Cisco Partners with SingularityNET to Decentralize Artificial Intelligence with Blockchain

Tech conglomerate Cisco and decentralized artificial intelligence (AI) firm SingularityNET have reached a partnership to develop a decentralized Artificial General Intelligence (AGI) project. The ambitious project aims to create more advanced AI technologies that will soon be able to exceed human abilities to learn and perform new tasks.   

AGI is an emerging new field of AI that mainly focuses on a computer’s ability to learn intellectual tasks such as learning how to write a book, tasks that humans are capable of. SingularityNET’s technologies include a blockchain-based decentralized marketplace for AI algorithms and other deep neural net models for computer vision and language understanding.   

Dr. Ben Goertzel, SingularityNET CEO, believes that AGI will advance far beyond the current state, and in the next decade, AGIs will have higher IQs than humans.  

“We’re going to see AGI elements coming into play this year,” he said. “Within the next couple of years, you’ll start to see tremendously intelligent agents that start to really solve some of the problems that we’re having,” said Goertzel.  

The partnership with Cisco originated from the need for an AI system that can generalize and learn across different areas. Goertzel stated: 

“The scale of the AGI deployments needed by a partner like Cisco is going to be tremendous, and we are working hard to make sure our AGI tools and our blockchain-based platform is up to the task. The work we’ve done with Cisco on smart traffic analytics using OpenCog’s logical reasoning and deep neural networks just scratches the surface. Let’s just say we have some much broader and deeper conversations going on.” 

Image via becominghuman.ai 

IBM and Oracle Collaborate on Interoperability Work for Their Blockchains to Communicate With Each Other

IBM and Oracle have announced that they are collaborating to build an interoperability initiative to allow their blockchains to be able to communicate with each other. 

Announced at the Hyperledger Global Forum in Arizona, Oracle’s senior director of blockchain product management, Mark Rakhmilevich said that the Fabric interoperability initiative already began in 2018. 

The blockchain teams at IBM, the company behind Hyperledger Fabric, Oracle and SAP are familiar with each other and believe in creating a “harmony” between firms to enable participation in different deployments on Hyperledger Fabric.

“We have done full testing with IBM and SAP. The three of us have basically done cross-networking testing on Fabric. So if somebody comes and says they want to run a network on Oracle but have some members whole preference is to be on IBM, we can show them the process which is tested and certified,” said Rakhmilevich.

With this new interoperability initiative, nodes will be able to run on both IBM and Oracle’s clouds, opening the door to connecting the consortia of firms on these two platforms. 

The Hyperledger blockchain realm

HSBC has reportedly become the first bank to complete a financial transaction using the blockchain trade platform that runs on the IBM Hyperledger Fabric, we.trade based in Europe. 

Blockchain.News previously interviewed Alan Lim, the head of the IBM Blockchain Labs in the Asia Pacific, and he mentioned the importance of the industry conforming on the same data standards, which would make “it easier for information to be shared by different networks and systems, platforms that are on blockchain and those that are not.” Lim mentioned that the design of the interoperability of the solution is a more advanced kind of adoption; however, integration is more complex. 

Lim believes that enterprise blockchain has been maturing in the past few years, with a high potential in Asia. “Whether it’s across the financial services sector, supply chain, and other industries, we’re starting to see some of the early adopters, leading the charge, going to production. I think you’re going to see fast followers catching up, networks scaling and growing.” He expressed his excitement to see how things pan out, “Hopefully we see more use cases in production, spreading across different industries as well.” 

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China’s Blockchain and FinTech Sector to Brace for 'Capital Winter' Even After the Coronavirus Pandemic Subsides

Investment activity in China’s tech sector has seen a massive drop in the past four months since the coronavirus outbreak has emerged from the city of Wuhan. The venture capital market has been suffering a tremendous impact on its existing drop in activity. The epicenter of the pandemic, Wuhan, has eased its lockdown measures and is now open.

Tech-based industries, including FinTech, artificial intelligence, and web-based services have seen a 31.3 percent decline from 173.5 billion to 119.1 billion in Q1, in the same period as last year. Investment deals have also seen a dip, from 1,143 to 634 in the same period, resulting in a 44.5 percent decline.

According to a report by Itjuzi.com, In 2019, 3161 startup companies were founded, while in Q1 of 2020, less than 100 startups were founded, which was around 3 percent of companies founded last year. Of those 100 startups, many were founded in January before the COVID-19 outbreak. The report further suggested that startups in artificial intelligence and e-commerce continue to attract funding, as shown in the first quarter. 

Xu Miaocheng, investment vice president at Chinese venture capital firm Unity Venture said, “There is already a downturn in the number of new tech startups in the past two years, and the number is further declining in the first quarter because of the coronavirus outbreak. Under those circumstances, VC firms are continuing to stick to the conservative investing strategy that they had in the past one to two years.”

China has already been in a trade war with the United States and already has experienced a rocky economic outlook. Analysts have deemed China to be going through a “capital winter,” describing the significant slowdown in fundraising activities since 2018, signaling a longer decline even after lockdown measures have been eased. 

However, there is still hope. Major venture capital firms including Sequoia China, which has invested heavily in the blockchain sector continues to remain active in investment despite the coronavirus pandemic. Sequoia China made 23 investments in the Q1 of 2020, while other major firms including Tencent and Addor Capital has invested in 17 and 16 respectively. 

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Chinese Government Releases First-Ever Blockchain Application Blueprint, Continuing on its Major Tech Push

The Chinese government has released its first-ever blockchain application blueprint regarding government services in the country.

According to Beijing’s blueprint, 140 government services applications are already on blockchain and are divided into three categories, including data sharing and exchange, business collaborative processing, and electronic certificate and certificate storage. 

According to a local report, blockchain is a breakthrough technology that allows data sharing to be more efficient, with electronic certificates stored on-chain, while improving the credibility and verification efficiency. 

One sector for blockchain-based use cases includes the real estate registration system, which involves 11 units, including the Municipal Planning Self-Commissioning Committee, Housing and Urban-Rural Development Commission, Taxation Bureau, Public Security, Market Supervision Bureau, Civil Affairs, Banking and Insurance Supervision, amongst others. 

With the blockchain-based real estate registration system, relevant departments would be able to ensure that the electronic licenses would be credible and would allow for traceability during the sharing process. 

The report stated:

“The paper materials that need to be submitted by the clerk in the past will be directly pulled on the chain, and the electronic evidence will be formed and retained. It can be traced back and does not need to be submitted by the clerk.”

China’s tech push to break dependence on the US

China previously announced a new 15-year blueprint as part of the country’s global technology push, to set the global standards for the next-generation of technologies, including blockchain.

China Standards 2035, the ambitious plan by Beijing is expected to be released this year, as standards have been crucial for emerging technologies. Technologies such as 4G mobile networks and Wi-Fi follow specific technical standards, such as enabling the use of mobile networks abroad.

Along with Beijing’s new plan, China is expected to send the last satellite to space that would complete a global navigation network, rivaling the US global positioning system (GPS). China’s network, Beidou, consists of 30 satellites used for navigation and messaging. This network is completely independent of the US GPS system; given that there is a fear of a major conflict between the US and China, the GPS system could be cut off from the Chinese.

US and European companies have dominated the development of standards; therefore, Beijing is pushing its domestic firms and experts to become part of the global team to set standards for emerging technologies.

China’s central bank has taken another major step forward toward the digital yuan’s mass adoption with its testing on food delivery giant Meituan Dianping.

Both Meituan Dianping and Bilibili are currently using payment systems, including Alipay and WeChat pay, backed by Alibaba Group and Tencent. The world’s second-largest economy has a $27 trillion payments industry, and with the testing of the DCEP — could potentially shift China’s dependence on the US.

US-China Tech War and Data Concerns Could Create the Splinternet

Political tensions between the United States and China have been rising with a huge focus on technology, particularly in terms of data governance standards—in fact, some experts believe the divide between the two nations is growing so large, it could split the internet into the ‘splinternet’.

The splinternet is not a new concept—the idea that the Internet could splinter and divide due to various factors, such as technology, commerce, politics, nationalism, religion, and divergent national interest.

As US-China tensions grow, more and more experts believe the split is nearly inevitable, particularly due to growing data concerns like those publicized as President Trump went after Bytedance’s TikTok, forcing a sale of its US operations to an American company to manage its data storage.

It could be argued that the split in the internet has already begun, anyone who has traveled within PRC is aware of the great firewall of China which effectively has blocked US tech companies like Facebook and Google from operating within its borders. Chinese people leverage a number of apps that are foreign to western society such as WeChat and Alipay. Leveraging websites like TaoBao instead of eBay or Amazon.

But a true birth of the splinternet would likely affect things beyond the application layer of the internet. A split in the internet could see a different set of standards imposed by each side—particularly in terms of data management which is a major point of friction between China and the US.

Expert Predicts Splinternet is Coming

As reported by CNBC on Oct. 19, one expert is predicting that data storage and governance will be the tipping point that causes the likely split in the internet into two sides—one controlled by the United States and one by China.

Paul Triolo, Head of the Geo-technology Practice at Eurasia Group said:

“I think the data issue and data governance issue is really going to be the critical thing here in terms of how far … we get a split, splinternet, or some fragmentation of cyberspace.”

The World Will Choose Sides

According to the CNBC report, Triolo expects that the fragmentation around data standards and principles would determine which countries joined either side. He said that he expects that the European Union and the US would most likely “get together and … set new standards around data.”

Triolo expects that the data standards set by the US and Europe would not explicitly exclude nations with opposing views on data governance like China and Russia, however, he said:

“Any effort to do that will be perceived by China and other countries like Russia as an attempt to exclude counties from a sort of club of democracies that are trying to sort of set the new rule around data.”

While Triolo believes that setting new data standards could be seen as simply that, setting a new standard that other countries must meet to participate— he believes that they will be very difficult for China to meet based on its current online behavior. He further asserted that to China it would be seen as, “as an attempt to really split the internet,” and exclude the Asian powerhouse.

Triolo told CNBC that there does appear to be a lot of momentum behind this creation of higher data standards “because of this fear in many countries that there needs to be at least a common approach to how governments access data[…] then the sense that there has to be a really high standard around privacy. Then countries that meet that then would be part of the club.”

US-China Tech War Other Fronts

A recent white paper by Amazon Web Services, IBM, and Deloitte among others, highlighted that the US Department of Defense is falling behind its rivals in its global military blockchain race with Russia and China.

The report warned:

“The two superpowers that pose the greatest threat to the US are both heavily investing in both the research and development of blockchain technology.”

The briefing highlights China as being on the “economic warfare” offensive with its central bank digital currency or DCEP, while Russia is on defense with a lab dedicated to blockchain cyber threat mitigation.

As reported by Blockchain.News, the National Security Council (NSC) of the Trump Administration released a report entitled “National Strategy for Critical and Emerging Technologies”, highlighting DLT as one of twenty focus areas that require prioritization in development, adoption, and investment—to ensure the United States remains the leader in global technology.

Deutsche Bank Survey Places Bitcoin, Tesla, and US Tech Stocks as The Biggest Market Bubbles

Many investors seem to think that the current financial market is caught in bubble territory, with Bitcoin, Tesla, and tech stocks leading the pack.

According to a Deutsche Bank survey, 89% of investors think that Bitcoin and US tech stocks are the leading market bubbles as of now. The survey indicated that on a scale of 1-10, with 10 being the highest extent of the bubble, respondents classified Bitcoin as a 10.

This suggests that most investors participating in the Deutsche Bank survey, namely 727 market professionals, are anticipating that Bitcoin’s price will likely drastically plummet in the near future. Trailing behind Bitcoin, US tech stocks were perceived as the next largest bubble, with 83% of market experts giving the tech bubble a rating of 7 and higher on a scale from 1-10. Tesla and other tech stocks were likely to fall than rise in the upcoming year.

Deutsche Bank shared with CNBC:

When asked specifically about the 12 month fate of Bitcoin and Tesla – a stock emblematic of a potential tech bubble – a majority of readers think that they are more likely to halve than double from these levels with Tesla more vulnerable according to readers.”

Bitcoin and Tesla surge

Bitcoin has been escalating to new heights in an effortless manner, and its bull run seems to be sustained and still ongoing. The largest digital asset by market cap touched an all-time high of nearly $42,000. Currently, it has pulled back, trading sideways at $35,775 at the time of writing.

Market experts from JPMorgan Chase and Co have said that it was imperative that Bitcoin broke the $40,000 level for its bullish momentum to remain intact, or its price may be threatened by “trend-following” investors rather than serious supporters.

On its end, Tesla has climbed massively in share prices in 2020, making its CEO Elon Musk one of the world’s richest man, second only to Amazon’s Jeff Bezos. On a 12-month period, Tesla stocks have gone up by 700%. Nevertheless, market experts have predicted that the stock will fall sharply in the upcoming year. What will “pop” Tesla, tech and Bitcoin bubbles still remain unclear.

Factors supporting the BTC and tech bubble

However, factors that have pushed Bitcoin and tech stock popularity are still present and “likely to stay,” according to the survey. The Federal Reserve mass printing money to deliver Covid-19 relief through stimulus packages is pinpointed as an “easy monetary situation” supporting the financial market bubble, for one. President-elect Joe Biden’s $1.9 trillion funding bill will inevitably lead investors to continue seeking out ways to store their wealth, which may bolster the Bitcoin bubble feared by investors.

Previously, Bitcoin billionaires Cameron and Tyler Winklevoss have said that the depreciation of the US dollar caused by the Federal Reserve’s money printing was an easy endorsement of Bitcoin as a hedge. 

Tech Stocks to Grow this Year thanks to Crypto & Metaverse, Wall Street Analyst Says

Cyrus Mewawalla, the head of thematic research at data analytics and consultancy firm GlobalData believes that tech companies whose operations extend into the metaverse and crypto, despite the massive uncertainties experienced in the stock market, end up in gains at the end of the year.

Speaking in an interview with CNBC, the analyst said metaverse, Web 3.0, cryptocurrencies, and quantum computing could be the key drivers of growth for many tech stocks that operate in the area.

Among the prominent names that come to mind is Meta Platforms Inc (formerly Facebook), which rebranded its name last year to focus more on the metaverse. Humans can interact in various forms through their digital avatars in this virtual reality world. The company has a subsidiary Oculus which manufactures VR headsets that can easily be adapted to represent more metaverse related functions.

The analyst believes Meta, Microsoft, and other outfits tilted towards these emerging technologies can turn their books around irrespective of macroeconomic conditions.

However, Mewawalla is not so hopeful about the growth of Apple Inc as one of the tech stocks billed for growth this year. This is perhaps due to the fact that the tech giant is neither known for floating new innovative products nor has it indicated its move into the fast-growing metaverse world.

“Apple is probably the least likely to grow from here in terms of maintaining its valuation,” he said. “It’s got a very, very strong ecosystem with very strong execution. So I see very little downside risk. But the upside potential I see more in other big tech stocks.”

The cryptocurrency ecosystem is a growing industry is no longer a viable excuse for institutional investors to stay out. Instead, they should consider it for long-term investment. For a renowned analyst to hinge crypto as a factor for growth for huge multinationals is a show of how far emerging tech has come in establishing itself as a force of massive innovation and global transformation.

Tech Experts Urge Regulators to be Sceptical on Digital Currencies Innovation

A group of technology innovators has sent a letter to the United States Congressional Leadership, Committee Chairs, and Ranking Members, urging them to take a critical look at cryptocurrency innovations.

These experts, numbering 26 in total, including Harvard lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza and principal engineer at Google Cloud, Kelsey Hightower admonished the lawmakers not to listen to stakeholders with a vested interest in the crypto industry who claims the technology is designed for the good of all.

“We write to you urging you to take a critical, sceptical approach toward industry claims that crypto-assets (sometimes called cryptocurrencies, crypto tokens, or web3) are an innovative technology that is unreservedly good,” the letter reads, adding, “We urge you to resist pressure from digital asset industry financiers, lobbyists, and boosters to create a regulatory safe haven for these risky, flawed, and unproven digital financial instruments and to instead take an approach that protects the public interest and ensures technology is deployed in genuine service to the needs of ordinary citizens.”

These experts argued that not everything that can be built should be built and that the history of technology is replete with innovations that started out good but turned out bad in the end. They said the technology is not as novel as the proponents claim they are, adding that the only group of protocols, privacy coins, which offer true anonymity, are a disaster in that they are the right haven for money launderers.

They believe the clamour around blockchain technology is not also worth it in that it promotes only very few real-world use cases. 

Drawing on all these points, experts implored the lawmakers tasked with formulating regulations that bind the crypto ecosystem to “take a truly responsible approach to technological innovation and ensure that individuals in the US and elsewhere are not left vulnerable to predatory finance, fraud, and systemic economic risks in the name of technological potential which does not exist.”

Tiger Global on a Mission to Raise $6B Tech-Related Fund

Tiger Global Management is on a mission to raise a humongous sum of $6 billion for a new investment fund that invests in privately-held tech firms, according to Axios.

The funding effort is currently ongoing. Axios reported that the first close will happen in January, citing an investment letter it reviewed.

The amount seems high but is half of what it raised previously, reflecting a decrease in startup funding round sizes and valuations.

Tiger has already invested in more than three dozen crypto and blockchain startups since 2020, and the company’s existing portfolio companies include TikTok parent ByteDance, Databricks, Stripe, ByteDance and Shein.

Axios reported that “Tiger’s letter reports that its Private Investment Partners funds have called over $36 billion since inception in 2003, distributed $30 billion and generated a net IRR of 24%.”

As per Tiger: “The funds have generated positive IRRs in every vintage year of investment and consistently robust distributions, with each of our first 10 funds having returned between 130% and 1,058% of called capital.”

Tiger has invested most of its existing funds in early-stage enterprise software and fintech companies in the US and India. The company’s average investment size falls to $30 million, and it expects that strategy to persist.

While in the past few months, Tiger has acquired stakes in gaming infrastructure startup Lysto and the NEAR protocol.

In April, Tiger led a funding round for Near protocol, a layer-1 blockchain network, from investors cutting across the traditional finance and crypto industries.

According to Bloomberg, the platform pulled in $350 million, which is more than double what it raised ( $150 million) back in January.

In Asia, Tiger led a Series B funding round in February for Philippine Cryptocurrency Exchange (PDAX) to raise $50 million. The Philippine Digital Asset Exchange raised a total of $63.6M in funding over 5 rounds.

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