What is a model?

There exist many definitions of a model, depending on a context, industry, and application. We find that one of the most comprehensive definitions was given by the Feds and OCC in their SR Letter 117 – Supervisory Guidance on Model Risk Management: “… the term model refers to a quantitative method, system, or approach that applies statistical, economic, financial, or mathematical theories, techniques, and assumptions to process input data into quantitative estimates. A model consists of three components: an information input component, which delivers assumptions and data to the model; a processing component, which transforms inputs into estimates; and a reporting component, which translates the estimates into useful business information. Models meeting this definition might be used for analyzing business strategies, informing business decisions, identifying and measuring risks, valuing exposures, instruments or positions, conducting stress testing, assessing adequacy of capital, managing client assets, measuring compliance with internal limits, maintaining the formal control apparatus of the bank, or meeting financial or regulatory reporting requirements and issuing public disclosures. The definition of model also covers quantitative approaches whose inputs are partially or wholly qualitative or based on expert judgment, provided that the output is quantitative in nature.” Even though that definition was developed in the context of regulated financial institutions, banks primarily, it could be extended towards models used in other industries and applications, including weather forecast or genetics simulation. It could cover a full spectrum of models, starting from fairly simple valuations up to and including models underpinning Machine Learning (ML) and Artificial Intelligence (AI) techniques.

What is a blockchain?

A blockchain is, in the simplest of terms, a time-stamped series of immutable records of data that is stored in a distributed ledger and managed by cluster of computers, called nodes, not owned by any single entity. Each of these blocks of data (i.e. block) are secured and bound to each other using cryptographic principles (i.e. chain). The blockchain’s network of nodes and distributed ledger of records have no central authority — it is the very definition of a democratized system. Since it is a shared and immutable ledger is distributed, the information in it is open for everyone who have access to the blockchain or its channels. For instance, members of iModX Consortium and those who are registered on the iModX blockchain platform or its channels can see transactions on the entire platform or private channels only.

Is iModX disruptive?

Yes, as a FinTech innovation, the new iModX marketplace will reshape the model and data ecosystem. iModX will radically decrease cost of model deployment and eliminate barriers of the model ecosystem for thousands of smaller organizations and qualified individuals. It will be done in a similar manner as Uber did for millions of riders and individual car owners.

The disruption comes through introduction of the distributed ledger blockchain technology that leads to fundamental changes in model management infrastructure and processes at the enterprise level and for the entire model ecosystem.

The iModX distributed ledger technology drastically reduces the cost of trust among competing or conflicting patrons of the model ecosystem. The iModX architecture involves smart contracts and the Practical Byzantine Fault Tolerance (PBFT) approach to consensus protocol that will automatically enable voting on and registering new deals and transactions on the platform without involving intermediaries or central authority.

The iModX blockchain technology allows the platform to record events, manage records, process transactions, pay royalties, and trace models, data and tokens, in an immutable manner. The blockchain is essentially a continuously growing list of records about the deals and transactions on the platform. Its append-only structure only allows data to be added to the distributed database: altering or deleting previously entered data on earlier blocks is impossible.

iModX blockchain based platform will support ecosystem’s stakeholders through the entire model lifecycle, from model design, development, implementation, validation, audit, deployment, monitoring, and up to decommissioning. For more details on the impact from iModX on the industry please read in the White Paper here.

Is iModX platform safe?

Safety and security are iModX's highest priorities. Security is built into the very design of the iModX Blockchain with the best available cryptography standards to prevent malicious activity, protect the intellectual property of model developers, privacy of proprietary data, prevent hacking of models and software solutions, and safety of holding iModX utility tokens.

What is a utility token?

A utility token is a digital token of cryptocurrency that can be used to purchase a good or service offered by the issuer of the cryptocurrency. The iModX utility tokens will be issued to support all transactions on the iModX platform, such as payments of model users to model developers, validators and data providers.

The iModX utility tokens have properties of a stablecoin - 100% of the iModX tokens are backed by a basket of fiat currencies, cryptocurrencies and gold. The iModX tokens are designed to minimize the volatility of its price, relative to the Special Drawing Rights (SDR), and ensure sustainable long-term preservation of the basket’s market value.

The iModX utility token is designed to be a stable digital cryptocurrency that will be fully backed by a reserve of assets — the iModX Reserve

Is iModX token a cryptocurrency?

Yes. iModX token is a cryptocurrency designed to be a stable digital cryptocurrency that is fully backed by a reserve of assets — the iModX Reserve – and which cannot be circulated outside the iModX platform.

Is iModX token available now?

Not yet! Over the coming months, the consortium will be working to develop and grow the iModX’s network. If you are an organization interested in joining the iModX Consortium, you can learn more here

Is iModX token real money?

Not yet. iModX utility tokens are used exclusively for payments on the platform. The patrons of the platform can buy or sell tokens for fiat or cryptocurrency from/to the iModX “central bank”. The value of an iModX utility token is determined by the market value of the iModX Reserve divided by the number of tokens in circulation.

In the future, when the number of patrons of the platform become significant, the iModX Consortium might decide to convert the iModX permissioned private blockchain into a Decentralized Autonomous Organization (DAO) and open the circulation of iModX tokens outside the platform. In that case, the tokens might become a real money that could be converted into a local currency based on the market exchange rates.

What is the difference between iModX token and other cryptocurrencies?

Unlike many cryptocurrencies whose values fluctuate based on speculation, iModX token is backed by a reserve of assets. This is similar to how other currencies have been introduced in the past — to help instill trust in a new currency and gain widespread adoption, it was guaranteed that a country's notes could be traded in for real assets, like gold. In a similar manner, the iModX Reserve will back up 100% of the tokens with a basket of gold, fiat and cryptocurrencies.

What is the iModX Reserve?

The iModX Reserve was created to preserve the value of the iModX tokens. Each iModX token will be backed by a basket of gold, fiat and cryptocurrencies held in the reserve. The weightings of the components of the basket are determined by an optimization algorithm with a goal of achieving contained volatility against the Special Drawing Rights (SDR) and sustainable long-term preservation of the basket’s market value to withstand the ongoing devaluation of fiat currencies.

How can I get iModX token?

You will be able to buy iModX tokens from the iModX “central bank” after your organization is registered on the platform.

Is iModX token legal?

iModX token is legal and can be used as a means of payments on the iModX platform.