For every Da Vinci financed by the Borgia and Edison sponsored by Ford, there are dozens, if not hundreds of inventors and brilliant scientists, whose innovations have never been noticed. In many cases, it was the inability to attract investors who buried promising technologies.
A startup called ScientificCoin, based in California, aims to have a solution for this age-old problem.
Nerd to the rescue
The company has developed an algorithm for a decentralized and project-free assessment of projects, so that investors can finance venture capital projects in other areas, including initial safe coin offerings (ICOs). Vladimir Kozhevnikov, Chief Financial Officer of ScientificCoin, said:
"We are taking advantage of blockchain technology to eliminate the human error factor and make the evaluation process fairer and more transparent.We want to help investors choose the right projects and we have the ambition to help the world bring to market all the precious possible innovations. "
In other words, the group behind this name as a nerd invented nothing less than a project evaluation machine, combined with an algorithm able to distinguish an informed and informed opinion from the rest.
The result is a crowdfunding platform with the promise of finally doing everything right.
The business model is simple: for investors, there is the promise of greater peace of mind and more insurance against scams. For recipients, if they are able to defend their projects against the cold logic of the machine's steel, there is the promise of funding to implement their ideas. For ScientificCoin report holders, 5% of all funds raised using this platform are distributed among the token holders of the respective currencies as a commission.
It is a coin and is scientific
Maxim Dvedenidov, Chief Executive Officer of ScientificCoin, says his ranking algorithm is based on the same mathematical principles used by risk funds, insurance companies and scholarships to evaluate investment candidates. Dvedenidov says to Cointelegraph:
"The ranking machine takes into account more than 70 key features divided into five sections: the score is determined based on the correlational regression model based on the statistical analysis of projects in the space of nine months".
When applying for a ranking, those seeking funding must complete a form with "precise questions and indicators" of their product. The program models the evaluation of the project for the correlation of its characteristics and therefore a ranking with the assignment of an evaluation for each characteristic of a project.
Challenge the oligopoly
The ScientificCoin team sees the centralization of the authority to evaluate new projects in the hands of some experts as a root of all the ills that afflict industry. These well-informed experts are prone to corruption, prejudice and influence, says ScientificCoin.
The company offers a decentralized alternative, a sort of "crowd assessment" as a remedy. The company leader has elaborated:
"The algorithm we created will not allow [experts] take the evaluation of the project in a frivolous way. The influence of an expert's rating on the assessment of a particular project will depend on many factors, including the history of the expert assessment, his personal details and the level of uniqueness of the project ".
According to him, some experts may not be aware of some flaws in a reviewed project, but the mind of the hive will not lose anything.
Although promising, the idea behind ScientificCoin will almost certainly lead to another arms race. An algorithm that decides who gets a resource (financing in this case, or the attention of customers in the case of search engines), is inevitably considered a target of much criminal attention. We have all seen an entire industry emerge from deceiving the search engines. Does the same fate expect project ranking algorithms like ScientificCoin?
ScientificCoin says it is prepared for such a scenario. A complex set of statistical algorithms detects and rejects "opinions" with vested interests, based on a plethora of factors almost impossible to circumvent, explains ScientificCoin.
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