Michael Doyle, CEO Invluencer Ltd.
The validation process is based on Factor Equilibrium designed to create speed, efficiency, and reduce the price of analysis. Staking of i3D Coins is designed to demonstrate Proof of Trust and develop Reputations of analysts.
While the processes are complex and require robust algorithms, the following should breakdown the processes and how a user benefits.
What is the i3D Coin?
The i3D Coin is a virtual one and is used for:
- unlocking access to the i3D Arena where you stake i3D Coins to access analysis opportunities
- renting your coins to others to increase their work reputations and reward you
- showing proof to the network that you will perform analysis to the best of your ability
- building reputation within the network
Importantly and upfront, if you successfully stake your i3D Coins then you get paid for the work regardless of how you scored all the factors. The factors are designed in question and statement format to make ease of use possible for the expert.
Reputation Levels
Because Wisdom of the Crowd requires a decentralised network of experts to achieve consensus and remove bias, a process is required to ensure integrity and reputation of the expert. To make this an ongoing process from entry of a new anonymous expert to the network through to conclusion of robust analysis of companies an automated process based on Proof of Reputation & Trust needs to take place as defined below.
Experts are ranked in two network groupings called the Inner Swarm and Outer Swarm. Those in the Inner Swarm have higher Reputation levels and vice-versa. Movement between the Swarms and up and down the Reputation Levels occur based on the activity of the expert and how the scoring process works.
Inner Swarm experts who can complete full analyses have a built in Proof of Trust due to their Reputation Level, so get paid fully regardless of the way they score. They need to motivate their reason for scoring especially red flags. This is currently our MVP and is designed for the Inner Swarm of high reputation experts.
The Outer Swarm is mainly where Idea and Product Market Fit are validated. Because they don’t have a high Reputation Level yet, there is no Proof of Trust. These experts’ activity is algorithmically calculated based on their activity and scoring success using Machine Learning and allows for growth and movement within levels of the Network Swarms.
Scoring according to Factor Equilibrium
When all scores of experts are aggregated what is called Factor Equilibrium is achieved. Factor Equilibrium is the Wisdom of the Crowd. It allows us to remove factors from the scoring process quickly as soon as there is no change to aggregated scores for the factors even if another expert (or 10, 11, etc.) score that factor. This creates efficiency and reduces the price of analysis. Only factors that do not achieve equilibrium remain available for scoring by more experts.
If the algorithm determines that your score falls outside of the allowable tolerance a process using Schelling Points is used to identify this. If the tolerance is set at e.g.,10% then a score outside of that has a small % of staked coins deducted and possible Reputation Level decreases. If the score is close to the final aggregated score, then extra reward coins are issued and Reputation increases creating Proof of Trust.
Payouts and rewards
At the end of the whole validation process payouts take place and staked coins are returned – sometimes with a little taken away, sometimes with a little added. This is a two part calculation:
- payout for the work completed, always at the smart contract price that the system agrees when the staking process takes place, and
- the return of the staked i3D Coins +/- the % determined during the Factor Equilibrium and Schelling Point process.
An expert staking coins never loses out. Experts always stake more i3D Coins than the payout to encourage high performance and ensure integrity, but never have more Schelling Point reduction to their stake than the payout. Even if the Factor Equilibrium and Schelling point process deducts a % of the staked coins, returning the rest, the payout is always greater than the deduction.
Final Words
We have designed the system so that the expert does not lose out. This whole process defined above is completely automated through a combination of algorithms and machine learning, creating a seamless and smooth process for the Network of Experts.
