BaaS – Everything as a Service or rather Everything as the hype is today’s biggest problem. To separate blockchain from the hype is an another challenge. How blockchain can be offered “As a Service” to every small/big business in order to make end-user life easy, less costly and secured are few challenges what blockchain claims to solve. What it takes for the actual implementation of blockchain in real life business? who can separate real business from all the hype or can pull real values out of these fascinating PhD case studies or study materials? Let’s discuss a bit.
What is Blockchain
Blockchain – A special kind of technology i.e “Block” and “Chain” in a context where the digital information (the “block”) is stored in a distributed database (the “chain”).
In other words, a blockchain is essentially a type of distributed database–a way to store information. What makes it different from a traditional database is that it’s designed to be a store of information that is shared and owned by the entire network. That means everyone can read, write and no one owns the data–it belongs to everyone on the network (Permissionless chain, Public Network or Public Chain). Blockchain system may look simple but matter of fact, the entire blockchain ecosystem is extremely complex and plugged with interesting architecture. Blockchain faces developmental challenges in integrating functions and components for real world use.
Building blockchain solutions should be an easy attempt and simpler to follow (though as on date practically this is a convoluted labyrinth). This is also very important to understand blockchain is not a solution to every problem or its not synonym to word “Magic”. Who are the correct candidates where blockchain to be applied needs efforts and thoughtful process.
- Whether to use blockchain as proof of authenticity or conduct financial/non financial transactions where coins/tokens are involved or to do cross chain? .
- What architecture to be followed? (Some of the jargons can be added here are Cross chain, State Chain, Nested Chain, Side Chain etc)
Probably like above there are many more question to get responses before getting into this swim lane.
Anatomy of Blockchain
The blockchain (permissionless) is a simple, interesting and open book on the internet – A cryptographic linked list data structure which is replicated across the network with a consensus mechanism which is based on secured information transfer between two people (P2P). The main function of this magic technology was to track digital assets then but now it has evolved beyond the realm of digital currency.
It is Immutable, transparent, distributed, consensus-driven and work flow is auto-enabled. It replaces trust with truth and trust being replaced with truth is the biggest achievement. All data on the ledger is verifiable and auditable but not editable. Each block has its own unique cryptographic hash as its differentiator and is linked to the previous block in the chain.
As its distributed with no central authority and continuously update the record of transactions spread out across networks (Decentralised Exchanges). In this technology, each block is constructed with key elements like identity information, information sent across or if this is financial than financial transaction details. A perfect combo of distributed ledger technologies. It has the ability to track anything of value if programmed well. A perfect example of small chunks of databases spread across the whole network of computers. I this is financial than financial transaction details.
So what is blockchain; Blockchain is a protocol like any other to send information, track information, pass on the information and secure information mainly in the financial/non financial world. So blockchain probably is the only technology or tech toy which has gone from being an obscure tech that backed cryptocurrencies to being considered as an answer for some of the greatest modern questions in technology.
Building Blocks of Blockchain
All data on the ledger is verifiable and auditable but not editable. Each block has its own unique cryptographic hash as its differentiator and is linked to the previous block in the chain.
- Distributed ledger
- Broadcasted between nodes (blocks)
- Everyone can contribute to Hyperledger fabric
- Hyperledger is an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration, hosted by The Linux Foundation, including leaders in finance, banking, Internet of Things, supply chains, manufacturing, and Technology.
- Distributed relational database
- Transaction ledger of record
- Time stamped, permanent, public (but can limit)
- Essential for information security tool and provides below 4 basic securities
- Data Integrity
- Non – repudiation
- Essential for information security tool and provides below 4 basic securities
- Smart Contracts
- Transaction instructions
- Vending machine can pay a drone if delivery by a dictated time.
Each block is the core of the blockchain and is where information is kept. If we compare with financial ledger book (Hyperledger fabric as the best example for permissioned blockchain) then each block is simply a page in physical edge in the bank. The only difference is in blockchain its page (block) is maintained by everyone in blockchain and in the bank it’s maintained by banks and kept in the bank, blockchain is an open book on the internet. R3-Corda is another great example.
Blockchain Plus AI: Distributed Deep learning
What is interesting to see is how distributed deep learning will work or should we even think about it in the first place. Deep learning works better on GPU and on the internet it may completely stop or fail as the bottleneck is almost always the communication speed between layers in a neural net. In a modern GPU, you have about 300 GB/s bandwidth. Compare that to the current internet speed and you see it almost makes no sense.
The merger of artificial intelligence and blockchain’s unique and most advanced techniques could be the most disruptive idea of the year, perhaps the idea of the year 2018. AI blockchain technology should be aimed to distribute access to a range of AI algorithms. Blockchain can also be called as a tool which is tamper-resistant or a distributed ledger software underlying mainly cryptocurrencies such as Bitcoin, for recording and transferring data and assets such as financial transactions and real estate titles.
When AI will meet Blockchain
AI has started delivering values. Using the contemporary view of computing exemplified by recent models and results from non-uniform complexity theory has proven the fact. Blockchain technology is being used to distribute the financial market, and not keep it in the control of a few major companies. How about the same concept with Artificial Intelligence so that it can deliver the values in a plug and play mode i.e As a Service technique. Any new startup if need or wants can just plug and play this service to get benefits rather than leaving it in just a few big hands.
I don’t know if it’s correct to compare artificial intelligence with a frog, but let me try AI is like a frog who might be given many descriptions but it does not change that it is a frog i.e AI.
Intelligent business intelligence might still be the de-jure industry leader, but de facto control secrete of the success of any business now rests with the artificial intelligence and its techniques around so why not to exploit it and make the best use of it to help every stakeholder in business, society or a common user of any service. With BaaS i.e Blockchain as a Service, the journey may be smoother, practical, and more profitable and complex for some time.
Blockchain Intelligence for Blue Ocean Strategy
The blockchain is the largest distributed (Blue ocean player) database of digital records users seeking blockchain to be available as service which is easy to be integrated into applications for their businesses. The potential market for these “as a service” technologies is immeasurable, and now is the right time to showcase. BaaS product to prospective clients and investors likely to be available from big players soon though.
How AI will be transforming the future of FinTech to elaborate items from the above list in African markets and opportunities are even more dramatic – In just the past five years. One needs to sort federation of AIs emerge from the spontaneous interaction among the nodes and demystify itself without human guidance or intervention.
Recently, big banks in collaborations with giant technology partners proudly announced their upcoming ability in the near future to transform trade finance transactions with the use of BaaS.
Blockchain & AI Partnership
Creating a strong partnership between Artificial neural network’s capsule neurons whose activity vector represents the instantiation parameters of a specific type of entity.
Such as an object or object part now assume the blockchain working model of creating blocks. Active capsules at one level make predictions, via transformation matrices, for the instantiation parameters of higher-level capsules.
When multiple predictions agree, a higher level capsule becomes active. Similarly in blockchain when a block is about to get added it gets verified and agreed from many sources.
We show that a discriminative trained, approved and accepted systems achieves state-of-art status and confidence in users. The blockchain is one of them. What effect Blockchain AI will bring on our businesses offerings and processes in the next five years; will be interesting to watch. Dedicated systems for “As a Service” business and specially BaaS might become the principal provider of IT services in the near future. These businesses will have a focus on development and operations with no time and money.
Blockchain Not Equals to BitCoin
One important thing to note, Blockchain does not spell as “B”, “I”, “T”, “C”, “O”, “I”, “N”. Yes, blockchain technology does enable cryptocurrencies like Bitcoin, Ethereum etc. Ethereum is a framework that makes it easier to build decentralized applications using blockchain technology. Consensus systems and the verification of data used in learning algorithms could be one of the possible application of a blockchain in machine learning. This could be used easily but at what and whose cost?
I am getting tempted to say — this time is really different. AI DAOs – AI that can accumulate wealth, that you can’t turn off. Artificial intelligence is set to transform the financial services industry. Blockchain and AI will create a system that will learn on its own how to reinvent. How current solutions will read & write in a metaheuristic way to carry out different jobs and functions.
Points to Note:
All credits if any remains on the original contributor only. We have covered some high-level engagement on Blockchain and Artificial Intelligence in this post. In upcoming, blog posts will talk about each one these emerging bundles in details.
Books & Other Material Referred
- Research through open internet, news portals, white papers and imparted knowledge via live conferences & lectures.
- Lab and hands-on experience of @AILabPage (Self-taught learners group) members.
Feedback & Further Question
Do you have any questions about Deep Learning or Machine Learning? Leave a comment or ask your question via email. Will try my best to answer it.
Conclusion – At end allow me to say AI is a friendly technology that is here to be accepted without fail and all future products will be based on AI. Artificial intelligence is the craze in silicon valley, but on Wall Street, well, there’s a lot of scepticism. Unfortunately, so far only intelligence got artificial but the risk remains for real and natural. Natural language generation can create, write and tell your business stories but still raise hands when risk overtakes. An example of capsule networks under deep learning where lower-level capsule prefers to send its output to higher level capsules (HLC). HLC activity vectors have a big scalar product with the prediction coming from the lower-level capsule
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