Numerai: About the Platform

Numerai is a hedge fund where the trading decisions are made solely by AI. The model is improved by contributions from a community of independent data scientists who can download data feed from Numerai for free and improve on the existing preditiction models.

The user improvements are then submitted to a weekly competition where the authors can earn prizes in USD and the Numerai native token Numeraire.

The innovative technology approach of Numerai lies in its use of structure-preserving encryption - data about financial markets are anonymized which prevents biases and overfitting, but as the structure of changes and relationships is kept, it still makes machine learning possible.

Why structure-preserving encryption

Numerai claims the stock market is somewhat inefficient with respect to new developments in machine learning because only a tiny fraction of the global machine learning talent has access to its data.

Structure-preserving encryption was developed as a way to make expensive datasets available to everyone but only for the purpose of feeding a machine learning model, without revealing the full raw data.

In the first month of operations, Numerai users uploaded 10,292 prediction sets — a total of 200,098,002 equity price predictions, which is how the overall Numerai prediction model improves.