Swarm Intelligence – Blockchain does not hide anything for that matter as its basic and most sellable quality. The convergence of AI and Blockchain is a great deal for the real business of today. Blochain rather than hiding Swarm Intelligence in its blocks, it actually organises and incentivises it for modern businesses. The two biggest trendy technologies of today are blockchain and artificial intelligence. In this post, we will look at them from the FinTech business point of view at a high level in simple English. How these technologies will transform our businesses.
Blockchain’s tiny blocks i.e tokens establish alignment across its blocks (kind of swarm intelligence) with no centralised command and control infrastructure.
Blockchain Systems and Ubiquitous Computing
Blockchain systems and ubiquitous computing are changing the way we do business and lead our lives. It’s easy to compare blockchain with multi-agents systems communication. Technology which provides a way for multiple interacting intelligent agents which is kind of swarm intelligence.
The blockchain is a mystery story that provides the foundation for cryptocurrencies like Bitcoin. But be noted BitCoin and Blockchain are not synonyms in any dictionary. Sometimes I get confused between blockchain and with my school time memories of the data structure.
“Blockchain is a mystery story that provides the foundation for cryptocurrencies like Bitcoin.”
On the implementation of blockchain in any business has 2 parts i.e adoption where the existing process gets optimised and the second one is tricky in which it shows an entirely new business model.
The way blockchain’s blocks communicate with each other in its environment; it reminds me of the singly linked list. Each block has a hash of the previous block which can be thought of as a pointer to the previous block.
Blockchain can also be compared to traditional big-data distributed databases like MongoDB. It’s like featuring a product that contains small blocks of the brain in form of dust. It considers that the innovation efforts of several publicly traded asset managers and banks are also on this brain block dust quest.
So what is Blockchain!
What is it – It is a security protocol like any other (kind of Swarm Intelligence). Blockchain presents a more secure way of saving and securing data. This can reduce fraud, transaction processing times and fees.
- To send information
- Track information
- Transmit information
- Secure information, mainly in the financial world.
Security – Each block is connected to all the blocks before and after it. This makes it difficult to tamper with a single record. This is because a hacker would need to change the block containing that record as well as those linked to it to avoid detection.
“5 key bullet points of Blockchain – Security, golden key, impact, Data Intelligence and Swarm Intelligence”
This thing gets coupled with encryption through cryptography and private keys that are assigned to the transactions. Which create a personal digital signature, it makes altering records very difficult. Any monetary exchange of value has to be supervised by humans or human-based centralised ledgers. Blockchain technology changes all that. It allows machines to have unique identities and hence a virtual presence.
DLT – Distributed Ledger Technology
Golden Key – Use of DLT – Distributed Ledger Technology which creates a worldwide computing network that eliminates the need for centralised third-parties e.g. Central Banks. In a blockchain, transactions are recorded on a ledger, facilitating transparency. The ledger is tracked by all parties which stop people from spoofing it or creating fake data.
Impact – Potential to change the way that the world approaches big data. Businesses need to incorporate blockchain in their Blue Ocean Shift Strategy – BOSS, as it is still a relatively new technology. It assists in enhancing security and data quality.
Data Science and Data intelligence are now offering new and improved ways to analyse, share and implement data through Blockchain. This gives businesses tremendous advantages. Machines have so far been limited in ability primarily because they have restricted capacity to exchange value.
We have several examples of the blockchain interplay with or without automation processes. The example below depicts international remittances.
The best practices for financial modelling, strategies, methods and project finance analysis are best-managed under smart contracts anyways, which is the golden key of the blockchain.
“Swarm Intelligence communication technology which requires no supervision”
By applying distributed ledger techniques in specific industrial sectors after following the best practice of financial modelling to make highly accurate assumptions is the success form of swarm intelligence. Hyper Ledger will talk in next post.
Blockchain in Remittances
Modern financial transactions require a high level of expertise in building financial models. These models should be reliable, secured, solid, distributed (For blockchain environment) and flexible to accommodate the changing requirements occurring during the life-cycle.
Some differences between the link list and blockchain are that in a linked list, there are generally more operations for a linked list that are not available in the blockchain. Most notably being able to remove a block and to add a block in the middle of the list/chain. Blockchain technology even allows for automated verification by the network of machines itself. It permits machines to exchange value and introduce the element of discretion in the hands of machines.
“Traditional artificial intelligence looks to mimic human intelligence with gadgets and software”
In the bitcoin blockchain, and probably others, each transaction in the block is stored in a hash tree or Merkle tree but blockchain is not a tree in reality. Artificial intelligence allows computers to simulate human brain sensation, action, interaction, perception and cognition abilities.
Swarm Intelligence & Blockchain
Swarm Intelligence is a new form of A.I. that utilises technology to leverage natural human instincts – intuitions, emotions and sensibilities. While making a decision by combining the best of both worlds. Such a system can be used as a distributed P2P computing power market, protected from any central authority.
“One of the most important applications of Blockchain technology is in automation processes and Internet-of-Things”
Such a decentralized market can further be updated to a system, which learns the most efficient way for software-hardware combinations usage and optimization. Once the system learns to optimize software-hardware efficiency it can be updated to general-purpose distributed intelligence, which acts as a combination of single-purpose AI.
Blockchain works somewhat similar to multiple-agent systems which are used to solve problems that are difficult for solving by an individual agent. Swarm Intelligence communication technology which requires no supervision but can be used for management and organization of computing fog and act as a global, distributed operating system.
This same process repeats in ants: They step over the first ant, and if there is still a gap there, so the next and in line slows, gets trampled and freezes in place. In this way, the ants build a bridge long enough to span whatever gap is in front of them. The trailing ants in the colony then walk over it.
The blockchain and BitCoin
Blockchain and bitcoins are not synonyms, point to be noted here. The blockchain is what enables cryptocurrencies like Bitcoin and PascalCoin. 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 metaheuristicaly 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 – What makes ‘Swarm Intelligence’ more accurate? Finally, the paper concludes as to how Blockchain technology will impact automation processes. Blockchain present technology, which combines decentralized P2P tasks distribution, multiple-agents communication protocol and smart-contract based rewards. How can regulatory reform and government support make a difference? How do regulations keep pace with tech developments? And what effect will increased regulation have on market innovation? One of the most important applications of Blockchain technology is in automation processes and Internet-of-Things. How Blockchain systems are related to IoT will see this in the next post. This is where we will discuss the concept of smart mining that will lead to advanced blockchain activity and machine intelligence.
======================= About the Author ===========================
Read about Author at : About Me
Thank you all, for spending your time reading this post. Please share your feedback / comments / critics / agreements or disagreement. Remark for more details about posts, subjects and relevance please read the disclaimer.