What is Numeraire?

Numeraire (NMR)





The cryptocurrency industry is evolving every day. Many companies are announcing new cryptocurrencies in the industry each month if not days. With the evolving of cryptocurrency world, you need to know which one is the best for you and which one you don’t need to invest. This article is going to focus on Numerai Numeraire cryptocurrency.


Found online at Numerai, Numeraire(NMR) is a cryptographic token used to solve crucial problems in coordinating machine intelligence and disincentive over grafting. Specifically, Numerai built the Numeraire token to solve problems in the machine learning industry. It has a solution that involves an auction mechanism to come up with an overfitting economically irrational. Using Numeraire, you can see natural arguments in the auction mechanism and for the economic value of the Numeraire token.

The reason Numeraire was created by Numerai is that financial organizations don’t work together for mutual benefit. Numerai has created a system where scientists work together using anonymous blockchain technology to improve machine learning.

How does Numerai Work?

Numerai uses artificial intelligence to build hedge funds that work in anonymous ways based on data collection by scientists. The method Numerai use is the same as that of the homomorphic encryption. The technology works in a way that the scientists can’t see the detail of the proprietary trades. However, the same scientist builds a machine model that analyzes trade. Numerai gives away detailed trading data, but before giving the data scientists remain anonymous and the data gets converted into abstract form.

In regards to hedge fund management, Numerai is not the only or the first company that explores the use a machine learning algorithm. Major names such as Bridgewater Associates and Renaissance, along with tech start-ups similar to Numerai also use the hedge fund management system. What makes Numerai different is the effort to crowdsource the machine learning algorithms?

Numerai video explanation

The Numerai Cryptographic Token?

Numerai uses a cryptographic token called the Numeraire. The token is an ERC20 Ethereum token. It is a smart contract executed on the Ethereum blockchain. The Numeraire tokens are distributed to the public. After the distribution, 1 million Numeraire tokens are sent to data scientists and the smart contract fixes a number of Numeraire each week until they reach their target. The Numeraire are earned on an ongoing basis in exchange for Numerai machine learning competition. The Numerai is a unique platform to create smarter machine learning algorithms that incentivize users.

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