Distributed Intelligence
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This document discusses the possibilities of combining artificial intelligence and blockchain technology. Some key points made include: - AI and encryption work well together, and blockchain can help track and explain AI decisions. - AI can manage blockchains more efficiently than humans. - Combining the two could improve data and model trustworthiness, effectiveness through better data sharing, and artificial trust between machines. - AI techniques like federated learning could introduce new decentralized systems, while AI brings security benefits to blockchain.
Distributed Intelligence
- 1. 2 General Propose Chain General Propose Chain Blockchain and AI | Distributed Intelligence Perfect Storm Alternative Possibilities • AI and encryption work very well together • Blockchain can help us track, understand and explain decisions made by AI • AI can manage blockchains more efficiently than humans • Having a clear audit trail for AI: improve the trustworthiness of the data as well as of the models • Increase AI effectiveness: Secure data sharing means more training data), and then better models • Increase artificial trust: Bots to trust each other and increase machine-to-machine interaction • Scalability: AI can introduce new decentralized learning systems such as federated learning • Security: AI can bring security to blockchain via incredible progress made by machine learning • Reduce Network Latency: Better efficiency and a lower energy consumption
- 3. What is Blockchain? Blockchain is a secure, shared, distributed ledger Secure Shared Distributed Ledger
- 4. General Propose Chain General Propose Chain Blockchain | Multiple Chain Types Blockchains Alternative blockchains (altchains) (Decentralized Transport) (cryptocurrency) (cross-industry collaborative) (cross-industry collaborative) (FSI consortium) open platform for developers and devops to build blockchain apps (banking industry collaborative) (Social News Blockchain DB) (IBM Open Blockchain )
- 5. Consortium Woodgrove Financial Contoso Bank Northwind Traders Bank b Insurance c Investment consortium c Bank A Blockchain Location 1 Location 2 Location 3 Location 4 Department A Department B Public ConsortiumPrivate • Many, unknown participants • Writes by all participants • Reads by all participants • Consensus by Proof of Work • Known participants from one organization • Write permissions centralized • Reads may be public or restricted • Multiple algorithms for consensus • Known participants from multiple organizations • Writes require consensus of several participants • Reads may be public or restricted • Multiple algorithms for consensus Public blockchain Persona Woodgrove Financial Person B Northwind Traders Bank 6 Bank 1 Consortium 6 Source: Ethereum blog by Vitalik Buterin https://blog.ethereum.org/author/vitalik-buterin/ Blockchain | Network Types
- 10. Azure + AI
- 18. Rapid time to market with a Productive AI Platform Gain transformative insights with Comprehensive Data Innovate with confidence with Enterprise-Proven Solutions
- 19. Intelligent Apps Leverage AI to create the future of business applications Conversational Agents Transform your engagements with customers and employees Business Processes Transform critical business processes with AI 95% Of customer interactions powered by AI bots by 2025 75% Applications to include AI by the end of this year 85% Of enterprises using AI by 2020 Enterprise scenarios for AI
- 20. General Propose Chain General Propose Chain Blockchain and AI | Distributed Intelligence Perfect Storm Alternative Possibilities • AI and encryption work very well together • Blockchain can help us track, understand and explain decisions made by AI • AI can manage blockchains more efficiently than humans • Having a clear audit trail for AI: improve the trustworthiness of the data as well as of the models • Increase AI effectiveness: Secure data sharing means more training data), and then better models • Increase artificial trust: Bots to trust each other and increase machine-to-machine interaction • Scalability: AI can introduce new decentralized learning systems such as federated learning • Security: AI can bring security to blockchain via incredible progress made by machine learning • Reduce Network Latency: Better efficiency and a lower energy consumption
- 21. How does Blockchain work?
- 22. 1 Company A wants to transfer a value to Company B (i.e. digital currently, a digital asset, a certificate, etc.). 3 Company A transaction is stored in the ledger as a block with other transaction. The block has an unique ID, the transition time and the ID of the previous block in the chain. 2 Company A uses a digital app to transfer the value to Company B. The app stamps the transaction with Company A digital signature, and now needs to be verified by blockchain. 4 The block containing Company A transaction is then broadcast to the entire network to be verified in each node. 5 After the verification process, Company B receives the value, and all the transaction history remains permanent and transparent available for all the blockchain participants.
- 23. Evolution of Blockchain Blockchain 1.0 – A simple ledger
- 24. That decentralizes data in a trustless environment Traditional System Centralized system with stored ledger Blockchain System Distributed system with distributed ledger Traditional ledgers are centralized and use third parties and middlemen to approve and record transactions Blockchain safely distributes ledgers across the entire network and does not require any middleman The technology maintains multiple replicas like P2P torrent file sharing
- 25. Basic blockchain to track financial transactions In this example, Alex wants to send Katie $500 via a financial transaction blockchain system Alex Katie Payment $500 Transaction (Tx) From: Alex (0xf5e…) To: Katie (0x992…) Amount: 500 Digital signature 0x23e423s3234… 2. Transaction is confirmed though mining. Tx Signature Tx Signature Tx Signature Tx SignatureTx Signature Tx Signature Tx Signature 3. Confirmed transaction gets pushed to network1. Transaction information goes through hash functions (to secure it as well as create a time stamp)
- 26. Evolution of Blockchain Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions. Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain. Blockchain 2.0 – Introducing Smart Contracts
- 27. Traditional Contract Deployed to Nodes Blockchain 2.0 | Smart Contracts
- 28. PRODUCER Food Processor Milk producer supplies Milk to Food Processing Company SMART CONTRACT IoT Enabled The package has to be maintained at : Temperature < 10º C Humidity < 65% The terms of shipping are registered using a smart contract on the Blockchain Origin 8ºC 60% Warehouse Carrier 2 Store CARRIER 1 Warehouse CARRIER 2 Retail Store 9ºC 64% 9ºC 64% 11ºC 66% At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain SMART CONTRACT UPDATED 11ºC 66% The conditions of the contract have been violated. Carrier 3 is liable for penalty as the temperature of the package when it reached the retail store was above the prescribed limit Detailed Use case - Supply Chain with IoT and blockchain The Food product is sealed in an IoT enabled package for shipping SHARED LEDGER Blockchain IoT
- 29. Evolution of Blockchain Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions. Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain. Blockchain 3.0 – Microsoft evolving the ledger to address the big problem
- 30. Blockchain 3.0 | State-of-the-art cryptlets innovation Blockchain 2.0 introduced the power of Smart Contracts… …but Smart Contracts are unable to access external data or events based on time or market conditions ₋ Calling code or data outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions Cryptlets will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain Cryptlets are a Microsoft innovation and solve a significant hurdle to enterprise blockchain adoption Property 0x117292138928 edc23dc21323c Value 0x893423022ef8s92d1 223412dds321ac Property 0x117292138928 edc23dc21323c Value 0x893423022ef8s92d1 223412dds321ac Code Contract accountRegistry(mapping (string=> address) accountMap; function accountRegistry()(… Property 0x117292138928 edc23dc21323c Value 0x893423022ef8s92d1 223412dds321ac Code Contract accountRegistry(mapping (string=> address) accountMap; function accountRegistry()(… Interest Rate 0x132945934528 asf0439dsa3x
- 31. 10%-30% of drugs sold in developing countries are counterfeits. 80% of the counterfeit drugs consumed in the US come from overseas. Prescription drugs market is estimated at $900 billion worldwide. The global market for counterfeit drugs is $200 billion dollars. The global market for counterfeit products is $460 billion dollars. More than 30% of counterfeit drugs do not contain any active ingredients. Real World Problem: Counterfeit Pharmaceuticals
- 32. Solution: Two-Layer QR Code Label … Before After Top (red) layer Bottom (yellow) layer Side View Top View Side View
- 33. Distributed Intelligence Use Case Scenarios
- 36. Blockchain and AI For Social Good The United Nations World Food Programme (WFP) is deploying cutting- edge blockchain technology to make cash- based transfers faster, cheaper and more secure.
- 37. www.azure.com 38
- 38. Azure Marketplace for Blockchain 39
- 39. Blockchain as a Service (BaaS) 40
- 40. Tenets of our BaaS Strategy FAIL FAST & CHEAP MIX & MATCH CREATE & INNOVATE SHARE SOLUTIONS PROVISION
- 41. TrustedProductive IntelligentHybrid Azure. Cloud for all.
- 43. 44 SETUP BLOCKCHAIN NETWORK FOR PILOT OR TEST SCENARIO How do you get started? START BUILDING OUT SCENARIOS AND APPS LEARN FROM PILOT and DEVELOPMENT FOR BLOCKCHAIN BLOCKCHAIN BUSINESS IDEATION WORKSHOP
- 44. You can download the presentation from LinkedIn Nuri Cankaya Microsoft