One of the more frustrating aspects of the cryptocurrency investing space is how hard it can be to find trustworthy information. Every day, we’re getting blasted with information from all angles, and from many sources and various platforms. YouTube, Twitter, Reddit, Facebook, Steemit, Telegram and many industry news sites (like CoinDesk or Cointelegraph) all beckon for our attention, and it’s pretty hard to cut through the noise and find valid information that can help you make sound purchasing decisions. I’m exhausted from just typing all of that!
Well, fear not my friends, as the Pareto Network is here to turn the dial down on all the crypto static, and provide the community with the first real-time actionable intelligence platform for investors. Think of it as a digital crypto research desk that would typically exist at an investment bank! So what does the Pareto Network entail exactly? Let’s dive in!
What Is The Pareto Network?
Pareto is out to change the incentive model around financially tradeable information, since as it currently stands, there isn’t much of an incentive to share potentially profitable information with the community at large. The Pareto Network is named after famed Italian philosopher Vilfredo Pareto, who is more famously known for the 80/20 rule. Pareto’s famed quote is, “For many events, roughly 80% of the effects come from 20% of the causes,” meaning that a fraction of the input is responsible for a majority of the end results. Pareto aims to apply this principle by filtering out 80% of the crypto noise, and providing its users with a core 20% of actionable, resourceful intel.
Built by a global team of experts across many sectors, they’re poised to shake up a $16 billion dollar industry of financial market research by, in their words, “elevating information about market inefficiencies and promoting more accurate price discovery.” ICO and token metrics expert Ian Balina is also an adviser on the project! Pareto is the first peer-to-peer financial content marketplace, where content creators (who can be individuals, groups, or organizations) can earn money (in the form of PXT tokens) by sharing beneficial financial info within the network.
When Pareto first launches, the content contributors will be qualified and recruited by Pareto themselves. This is to ensure that as the platform gets going, the information is robust and of true value to the initial user base! Over time, as the platform organically evolves, members can begin to share their content to the network. In order to do so, users will pay a small fee to Pareto (which is used to deter spam and other inappropriate content). The incentive to share information over the network is that the possible earnings from sharing can be greater than attempting to act on their own, along with the upside of less risk.
After sharing, the information is fed through Pareto’s Information Waterfall, which is an algorithmic way of determining which token holders get access to the information first. You can rank higher by holding Pareto tokens (PXT), and actively sharing and engaging on the network. Per their whitepaper, here’s a step by step breakdown of how to your rank is determined, and how to rise up in rank:
“In its simplest form, the algorithm is counting how many Pareto tokens a user owns, how long they’ve held tokens, and how many Pareto tokens they have spent by paying content contributors. The largest benefit comes from spending the tokens on content contributors, creating a virtuous circle of incentivized information that benefits the users of Pareto tokens. The algorithm penalizes speculative purchases of the tokens.”
So essentially, the more you actively engage with the content on the network (whether buying or selling info), the easier it is to get the most pertinent info first! Below is a list of the various types of content that will be on the Pareto Network:
Analyst reports – coverage of new & existing tradable tokens or investments • Sector reports (e.g. storage, prediction, computing) • Analyst reports on return on staking/mining • Technical trading alerts and reports • Codebase reviews • Code vulnerability and security assessments • Evaluation of investor tools • Evaluation and discussion of fund management tools • Crypto investment manager surveys
How Does It Work?
Pareto owners will receive a feed of information coming across the network, as well as previously posted information. The cost to acquire or sell information on Pareto is determined by a voting metric, which allows people to spend (“vote”) to determine how quickly they’ll be on the receiving end of newly released information. Per their website, “votes have a cost in Pareto tokens that is set by contributors. Holders are incentivized to spend their tokens, as otherwise, their ranking in the network will decline over time.”
This prevents whales from just holding a bunch of PXT and gaining the best information first and levels the playing field for everyone involved. Information that used to be reserved for the most elite hedge fund managers is now decentralized and accessible to nearly anyone.
Becoming a Pareto content creator isn’t limited to experts or market analysts. Anyone is able to post their articulate and timely financial info, and be rewarded by users on the network! Per their site, “the more profitable their information is for investors, the more votes and Pareto tokens they receive. The tokens can then be sold on secondary markets if they choose to do so.” The Pareto token (PXT) is an ERC-20 token, and ownership of PXT is the only way to participate on the network.
The Pareto Network is in the final stages of their Pre-Sale, which will end on January 15th, 2018. There will be no other sale after the conclusion of it. There is no minimum contribution amount. The Pareto platform plans on launching shortly after the completion of their sale.
Be sure to stay connected with Pareto on all of their social media channels!