Blockchain technology has been a driving force behind the innovative start-up projects. Blockchain's public ledger is transparent and automated, which makes it decentralized by nature. It requires no middleman and is based on a secured software program.
The technology provided by Blockchain has the ability to make the equity market more efficient and transparent. This combination of blockchain technology and equity markets is being implemented through a unique project that has been initiated by Sharpe Capital.
Sharpe Capital plans to bring together innovative technology in order to gain data that will help accomplish invaluable information regarding hedge funds, asset managers, and private participants.
About Sharpe
When it comes to trading, investor sentiment, whether rational or irrational is known to cause an asset's market trading value to move away from its inherent value. This investor sentiment alongside quantitative trading models defines the portfolio of an investment. People are strongly influenced by behavioral observation when it comes to investment-related decisions and this can cause unreliability in terms of prediction.
Unfortunately, most of the quantitative and automated algorithms are not designed to take sentiment and emotional value into consideration, when it comes to analyzing the financial markets. Sharpe Capital aims to use innovative technologies of artificial intelligence, smart contracts, Blockchain, quantitative trading, machine learning, and linguistic analysis, in order to bring about a program that can take both the investor sentiment and quantitative analysis into account to better understand the market.
According to their whitepaper, this platform will help develop a truly robust portfolio management system that effectively hedges risk to provide risk-adjusted returns that consistently outperform the market. In order to measure sentiment, Sharpe Capital will make use of a proof-of-stake and proof-of-reputation crowdsourcing system, wherein people will be rewarded for their invaluable investment sentiment insight. They will be paid for the information they provide regarding cryptocurrencies. The platform will be multifaceted in nature and will inculcate the Sharpe Capital Financial Markets Protocol, the Sharpe Capital Investment Platform, and the Sharpe Capital Product Revenue Streams.
How it works
The Sharpe platform has a two-part built-in technology of the 'on-chain' (executed on the Ethereum blockchain using Solidity) versus 'off-chain' (implemented on Sharpe's proprietary cloud architecture, with a 'trustless link' to the on-chain activity).
The platform's 'on-chain' employs the Ethereum blockchain for the execution of mining, distribution and transferring of their SHP tokens. It will use the technology of Trustless Trading Ledger, which is implemented with an Ethereum smart contract and will be recording the companies' investment activities in the global equity markets in real time. Sharpe will register trades on their public ledger from micro-services running within their cloud-hosted off-chain infrastructure.
With the help of this infrastructure, Sharpe Capital Financial Markets Protocol will be able to establish itself as the new gold standard for hedge funds. This will be attained through an entirely decentralized community that will function on consensus-based and democratic votes.
Sharpe Capital Investment Platform has been developed to better understand risk-adjusted returns than tracker funds. According to Sharpe Capital's whitepaper, this platform consists of a new form of quantitative trading model utilizing the latest advancements in economic theory and cognitive science, integrated with advanced statistical and machine learning analysis of microeconomic, participant sentiment and news/social media emotional content analysis.
Sharpe Capital is basically a platform that rewards people with SHP tokens for their personal observations. While taking into consideration people's personal opinions they also weigh in on their accuracy and reputation based on past predictions. With a combination of all these unique aspects, Sharpe Capital can create a system like never before, that would allow people to efficiently predict the equity market and possible value of investments, in a meticulous fashion.
Unique features of Sharpe Capital
Sharpe has the advantage of being decentralized and transparent. All of the trades get recorded on the Ethereum blockchain, eradicating the chance of fraud and fakeness. Moreover, it uses artificial neural networks that will help in identifying patterns and trends belonging to the financial markets and predict future prices accordingly.
One of its biggest features is that of breaking down the investment sentiment aspect of the market. By building a reliable community it will be able to track the behavioral observation of people and use it to track the equity market in advance. This ability will be combined with that of quantitative understanding of financial data to bring about a reliable prediction for the valuation of asset prices. To help them with this process, Sharpe Capital will be integrating an advanced Natural Language Processing (NLP) algorithm on social media networks to monitor people's opinions in real time.
Apart from assuring liquidity to token holders, it will be able to provide sufficient payment amounts for people's valuable insights by selling it to hedge funds and investment analysts. These predictions will be offered on a wide range of assets, having different durations and leverage.
Conclusion
Sharpe Capital boasts a well-advanced platform that will greatly help the financial sector as well as the prediction of investor sentiment. It will lead to a lot of possible applications and it can prove to have immense potential in the market. Besides having a strong set-out program, it aligns itself with well-established investors and partners. This helps to give it the extra credentials and added advantage such as using Amazon Web Services to attain low-cost cloud architecture.
The model of Sharpe Capital will prove to be a hit as it provides something of invaluable measure to the financial sector and investors.
Website: https://sharpe.capital/
Whitepaper: https://s3-eu-west-1.amazonaws.com/sharpe-website/whitepaper.pdf
Published By: Kishan
