BTE 210 W8 Final SG

bitcoin (vs blockchain)

- a blockchain application - anonymity is important - anyone can participate - transactions are viewable by all members of the network - based on public-private keys - a cryptocurrency - based on proof of work

blockchain (vs bitcoin)

- a methodology - identity of members is known - permissioned network - transactions are secret or permission viewing - virtual signing - handles many types of assets - selective endorsement

crowdsourcing considerations

- best crowdfunding website will have social tools to assist in sharing your fundraiser on social media - very important that you feel the website and the team behind it are honest, responsible, and legitimate - normal fees for personal fundraising sites range from 7%-12%

NFT application

- cryptocurrency where each piece accompanies artwork or a video clip - therefore, in effect, you are purchasing an original work of art that is simply a digital artwork rather than a physical drawing - Beeple - creator of most expensive NFT art ever, third-most-expensive of all living artists (behind Jeff Koons and David Hockney)

blockchain

- distributed ledger open to everyone - contains information (eg. transaction) - multiple parties (peers) share it by keeping an identical copy - all participants must give approval to the new recording - every recording uses private cryptographic key or digital structure - process repeated over and over

new ledger system

- every record on the has a very secure, un-hackable key - every record is stamped with the unique SEAL of approval - when the next record is written in the ledger, everything in the PRIOR record, including its contents and the unique key is encoded (hashed) and becomes a part of the current record key - technology assures integrity by chaining all of the record together

old ledger system

- fundamental way we store information (eg. record of a house) - problem today: easy to tamper with since written manually - intermediaries

hash function (magic machine)

- if we send "4" machine converts it to "dcbea" nobody knows how it happens exactly - process is irreversible and consistent - trial-and-error, one number at a time

Generative AI applications

- portrait of Edmond Belamy; image created by Obvious, a trio of 25-year-old French students whose goal is to "explain and democratize" AI through art - specifically, they designed an algorithm that referenced 15,000 portraits from various periods (rumor has it they used code by 19-year-old Robbie Barrat, recent high school graduate who shared his algorithms online via an open-source license) - initially valued between $7,000-$10,000; sold at Christi's for $432,500

gartner hype cycle

- separate hype from the real drives of a technology's commercial promise - helps getting educated on an emerging technology within the context of the industry and individual appetite for risk

crowdrise

Crowdfunding Sites: funds charities and causes

quirky

Crowdfunding Sites: funds for investors

indiegogo

Crowdfunding Sites: no specialization

kickstarter

Crowdfunding Sites: specializes in creative projects such as films, games, art and technology; $850m pledged by more 5m people funding more than than 50,000 projects - all-or-nothing funding

invested.in

Crowdfunding Sites: to create your own funding community

donation-based crowdfunding

Crowdfunding Types: a way to source money for a project by asking a large number of contributors to individually donate a small amount to it - ex. gofundme

reward-based crowdfunding

Crowdfunding Types: involves individuals contributing comparatively small amounts of money to projects in return for some kind of reward - ex. Kickstarter

peer-to-peer lending

Crowdfunding Types: the practice of lending money to individuals or businesses through online services that match lenders with borrowers - ex. LendingClub

innovation trigger

Gartner Hype Cycle Phases: a potential technology breakthrough kicks things off. Early proof-of-concept stories and media interest trigger significant publicity. often no usable products exist and commercial viability is unproven

peak of inflated expectations

Gartner Hype Cycle Phases: early publicity produces a number of success stories — often accompanied by scores of failures. some companies take action; many do not.

trough of disillusionment

Gartner Hype Cycle Phases: interest wanes as experiments and implementations fail to deliver. producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters.

plateau of productivity

Gartner Hype Cycle Phases: mainstream adoption starts to take off. criteria for assessing provider viability are more clearly defined. the technology's broad market applicability and relevance are clearly paying off.

slope of enlightenment

Gartner Hype Cycle Phases: more instances of how the technology can benefit the enterprise start to crystallize and become more widely understood. second- and third-generation products appear from technology providers. more enterprises fund pilots; conservative companies remain cautious

generative algorithms

Generative AI: instead of predicting a label given certain features, they attempt to predict features given a certain lable

consistent

Hash Function: every time you send "4" you will get "dcbea"

trial-and-error, one number at a time

Hash Function: the only method to find out what needs to serve as input for the machine to give you 000ab

irreversible

Hash Function: you cannot get "4" as in output if you send "dcbea" as an input

metaverse benefits (companies)

a. New revenue streams for businesses (new sales channels, re-imagine marketing, renting virtual space b. New ways of accessing global talent, new ways to collaborate, improve retention c. Improved safety, and efficiency (energy usage, overhead)

metaverse benefits (government)

a. Re-imagine public services by the governments b. Improved urban planning (traffic, green space) c. Modeling emissions, climate change

intermediaries examples

a. Title agencies, title insurers, title attorneys b. Banks c. DMVs d. Credit agencies

metaverse leverages

a. Virtual/Augmented reality b. Blockchain c. Web3 d. Video games/Virtual platforms e. Digital twins f. Internet of things

business transactions

always happen between, at least, two parties (buyer and seller, no business operates in isolation) - ledger - general ledger

bitcoin

based on blockchain methodology; an unregulated shadow-currency created as a decentralized digital currency exchange system to exchange digital currency without the banks as intermediaries, while keeping anonymity - resource intensive (requires proof of work consensus) - created in 2008 after the Global Financial crisis

cryptography

converts data into a format that is unreadable for an unauthorized user, allowing it to be transmitted without unauthorized entities decoding it back into readable format

system of intermediaries

exists to verify trust-worthiness of the ledger, and of the counter parties involved

discriminative algorithms example

given all the words in an email (the data instance), could predict the probability that an email is spam given the words it contains. it does so by gathering words from the email (input), analyzing it, and assigning a label - "spam" or "not spam"

tangible assets

house, products, cash

crowdfunding

method for obtaining project funding, by soliciting contributions from a large group of people, and especially from an online community - promoted as a way of assisting small businesses and start-ups looking for investment capital to help get their business ventures off the ground - congress recently pasted the JOBS Act, which directs the (SEC) to create rules exempting crowdfunding from the securities registration laws

intangible assets

mortgage, service, digital music/video

SEAL to output

number loaded into the machine that when added to pervious number produces end output

2023 Gartner's Emerging Technology Roadmap

places over 100 disruptive technologies in six sectors 1. Security 2. Digital Workplace 3. IT Automation 4. Storage and Database 5. Computer infrastructure and Platform Services 6. Network

proof-of-work

the action of applying the SEAL

block

the new recording - new concatenated with prior

generative algorithms example

the question it tries to answer is: "assuming this email is spam, how likely are these features?"

discriminative algorithms

try to classify input data; that is, given the features of an instance of data, they predict a label or category to which that data belongs. they simply map features to labels. (models learn the boundary between classes)

hash

unique cryptographic identifier = a fingerprint of a block

adoption timelines

2023 Gartner's Emerging Technology Roadmap: light grey - soonest

deployment risk

2023 Gartner's Emerging Technology Roadmap: red-high, green-low

enterprise value

2023 Gartner's Emerging Technology Roadmap: size of a bubble

crowdfunding sites

- Kickstarter - Crowdrise - Quirky - Invested.in -Indiegogo

blockchain technology elements

1. Distributed 2. Consensus 3. Secured 4. Immutable 5. Provenance

the trust question

1. I have to trust you to transact with you 2. trust is fundamental currency behind each transaction 3. we transact $100 trillion per year between 7 billion people

gartner hype cycle phases

1. Innovation Trigger 2. Peak of Inflated Expectations 3. Trough of Disillusionment 4. Slope of Enlightenment 5. Plateau of Productivity

metaverse attributes

1. Persistent 2. Ubiquitous 3. Interoperable 4. Open 5. Immersive 6. Economic 7. Synchronous

crowdfunding types

1. Reward-Based 2. Donation-Based 3. Peer-to-Peer Lending

NFTs provide

1. a way to authenticate ownership - each owner has a one-of-a-kind token for his or her copy of that piece of digital asset 2. permanency 3. blockchain recorded provenance

each block contains

1. data 2. hash 3. hash of the predecessor block

crowdfunding process

1. develop a business idea or goal 2. choose a crowd funding site 3. crowd funding site screens you for eligibility and fit 4. create your crowd funding campaign describe your business idea or goal 5. share your campaign with family, friends, and social networks 6. supporters pledge funding 7. campaign closes, and you receive funds 8. crowd funding platform subtracts its fee 9. complete your business goal or bring your product to market 10. reward your supporters with equity, product samples, or loan interest

why crowdfunding works

1. small donations from many people can raise a lot of money 2. by tapping into your online social connections, you can reach a much broader audience in less time than a traditional fundraising process

chaining records example

1. when you send money to another person, no physical movement of money is actually happening 2. instead we TRUST A BANK to verify your balance, make a debit record, locate the recipients' account, make a credit record, and verify recipient's balance 3. if a number of people do not want to deal with an intermediary (a. every participant sits with an empty page and pencil b. if a participant wants to send money to another participant, he/she broadcasts the message to everyone c. everyone checks whether he/she has enough money in his account and records it on their page) 4. another participant sends money - process continues, until page is exhausted 5. now time to "file" the completed page and provide everyone with a new black page to continue (before filing a page - stamp of approval (SEAL)

knowledge gap

1436 printing press closed

labor gap

1860 first commercial internal combustion engine closed

distance gap

1983 by connecting people around the globe internet closed

trust gap

1991 and 2008 blockchain expected to close - first outlines in 1991 by Stuart Haber and W. Scott Stornetta, two researches who wanted to implement a system where document timestamps could not be tampered with - first conceptualized by Satoshi Nakamoto in 2008

metaverse

A network of 3D virtual worlds focused on immersive experiences, digital economies, and social connections - term is used for technologies, platforms, and concepts

distributed

Blockchain Technology Elements: - digital ledger technology keeps records of transaction, value, and ownership of assets - copies kept in different databases

provenance

Blockchain Technology Elements: blocks must show connection to (fingerprint of) prior block, keeping a trail

consensus

Blockchain Technology Elements: everyone (or a regulator) must validate and approve the new transaction/block

immutable

Blockchain Technology Elements: ones a transaction is recorded into a block, a block can't be changed nor deleted

secured

Blockchain Technology Elements: uses cryptography to process digital transaction or verifiable digital signature

5 main general ledger account types

Business Transactions: 1. Assets (tangible/intangible) 2. Liabilities 3. Income 4. Expenses 5. Capital

ledger

Business Transactions: system of records for a business - transactions always recorded in - in the selling organization, a transaction removes assets from - in the buying organization, a transaction adds assets onto

stamp of approval (SEAL)

Chaining Records: - makes sure that no more changes are possible; everyone must agree on; if everyone trusts then everyone trusts the CONTENT of the page - one of the most complex parts of the process - previously an intermediary served as assurance of integrity and trust. now, we distribute that authority among the participants

persistent

MetaVerse Attributes: continuity of experience

economic

MetaVerse Attributes: functioning economies

synchronous

MetaVerse Attributes: in real time

open

MetaVerse Attributes: individual agency for all

immersive

MetaVerse Attributes: more than today's internet

ubiquitous

MetaVerse Attributes: physical and digital

interoperable

MetaVerse Attributes: transferable across worlds

virtual/augmented reality (metaverse)

MetaVerse Leverages: allow access to the metaverse

video games/virtual platforms (metaverse)

MetaVerse Leverages: creates social experiences

blockchain (metaverse)

MetaVerse Leverages: enable decentralization of metaverse

web3 (metaverse)

MetaVerse Leverages: focuses users of metaverse on creating value

internet of things

MetaVerse Leverages: physical objects that communicate with each other

digital twins (metaverse)

MetaVerse Leverages: the real-time virtual counterpart of a real object, a component of the metaverse

user health and safety

MetaVerse Risks: effect of AR/AI on a persons health, exposure to harassment

data privacy

MetaVerse Risks: how personal data is stored, accessed, and used?

secure identities

MetaVerse Risks: how to identify "bad actors"?

cybersecurity and fraud

MetaVerse Risks: increased number of touchpoints, theft of identity, and lack of regulation

metaverse benefits (people)

a. Immersive and engaging experiences (shopping, transactions, remote healthcare, live events without restrictions) b. New jobs that enable the virtual economy c. New ways to earn money (play-to-earn, NFTs)

cryptocurrency

a digital currency that used cryptography for security measures - each user has both public and individual private keys - operates independently of a central bank

non-fungible token (NFT)

a unit of data stored on a blockchain that represents a unique item - real-world physical items or digital assets - unlike bitcoin or another cryptocurrency, not mutually interchangeable i.e. not fungible

2023 Gartner's Emerging Technology Roadmap allows you to

a. Calculate technology deployment risksb. Discover opportunities to bring high enterprise value technologies into your tech stack c. Benchmark deployment progress to your peers in midsize enterprises

metaverse risks

a. Data privacy b. Cybersecurity and fraud, d. User health and safety d. Secure identities

AI algorithms

a. Discriminative: models learn the boundary between classes b. Generative: models the distribution of individual classes