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The concept of “Wisdom of the crowds” is based on the notion that if you ask a large and diverse enough group people the same question, their collective answer will be more accurate than that of many experts. Although this concept is not exactly new, it is currently being studied and implemented by several projects in the cryptosphere.
Decentralized prediction markets allow a group of diverse individuals to bet on the outcome of future events in a trustless environment. The information generated in these prediction markets is usually a strong indicator of the probability of a certain outcome becoming true and, although the data itself can not be taken as an exact prediction, it can be filtered to reach a high level of accuracy when it comes to determining the outcome of future events.
This is exactly what Magos is trying to achieve by leveraging both the blockchain and neural network technology to create an app that can provide highly accurate information about the outcome of future events and that can be used for real-life decision making when it comes to gambling or portfolio management.
What is Magos
Magos is described as a complex forecasting model based on a system of neural networks. These neural networks work in synthony to filter information and provide a highly accurate forecast about an upcoming event. This is done by gathering and processing the data produced in open prediction and sportsbooks platforms, although future use cases will be developed.
How does Magos work?
There are several key elements in the Magos AI system. Starting with the human component itself, the token holders, these can be considered the Magos community. Crow sourcing funds from the community, Magos AI takes these funds and uses them to bet on the outcome of events, distributing the profits proportionally to all token holders.
So now that we understand the funding and betting model for Magos, how does it achieve the aforementioned accuracy? Magos is comprised of five neural networks, Melius, Ariolus, Galaxia, Obelus and Strategus - Read more here. Together, the networks mine, classify and prune the data from the aforementioned platforms, filtering it through a risk-management network.
The results are then used to bet on the outcome of the events at hand, producing a return on investment for the Magos software. Open beta tests reveal a 28% Return on Investment, overshadowing the competition in open prediction markets and sportsbooks.
MAG & Initial Coin Offering
MAG is an Ethereum-based token, acting both as a dividend and a consensus mechanism, allowing the community to have a say on the project development.
The Magos ICO began on the 16th of August 16th, 2017 and will last until 30th of September or the funding cap of 22640 ETH is reached. The ICO token supply represents 77% of the total token supply. Click here to see full ICO details.