Elanim ecosystem Lightpaper

v0.5 / June 2018

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Disclaimer The information in this document is provided not for distribution but to give general knowledge

to those interested in the Elanim Ecosystem project. This is not an offer, recommendation or

an invitation to invest. This is a description of the project and a plan of how the team is going

to execute its development. The authors of this document have no any legal liability, and

interested persons or legal entities are obliged to seek their own independent legal advice.

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New technologies and their rapidly growing market Artificial intelligence (AI) is a scientific research area that lies at the junction of various

sciences: informatics, philosophy, cybernetics, phycology, mathematics and many others. The

concept of artificial intelligence is usually used to describe the ability of a computer system to

complete tasks which only human mind can do, such as inference problem or learning. Any

task, which solving method is unknown in advance, or that has incomplete input data can be

defined as belonging to the artificial intelligence research area.

Today the creation and development of artificial intelligence is one of the priority tasks in the

world’s scientific researches.

According to research, in 2015 global market volume for artificial intelligence was $126,2

billion. By the end of 2024 the market volume will reach 3 trillion. Analysts of Transparency

Market Research expect that the annual average growth rate of the market will be 36.1% in the

period from 2016 to 2024.

Today artificial intelligence technologies are used in many different economic sectors. Market

demand for AI solutions constantly grows – because of the need of big companies to increase

their productivity in the first place.

This factor will play an essential role for the market development in the years to come.

About 98% business leaders consider this process as a very important for industry.

Machine learning in all its variations, including deep learning, gives us the opportunity to

extract information from input data more efficiently and perform complex and large-scale

tasks. This addition to human mind can be helpful and do the job which earlier demanded

involving a lot of human resources. Sometimes even the problems which in normal conditions

have no solution, are being solved.

But there’re still a lot of problems.

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Problems

In large corporations they tell us that we live in an “AI-first age”, when machine learning

technologies start to find their way into many areas of human life. Meanwhile, the people who

really stand on the front lines of AI research intend to bring into focus the fact, that we must

solve many serious problems before the real age of artificial intelligence comes.

As we speak, AI creation faces the next key problems:

● Artificial intelligence requires hundreds of thousands tones of data to learn about the

world. Тhere is no possibility to give it access to such amounts of information;

● Absence of available computing capacities that are needed to train artificial

intelligence is a problem, too;

● For now, we face the impossibility to create an AI capable of multitasking;

Now, in 2018, machine learning models are already capable of doing amazing things, the things

that are not completely understood even by AI creators themselves. But in order to continue

this growth, AI needs great financial expenses and large amounts of data. At the moment only

big tech firms, such as Google and Facebook, have access to such resources – but they may

not use the most effective algorithms or the best ideas – because they don’t see a real

competition in the field.

At the same time there are thousands of enthusiasts all over the world, that develop their own

neural networks and machine learning models. Their ideas and inventions can be really

revolutionary and brilliant, but without access to large databases and low-cost computing

capacities they can never be known or used for the good of mankind.

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ELANIM Ecosystem

Elanim offers a solution that will be able to solve many present and future problems and at

the same time will lay a solid foundation for a successful interaction between clients and AI

platforms, provided by different vendors. We intend to do that by creating an open and

decentralized ecosystem.

The main idea of an ecosystem – it’s an interconnection of all its elements, thanks to what

they constantly grow and evolve. Every part of the ecosystem is closely connected to the rest

of it – that increases its chances for survival. At the same time, the possibility of survival of

the entire ecosystem grows with the increasing number of its participants.

Elanim ecosystem consists of many platforms and services where every element interacts

with the others and by that increases its value and cost.

There are three platforms that are main components of Elanim, each of them is dedicated to

solve definite problems of artificial intelligence engineering and development:

SmartMarket is the centre of the entire ecosystem and an open decentralized market of big

data, algorithms, models, services and other artificial intelligence components.

Core – it’s a decentralized grid computing-based platform for fast and low-cost machine

learning, consisting of many nodes which are PC-computers and GPU mining farms connected

to the system.

Network - P2P network of AI services capable to communicate with each other and distribute

incoming tasks among themselves.

The ecosystem not only grants developers access to all necessary tools to create AI systems,

but also allows an integration with already existing third-party platforms. Elanim provides the

standards and requirements for the data, that are shared across the platforms, it defines

technical and economical parameters, it also allows you to monitor the status and potential of

automated systems in the network.

The ecosystem helps to reduce the risks and errors of integration because of its ability to offer

high-quality integration technologies, standardized interfaces, predictable architecture and

behaviour logic. Once decided to integrate their project into the ecosystem, developers will be

able to concentrate on the main tasks of creation and thanks to that release their product

months or even years earlier.

The ecosystem significantly increases the speed and quality of solving those problems that

inevitably appear on the way to the Fourth Industrial Revolution and the start of massive use

of artificial intelligence systems in business and daily life.

In the conditions of the market, monopolized by large corporations, Elanim becomes an

alternative solution. We aim to design a perfect environment for artificial intelligence

development, an environment which will support the principles of openness and transparency,

trust and cooperation. Achieving of these goals will ensure healthy growth and constant

progress of AI industry in the future.

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Elanim Ecosystem

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Blockchain as an instrument of decentralization Relational databases can be a good solution for many systems and applications, but security

and scalability of the projects that use those databases are quite limited.

In order to create an economy of artificial intelligence infrastructure as well as achieve

decentralization and high scalability in the ecosystem, we use public blockchain.

Blockchain – it’s a distributed database, the storage devices of which are not all connected to

a common processing unit. It maintains a constantly growing list of ordered records called

blocks. Every block contains a timestamp and a link to the previous block.

Cryptography ensures that every user can edit only those parts of the blockchain that he has

access to by possessing the private keys, which are necessary to write to the file. Besides,

blockchain technology usually requires synchronization of all users’ database copies.

Main advantages of using blockchain:

● Transparency;

● Increased efficiency due to the absence of intermediaries;

● High security level because of the unchangeability of data;

● Innovative cooperation between communities;

We aim to create an ecosystem that helps to design and finance innovative AI products, and

the best way to do it – by building trustworthy relationships based on mathematics. A

relational database would be enough on a short-term horizon, but our goal is to build a

decentralized ecosystem that will be able to function and optimize itself for a very long time

and even in extreme conditions. Scalability is more important than a momentary pragmatism,

and that’s why we choose blockchain – in order to be able to scale Elanim ecosystem, helping

it to become the first step on the way to the Forth Industrial Revolution and to the new age of

human history.

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Powered by NEO Choosing a framework for Elanim Ecosystem, we had to select one of the two platforms:

Ethereum or NEO. These platforms have already proven themselves as good tools for creating

smart contracts. We have decided to choose NEO for the following reasons:

Network capacity and the cost of transactions. Elanim platforms generate a large number of

transactions, and that’s what we took into account making our choice. NEO does not use

Proof-of-Work (PoW) algorithm, it has a more optimized PoS protocol, which allows it to

process transactions much faster than Ethereum. NEO’s possible transaction rate is equal 10

000 transactions per second, while Ethereum network can only process 30 transactions per

second.

Currently there are solutions being developed in both networks to increase the transaction

capacity, but using most of them demands some compromises, and, what’s more important,

none of them is ready yet. Also, the cost of transactions in NEO is much lower, than in

Ethereum.

Ecosystem. NEO possesses a large number of tools for product development. Constantly

growing community of developers provides maintenance for NEO-based projects, it also

strives to support many new projects, and the result of all this is the appearance of more and

more new decentralized products powered by NEO.

NEOX. NEOX – it’s NEO’s protocol of atomic swaps (directly swapping tokens without an

exchange) and integration of the Crosschain technology. It will allow users to swap crypto

assets and transact directly across different blockchains, it will also allow smart contracts to

interact across chains.

Elanim is designed to be able not only to maintain its own internal environment, but also to be

opened to the interactions with different third-party platforms. It’s in the plans of the team, that

in the future our ecosystem will be functioning on its own blockchain, which will be highly

scalable and compatible with the blockchains of our partners, preserving compatibility with

the NEO network. Using NEOX guarantees that it will be possible.

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Elanim SmartMarket The situation at the software market (including the market of mobile applications) shows us

that creation of a trading platform accelerates the development of an industry explosively.

There are such giant platforms as App Store and Google Play, but we still have no solution for

artificial intelligence systems.

We create Elanim SmartMarket – decentralized market of data, algorithms and services of

artificial intelligence. Its main purpose is an acceleration of the whole sphere of AI

development and, as a result, making this sphere available not only for large companies but

also for small and medium businesses and for everyone, who is interested in the field. In

SmartMarket every developer can find everything for realization of his ideas, he will also be

able to present his projects and inventions to a large number of interested people.

SmartMarket is going to be the key element, around which the entire Elanim ecosystem will be

built. It provides a standardized unified API for the client-developer communication. Service

delivery from developer to client can be carried out using popular and well-established data

exchange formats. Developer products can be delivered to the customers using IaaS, PaaS,

SaaS models or directly sold.

Using Elanim SmartMarket developer will find more clients interested in his work, while

customer gets all the resources to implement AI technologies into his business simply and

without financial losses. Besides, this model of interaction allows engineers to improve their

created technologies without making changes on the client side. This will help them to

constantly make their products better.

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Elanim Core As it was said before, there are many significant obstacles to the AI creation, among them the

high costs and time, that needs to be spent on neural networks training. Huge capacities of

computer clusters are owned by big corporations, and high cost of computing resources is the

result of this monopolization. At the same time, there is large amount of free computing power

in the world – the power of personal computers connected to the Internet.

To find a way out of this situation, we create program platform Elanim Core. The platform will

be based on grid computing and will unite numerous personal computers, mining farms and

the capacities of many other computer clusters.

Every network user will be able to allocate some amount of free resources of his computer,

connect it to the Elanim Core and in cooperation with other users train and engineer the

systems of AI.

Not only PC-users, but also mining farms will be able to participate in these processes.

Considering current unstable situation and complexities that cryptocurrency mining is facing,

mining farms can use their capacities inside Elanim Core, which can bring more stable income

and larger profits.

In addition to performing AI-related tasks, it’s also planned that the platform will provide

services for scientific research, image rendering and many other tasks that require a lot of

computing power.

For maximum spreading of the technology Elanim CoreApp is designed as a cross-platform

software, which can be used on Microsoft Windows, Linux and MacOS.

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Elanim Network

The fundamental difference between machine and human learning is that artificial intelligence

practically every time has to start from point zero, while people are phenomenal in using

previous experiences to acquire new knowledge. When a person faces a necessity to study

something new, he rarely starts from scratch. Instead, people are constantly trying to use their

previous knowledge.

Ability to make comparisons, creativity, imagination – these are only a few of many cognitive

human abilities, currently unreachable for AI.

Network is the third of main Elanim platforms. We aim to create a network that works as a

whole, at the same time consisting of a huge number of different independent nodes of

artificial intelligence. These nodes will have various types and functionality and they will be

able to communicate with each other in order to use each other's services for solving various

problems.

Decentralized artificial intelligence of Elanim Network will be able to complete most of the

tasks set by a person or another system in the shortest possible time and from any part of the

world.

The Network is designed to be lightweight and flexible, which allows using it both for business

purposes on companies servers and by common users on PC or mobile devices.

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Token

The goal of our team is to create a comprehensible and user-friendly AI ecosystem which will

also be able to expand freely as it grows. For that we need a healthy internal economy, which

will not be dependent on external fluctuations or manipulations. Also, according to the

principle of openness, all services of our ecosystem should be available to everyone regardless

of where they live.

To make the use of the ecosystem services transparent and simple for our customers, Elanim

issues ELM token. It is used to pay for the services provided by own ecosystem platforms as

well as for the services provided by third-party platforms connected to Elanim.

Decentralization and tokenization – these are the basics of functioning of all Elanim platforms.

Every payment transaction in Smart Market, Core and Network has to be made with ELM token.

All third-party platforms working with Elanim have to be tokenized and able to accept ELM

token as a means of payment.

To become owners of ELM tokens is very easy for all Elanim participants. Every ecosystem

user can receive tokens just by sharing their computing capacities inside the Core. Owners can

spend tokens paying for the services provided by Network platform or selling them to other

users.

Such approach will free Elanim participants from buying tokens on exchanges and significantly

increase the popularity of the ecosystem among a wide range of users. This makes ELMs

highly liquid assets.

In Elanim Ecosystem all developers have an opportunity to make their products available to

the large number of interested customers; they also can pre-sale their projects at the global

market. This will attract the requisite capital which will increase the cost-effectiveness of

projects development – and that will consequently lead to the increasing of the cost-

effectiveness of the entire ecosystem.

The investors, in their turn, will have the best investing conditions (lower costs and greater

efficiency), and, of course, they get access to the most perspective AI projects all over the

world.

Corporate clients and developers can be holders of ELM tokens, too. Elanim task planners give

higher priority to those tasks and requests, the owners of which have larger amount of ELM

tokens on their balance.

As a result, the owner of ELM tokens has the next profitable opportunities:

1. Ability to use the services of Elanim Ecosystem platforms, in case ELM token was

purchased before the realization of these services;

2. Ability to sell their own services to any client before their realization;

3. Having higher priority for their tasks depending on the owned amount of tokens.