At present, with the promotion of various emerging technologies, data is showing an explosive growth trend. The era of big data was proposed more than ten years ago. Big data, AI and web3 are all cutting-edge technologies in the field of digital economy. Although there are differences in specific directions, they have a lot of room for combination. What the veDAO team does is to conduct large-scale data mining and pattern recognition based on big data on and off the chain through AI algorithms, to explore the wealth and value of data on and off the chain in the web3 industry, so that veDAO users' encryption-related decisions are more based on data and analysis, rather than relying on experience and intuition. In order to enable users to make more efficient and convenient decisions in the encryption world, veDAO will continue to stand at the forefront of promoting the transformation of big data into valuable signals (turning "numbers" into gold). The following article will first share veDAO's understanding of data and the role of data, and then take you to understand the smart money product that veDAO has just launched. Later, we will introduce the functions of each segmented product of veDAO and how to use them in detail in multiple articles.

1. What is data?

Data is a record of facts or activities on or off the chain. Data has a variety of forms: it can be in the form of numbers, text, images, sounds, etc., recording and describing the attributes, relationships and behaviors of things. Data can come from various channels and fields: individual users generate a large amount of personal data through on-chain behavior, social media, emails, etc.; web3 projects or traditional enterprises obtain commercial data through business records, customer information, market research, etc.; encryption and other scientific research collect experimental data through observation, experimentation and investigation; third-party organizations and governments collect macro data through statistics and monitoring, etc. Data has many storage forms. In computers, data is diverse and complex. It can be structured data, such as tables and relationships in databases; it can also be semi-structured data, such as log files and emails; it can also be unstructured data, such as documents, images and videos.

2. The role of data

Data plays an important role in web3. Through data analysis and mining, we can discover the web3 industry trends and rules contained in the data, thus providing a basis and guidance for decision-making. Data can also be used for prediction and forecast analysis to help us make plans. Data is the oil and gold of the modern era.

But data itself is not equal to knowledge, let alone wisdom. Only after correct analysis can data highlight its value. Oil and gold are worthless without mining and processing. Overall, the process from data to wisdom is essentially a process of continuous processing of data. Sorting out data from noise, converting it into information, upgrading it to knowledge, and sublimating it into wisdom is the field that the artificial intelligence technology we are familiar with excels in. Especially in the current era of big data, data has the characteristics of large volume, fast processing speed, diverse types, and low value density. The value contained in data and the importance of data-based decision-making are increasing, and the requirements for data analysis are also increasing. The veDAO team continues to work hard to accumulate big data and strong algorithms, strives for excellence, and is committed to creating a high-value and easy-to-use boutique platform.

3. Follow the smart money: Walk with the smartest people in the crypto world

Due to the characteristics of blockchain, on-chain data is open, transparent, tamper-proof, and secure. That is to say, all data generated by smart contract interactions are published on the blockchain. Anyone can access these on-chain data, which makes it a public product. We believe that one of the most popular and valuable products based on on-chain data is "smart money". In our previous smart money related article (How to track crypto smart money? The first step towards financial freedom | veDAO Research Institute — veDAO (mirror.xyz)), we have given you a detailed introduction to what smart money is? Why track smart money, and how to track crypto smart money? Friends who don’t know or are interested in smart money can review the article. In short, a large number of studies have shown that in the crypto market, smart money performs much better than retail investors in the long run, which is why they are called smart money. Based on in-depth research on user needs and competing products, the veDAO team launched its own Smart Money 1.0 version. Its unique innovation lies mainly in the following: veDAO's Smart Money is not based on a single Smart Money wallet, but treats all Smart Money as a group, giving full play to the group wisdom, thereby providing users with more accurate decision-making basis. At the same time, veDAO's products are relatively smarter and easier to use.

3.1. Smart money based on collective wisdom

Collective intelligence is also called collective intelligence. Decisions made by a single individual are often less accurate than those made by majority vote. Collective intelligence is a shared or group intelligence, and a process of gathering everyone's opinions and turning them into decisions. It emerges from the cooperation and competition of many individuals.

Humans have long recognized that group cooperation and brainstorming can solve problems more effectively than the sum of individual wisdom. "Group wisdom" has been recognized as early as ancient Greece. At that time, the Greek philosopher Aristotle pointed out that if many ordinary people work together, their collective judgment is often better than that of great individuals. The modern group intelligence was originally proposed as a form of intelligence based on people's observation of social creatures in nature. It has the characteristics of the wisdom emerging from the group surpassing the individual wisdom, such as ant colonies building bridges, bird flocks foraging, and bee colonies building nests. Group intelligence is a rapidly developing field of artificial intelligence in recent years. It realizes distributed and decentralized intelligent behavior by studying the wisdom of decentralized and self-organized biological groups.

Based on the above analysis, we believe that the decisions made based on a single smart money wallet address are less accurate than those made by a group of smart money wallet addresses. By leveraging the intelligence of the smart money group, the information value it provides for solving problems is far greater than the sum of the information of each individual smart money wallet.

3.2. Using the collective intelligence of smart money to make crypto market predictions

According to the above analysis of on-chain big data and group intelligence, it has become feasible to use the collective intelligence of smart money to predict the crypto market in long-term or short-term applications. Using these properties, veDAO collects crypto market information as timely as possible, combines the on-chain interaction, transfer, transaction and position behavior information of more than 20,000 smart money wallets, and creates a general opinion about specific crypto projects or the overall crypto market based on AI technology and group intelligence theory. In the article "How to Track Crypto Smart Money? The First Step Towards Wealth Freedom", we mentioned that not all smart money is as smart as it seems on the surface. At the same time, some smart money addresses are evil. Their purpose is to enter the market at a lower price than other traders and wait for other traders to enter and leave the market to harvest. In addition, some smart money has multiple accounts, and the behavior of a single account cannot represent the real behavior of smart money. Predictions based on the collective intelligence of smart money can perfectly avoid the above problems. Effective implementation of the collective intelligence of smart money wallets can theoretically be used to more accurately predict changes in the crypto market. The collective intelligence of smart money wallets supports Eugene Fama's efficient market hypothesis-although the concept of collective intelligence is not explicitly used in his paper.

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The several smart money tools recommended in the article "How to Track Crypto Smart Money? The First Step Towards Financial Freedom" are all tools that facilitate users to analyze and track based on a single smart money. VeDAO treats more than 20,000 carefully selected smart money wallet addresses as a group of wallets, based on AI technology and group intelligence theory, to provide users with more basic and accurate project value and crypto market judgment.

3.3. Introduction to the current veDAO smart money product

veDAO's smart money is divided into whale smart money and MEME smart money. Whale smart money tracks the behavioral changes of whale smart money groups in real time; MEME smart money tracks the behavioral changes of MEME coin smart money groups in real time.

On the details page of the Whale Smart Money, you can see all the project tokens held by the Smart Money group, which was divided into 241 project tokens at 10:48 on September 20, 2023.

For project tokens held by smart money groups, the details page of Whale Smart Money shows how many smart money addresses hold the project tokens and the total holdings of the project tokens, as well as the total value of the holdings (accumulated stock data). You can click the corresponding sort button to sort. It is convenient for users to filter projects by address, holdings and holdings value, so as to pick out high-quality projects that suit them.

The details page of Jujing Smart Money also shows the changes in the number of addresses and positions. In the upper right corner, you can choose between 1-day and 7-day cycles, which is convenient for users to carefully select projects from an incremental perspective. Incremental sorting can select the projects that smart money is most willing to hold recently, and can also select the projects that smart money has reduced the most recently.

The accumulated stock is more conducive to users selecting long-term valuable projects, which are mostly relatively mature and large-scale projects; the incremental stock is more conducive to users selecting short-term valuable projects, which are relatively new and small-scale projects.

At the same time, by clicking on a specific project held by smart money, you can enter the project's details page, where you can see more comprehensive, in-depth, and multi-dimensional information about the project (details will be introduced in the following article), including on-chain, off-chain, and professional evaluations.

On the details page of MEME Smart Money, you can see all the MEME tokens held by the MEME Smart Money group, which were divided into 212 project tokens at 10:48 on September 20, 2023.

The stock and incremental indicators on the details page of MEME Smart Money are basically the same as those of Whale Smart Money. I will not introduce them here. Interested users can go and experience them in depth. The difference is that it has more cycle options when performing incremental screening.

Click on a specific project held by smart money and enter the project details page. You can see the historical data change trend chart of the number of addresses and positions held by the smart money group. Through data visualization, the historical change trend of the number of addresses and positions held is presented; through the smoothness and overall change trend of the number of addresses and positions held indicator curves and bar charts, it is presented whether the number of addresses and positions held indicators are abnormal and the overall change trend of the indicators. This can further determine whether the abnormality is within a reasonable range; on the other hand, it can determine whether the abnormality has periodic characteristics. At the same time, the historical data change trend chart can also be used for trend prediction.

In summary, with the advent of AI, making full use of various intelligent tools and platforms to empower your investment strategy will become a norm in the future. Investors will get rid of the meaningless manual data sorting and analysis process, and rely on more intelligent tools to help you display the data and dimensions you want. veDAO's smart money function is doing this. Based on veDAO, you can find any data you want to refer to, and the AI ​​smart investment consultant will help you analyze and assist your decision-making, and ultimately achieve accurate capture of Alpha, one-click investment, and easy profit.