Ch. 12 Emerging Technologies: Blockchain and AI Automation
Components that characterize blockchain
*distributed and decentralized *consensus *immutability *proof of work *proof of authority *proof of stake
Consortium blockchain
*permissioned *allow several organizations to participate *administrators set access rights and permissions *executed only on limited set of trusted nodes *permit more complicated enterprise behaviors
Private blockchain
*permissioned blockchain/enterprise blockchain *require permission to join network *transaction and validation data are restricted *no exposing internal information to the public
Public Blockchain
*permissionless *no access restrictions in viewing or participation *offers economic reward for computational proof of work in mining
Types of blockchains
*public *private *consortium
AI performs tasks that involve human intelligence such as
*thinking logically *acting rationally *visual perception *speech recognition *language transition
In a blockchain system
*transactions involve no middleman *faster transaction time (minutes vs. days) *lower service fee
Helix GLAD (EY)
detect anomalies in large database
Cognitive technologies
employ self-learning algorithms that allow computers to examine connections and notice patterns
T/F: Ethereum mining of ether varies at different rates
False: mining of ether is at constant rate
T/F: In ethereum the account is debited only
False: the account is debited and credited
T/F: Ethereum has lower transaction fee
True
How often is a block added in bitcoin?
every 10 minutes
How often is a block added in ethereum?
every 10-12 seconds
Bitcoin
first cryptocurrency
Feed-forward neural network
information moves in one direction
Artificial intelligence
intelligence exhibited by machines or software; aka cognitive technologies
Machine learning
involves computer's ability to learn from experience rather than specific instructions
When is blockchain useful?
it enables multiple parties that don't fully trust each other to collaborate with a shared source of truth
Examples of cognitive technologies
machine learning neural networks robotic process automation (RPA) bots natural language processing
BDO neural networks
manage info in multiple languages globally
Artificial Neural Networks (ANNs)
mathematical model underlying machine learning; consists of nodes or neurons, inputs, and outputs in one or more layers; can be nested together
CLARA (KPMG)
potential risks.
GL.ai (PWC)
replicate the thinking and decision making.
Deloitte's machine
review contracts, identify key terms
Confusion matrix
table summarizing prediction results
What did bitcoin eliminate?
the ability to double spend
Robotic process automation (RPA)
tool that can perform high-volume repetitive accounting tasks.
Is bitcoin anonymous?
yes and there are no middlemen involved
Is bitcoin public?
yes, people can join and leave anytime
Natural Language Processing (NLP) and Natural Language Understanding (NLU)
•Understand text. •Extract semantic meaning. •Discern sentiment from natural language.
True Negative (TN)
•the correct prediction of negative class. •correct prediction of email that is not spam.
True positive (TP)
•the correct prediction of positive class. •spam email was predicted correctly
False negative (FN)
•the incorrect prediction of negative class. •an email was predicted as not spam but actually was spam.
False positive (FP)
•the incorrect prediction of positive class. •an email was predicted as spam but actually was not spam.
3 important concepts involved in traditional transactions
1. middleman 2. delay 3. service fee
What is machine learning?
a type of AI
What is deep learning?
a type of machine learning
Ethereum
blockchain platform that allows exchange for more than cryptocurrencies
Recurrent neural network
connections between include loops
