The value of the use of artificial intelligence for the financial markets is well known. Computers processing large data and offering predictions are among the most popular solutions for traders and professional brokers. However, the effectiveness of such solutions can be surprisingly low at times.
All this can change if artificial intelligence is combined with the collective intelligence of human beings, and for this blockchain technology can serve as a great bond by adding a highly effective result.
One notable project in this regard is Cindicator, which uses the collective intelligence of a random selection of people from around the world. It uses crypto technologies to bring decentralization to the whole process and lay the foundations for a decentralized autonomous organization where humans and machines work together.
Centralization poses the biggest problem for today’s financial analytics, according to Cindicator. The reason why professional analysis is often misleading is reduced to the mutual influence of different opinions and the isolation of the professional community. Only a few professional analysts offer their forecasts and predictions, so the selection of opinions is not very big.
Cindicator uses an application to collect unbiased predictions from people all over the world who have different professional background, education, gender, political opinions, among other facts. This ensures that the selection of forecasters will be sufficiently randomized, and therefore collective intelligence laws will take effect.
Users are encouraged not only by money (which, of course, remains an important part of the model), but also by the gamification of the whole process and, more importantly, by the participation of forecasters in transactions and investment.
When predictions are made, artificial intelligence comes into play. It uses several mathematical models to make a single and solid prediction as to the outcome of a given event.
The system has been tested by a score of banks and hedge funds and has proven to be much more reliable, cheap and accurate than traditional financial reports compiled by individuals.
This project is demonstrating with success that the man-machine-collective-machine symbiosis can hold a great promise for the world of tomorrow. And more by the hand of blockchain technology.
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