The Intelligent Crypto Thesis

Don't understand this as yet, but reaching out.  

Opinion Essay

AI and machine learning will usher in new forms of digital assets from intelligent NFTs to self-determining DeFi protocols.   This essay is part of CoinDesk's 'Big Ideas' series.

By Jesus RodriguezLayer 2   Jun 5, 2022 at 4:08 p.m. EDT in Coindesk

“Software is eating the world” has become one of the iconic phrases of the last decade of the software industry. Quoted in 2011 by software legend and venture capitalist extraordinaire Marc Andreessen, it synthesized the idea that companies that operated mostly in the physical world were transitioning to the digital economy in a trend that will essentially transform every company as a software company.

Jesus Rodriguez is CEO of IntoTheBlock, a blockchain and cryptocurrency market analysis firm. This article is a preview of a talk he will give this week on the Big Ideas stage at Consensus 2022 in Austin, Texas.

In recent years, the evolution of machine learning (ML) and artificial intelligence (AI) has permeated all areas of the software industry, leading many experts to claim that “machine learning is eating software.” Crypto and digital assets are rooted on the foundation of code and programmability and, consequently, are likely to be influenced by ML-AI trends. The intersection of ML-AI with digital assets is likely to usher in a new era in which intelligence becomes a native component of crypto assets.

The idea of intelligent crypto assets is conceptually trivial but full of practical challenges. Which are some of the fundamental ML trends that can rapidly impact the next generation of crypto assets? How about the main scenarios that can benefit from intelligence capabilities in crypto or some of the key technical challenges that need to be overcome for crypto to become intelligent. This essay explores some of these ideas and develops a thesis about the potential of the intersection of crypto and ML.

Only crypto can be natively intelligent

An important point to realize when thinking about AI-ML in the context of crypto-assets is that crypto is the only asset class in history that has the potential to become natively intelligent. AI-ML capabilities in traditional asset classes such as commodities or equities are implemented in vehicles like robo-advisors or quant strategies that live outside the asset itself. Even though there is an obvious role for those vehicles in the crypto space, crypto assets can natively embed those AI-ML capabilities in the assets. This benefit is, obviously, a side effect of the programmable and digital capabilities of crypto. Crypto assets are based on code and that code could take the form of AI-ML models.   .... ' 

IBM Using Blockchain for Validation

A trust/validation type of application for blockchain.     In Coindesk

IBM, Heifer International to Assist Honduras Farmers Access Global Markets Using Blockchain

IBM's Food Trust network will help coffee and cocoa farmers and buyers verify information on their supply chains. ... '

IBM Open Sources Hyperledger

 Had examined this sometime ago, seems IBM wants it and blockchain to succeed.  This will promote it it be be better tested. 

IBM Donates Code Improvements to Open Source Hyperledger

“The intent is to improve the usability of Hyperledger for all users,” said Christopher Ferris, CTO at IBM.

By Tanzeel Akhtar in Coindesk

 (NYSE: IBM) said it has contributed significant code to the enterprise blockchain network Hyperledger, “one of the largest in its history.”

IBM announced Wednesday it has donated updates to the Hyperledger code and the underlying code for the IBM Blockchain Platform Console, an intuitive user interface that will form what is now the Fabric Operations Console.

The firm said it is also donating the code that supports token exchanges on Hyperledger Fabric and the Fabric Token SDK, as well as support for interoperability among different distributed ledger technology (DLT) platforms.  .... " 

Coindesk Crypto Newsletter

New State of Crypto weekly newsletter, which covers both cryptocurrency and blockchain global usage, events, regulation and technology.  From the Coindesk folks.   Good scannable content.   Link below to subscribe. 

State of Crypto  How policy and regulation impact the crypto world – and the other way around, weekly.

By Nikhilesh De from Coindesk.

Data Privacy via Fully HomoMorphic Encryption

In CoinDesk

Using ‘Holy Grail’ of Data Privacy Technology Dec 21, 2020 at 7:51 a.m. EST By Tanzeel Akhtar

FHE is an emerging technology – often described as the "holy grail" of encryption – designed to allow data to stay encrypted when being processed or analyzed in cloud or third-party environments.

IBM said last week its new service, developed in-house, will allow clients to start experimenting with technology to improve the privacy of their internal IT architectures.

“While current encryption techniques allow data to be protected during storage and in transit, data must be decrypted while it is being processed or analyzed – creating a window of opportunity where data is more vulnerable to theft or exposure,” said IBM. 

Data leaks have become a major issue for enterprises. One making headlines this week saw personal details of clients of cryptocurrency hardware wallet maker Ledger exposed on an online forum.

Research and advisory company, Gartner predicts that by 2025 at least 20% of businesses will be budgeting for programs that require homomorphic encryption, up from less than 1% currently. ... "

CIA to Establish a Lab to Study Blockchain

Seems CIA is taking this very seriously.

CIA’s New Research Lab to Study Blockchain
In Coindesk by Danny Nelson

The Central Intelligence Agency (CIA) launched a new research and develop laboratory on Monday that features blockchain technology among its focus areas.

CIA Labs' webpage said the labs will research "distributed ledger/blockchain-enabled technologies" alongside other tech stacks: wireless telecommunications, quantum computing, artificial intelligence and data analytics, to name a few.

Officers who develop tech inventions in the lab will be permitted to patent, disclose and partially profit from their work, according to MIT Technology Review. 

MIT's reporting notes the labs will give CIA a useful incentive to woo tech talent that might otherwise turn to Silicon Valley's giants.

That the CIA, one of the U.S. intelligence community's two code-breaking hubs, would take an interest in researching a technology secured by cryptography should come as no surprise to observers.
The Block first reported CIA Labs' blockchain focus. .... " 

Alibaba Blockchain Patents

How much are patents driving this competition?

Alibaba on Track to Be the Largest Blockchain Patent Holder by End of 2020: Study
In Coindesk by Paddy Baker

 Alibaba is on track to supersede U.S. computer giant IBM as the single-largest holder of blockchain-related patents, according to a new study.

A report from intellectual property consultancy KISSPatent Thursday found the Chinese tech conglomerate was "definitely running the show," having already published ten times more blockchain patents than IBM, its nearest rival.

Should Alibaba continue at its current pace, the study predicted it would become the biggest patent holder in blockchain by the end of 2020.  .... "

Entering the Era of Private Money?

Short podcast that just starts to position the question, and many implications.

Sorry, Governments, We’re Entering the Era of Private Money

Whether the U.S. government likes it or not, the world is demanding crypto-dollars and the private market is ready to supply them.  ....

Podcast

By Nathaniel Wittemore   In Coindesk  

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.... '

Defining Zero Knowledge Proofs

Relatively short, definitional and largely non technical definition of zero-knowledge proofs.  Previously covered here, and under examination.  Useful for any kind of transaction.

Hacker Lexicon: What Are Zero-Knowledge Proofs?

How do you make blockchain and other transactions truly private? With mathematical models known as zero-knowledge proofs.

In digital security, the less stray information floating around the better. The fewer companies storing your financial records, the less likely they'll be exposed in a breach. But though there are lots of ways to cut down on data sharing and retention, there are some things services just need to know, right? Thanks to the cryptographic method known as “zero-knowledge proofs” that’s not always the case.  ... "  

And here, related, pointer to a paper, and considerably more technical piece:

You Can Now Prove a Whole Blockchain With One Math Problem – Really   By William Foxley in Coindesk

The Electric Coin Company (ECC) says it discovered a new way to scale blockchains with “recursive proof composition,” a proof to verify the entirety of a blockchain in one function. For the ECC and zcash, the new project, Halo, may hold the key to privacy at scale.

A privacy coin based on zero-knowledge proofs, referred to as zk-SNARKs, zcash’s current underlying protocol relies on “trusted setups.” These mathematical parameters were used twice in zcash’s short history: upon its launch in 2016 and first large protocol change, Sapling, in 2018. ... " 

IBM, Maersk link with TradeLens And Thai Commerce

A continuation of IBM's work with Maersk.  The basic idea here is to provide reliable information about supply chain activity in real time.  Another example of how companies are experimenting successful with the emergent technology .

IBM-Maersk Logistics Blockchain to Be Used by Thai Customs Agency   By Daniel Kuhn in CoinDesk

Thailand is integrating IBM and Maersk’s blockchain project to streamline its shipment tracking procedures, according to a local news source.

The Bangkok Post reported Thursday that the Customs Department of Thailand will adopt TradeLens, the logistics platform jointly supported by IBM and Maersk as part of the country’s Thailand 4.0 policy. Thailand will be the second member of the Association of Southeast Asian Nations to use the platform, following Singapore.

More than 90 different companies have joined TradeLens since its launch.

According to the Post, customs officials in Thailand will receive notifications when shipping containers leave their ports of origin, allowing them to better prepare for arrival.  ... "