Effect.ai, a decentralized network for artificial intelligence, has concluded its token sale, March 29. The Effect.Ai token sale started on the 24th of March and raised €11.037.191 from its target of €14.820.000. In total, there were 650,000 EFX (NEP-5) tokens minted as part of the event, with 40% allocated to investors.
What is Effect.ai?
Effect.ai or the Effect Network describes itself as a decentralized network that provides services in an artificial network market. Its goals are to lower the barriers to entry and to provide a fast growth with zero network fees. The Effect Network operates on the NEO blockchain and is powered by NEP-5 tokens.
The Effect Network intends to reach its goals through its implementation of three different phases, with each phase launching a separate part of the network.
- Phase 1: M-Turk (Mechanical Turk): The first phase of the Effect Network is an interactive marketplace for tasks that need human intelligence, otherwise known as a mechanical turk. Mechanical turks let anyone perform tasks and receive payment for their work. It also enables developers and businesses access a workforce of human intelligence to train AI algorithms. Payment is made with EFX tokens to workers on the platform.
- Phase 2: Effect Smart Market: The Effect Smart Market is a platform where people can buy and sell AI services. Specifically, the market allows developers with functional algorithms to buy or sell, rent or donate their services with payments via EFX tokens.
- Phase 3: Effect Power: Effect power provides a decentralized, distributed platform that will run deep learning frameworks. The Effect compute engine is coded from deep-learning networks like Caffe, MXNet and Tensor flow, and its computational power will be distributed to a avoid a single point of weakness.
Features of the Effect Network
As a decentralized mechanical turk, the Effect Network benefits both developers (Effect requesters) and workers on the platform. Effect Requesters get access to large pool of human intelligence for training AI algorithms, while workers make money through completing exciting tasks. Some tasks on the Effect Network may include classifying images, transcribing audio or labeling data. All payments are decentralized and controlled via smart contracts, ensuring that that work is paid on time and delivered to a satisfactory standard for both parties.
The Effect Network will maintain its liquidity through a decentralized exchange of tokens that will also encourage adoption of the platform and stabilize network fess. This pool of tokens is named the Galaxy pool and consists of EFX, NEO and GAS and possibly other tokens in future.
The Galaxy Pool ensures a stable exchange rate for users of the platform at all times, using the Galaxy token (G-token). G-tokens are purchasable or given on the platform, although they cannot be traded outside of the Effect Network. G-tokens are converted into tradable tokens by spending them through an Effect service contract. This protects the Galaxy pool from price manipulation and keeps the exchange rate stable for developers and workers.
About The Author: Matthew North
Matthew North is a freelance writer and journalist who resides in East Asia. He spends his time writing and learning about financial technologies like the Blockchain and digital currencies. You can follow him on twitter @fintech_matthew.
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