Revolution from DateCoin

Maret 06, 2018

Revolution from DateCoin

Pattern Recognition for Automatic Verification and Users Clustering

We use the following procedure to verify our female audience: each girl sends a confirmation photo with her profile ID written on a white sheet of paper. After that, our moderators compare the person in two photographs.

The use of neural networks and artificial intelligence algorithms will help automating the verification process, and thus minimize moderation costs. Moderators will only have to deal with disputes.

Using computer vision technology, we will be able to protect our users from dating girls posing as other people

Private blockchain for users identification

It is essential for Denim users to be real. Thus, we have initially implemented image verification procedure for girls and further extended it for men. However, with fast-growing audience the numbers of technical support representatives should be inevitably increased to process all requests timely and comply with high quality standards of verification. To tackle this problem, the process of moderation should be automated. Even though it can be somehow addressed with face recognition algorithms and disputes resolved with moderators, there is no way to make users accounts more trustful. That is why we set a goal of exact user identification.

To achieve this goal, we are going to hand over account verification to users themselves.With the option delegated, we thus allow users to build the trust to our service based on public opinion. When dating in reality, our users will be ideal candidates to confirm partners identity. Consequently, one of our trusted users can make another trusted as well via confirming his/her identity. Considering all the factors mentioned above, we picked blockchain as an ideal candidate to implement a completely new mechanics in dating.

We are going to create private blockchain, where the opinions can be shared by trusted users only. The transactions will include profile data packs (public info and photos). Even matching partners with the technologies employed by DateCoin, there is no way to be 100% sure that after the date they will not continue searching other partners.As a result, the user might need several dates before the best matching partner will be found. That is why we are more than sure for the identity confirmation by another user will be very popular. Here, blockchain mechanics is quite easy. When dating in reality, our users sign in the app to check in and confirm to be at the same place.

Next, the trusted user confirms the identity of his partner that triggers blockchain transaction and saves it. As a result, the latter also becomes a trusted user and can confirm the identity of somebody else at the next date.

Thus, our service will possess 2-factor authentication. First, all the photos will be moderated. Second, the account holder identity will be confirmed. That is how we are going to eliminate fake accounts.

Data safety and chat privacy

Cyber attacks on dating services are often successful due to cuts of funds allocated for cyber security. As a result, personal data, credit card information and private correspondence leaks occur

Any service providing its users with chats sooner or later faces to security issues related to message storage and transmission. There have been cases where personal data was disclosed, affecting reputation of dating services. Therefore, we have several issues to solve. First, we have to ensure personal data safety and chat security. Second, we need to obtain all the necessary information to help our users to date the right person.

We intend to use symmetric data encryption for secure chatting. In addition, semantic message analyzer will act as a participant in dialogs between users. The only difference between the analyzer and user is that the former does not store messages and removes them from the servers. The server stores messages in encrypted form in the main database which is often the target of hacker attacks. Therefore, all decoding keys are stored on a separate server. This approach will allow us to protect data from unauthorized access and manipulation, as well as solve most of the security problems that might arise in those cases when our staff has to interact with the servers

We plan to enhance our team with developers and researchers specialized in big data processing and machine learning. We plan to completely incorporate these technologies in our product in 2019.

Online Dating Market Outlook

According to statista.com, the volume of the global online dating market will amount to $4.88 billion by the end of 2017 with the projected growth up to $5.87 billion by 2019.

The United States is the key player of online dating market. The projected revenue will amount to $2.18 billion in 2017. However, the growth rate of the US market is decreasing year-to-year, converting from quantitative to qualitative. It is expected that the market share of the North American countries will decrease from 46% to 40% by 2021. It can be explained by growing popularity of online dating in Asia (8.9% per year), South America (8.17% per year) and Europe (3.43% per year). By 2021, Asia may surpass Europe and become the second largest market in the world ($ 1.54 billion and $ 1.45 billion, respectively).

The leaders in the European market are Great Britain ($ 248 million), Germany ($ 250 million with 4.2% annual growth), France ($ 161 million), Italy ($ 91 million with 4.3% annual growth), and Spain ($ 82 million).

In South America, the largest market is Brazil ($ 98 million with 8% annual growth) and Mexico ($ 69 million with 7.8% annual growth).

The share of China in the market of Asian-Pacific countries is about 57%.

The market volume is primarily affected by the audience solvency. Thus, North America has only 17% of the world’s dating services audience, but has the largest revenue due to high ARPU ($ 24.9).

The situation in Asian-Pacific countries is quite opposite: more than 50% of the global audience and only 24% in revenue. It is expected that the number of users in Asian-Pacific countries will reach 326 million by 2021 (64% of the global audience).

The total audience of dating services will amount up to 600 million users worldwide by 2021.

Depending on user purposes, search and matching criteria , online dating market can be split into three categories:

Matchmaking – dating for relationships. For example, Match, Eharmony.
Online dating – flirting in chat rooms and via video services. Those services are mainly used for random dating and flirting. For example, Tinder, Zoosk.
Casual dating – sexually oriented dating. For example: Ashley & Madison, SeekingArrangement.

The demand for dating services is also shaped by cultural differences varying from country to country. Thus, the share of casual dating in the US is 30%, while in Asian countries this segment amounts to 7% only.

The fastest growing segment is matchmaking (+ 23.2% by 2021) and casual dating (+ 21.4% by 2021). Online dating demonstrates a moderate increase (+ 14.5% by 2021).

Matchmaking is the world’s most profitable segment (49% of the total revenue) with 127.7 million users as of 2017. At the same time, the most popular segment is online dating (random dating and online chatting): 57% of users and only 28% in revenue.

The major growth of the dating services audience is expected for matchmaking and casual dating The projected ARPU increase amounts to 3 5% for matchmaking and 7 2% for casual dating segments (incl 13 2% growth in Europe and 15 2% in North America)

Each segment has its leaders. However, local products usually prevail in a list of the the most downloaded apps. For example, Tinder is the leader of online dating segment and dominates in the Northern Europe and the USA. Badoo is quite popular in the Eastern and the Southern regions of the world. Lovoo and Momo are number one services in German-speaking countries and China, respectively.

Based on the above study, we can draw the following conclusions:

North America is the largest online dating market. However, year-to-year slowdown trend for the growth rate is obvious and appears to be worst compared to other regions (+ 3.4% per year). The audience growth rate is insignificant. All three online dating categories are equally popular.

Europe is a mature market, the second largest after North America. The growth rate is below the

world’s average (+ 3.6% per year). The biggest players are: Great Britain, Germany, France, Spain, Italy. The most popular categories are online dating (54%) and casual dating (21%).

Asia-Pacific region is an emerging market characterized by a large population and the highest projected growth rates (+ 24% by 2021). About 60% of the market is represented by China , the key market maker. Thus, AsianPacific region is expected to be the second largest market, having left Europe behind by 2021. The most popular category of dating in this region is online dating, with casual dating being an outsider. With a general market growth of 35.6%, a slight decrease in the market share is expected for casual dating (to 11% by 2021).

Latin America is the second fastest growing market after the Asia-Pacific region (+ 32.7% by 2021). The region is characterized by high projected audience growth rates (+ 15%) and ARPU (+ 15.3%) by 2021. The most popular segment is online dating. Latin America is the only region where casual dating is more popular than matchmaking.

Users around the world are increasingly using mobile apps to date their potential partners. The audience is expanding and becoming more selective in search tools and more goaloriented. On the other hand, dating services are constantly upgrading and increasing the quality of services provided. As a result, online dating demonstrates sustainable audience growth and increasing monetization levels.

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