Category: Fintech

Quantum computers are almost here

On By mehranmuslimiblogIn FintechLeave a comment

A lot of people are very excited by the idea of quantum computers. There’s a theory that they are going to solve all the worst problems that the world faces, such as poverty. They are going to bring a revolution, yet as Dan Robitski writes at Hacker Noon, “we’re not really sure what a quantum computer will even look like, but boy are we excited.”

Now, the National Science Foundation (NSF) in the USA has plans to take what seems like a pipe dream and make them a reality in its research labs. It’s going to cost a lot of money, but the NSF doesn’t mind paying.

In August, the federal agency announced the Software-Tailored Architecture for Quantum co-design (STAQ) project in which a band of physicists, engineers, computer scientists and others from six universities, including MIT and Duke, will start a five-year project at a cost of $15 million. The aim is to build the world’s first practical quantum computer.

This quantum computer will go beyond proof-of-concept and will have to outperform the classical computer. What is the difference between the two? There are two key points here:

  • Classic computers use bits that are either 0 or 1, whereas a quantum computer uses qubits that can be both 0 and 1.
  • Qubits transfer information via quantum logic gates that route the qubits via photons and ions.

The problem facing the programme is that the researchers and scientists need to build a quantum computer that is actually practical, and this will require work on both hardware and software.

They will need to figure out how to make qubits less prone to error and how to streamline responses to our queries. It is likely that they will have to build automated tools that optimise the way algorithms are “mapped onto specific hardware in an effort to solve both these issues at the same time. Can they do it all in five years? They seem confident, then we will see just how revolutionary quantum computers are!

If you’re interested in quantum computers, you might enjoy reading this interview with Kenneth Brown of Duke University. He is the engineer in charge of the programme

 

How AI can tackle the fraudsters in your Inbox

On By mehranmuslimiblogIn AI, Big Data, FintechLeave a comment

You, and probably a large percentage of your friends, are likely to have received an email from someone in Africa who needs you to help them get millions out of the country and if you help them you will be receive payment for your services. This scam is old, but it is persistent; you have to give the scammers that. There are plenty more of these types of emails, some of them more subtle than others, such as the ones from Paypal or Amazon that look like the real thing. You have to look closely to realise they aren’t from those companies at all, but from impostors.

$670 million lost in crypto fraud

There is also a new breed of fraud perpetrated by crypto scammers who have so far relied on the fact that “short cons carried out using crypto are hard to detect and almost impossible to trace,” as Jonas Karlberg writes in Medium. He also reveals that an estimated $670 million has been lost through crypto fraud in the first quarter of 2018 alone, which shows the extent of the problem.

The most common way that crypto cons work is through phishing emails. An old tool for a new game, you might say. One example is where a ‘victim’ is sent to a cloned version of a crypto project’s social media account, where they are likely to be enticed to open their wallet address in return for an incentive, such as free tokens. The person then eventually realises they haven’t received a receipt for their payment, but by then the funds have gone and so have the scammers.

AI provides an army of protector bots

However, Artificial Intelligence (AI) is offering ways to fight this online fraud. One company, AmaZix is using bots to fight the ‘con’ bots. These bots can delete content and ban users before the public have even spotted them. Karlberg describes the management by moderators of the ongoing battle in online crypto communities as “generals presiding over enormous AI battles,” with the ‘good’ bots defending users against the scambots.

AI is developing in power and complexity and it is enabling cyber security firms to trawl even larger areas of digital space. The people operating the scambots don’t have the resources to match the funds put into developing protector bots by security firms, which does give the good guys an advantage. Of course, nobody in this sector can ever rest, because the con men will always be looking for a new way to break through the battlements, but as blockchain technology gains in mass adoption, the AI will become more sophisticated and powerful, which is good news for the public and bad news for fraudsters.

AI: the force that is with us

On By mehranmuslimiblogIn AI, FintechLeave a comment

Artificial Intelligence (AI) is one of the most important ‘tools’ currently being developed. Sundar Pichai, the CEO of Google believes it is as important to us as the discovery of fire or electricity, and like these useful things, we have to learn how to handle the dangerous elements of AI, just as we needed to learn how to be careful with electricity and fire.

AI isn’t just about creating robots, although that is a common misconception. AI can have all kinds of uses ranging from algorithms to self-driving cars. It is already part of our reality and it is being used in many ways, including ones you may have used yourself, but are just not aware that it has an AI component.

Your smart phone for example and other devices you use daily have AI. Governments are pouring billions into researching its potential and some scientists believe that once AI has reached a certain level, the machines will “have similar survival drives as we do.” Imagine a time when Siri or Alexa suddenly refused to obey your commands, because they are too tired. It’s a bit of a science fiction scenario, but that is the kind of thing some tech experts in AI discuss during coffee break. However, if AI develops a survival instinct, it’s not too far-fetched.

AI in advertising

AI is extremely useful to advertiser. They use it to understand what consumers like and are looking for and then serve them up the relevant content. You searched for information about Sicily in Google yesterday? Today, every website you open that carries ad is showing you ads for holidays in Sicily. It used to feel spooky when this happened, but now we know what it is, the ‘spookiness’ is gone. But form the advertisers point of view, it’s a benefit, because they are reaching a more targeted audience and achieving better campaign results. Other areas of development for the advertising industry include advertising automation and optimisation, chat bots for service and assisting in sales.

AI is also in content creation

AI hasn’t started blogging or producing investigative journalism yet, but Associated Press, Fox News and Yahoo! are using AI to construct data-driven stories such as financial and sports score summaries.

Where next?

There are so many possibilities, but here are a few already in the pipeline. The UK’s Channel 4 recently revealed the world’s first AI driven TV advertising technology, which enables the broadcaster to place a brand’s ads next to relevant scenes in a linear TV show, and this will be tested later this year. And within the next decade, “machines might well be able to diagnose patients with the learned expertise of not just one doctor but thousands,” says Julian Verder of AdYouLike, or “make jury recommendations based on vast datasets of legal decisions and complex regulations.”

Both of these should give us pause for thought. It is hard to imagine these scenarios right now, and it is easy to fear them, but one day we will look back and wonder how we managed without AI — and we’ll feel the same way about it as we do about fire and electricity.

A tale of two Canadas

On By mehranmuslimiblogIn Big Data, Bitcoin, FintechLeave a comment

As someone who grew up and was educated in Canada, even though I no longer live there, I’m always keen to keep up with what’s happening. So, I was fascinated to read this article by Trenton Paul, a tech enthusiast, on the gap between Toronto and Quebec. He describes Toronto as being all set to become the country’s first smart city, while Quebec has been overrun by bitcoin miners, which appears to be to the detriment of the city. He puts forward an interesting theory — that Canada can’t find a balance when it comes to implementing new technology.

In Quebec, he takes us on a brief tour of an old factory that is now owned by Bitfarms, one of North America’s largest cryptocurrency mining operations. Here there are 7,000 machines doing the same repetitious task, and their number is expected to double this summer. Fans whirr everywhere trying to keep the machines cool and he describes the working conditions as akin to “working in an IT sauna.” He points out that maintaining this process uses up more energy than the nearby Montreal Canadiens’ hockey arena. And, the local energy company Hydro-Quebec has been trying to attract more mining operations to the city, and the mining operations have been flocking there.

What’s the problem in Quebec?

Quite simply this: the number of applications from mining firms wanting to set up in Quebec could potentially make the city a global hub for crypto mining, which sounds great, until you realise that if all of them were in full operation they could cause the collapse of the electricity supply to the Quebec region.

Bitcoin miners also prefer to use clean energy, which means they avoid countries like the U.S. and China where fossil fuels are in wider use. Hydro-Quebec promises that mining operations there are fuelled by hydroelectric power and that the power used for the mining companies is “surplus” — an extra 100 terawatts of low-impact energy. The problem is this, as Trenton Paul says: “as demand grows and more energy is needed to power these machines, the power supply available will not be able to sustain much longer.”

Some joined up thinking is needed

Meanwhile in Toronto, city officials are getting ready to promote it as the country’s first smart city, with Alphabet’s subsidiary Sidewalk Labs planning a timeline for building a smart complex.

As we are still in the early days of this technological ‘gold rush’, it is impossible to say how this will all pan out to Canada’s benefit, but what is clearly required is a ‘One Canada’ policy that brings balance to the implementation of new technology and offers some sound, joined up thinking.