The blockchain is home to many different solutions that aim to streamline user experience, distribute information and value freely, or eliminate middlemen and centralized third party institutions. One application of the blockchain that hasn’t yet been fully explored however, is the ability of the blockchain to gather information from an extremely broad spectrum of users in a short amount of time.
A new blockchain based platform is planning on providing users with a dynamic new way of valuing virtually anything. The ENTX Blockchain Valuation Protocol intends to use user-submitted data to provide a highly accurate fair market value, or FMV, for the rapidly emerging economy of digital assets.
The potential applications of the ENTX Blockchain Valuation Protocol are obvious. Making pivotal business decisions in the digital assets market can be difficult without an awareness of the value of an asset, which can often be difficult to determine.
The blockchain-based nature of the ENTX system will be able to gather a massive amount of information scraped from the internet, as well as incorporate crowd participation and sales records to build a highly accurate fair market value. The platform intends to encourage e-valuators to participate in the ENTX system and construct industry and product specific valuation methodologies that can further enhance the accuracy of ENTX FMV.
In this article, we’ll take a look at the ENTX Blockchain Valuation Protocol and find out how it works in order to help you determine whether it’s worth participating in.
What Is ENTX?
The ENTX Blockchain Valuation Protocol aims to value virtually any asset in the world. Given sufficient time and information, according to the creators of the ENTX Blockchain Valuation Protocol, anything can be accurately valued. At this point in time, ENTX is focused on providing highly accurate valuation for digital assets such as game “skins”- a massive, but little known market- and cryptocurrency tokens.
As the ENTX Blockchain Valuation Protocol matures, the creators intend for it to add new verticals, as well as tokenize the function of the platform for a variety of roles, including government and academia. Overall, ENTX aims to become the “Google of valuation” in the world of digital assets and tokenized economies.
In the near future, ENTX plans for their system to be used in the valuation of in-game goods, insured items, hotel and airline tickets, digital currencies and tokens, loan collateral, real estate, and work products.
How ENTX Works
The ENTX Blockchain Valuation Protocol uses three different systems to establish a fair baseline FMV for a product. The first element of the ENTX system is the ENTX Summit, which functions as an ecosystem of competing valuation algorithms that all attempt to deliver the most precise information.
The ENTX Summit is composed of smart contracts that are designed to handle incoming price requests, monitor the accuracy of the Summit algorithms, and request the off-chain computation processing of these algorithms. When users submit a price request to the ENTX Blockchain Valuation Protocol, they’re querying ENTX Summit smart contracts.
ENTX aims to make it possible for data scientists, appraisers, programmers, and other participants to create their own valuation algorithms and test them on their platform. In order to test the accuracy of their algorithms, contributors are required to pay a staking fee.
The second element of the ENTX Blockchain Valuation Protocol is the ENTX Cache, which functions as a collection of price point data that is powered by IPFS. This element of the ENTX protocol gathers historical price data, real time sales data, and crowd appraisal data from a broad spectrum of different sources.
This element of the ENTX Blockchain Valuation Protocol introduces a unique crowd prediction system called “price mining”, which is an active competition between e-appraisers that attempt to predict the next selling price of an item. When they correctly predict the price of an item, these e-appraisers are provided with a reward that is generated from the collection of a stake fee that is required to submit an answer.
The final element of the ENTX Blockchain Valuation Protocol is the ENTX Auditor. These auditors function as proven, verified, and trusted e-appraisers. Overall, the ENTX Blockchain Valuation Protocol provides a wide range of applications that can be used by a broad spectrum of different customers, including insurers, sellers, and buyers.
The ENTX Blockchain Valuation Protocol will operate on a utility token called the NXT token, which will be used to drive platform growth and scalability. These tokens will be used in staking, mining, and paying with valuations.
The ENTX Blockchain Valuation Protocol is a highly unique and original concept, and uses crowd wisdom to provide highly accurate price assessments for virtually any item. The ENTX Blockchain Valuation Protocol is definitely worth keeping a close eye on.