data from general and blockchain-specialized websites, medias, forums, Twitter, Reddit, Medium, Steemit, crypto-APIs (ICO, events, trading…) and soon from Facebook and Youtube. We are storing all that information in our databases. The data is analyzed by our different algorithms and we extract all information of importance, to give you accurate and reliable information. We can deliver tools and indicators, unique to the market; such as new trends based on most discussed cryptocurrencies, the sentiment of the market, the reliability of information, and much more!
The goal is to provide our customers with a selection of information that impacts the market, in easily-understandable data, which investors are searching for.
The system is also able to make predictions. With our gathered data, we can predict the price of the top 5 currencies (6 hours prediction), with an 85% efficiency. This is a pretty cool feature to demonstrate the power of our system and the capabilities of machine learning through artificial intelligence.
To do these predictions and analyses (insights, trends, emotions), we are using :
- Our own algorithms
- Tensorflow and Python language
- IBM Watson
Here is a simplified schematic on how Daneel is built:
Here are example questions queried by our community about the product :
How does Daneel predict the price?
Daneel’s “brain” continuously collects the price of all currencies listed (1600+). Thanks to our machine learning algorithms we can predict price development, up to 10 hours ahead .
We are using a recurrent neural network to perform this. A recurrent neural network (RNN) is a class of artificial neural network where connections between units form a directed graph along a sequence. This allows it to exhibit dynamic temporal behavior for a time sequence. In other words, we can predict the future by analyzing the previous price variations.
Example question for Daneel : Hello Daneel, can you tell me how people feel about the EOS project?
Daneel’s brain collects news and messages posted on news outlets and social media. The data is filtered, to remove oriented information, bot accounts, and any flooded messages which could disturb the calculation. Then, thanks to our algorithms and our privileged access (as an IBM Business Partner) to the IBM Watson engine, we analyze every word used, the context, the hype of each message and the sentiment, to provide you the people’s feeling about a project or a currency.
Example question for Daneel : Can I invest in Ethereum?
For each currency, we calculate a confidence score which reflects the reliability of a currency at any given moment. To calculate this score, we take several different factors into account:
- How the market feels about the certain currency
- How the price is fluctuating
- Activity of the team / the project (github, social media, posts)
- Recent news stories about the project
With all gathered information, we calculate a score out of 10. A higher score means that the system finds a cryptocurrency stable (important: this will not be an investment advice, but a transparent score to help you understand the evolution of a project/currency).
Mobile application and smart assistant
How will you access this information ?
As described on the website and in the whitepaper, we would like to provide the gathered information of importance via mobile application, so that you can :
- Get prices, reliable news, and insight instantly on one page: you no longer need to visit several websites to determine if you can trust a source.
- Ask the A.I. questions and retrieve the information you are searching for with ease: save time by requesting a full report on a currency, trending articles, or information about an ICO — all in one app.
- Discover insights and predictions made by our system: this feature will help you discover new projects, evaluate your investment and manage risk.
All data from the brain will be available through an API to give our clients and partners the possibility to integrate Daneel into their systems : exchanges, news feeds, VCs, banks, and more.
Nicolas Surleau — CTO
“We have deployed some features into the application, which we are testing in our local environment. In a few days, we will start developing the enhancement of our mobile application. Our team is very competent, so we are moving quickly.
It’s very exciting to work on Daneel and help build our future company. I’m sure Daneel will help a lot of people understand the crypto jungle. I’m looking forward to share the beta app with everybody in October!”
Stay tuned guys: