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.
Blockchain is a mystery story that provides the foundation for cryptocurrencies like Bitcoin. Some time I get confused between blockchain and with my school time memories of data structure. The way blockchain’s blocks communicate with each other in its environment; it reminds me of singly linked list. Each block has a hash of the previous block which can be thought of as a pointer to previous block.
Blockchain can also be compared to traditional big-data distributed databases like MongoDB. Its like featuring a product that contains small blocks of brain in form of dust. It consider that the innovation efforts of several publicly traded asset managers and banks are also on this brain block dust quest.
“Blockchain is a mystery story that provides the foundation for cryptocurrencies like Bitcoin.”
So what is blockchain?
What is it – It is a protocol like any other ( Kind of Swarm Intelligence). Block chain present 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 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 because a hacker would need to change the block containing that record as well as those linked to it to avoid detection.
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.
“5 key bullet points of Blockchain – Security, golden key, impact, Data Intelligence and Swarm Intelligence”
Golden Key – Use of DLT – Distributed Ledger Technology which creates a world-wide computing network that eliminates the need for centralised third-parties e.g. Central Banks. In a block chain, transactions are recorded on a ledger, facilitating transparency. The ledger is tracked by all parties which stops 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 assist 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 Block chain which give businesses tremendous advantages. Machines have so far been limited in ability primarily because they have restricted capacity to exchange value.
There are various interplay of blockchain with automation processes. Example below depicts about international remittances.
The best practices for financial modelling, financing strategies & methods and project finance analysis are best-managed under smart contracts any ways, which is the golden key of blockchain.
“Swarm Intelligence a communication technologies which requires no supervision”
By applying distributed ledger techniques in specific industrial sectors after following best practice of financial modelling to make highly accurate assumptions is the success form of swarm intelligence.
Modern financial transactions requires a high level of expertise in building financial models which are reliable, secured, distributed (For blockchain environment) solid and flexible to accommodate the changing requirements occurring during the life-cycle.
Some differences between link list and block chain are that in a linked list, there are generally more operations for a linked list that are not available in a 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.
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 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 system can be used as 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 decentralized market can further be updated to system, which learns the most efficient way for software-hardware combinations usage and optimization. Once system learns to optimize software-hardware efficiency it can be updated to general-purpose distributed intelligence, which acts as 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 individual agent. Swarm Intelligence a communication technologies which requires no supervision but can be used for management and organization of computing fog and act as a global, distributed operating system.
“Traditional artificial intelligence looks to mimic human intelligence with gadgets and software”
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 next post where we will discuss the concept of smart mining that will lead to advanced blockchain activity and machine intelligence.
This article first appeared here
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About the Author
Vinod Sharma is a financial technologist – FinTech expert based in Harare Zimbabwe. Works as Chief Technology officer in one the largest financial technology services company owned by largest mobile network operator in southern Africa. Vinod is a Deep Learning (AI) enthusiast, an independent researcher in the filed of Artificial Intelligence. Have worked in the mobile payments for merchants & billers domain, traditional payments, cross border remittances (on mobile), e-commerce payments and mobile financial services (MFS). Now working on amalgamating artificial intelligence with FinTech to drive true benefits of data science, machine learning, deep learning and artificial neural networks techniques.
He writes regularly on his blog.
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Forbes’ list of the top 50 fintech companies of the year contains 11 companies related to Blockchain technology and cryptocurrency. In Forbes” third edition of the “Fintech 50”, a list of the top 50 financial technology companies globally of 2018, released on Feb. 13, eleven of the companies listed use Blockchain technology or are connected to the cryptocurrency industry. The founders of three of the companies, The Bitfury Group, Coinbase, and Ripple that made the Fintech 50 also made Forbes” list of the “Richest People in Cryptocurrency” released last week. Forbes” site has a separate article breaking down the influence of Blockchain and crypto companies that made the Fintech 50 list. Forbes writes that perhaps unseen behind the nonstop news coverage of crypto price volatility, the Blockchain companies listed in the Fintech 50 are “building infrastructure—to support both public cryptocurrency markets and initiatives that could transform how current financial transactions are executed and recorded.