Numerai integrates the machine intelligence of thousands of data scientists from around the world to achieve breakthroughs in stock market prediction accuracy.

Build the world's most advanced hedge fund by predicting the stock market.

The key problem in the machine learning industry is that machine learning contests are prone to deliberate overfitting.

Numerai created a platform to encourage financial firms, such as hedge fund managers, to collaborate anonymously to improve hedge fund management. Together, the group anonymously created a machine learning AI that could manage financial securities more efficiently.

Numerai first encrypts its trading data and then shares the encrypted data with data scientists -- who have no chance of copying the fund's trading strategy. However, the company will finely design the encrypted data, allowing scientists to model based on the data and thereby make more money from trading. Numerai started by issuing a total of one million NMR coins to 12,000 scientists. The higher a scientist's score, the more tokens he can earn.

NMR tokens can be used to pay for data acquisition fees, contest prizes, token collateral, and can also be destroyed to punish malicious participants in the Erasure protocol.

The platform relies on methods similar to homomorphic encryption. The technology is designed to ensure that scientists cannot see the details of a company's proprietary transactions. However, scientists can build machine learning models to analyze trades and, in theory, learn to trade financial securities more efficiently.

Each user on Numerai has the opportunity to place NMR coins on their predictions to express their confidence in the model. If their prediction is good, they will make money, and their NMR coins will return. If their predictions are poor, their NMR coins will be destroyed. The most important usage metric for users is whether the largest harvester of NMR coins is also the largest holder, i.e., whales are users. That is exactly what is happening at Numerai. Numerai's leaderboards are sorted by career earnings of NMR coins, with seven of the top 15 NMR harvesters currently holding NMR coins. As a result, nearly half of the participants with the largest number of NMR coins increased their holdings each week.

Numerai first encrypts its trading data and then shares the encrypted data with data scientists, who can build models based on the data and make more money from trades. Numerai is a network of data scientists motivated to predict models to boost hedge fund returns. Numerai began issuing a total of one million Numeraire tokens to 12,000 scientists on February 21, 2017. The higher a scientist's score, the more tokens he can earn. Numerai is not used as currency to buy goods in the market, but as an incentive for scientists to build successful machine learning models that can then be traded for profit in the real market.

Ethereum performance limitations, project non-landing applications, code risks, etc

Numerai is an intelligence-gathering and data-trading platform. NMR can be used to pay for data acquisition fees, contest prizes, and token collateral, as well as being destroyed to punish malicious participants in the Erasure protocol. The acquisition of value also depends on transaction costs and destruction mechanisms. Numerai needs more and more data scientists involved in its betting system. The vast majority of people willing to trade are not computer programmers, and the vast majority of computer programmers don't want to trade. Traders outside the Numerai system will see the advantage of not participating and competition will continue. Everything depends on the follow-up development of the project.