Effect AI – EFX

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Effect AI – EFX crypto

It was time to find a new long-term pick. After long consideration and doing research, I chose to add EFX to my long-term portfolio. I’ve followed the team for a long time now, friends kept me updated on their progress and big things have been happening behind the scenes. Therefore, I am happy to share my ‘research report’ on Effect AI. I’ll see to possibly update this post in the near future with a competitor analysis. That being said, let’s dive into it.

What is Effect AI – EFX?

Effect AI is building the Effect Network on the EOS Blockchain. The Effect Network is an open, democratic & decentralized network for artificial intelligence. Before reading through this post, I would recommend you watch the short video below to get a better understanding about what Effect AI is and what they do.

The Network consists of AI related dApps that are connected to the same Smart Contract stack. The Smart Contracts that make up The Effect Network include the EFX token, a staking and governance model and several user directories. Effect AI is building three initial decentralized applications for the development of AI. These applications are: Effect Force, Effect Smart Market and Effect Power. In this post we will discuss all three topics.

General info about Effect AI – EFX

Effect Force

Effect Force is currently where most of the magic happens. Effect Force offers high quality training data, provided by thousands of workers that can complete tasks at scale in numerous languages. Clients are using this for purposes such as: data collection, sentiment analysis, chatbot development, video transcription, translation and NLP related tasks and much more.

Effect Force is interesting for enterprises as it enables them to not just access data, but also to collect and structure their own data so that it’s usable in their artificial intelligence system(s). Even companies that aren’t using AI can easily start using it to improve their business activities.

This service is used by enterprises of all sizes and sectors, from startups to large multinationals. The easiest way to see how this works is by taking a look at their use cases, which can be found here: https://effect.ai/cases/.

There are case studies on projects with organisations / enterprises such as The United Nations, ING, KPMG, Kraft Heinz, Quadia, Linus Tech Tips and many more

Enterprises can start using Effect Force in just four easy steps: set an objective, create tasks instructions, launch the campaign and finally receive the results. These tasks are divided into micro-tasks which are completed by thousands of qualified workers from all over the world, providing work to people in third world countries who earn well above the average wage of their home country by working on Effect Force.

This is all fully decentralized and the workers receive instant payouts (in EFX) for their work on the platform. With nearly 15 million tasks completed, Effect AI has served many clients worldwide already.

Effect Force can meet EVERYONE’s unique needs, adapting from small, on-demand tasks to high-touch, fully managed customized solutions.

Effect Smart Market

The Effect Smart Market is the second phase of the Effect Network, which is also operationally active in the background of the network already. The Effect Smart Market is an open marketplace which, just like Effect Force, aims to make AI more accessible to the masses. With the Effect Smart Market everybody can offer their own algorithms, which can then be used by others for the rates decided upon by the owner of the algorithm.

The combination of Effect Force (an open platform where people can get their data structured and trained) and The Effect Smart Market (an open marketplace where people can offer and rent out their algorithms) already form a significant part of the Effect Network.

Effect Power

While phase 1 and 2 of the Effect Network decentralize the data gathering and usage of AI algorithms, the algorithms are still running on centralized servers. This is where Effect Power comes in. Effect Power will distribute the computation so that the algorithms run globally without a single point of failure and thus creating a fully decentralized ecosystem.

Effect Power is not live yet, an exact launch date also hasn’t been announced yet. The team’s focus currently is on bringing in requestors to train their data on Effect Force and building out the Effect Smart Market

Building on top of The Effect Network (TEN)

Since the Effect network is becoming a fully decentralized system, everybody is allowed to build upon it and offer their services on TEN (The Effect Network). To set the right example, the Effect AI team has already built two fully operational dApps on TEN, namely: Rosette and Effect Translate:

Effect Translate

According to the Effect Translate website ET is 40% faster and 30% more cost efficient than other solutions, while offering 99% accuracy. ET is used for video subtitling, audio transcriptions, document translations, website / mobile app content, and many other services.

These services are offered in 25+ different languages, making it very handy for enterprises from all over the world. Although the service is very young, various big players already use this service. One of these big players is Kraft Heinz with whom they have a contract going into the millions of euros.

For more information on Effect Translate, visit https://translate.effect.ai/

Rosette

Personally, I’m excited about their YouTube Subtitles service (Rosette). There’s nothing worse than seeing poorly translated videos or videos with poor captions. Rosette makes it easy for enterprises and YouTubers to offer multilingual videos on their channel.

I can name various reasons why this is huge:

  • Multilingual support enables the videos to be watched by a much larger audience, worldwide, in their native language.
  • Enabling people to watch content in their native language will make them feel more connected. That in combination with the additional reach can result in an increase of sales.
  • Higher ad revenue for YouTubers as a larger audience will watch their videos.
  • Good translated videos / captions will make the enterprise or YouTuber look much more professional

Enterprises and / or YouTubers interested in these services can fill in an easy form in which they submit their uploaded video (link), select a service and receive captions or translated versions within 48 hours. Various big YouTubers use this service already, one of them is LinusTechTips who has over 10 million subscribers.

For more information on Rosette, visit https://rosette.ai/

But, that’s not everything! The entire Effect Network is powered by two tokens. The first being EFX, which is used to power the operations of the Effect Network. And the second token is NFX, which is the Governance token of network (important for having decentralization).

Use case of Effect AI – EFX

EFX is used throughout the entire Effect Network. Here’s a few examples on how EFX is used to power the network:

  • Organizations buy and use EFX to pay for data structuring / translation by the human workforce (micro tasks), data, etc.
  • The Effect Workers receive instant EFX payments for completing micro tasks they perform.
  • Developers accept EFX as a means of payment for their AI services, algorithms and other services.
  • Organizations running AI Frameworks pay for computational power with EFX. As Effect Power is distributed, there isn’t a single point of failure making it much more reliable.
  • Rewards for those who rent out extra CPU/GPU to Effect Power on the smart market beta.
  • EFX can be staked by its token holders to collect NFX.

EFX Staking protocol

NFX

As stated before, NFX is the governance token of the Effect Network which powers the Effect DAO. The Effect DAO is an essential part of the entire ecosystem as it ensures decentralization and governs the entire network. To participate in the government network, it is rumored that you will need to lockup at least 100k EFX and 10k NFX. Some benefits of being able to participate in the Effect DAO are:

  • You’ll receive network fees from all of the services offered through the Effect Network.
  • You’ll voting power within the network (democratic process),
  • You’ll have privileges on the dAPP level
    This list will be extended through the following months, since the DAO will officially launch in September 2020. From August onwards there will be exciting weekly announcements regarding the launch of the Effect DAO, so stay tuned!

Alongside these developments, platforms and services, the team is especially dedicated to creating opportunities in developing countries. They partnered with the United Nations last year to develop opportunity centers where underprivileged youth can gain access to their platforms to work and earn crypto (EFX) and also supply accelerated learning platforms for the center’s members to learn about AI, Blockchain and programming. The first center opened January 2020 in the country of Georgia. The next center has just been announced and is in partnership with Akon, the artist. The center will be located in Kenya and opened by the end of the year. These African centers will be co-branded Akon-Effect Hubs with the goal to open several Hubs all over the continent.

Where to buy and sell Effect AI – EFX?

What do we think about Effect AI – EFX?

Effect AI has been long under the radar, and in my opinion EFX is currently substantially undervalued. Unfortunately the liquidity on exchanges isn’t amazing, but I believe this will improve as we’ll see other exchange listings and more interest in the project.

It makes sense EFX has been under the radar. The team has focused solely on development during the bear market and decided that marketing will follow afterwards. This has enabled them to not just survive the bear market, but also to release (or be close to releasing) various products.

That they haven’t done a lot of marketing yet doesn’t mean EFX isn’t interesting to hold. It’s a long-term play, but by the looks of it the team is (finally) preparing various marketing activities. I believe that instead of hype there is value, 2 out of 3 phases are live, the team built two services on top of their own network and they are working with some major clients who can possibly bring in millions in revenue like KPMG, ING, ABN AMRO, Kraft Heinz, Quadia, LinusTechTips and various other partners. Exact revenue numbers have not been shared yet.

For now, these clients pay the team with fiat and the team uses these funds to buy their EFX token on the exchanges (Newdex and Bidesk). What’s interesting is that Effect AI has already been generating revenue, but they haven’t started buying back EFX from exchanges yet. This is anticipated to happen shortly, which should bring quite some demand to the token. With these thoughts and considering the team is finally at a phase where marketing makes sense, I’ve purchased some EFX myself (and will hopefully add some more around $0.02 in the near future). This is a long-term hold and so I don’t mind the low liquidity at this point.

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Conclusion about Effect AI – EFX

This post is for informative purposes only, I’m not a financial advisor and I currently have a position in EFX. I am not planning to change this position within the next 48 hours. I have not been paid for this post, this post is out of personal interest.

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