Knowledge mining instead of crypto mining is the tagline of a new start-up that plans to use Proof of Work (PoW) towards “mining” artificial intelligence.
The bitcoin network consumes more energy than some countries for the sole purpose of ensuring no double spends while keeping issuance to a limited number, but what of instead of a currency, all that hardware could be used towards studying the DNA or physics?
That’s a question long asked but Neuromation, a new start-up, is not so ambitious as to target the stars or neutrons, limiting itself instead towards training computer code to recognize objects, providing them with artificial intelligence.
There are three components to an Artificial Intelligence (AI) ecosystem, they say. Datasets, which as the name says is a set of data used for deep learning algorithms. Computing power to provide the necessary framework for training AI models and the third component is Machine Learning models, which is a set of algorithms designed to process datasets in the Neuromation Platform.
They claim to provide all aspects in their platform, with the start-up stating in their 34 pages long prospectus whitepaper:
“A vendor will create the data generator for you, then a group of Neuromation Nodes will use the generator to quickly create a massive virtual data set. You can then select a set of Deep Learning architectures to train on that data. Then another group of Neuromation Nodes will do the training.”
Artificial intelligence has made some considerable advances recently to the point an actual robot is to take part in a blockchain panel.
But this is the first time, as far as we are aware, that proof of work is being used towards data mining, with the start-up stating:
“We want miners to have options. In addition to their existing mining software they can load up Neuromation Computation Node. When a Neuromation task is available each node can bid to participate.
If the Node wins the bid it will switch computing power from mining Ether or other coin to a task on the Neuromation blockchain platform. The Node will generate synthetic data or train Deep Learning model. As reward the miner will receive our tokens: Neuromation crypto currency.
Once the task is complete the Neuromation Node will exit and the miner will proceed to mining crypto. Initially our tokens will be extending Ether, but later on we will migrate to our own blockchain, once the Platform economy matures.”
They say miners could earn 3-4 times more by data mining rather than crypto mining, citing average ethereum mining of $7-$8 a day while Amazon Deep Learning charges $3-$4 per hour.
The start-up had a seed round earlier this year, which apparently has allowed them to develop the product to a point where they are ready for an ICO. They say:
“Proof of hypothesis on synthetic data is finished. Retail synthetic data generator proven. Model development complete (95% of accuracy reached).”
They have a very ambitious cap of 700,000 eth, currently worth some $210 million dollars, with Yuri Kundin, Director at KPMG’s San Francisco office, acting as an “ICO Compliance Adviser.”
But they do not provide any current profits or revenue data, even through the start-up says they have entered into two partnerships.
One of them is OSA HP, with whom they have signed an agreement “to supply 170,000 item synthetic retail data set for Eastern Europe.” They further say:
“The contract involves building Deep Learning models that can recognize the objects on the shelves and be an integral part of OSA analytics. The contract potential is over 4.25M Euro over 18 months time frame.”
The other agreement is to create a smart camera to augment MonBaby’s infant tracking technology. They are to share revenue from each sold device, estimating “revenue potential is 2M+ euros over the next few years.”
The two contracts in combination do not add up to even 10% of the cap, even if their probably very optimistic sale estimates are actually achieved.
They further say “Neuromation platform should generate over 100M in yearly revenue from commissions in three years,” by taking commissions of 15% to 5% from each transaction.
That appears to be an incredibly optimistic estimate considering they are seemingly currently generating no revenue at all and further have to compete with many other providers.
But the idea to use proof of work for data mining rather than crypto mining seems interesting. Which may mean those gamer will have to wait quite some time before GPU prices return to earth, while Nvidia and AMD might have unintentionally struck some gold.