Blockchain has expanse its use to market forecast, venture capital and hedge funds
【Published by Liu Shi Ping】
Blockchain technology, which has the nature of decentralized and its highly data-safe, is highly favored by financial industry players. In recent years, industries such as Bitcoin and other blockchain technologies have also rapidly increased, and even expanded into other technical fields.
According to The Wired, many startups are currently working on blockchain application research, including market forecasts, venture capital and Hedge Fund. Here are three startups that focus on different areas of concern.
Augur: Prediction Markets
At Augur people bet on the outcome of events — sports, stock offerings, elections. Because it runs on a blockchain, it spans borders, roping in so many bets that its predictions could be far more accurate than any market in history.
Augur is a betting website that can bet on sports events or major event results. Jack Peterson, founder and principal platform developer, holds a Ph.D. from the University of California, San Francisco (UCSF) has received the National Defense Science and Engineering Research Scholarship (NDSEG).
Through the Ethereum blockchain technology, Augur creates a decentralized and decentralized market forecasting platform that uses the wisdom of the crowd to more accurately predict market trends. The user can use the virtual currency bet to predict the event results in the real world. If the result of the event matches the predicted result of the user, the user will be able to obtain a substantial bonus; Augur collects the prediction information of the crowd by this method. The blockchain technology analysis then yields accurate results.
Blockchain Capital: The first venture capital company to accept Bitcoin
Founded in San Francisco in 2013, Blockchain Capital is the first company to accept Bitcoin as a venture capital currency. The founders of the company have a rich background in financial technology, including Bock Pierce, chairman of the Bitcoin Foundation, Bart Stephens, manager of the Silicon Valley hedge fund, and a background in Wall Street Internet security technology. He worked for Credit Suisse and Brad Stephens of Fidelity).
Blockchain Capital invests in blockchain innovation and technology industries and has invested in more than 42 companies to date. The company uses blockchain technology to issue its own tokens, and investors can become shareholders after purchasing these tokens, and then the company will use the funds raised from the sale of tokens for investment. Statistics show that over 75 companies have used similar fundraising methods over the past two years, raising more than $250 million.
Numerai: gathers netizens information for hedge fund decisions making
Numerai is a hedge fund startup founded by Richard Craib. To put it simply, Numerai turned the stock market data into a simple math problem and opened it to tens of thousands of anonymous data scientists who simply returned the forecast to Numerai. Finally, Numerai will integrate various forecasting operations investment, and the more accurate the forecast, the more Bitcoin can be awarded.
However, Craib quickly discovered that this model is not perfect. In order to get more rewards, many people began to deliberately let the algorithm meet the data used for analysis. Although these models can get good results in the test, they are not good in the real stock market.
To this end, Craib’s improved mechanism, the introduction of electronic money Numeraire: When data scientists are confident in the prediction model, they can bet more on electronic money; if the performance is not good, the electronic money will be recovered. This new model encourages cooperation. When the overall model performance is better, the fund grows faster, and the more the base of dividends, the more motivated it is to recruit talents to analyze the data.
■ Source: digitimes
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