Mode Launches AI Tool Synth for Predicting Cryptocurrency Prices
Mode, a Layer 2 blockchain network on Ethereum integrated with Optimism’s Superchain, has launched Synth, an AI-powered tool for predicting cryptocurrency prices. Synth operates within the Bittensor ecosystem, a decentralized network for collaborative AI.
Key Features of Synth
- Synth forecasts crypto price movements for traders and portfolio managers.
- Utilizes Bittensor’s decentralized AI network rather than centralized data sources.
- Functions as a marketplace rewarding AI programs for accurate predictions.
- Nodes are rewarded for participation and output utility, aligning with financial forecasting goals.
Operational Mechanics
- Miners generate simulated price paths for assets like Bitcoin, creating 100 scenarios every five minutes.
- Validators verify predictions against historical data for accuracy.
- Accurate miners earn rewards in Bittensor’s native cryptocurrency, TAO.
Problems Addressed by Synth
- Improves accuracy in volatile crypto markets through realistic price simulations.
- Reduces control of financial tools by major companies, promoting accessibility via decentralization.
- Enhances decision-making for investors, particularly in options trading and portfolio management.
The development of Synth aligns with increasing demand for innovative tools in the crypto and AI sectors aimed at better market prediction and volatility analysis.