I just saw Louis von Ahns TED talk about this project. Louis von Ahn was part of the team that developed the Captcha to figure out, if it is humans trying to do a transaction on the web or not. As the time we use to fill in a Captcha could be put to bettter use, he helped to develop ReCaptcha, where the words in a Captcha are from books, that are being digitized. Some of the words are illegible and the OCR cannot figure them out. They then get used in ReCaptchas, where people type in the correct word. Out of this the idea for duolingo emerged. When millions of people work on a project together, a great deal can be moved in very short time.
Doulingo aims to translate the internet. It does this by showing people who want to learn a language sentences, which they translate as exercise. The whole idea is explained in the above video.
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