Equity mining

Equity Mining is a term associated with the process utilizing an automated algorithm system coupled with accessible, existing known information facts from one or various sources by which calculations and final conclusion identifies the factual, honest, auditable, reliable and consensus based value of the equity held in a certain, specific asset, or a combination of assets such as investments, real estate, automobiles, equipment which has an intrinsic value less any debt burden. "Mining" used in this disambiguous manner is associated to the data mining mechanical, automated and technological process of isolating the "equity" as a value of financial liquidity of any specific or multiple sets of assets. Isolating precise equity from any asset or combination of assets whether liquid or illiquid can be stated as isolating net free value which can then be seen as a currency. Isolated equity from a mining process can be collected, measured, tallied, and be prepared for monetization for purposes of being used as collateral, leveraged, invested, factored, or tokenized for deployment in a cryptocurrency.

Equity mining is a derivative of the historically highly-manual actuarial process which first requires all of the known and knowable financial facts of a specific asset to form a range of market value of that asset less all financial encumbrances which attach to that valuation, such as debt. The historical manual process (such as pen and paper) required substantial time, energy and work load to achieve net asset valuation. The computer industry created advanced technology such as databases and spreadsheets which substantially increased the speed of the calculation of historically manual system, however maintained the dependency on underlying asset assessment and appraisal such as real estate appraisal, marketability of an illiquid asset, market price of a commodity or traded asset in a marketplace. The Internet of Things movement provided live and high speed access to determination of asset valuation through the convergence of multiple technologies, including ubiquitous computing, commodity sensors, increasingly powerful embedded systems, and machine learning. This access to instantaneous valuation coupled with instantaneous access to known or knowable underlying debt, leverage, or encumbrance associated that asset, and simultaneous associated with large catalogue of assets of various categories and sub-categories permits the near real time knowledge of the collective equity associated with all assets, and then establishing a roll-up report to total the free cash liquid equity.

Equity mining came into existence in the commercially applicable marketplace with the advancement of high-speed scanning and reporting mechanism of facts from various sources which in near instantaneous and real time identifies the ready free value of an underlying asset in review. The term "equity mining' was known to be used as a value proposition outcome of a scanning and software system with dealerships of automobiles and motorcycles ("vehicles") which scan the vehicle license plate buy which accesses immediate information on the vehicle to which the license plate is associated which renders the facts of that vehicle such as year, make, model. Brought to the commercial market as a software tool as "a strategy normally employed by a car dealer or finance company, where an existing portfolio of finance customers is analyzed (or ‘mined’) for the purpose of identifying those individuals who may owe less in outstanding finance than the current trade value of their car. Simultaneously and instantaneously the data associated with the Vehicle Identification Number (VIN) associated with that vehicle renders the details of any known debt instrument associated with that vehicle, including any details from the insurance industry databases which identify any prior damages to the vehicle. Simultaneously and instantaneously the data associated from outside market knowledge and research of the present value of the vehicle as derived from reliable industry sources such as car auctions, car estimators publishers (such as Kelly Blue Book). The culmination of this instantly-collected, consensus-based and highly-reliable aggregated data calculates and renders a precise estimation of the net free cash value of the vehicle. The purpose of equity mining in this commercial-market auto industry-specific scenario is to inform the vehicle dealer sales department of a potential customer as a sales lead, to approach that customer with immediate options and choices to capture the net equity of that car for purposes of soliciting a new vehicle sale (or similar financing transaction such as a lease). The technology of equity mining in this automotive example allows for instantaneous application of a new transaction opportunity as a sales lead within seconds of the car license plate having been scanned. The technology was coined to create the benefit of a "chain reaction of revenue created with equity mining" in the automotive industry. "In theory, the car can be scanned entering the service department and all this opportunity information can be available to the sales department before the driver approaches the service desk"

The technology, data points and speed of the nascent automobile industry use of the technology concept associated with a very small selection of automobile-related data points, was adopted by the financial equity, private company, financial services and private equity markets due to the transferability and open source, non-proprietary algorithm technology of the ease of massive scalability accessing data across a company's balance sheet, profit and loss statement where such data is located is hundreds of financial aspects, corporate and real assets, instruments, operations, machinery, equity funds. Given that all of the massive data is extant in this class of asset, mining it for reduction to real extant value (equity) which is auditable, reliable and based on consensus and supported by live, market-value information including knowledge of market trends and weighting factors renders an exactitude of reliability which allows that equity to itself as a whole to me monitored, managed, effected, manipulated, and adjusted at the granular level. As the fact-based opinion of true value of equity, the final calculus of equity can be used for leverage, monetization, security, investment, collateral, and in cryptocurrency can be "tokenized" into "tokenized equity".

Equity mining theory and technology is applicable to any industry anywhere in the world where the data points of valuation and encumbrance (e.g. debt) are seamlessly available in real time. In certain constructions, data need not be dependent on the Internet of Things for mining, search and research, but rather certain data can be manually set such as a known fact of an asset's valuation and debt (an example, large real estate asset with a current appraisal and fixed debt situation). One specialist Qwiti (a newly minted term condensed from the word "equity") in blockchain ecosystem, states that its architecture delivers a) forensic mining and measuring of private company equity, enables actions to b) trace and influence equity-impacting factors internally and externally everywhere, which can enable, if desirable, to be converted into c) tokenized equity and act as a d) market maker (marketplace exchange) for tokenized equity..

References

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