DeepBrain Chain (Capitalism at Work)

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What is DeepBrain Chain? According to Kevin Chen of GBIC, DeepBrain Chain is a decentralized computing platform driven by blockchain technology. Simple enough, although what does that really mean? We’ve heard the words “decentralized” and “blockchain” way too many times, so how can this company be any different?

Well, DeepBrain Chain is the first of its kind as an artificial intelligence company solely driven by blockchain technology. This may not sound interesting to the average JOE trying to flip coins in the market, but in the finance sector this company screams value. In simple terms this company aims to lower costs, enhance computational power, and provide a means of transferring data on the “chain” with top notch security, using AI of course.

Case points:

  1. Artificial intelligence costs a lot of money to run, according to the 2017 10-Q report of Nvidia, “Operating expenses for the third quarter of fiscal year 2018 were $674 million , up 24% from a year earlier and up 10% sequentially, reflecting increased
    headcount and related costs for our growth initiatives – gaming, artificial intelligence, and autonomous driving”. We can split the three reasons down equally for sake of the case, and conclude that there was about an 8% increase in operational cost for 2016 and 3.33% increase in for 2015. Doesn’t sounds huge, but when billions of dollars are at stake those small percentages add up quick.
  2. Imagine how the company DeepMind created an AI that was able to master chess and become a expert in less than 4 hours. This was one company with a small sized team doing this, now imagine a network of AI working together on a single platform. What could they not do is the question since this opens the doors to greater advancement when you connect all of the AI in the world.

To me, this company definitely has me bullish in the AI blockchain industry. The coin itself is the main currency that the chain and miners get paid in DBC along with GAS, which is derived from the NEO network. The utility in this coin is there, but what waits ahead is if the company can do what it promises and gets this company going so that the coin itself can start seeing its value increase. What may help the coin out is the fact that DeepBrain is the first and currently only company in this sector. A monopoly almost.

At the moment the coin’s prospects are $0.140760 a coin, $126,684,000 market cap, and a circulating supply of about 900,000,000 DBC.

To throw around some numbers to see what this coin could be worth let’s take a statement from Nvidia that was released on their latest 10-Q report, “AI fueled the rapid growth of our datacenter business, which tripled year over year in the fourth quarter, bringing total annual revenue to $830 million”.

AI created an additional $830 million worth of value for Nvidia! At a current supply of 900,000,000 without consideration for dilution for the moment, this coin could see a value of $.9222 ($830,000,000/900,000,000). With the “tripled year over year” part of the statement we can get a rough estimate of the price based solely on Nvidia’s earnings!

2018: $.9222? estimated market cap: $830,000,000

2019: $2.766? (.9222 x 3) estimated market cap: $2,484,000,000

2020: $8.299? (2.766 x 3) estimated market cap: $7,469,910,000

These estimates did not account for dilution of the coins and only considered the earnings statement from the Nvidia Company. There are plenty of scenarios we can create to get an estimate of a coin’s price. These prices are not to say that they can or can’t happen since the market is always in rotation. Please invest wisely and do your own research in order to come up with a conclusion for a coin’s price.

At the end, that is just a small case for the many cases that can occur. There is plenty of AI in the world and connecting them can do great things. Lowering costs could help improve the worldwide usage of AI in countries that may not be able to afford the high costs of running AI computers. Using the economies of scale in terms of computational power can greatly push innovation and in general make AI less expensive. With DeepBrain Chain right at the forefront of this new use of blockchain technology, I don’t see why this industry can’t become a multi-billion industry some day in the future!

Remember that this is a case situation and no guarantee can be made on the outcome of your investment based on this knowledge.

 

 

 

 

 

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