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#433696 3 Big Ways Tech Is Disrupting Global ...

Disruptive business models are often powered by alternative financing. In Part 1 of this series, I discussed how mobile is redefining money and banking and shared some of the dramatic transformations in the global remittance infrastructure.

In this article, we’ll discuss:

Peer-to-peer lending
AI financial advisors and robo traders
Seamless Transactions

Let’s dive right back in…

Decentralized Lending = Democratized Access to Finances
Peer-to-peer (P2P) lending is an age-old practice, traditionally with high risk and extreme locality. Now, the P2P funding model is being digitized and delocalized, bringing lending online and across borders.

Zopa, the first official crowdlending platform, arrived in the United Kingdom in 2004. Since then, the consumer crowdlending platform has facilitated lending of over 3 billion euros ($3.5 billion USD) of loans.

Person-to-business crowdlending took off, again in the U.K., in 2005 with Funding Circle, now with over 5 billion euros (~5.8 billion USD) of capital loaned to small businesses around the world.

Crowdlending next took off in the US in 2006, with platforms like Prosper and Lending Club. The US crowdlending industry has boomed to $21 billion in loans, across 515,000 loans.

Let’s take a step back… to a time before banks, when lending took place between trusted neighbors in small villages across the globe. Lending started as peer-to-peer transactions.

As villages turned into towns, towns turned into cities, and cities turned into sprawling metropolises, neighborly trust and the ability to communicate across urban landscapes broke down. That’s where banks and other financial institutions came into play—to add trust back into the lending equation.

With crowdlending, we are evidently returning to this pre-centralized-banking model of loans, and moving away from cumbersome intermediaries (e.g. high fees, regulations, and extra complexity).

Fueled by the permeation of the internet, P2P lending took on a new form as ‘crowdlending’ in the early 2000s. Now, as blockchain and artificial intelligence arrive on the digital scene, P2P lending platforms are being overhauled with transparency, accountability, reliability, and immutability.

Artificial Intelligence Micro Lending & Credit Scores
We are beginning to augment our quantitative decision-making with neural networks processing borrowers’ financial data to determine their financial ‘fate’ (or, as some call it, your credit score). Companies like Smart Finance Group (backed by Kai Fu Lee and Sinovation Ventures) are using artificial intelligence to minimize default rates for tens of millions of microloans.

Smart Finance is fueled by users’ personal data, particularly smartphone data and usage behavior. Users are required to give Smart Finance access to their smartphone data, so that Smart Finance’s artificial intelligence engine can generate a credit score from the personal information.

The benefits of this AI-powered lending platform do not stop at increased loan payback rates; there’s a massive speed increase as well. Smart Finance loans are frequently approved in under eight seconds. As we’ve seen with other artificial intelligence disruptions, data is the new gold.

Digitizing access to P2P loans paves the way for billions of people currently without access to banking to leapfrog the centralized banking system, just as Africa bypassed landline phones and went straight to mobile. Leapfrogging centralized banking and the credit system is exactly what Smart Finance has done for hundreds of millions of people in China.

Blockchain-Backed Crowdlending
As artificial intelligence accesses even the most mundane mobile browsing data to assign credit scores, blockchain technologies, particularly immutable ledgers and smart contracts, are massive disruptors to the archaic banking system, building additional trust and transparency on top of current P2P lending models.

Immutable ledgers provide the necessary transparency for accurate credit and loan defaulting history. Smart contracts executed on these immutable ledgers bring the critical ability to digitally replace cumbersome, expensive third parties (like banks), allowing individual borrowers or businesses to directly connect with willing lenders.

Two of the leading blockchain platforms for P2P lending are ETHLend and SALT Lending.

ETHLend is an Ethereum-based decentralized application aiming to bring transparency and trust to P2P lending through Ethereum network smart contracts.

Secure Automated Lending Technology (SALT) allows cryptocurrency asset holders to use their digital assets as collateral for cash loans, without the need to liquidate their holdings, giving rise to a digital-asset-backed lending market.

While blockchain poses a threat to many of the large, centralized banking institutions, some are taking advantage of the new technology to optimize their internal lending, credit scoring, and collateral operations.

In March 2018, ING and Credit Suisse successfully exchanged 25 million euros using HQLA-X, a blockchain-based collateral lending platform.

HQLA-X runs on the R3 Corda blockchain, a platform designed specifically to help heritage financial and commerce institutions migrate away from their inefficient legacy financial infrastructure.

Blockchain and tokenization are going through their own fintech and regulation shakeup right now. In a future blog, I’ll discuss the various efforts to more readily assure smart contracts, and the disruptive business model of security tokens and the US Securities and Exchange Commission.

Parallels to the Global Abundance of Capital
The abundance of capital being created by the advent of P2P loans closely relates to the unprecedented global abundance of capital.

Initial coin offerings (ICOs) and crowdfunding are taking a strong stand in disrupting the $164 billion venture capital market. The total amount invested in ICOs has risen from $6.6 billion in 2017 to $7.15 billion USD in the first half of 2018. Crowdfunding helped projects raise more than $34 billion in 2017, with experts projecting that global crowdfunding investments will reach $300 billion by 2025.

In the last year alone, using ICOs, over a dozen projects have raised hundreds of millions of dollars in mere hours. Take Filecoin, for example, which raised $257 million  in only 30 days; its first $135 million was raised in the first hour. Similarly, the Dragon Coin project (which itself is revolutionizing remittance in high-stakes casinos around the world) raised $320 million in its 30-day public ICO.

Some Important Takeaways…

Technology-backed fundraising and financial services are disrupting the world’s largest financial institutions. Anyone, anywhere, at anytime will be able to access the capital they need to pursue their idea.

The speed at which we can go from “I’ve got an idea” to “I run a billion-dollar company” is moving faster than ever.

Following Ray Kurzweil’s Law of Accelerating Returns, the rapid decrease in time to access capital is intimately linked (and greatly dependent on) a financial infrastructure (technology, institutions, platforms, and policies) that can adapt and evolve just as rapidly.

This new abundance of capital requires financial decision-making with ever-higher market prediction precision. That’s exactly where artificial intelligence is already playing a massive role.

Artificial Intelligence, Robo Traders, and Financial Advisors
On May 6, 2010, the Dow Jones Industrial Average suddenly collapsed by 998.5 points (equal to 8 percent, or $1 trillion). The crash lasted over 35 minutes and is now known as the ‘Flash Crash’. While no one knows the specific reason for this 2010 stock market anomaly, experts widely agree that the Flash Crash had to do with algorithmic trading.

With the ability to have instant, trillion-dollar market impacts, algorithmic trading and artificial intelligence are undoubtedly ingrained in how financial markets operate.

In 2017, CNBC.com estimated that 90 percent of daily trading volume in stock trading is done by machine algorithms, and only 10 percent is carried out directly by humans.

Artificial intelligence and financial management algorithms are not only available to top Wall Street players.

Robo-advisor financial management apps, like Wealthfront and Betterment, are rapidly permeating the global market. Wealthfront currently has $9.5 billion in assets under management, and Betterment has $10 billion.

Artificial intelligent financial agents are already helping financial institutions protect your money and fight fraud. A prime application for machine learning is in detecting anomalies in your spending and transaction habits, and flagging potentially fraudulent transactions.

As artificial intelligence continues to exponentially increase in power and capabilities, increasingly powerful trading and financial management bots will come online, finding massive new and previously lost streams of wealth.

How else are artificial intelligence and automation transforming finance?

Disruptive Remittance and Seamless Transactions
When was the last time you paid in cash at a toll booth? How about for a taxi ride?

EZ-Pass, the electronic tolling company implemented extensively on the East Coast, has done wonders to reduce traffic congestion and increase traffic flow.

Driving down I-95 on the East Coast of the United States, drivers rarely notice their financial transaction with the state’s tolling agencies. The transactions are seamless.

The Uber app enables me to travel without my wallet. I can forget about payment on my trip, free up my mental bandwidth and time for higher-priority tasks. The entire process is digitized and, by extension, automated and integrated into Uber’s platform (Note: This incredible convenience many times causes me to accidentally walk out of taxi cabs without paying!).

In January 2018, we saw the success of the first cutting-edge, AI-powered Amazon Go store open in Seattle, Washington. The store marked a new era in remittance and transactions. Gone are the days of carrying credit cards and cash, and gone are the cash registers. And now, on the heals of these early ‘beta-tests’, Amazon is considering opening as many as 3,000 of these cashierless stores by 2023.

Amazon Go stores use AI algorithms that watch various video feeds (from advanced cameras) throughout the store to identify who picks up groceries, exactly what products they select, and how much to charge that person when they walk out of the store. It’s a grab and go experience.

Let’s extrapolate the notion of seamless, integrated payment systems from Amazon Go and Uber’s removal of post-ride payment to the rest of our day-to-day experience.

Imagine this near future:

As you near the front door of your home, your AI assistant summons a self-driving Uber that takes you to the Hyperloop station (after all, you work in L.A. but live in San Francisco).

At the station, you board your pod, without noticing that your ticket purchase was settled via a wireless payment checkpoint.

After work, you stop at the Amazon Go and pick up dinner. Your virtual AI assistant passes your Amazon account information to the store’s payment checkpoint, as the store’s cameras and sensors track you, your cart and charge you auto-magically.

At home, unbeknownst to you, your AI has already restocked your fridge and pantry with whatever items you failed to pick up at the Amazon Go.

Once we remove the actively transacting aspect of finance, what else becomes possible?

Top Conclusions
Extraordinary transformations are happening in the finance world. We’ve only scratched the surface of the fintech revolution. All of these transformative financial technologies require high-fidelity assurance, robust insurance, and a mechanism for storing value.

I’ll dive into each of these other facets of financial services in future articles.

For now, thanks to coming global communication networks being deployed on 5G, Alphabet’s LUNE, SpaceX’s Starlink and OneWeb, by 2024, nearly all 8 billion people on Earth will be online.

Once connected, these new minds, entrepreneurs, and customers need access to money and financial services to meaningfully participate in the world economy.

By connecting lenders and borrowers around the globe, decentralized lending drives down global interest rates, increases global financial market participation, and enables economic opportunity to the billions of people who are about to come online.

We’re living in the most abundant time in human history, and fintech is just getting started.

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Posted in Human Robots

#432880 Google’s Duplex Raises the Question: ...

By now, you’ve probably seen Google’s new Duplex software, which promises to call people on your behalf to book appointments for haircuts and the like. As yet, it only exists in demo form, but already it seems like Google has made a big stride towards capturing a market that plenty of companies have had their eye on for quite some time. This software is impressive, but it raises questions.

Many of you will be familiar with the stilted, robotic conversations you can have with early chatbots that are, essentially, glorified menus. Instead of pressing 1 to confirm or 2 to re-enter, some of these bots would allow for simple commands like “Yes” or “No,” replacing the buttons with limited ability to recognize a few words. Using them was often a far more frustrating experience than attempting to use a menu—there are few things more irritating than a robot saying, “Sorry, your response was not recognized.”

Google Duplex scheduling a hair salon appointment:

Google Duplex calling a restaurant:

Even getting the response recognized is hard enough. After all, there are countless different nuances and accents to baffle voice recognition software, and endless turns of phrase that amount to saying the same thing that can confound natural language processing (NLP), especially if you like your phrasing quirky.

You may think that standard customer-service type conversations all travel the same route, using similar words and phrasing. But when there are over 80,000 ways to order coffee, and making a mistake is frowned upon, even simple tasks require high accuracy over a huge dataset.

Advances in audio processing, neural networks, and NLP, as well as raw computing power, have meant that basic recognition of what someone is trying to say is less of an issue. Soundhound’s virtual assistant prides itself on being able to process complicated requests (perhaps needlessly complicated).

The deeper issue, as with all attempts to develop conversational machines, is one of understanding context. There are so many ways a conversation can go that attempting to construct a conversation two or three layers deep quickly runs into problems. Multiply the thousands of things people might say by the thousands they might say next, and the combinatorics of the challenge runs away from most chatbots, leaving them as either glorified menus, gimmicks, or rather bizarre to talk to.

Yet Google, who surely remembers from Glass the risk of premature debuts for technology, especially the kind that ask you to rethink how you interact with or trust in software, must have faith in Duplex to show it on the world stage. We know that startups like Semantic Machines and x.ai have received serious funding to perform very similar functions, using natural-language conversations to perform computing tasks, schedule meetings, book hotels, or purchase items.

It’s no great leap to imagine Google will soon do the same, bringing us closer to a world of onboard computing, where Lens labels the world around us and their assistant arranges it for us (all the while gathering more and more data it can convert into personalized ads). The early demos showed some clever tricks for keeping the conversation within a fairly narrow realm where the AI should be comfortable and competent, and the blog post that accompanied the release shows just how much effort has gone into the technology.

Yet given the privacy and ethics funk the tech industry finds itself in, and people’s general unease about AI, the main reaction to Duplex’s impressive demo was concern. The voice sounded too natural, bringing to mind Lyrebird and their warnings of deepfakes. You might trust “Do the Right Thing” Google with this technology, but it could usher in an era when automated robo-callers are far more convincing.

A more human-like voice may sound like a perfectly innocuous improvement, but the fact that the assistant interjects naturalistic “umm” and “mm-hm” responses to more perfectly mimic a human rubbed a lot of people the wrong way. This wasn’t just a voice assistant trying to sound less grinding and robotic; it was actively trying to deceive people into thinking they were talking to a human.

Google is running the risk of trying to get to conversational AI by going straight through the uncanny valley.

“Google’s experiments do appear to have been designed to deceive,” said Dr. Thomas King of the Oxford Internet Institute’s Digital Ethics Lab, according to Techcrunch. “Their main hypothesis was ‘can you distinguish this from a real person?’ In this case it’s unclear why their hypothesis was about deception and not the user experience… there should be some kind of mechanism there to let people know what it is they are speaking to.”

From Google’s perspective, being able to say “90 percent of callers can’t tell the difference between this and a human personal assistant” is an excellent marketing ploy, even though statistics about how many interactions are successful might be more relevant.

In fact, Duplex runs contrary to pretty much every major recommendation about ethics for the use of robotics or artificial intelligence, not to mention certain eavesdropping laws. Transparency is key to holding machines (and the people who design them) accountable, especially when it comes to decision-making.

Then there are the more subtle social issues. One prominent effect social media has had is to allow people to silo themselves; in echo chambers of like-minded individuals, it’s hard to see how other opinions exist. Technology exacerbates this by removing the evolutionary cues that go along with face-to-face interaction. Confronted with a pair of human eyes, people are more generous. Confronted with a Twitter avatar or a Facebook interface, people hurl abuse and criticism they’d never dream of using in a public setting.

Now that we can use technology to interact with ever fewer people, will it change us? Is it fair to offload the burden of dealing with a robot onto the poor human at the other end of the line, who might have to deal with dozens of such calls a day? Google has said that if the AI is in trouble, it will put you through to a human, which might help save receptionists from the hell of trying to explain a concept to dozens of dumbfounded AI assistants all day. But there’s always the risk that failures will be blamed on the person and not the machine.

As AI advances, could we end up treating the dwindling number of people in these “customer-facing” roles as the buggiest part of a fully automatic service? Will people start accusing each other of being robots on the phone, as well as on Twitter?

Google has provided plenty of reassurances about how the system will be used. They have said they will ensure that the system is identified, and it’s hardly difficult to resolve this problem; a slight change in the script from their demo would do it. For now, consumers will likely appreciate moves that make it clear whether the “intelligent agents” that make major decisions for us, that we interact with daily, and that hide behind social media avatars or phone numbers are real or artificial.

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Posted in Human Robots

#431869 When Will We Finally Achieve True ...

The field of artificial intelligence goes back a long way, but many consider it was officially born when a group of scientists at Dartmouth College got together for a summer, back in 1956. Computers had, over the last few decades, come on in incredible leaps and bounds; they could now perform calculations far faster than humans. Optimism, given the incredible progress that had been made, was rational. Genius computer scientist Alan Turing had already mooted the idea of thinking machines just a few years before. The scientists had a fairly simple idea: intelligence is, after all, just a mathematical process. The human brain was a type of machine. Pick apart that process, and you can make a machine simulate it.
The problem didn’t seem too hard: the Dartmouth scientists wrote, “We think that a significant advance can be made in one or more of these problems if a carefully selected group of scientists work on it together for a summer.” This research proposal, by the way, contains one of the earliest uses of the term artificial intelligence. They had a number of ideas—maybe simulating the human brain’s pattern of neurons could work and teaching machines the abstract rules of human language would be important.
The scientists were optimistic, and their efforts were rewarded. Before too long, they had computer programs that seemed to understand human language and could solve algebra problems. People were confidently predicting there would be a human-level intelligent machine built within, oh, let’s say, the next twenty years.
It’s fitting that the industry of predicting when we’d have human-level intelligent AI was born at around the same time as the AI industry itself. In fact, it goes all the way back to Turing’s first paper on “thinking machines,” where he predicted that the Turing Test—machines that could convince humans they were human—would be passed in 50 years, by 2000. Nowadays, of course, people are still predicting it will happen within the next 20 years, perhaps most famously Ray Kurzweil. There are so many different surveys of experts and analyses that you almost wonder if AI researchers aren’t tempted to come up with an auto reply: “I’ve already predicted what your question will be, and no, I can’t really predict that.”
The issue with trying to predict the exact date of human-level AI is that we don’t know how far is left to go. This is unlike Moore’s Law. Moore’s Law, the doubling of processing power roughly every couple of years, makes a very concrete prediction about a very specific phenomenon. We understand roughly how to get there—improved engineering of silicon wafers—and we know we’re not at the fundamental limits of our current approach (at least, not until you’re trying to work on chips at the atomic scale). You cannot say the same about artificial intelligence.
Common Mistakes
Stuart Armstrong’s survey looked for trends in these predictions. Specifically, there were two major cognitive biases he was looking for. The first was the idea that AI experts predict true AI will arrive (and make them immortal) conveniently just before they’d be due to die. This is the “Rapture of the Nerds” criticism people have leveled at Kurzweil—his predictions are motivated by fear of death, desire for immortality, and are fundamentally irrational. The ability to create a superintelligence is taken as an article of faith. There are also criticisms by people working in the AI field who know first-hand the frustrations and limitations of today’s AI.
The second was the idea that people always pick a time span of 15 to 20 years. That’s enough to convince people they’re working on something that could prove revolutionary very soon (people are less impressed by efforts that will lead to tangible results centuries down the line), but not enough for you to be embarrassingly proved wrong. Of the two, Armstrong found more evidence for the second one—people were perfectly happy to predict AI after they died, although most didn’t, but there was a clear bias towards “15–20 years from now” in predictions throughout history.
Measuring Progress
Armstrong points out that, if you want to assess the validity of a specific prediction, there are plenty of parameters you can look at. For example, the idea that human-level intelligence will be developed by simulating the human brain does at least give you a clear pathway that allows you to assess progress. Every time we get a more detailed map of the brain, or successfully simulate another part of it, we can tell that we are progressing towards this eventual goal, which will presumably end in human-level AI. We may not be 20 years away on that path, but at least you can scientifically evaluate the progress.
Compare this to those that say AI, or else consciousness, will “emerge” if a network is sufficiently complex, given enough processing power. This might be how we imagine human intelligence and consciousness emerged during evolution—although evolution had billions of years, not just decades. The issue with this is that we have no empirical evidence: we have never seen consciousness manifest itself out of a complex network. Not only do we not know if this is possible, we cannot know how far away we are from reaching this, as we can’t even measure progress along the way.
There is an immense difficulty in understanding which tasks are hard, which has continued from the birth of AI to the present day. Just look at that original research proposal, where understanding human language, randomness and creativity, and self-improvement are all mentioned in the same breath. We have great natural language processing, but do our computers understand what they’re processing? We have AI that can randomly vary to be “creative,” but is it creative? Exponential self-improvement of the kind the singularity often relies on seems far away.
We also struggle to understand what’s meant by intelligence. For example, AI experts consistently underestimated the ability of AI to play Go. Many thought, in 2015, it would take until 2027. In the end, it took two years, not twelve. But does that mean AI is any closer to being able to write the Great American Novel, say? Does it mean it’s any closer to conceptually understanding the world around it? Does it mean that it’s any closer to human-level intelligence? That’s not necessarily clear.
Not Human, But Smarter Than Humans
But perhaps we’ve been looking at the wrong problem. For example, the Turing test has not yet been passed in the sense that AI cannot convince people it’s human in conversation; but of course the calculating ability, and perhaps soon the ability to perform other tasks like pattern recognition and driving cars, far exceed human levels. As “weak” AI algorithms make more decisions, and Internet of Things evangelists and tech optimists seek to find more ways to feed more data into more algorithms, the impact on society from this “artificial intelligence” can only grow.
It may be that we don’t yet have the mechanism for human-level intelligence, but it’s also true that we don’t know how far we can go with the current generation of algorithms. Those scary surveys that state automation will disrupt society and change it in fundamental ways don’t rely on nearly as many assumptions about some nebulous superintelligence.
Then there are those that point out we should be worried about AI for other reasons. Just because we can’t say for sure if human-level AI will arrive this century, or never, it doesn’t mean we shouldn’t prepare for the possibility that the optimistic predictors could be correct. We need to ensure that human values are programmed into these algorithms, so that they understand the value of human life and can act in “moral, responsible” ways.
Phil Torres, at the Project for Future Human Flourishing, expressed it well in an interview with me. He points out that if we suddenly decided, as a society, that we had to solve the problem of morality—determine what was right and wrong and feed it into a machine—in the next twenty years…would we even be able to do it?
So, we should take predictions with a grain of salt. Remember, it turned out the problems the AI pioneers foresaw were far more complicated than they anticipated. The same could be true today. At the same time, we cannot be unprepared. We should understand the risks and take our precautions. When those scientists met in Dartmouth in 1956, they had no idea of the vast, foggy terrain before them. Sixty years later, we still don’t know how much further there is to go, or how far we can go. But we’re going somewhere.
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Posted in Human Robots

#431862 Want Self-Healing Robots and Tires? ...

We all have scars, and each one tells a story. Tales of tomfoolery, tales of haphazardness, or in my case, tales of stupidity.
Whether the cause of your scar was a push-bike accident, a lack of concentration while cutting onions, or simply the byproduct of an active lifestyle, the experience was likely extremely painful and distressing. Not to mention the long and vexatious recovery period, stretching out for weeks and months after the actual event!
Cast your minds back to that time. How you longed for instant relief from your discomfort! How you longed to have your capabilities restored in an instant!
Well, materials that can heal themselves in an instant may not be far from becoming a reality—and a family of them known as elastomers holds the key.
“Elastomer” is essentially a big, fancy word for rubber. However, elastomers have one unique property—they are capable of returning to their original form after being vigorously stretched and deformed.
This unique property of elastomers has caught the eye of many scientists around the world, particularly those working in the field of robotics. The reason? Elastomer can be encouraged to return to its original shape, in many cases by simply applying heat. The implication of this is the quick and cost-effective repair of “wounds”—cuts, tears, and punctures to the soft, elastomer-based appendages of a robot’s exoskeleton.

Researchers from Vrije University in Brussels, Belgium have been toying with the technique, and with remarkable success. The team built a robotic hand with fingers made of a type of elastomer. They found that cuts and punctures were indeed able to repair themselves simply by applying heat to the affected area.
How long does the healing process take? In this instance, about a day. Now that’s a lot shorter than the weeks and months of recovery time we typically need for a flesh wound, during which we are unable to write, play the guitar, or do the dishes. If you consider the latter to be a bad thing…
However, it’s not the first time scientists have played around with elastomers and examined their self-healing properties. Another team of scientists, headed up by Cheng-Hui Li and Chao Wang, discovered another type of elastomer that exhibited autonomous self-healing properties. Just to help you picture this stuff, the material closely resembles animal muscle— strong, flexible, and elastic. With autogenetic restorative powers to boot.
Advancements in the world of self-healing elastomers, or rubbers, may also affect the lives of everyday motorists. Researchers from the Harvard John A. Paulson School of Engineering and Applied Sciences (SEAS) have developed a self-healing rubber material that could be used to make tires that repair their own punctures.
This time the mechanism of self-healing doesn’t involve heat. Rather, it is related to a physical phenomenon associated with the rubber’s unique structure. Normally, when a large enough stress is applied to a typical rubber, there is catastrophic failure at the focal point of that stress. The self-healing rubber the researchers created, on the other hand, distributes that same stress evenly over a network of “crazes”—which are like cracks connected by strands of fiber.
Here’s the interesting part. Not only does this unique physical characteristic of the rubber prevent catastrophic failure, it facilitates self-repair. According to Harvard researchers, when the stress is released, the material snaps back to its original form and the crazes heal.
This wonder material could be used in any number of rubber-based products.
Professor Jinrong Wu, of Sichuan University, China, and co-author of the study, happened to single out tires: “Imagine that we could use this material as one of the components to make a rubber tire… If you have a cut through the tire, this tire wouldn’t have to be replaced right away. Instead, it would self-heal while driving, enough to give you leeway to avoid dramatic damage,” said Wu.
So where to from here? Well, self-healing elastomers could have a number of different applications. According to the article published by Quartz, cited earlier, the material could be used on artificial limbs. Perhaps it will provide some measure of structural integrity without looking like a tattered mess after years of regular use.
Or perhaps a sort of elastomer-based hybrid skin is on the horizon. A skin in which wounds heal instantly. And recovery time, unlike your regular old human skin of yesteryear, is significantly slashed. Furthermore, this future skin might eliminate those little reminders we call scars.
For those with poor judgment skills, this spells an end to disquieting reminders of our own stupidity.
Image Credit: Vrije Universiteit Brussel / Prof. Dr. ir. Bram Vanderborght Continue reading

Posted in Human Robots

#430830 Biocomputers Made From Cells Can Now ...

When it comes to biomolecules, RNA doesn’t get a lot of love.
Maybe you haven’t even heard of the silent workhorse. RNA is the cell’s de facto translator: like a game of telephone, RNA takes DNA’s genetic code to a cellular factory called ribosomes. There, the cell makes proteins based on RNA’s message.
But RNA isn’t just a middleman. It controls what proteins are formed. Because proteins wiz around the cell completing all sorts of important processes, you can say that RNA is the gatekeeper: no RNA message, no proteins, no life.
In a new study published in Nature, RNA finally took center stage. By adding bits of genetic material to the E. Coli bacteria, a team of biohackers at the Wyss Institute hijacked the organism’s RNA messengers so that they only spring into action following certain inputs.
The result? A bacterial biocomputer capable of performing 12-input logic operations—AND, OR, and NOT—following specific inputs. Rather than outputting 0s and 1s, these biocircuits produce results based on the presence or absence of proteins and other molecules.
“It’s the greatest number of inputs in a circuit that a cell has been able to process,” says study author Dr. Alexander Green at Arizona State University. “To be able to analyze those signals and make a decision is the big advance here.”
When given a specific set of inputs, the bacteria spit out a protein that made them glow neon green under fluorescent light.
But synthetic biology promises far more than just a party trick—by tinkering with a cell’s RNA repertoire, scientists may one day coax them to photosynthesize, produce expensive drugs on the fly, or diagnose and hunt down rogue tumor cells.
Illustration of an RNA-based ‘ribocomputing’ device that makes logic-based decisions in living cells. The long gate RNA (blue) detects the binding of an input RNA (red). The ribosome (purple/mauve) reads the gate RNA to produce an output protein. Image Credit: Alexander Green / Arizona State University
The software of life
This isn’t the first time that scientists hijacked life’s algorithms to reprogram cells into nanocomputing systems. Previous work has already introduced to the world yeast cells that can make anti-malaria drugs from sugar or mammalian cells that can perform Boolean logic.
Yet circuits with multiple inputs and outputs remain hard to program. The reason is this: synthetic biologists have traditionally focused on snipping, fusing, or otherwise arranging a cell’s DNA to produce the outcomes they want.
But DNA is two steps removed from proteins, and tinkering with life’s code often leads to unexpected consequences. For one, the cell may not even accept and produce the extra bits of DNA code. For another, the added code, when transformed into proteins, may not act accordingly in the crowded and ever-changing environment of the cell.
What’s more, tinkering with one gene is often not enough to program an entirely new circuit. Scientists often need to amp up or shut down the activity of multiple genes, or multiple biological “modules” each made up of tens or hundreds of genes.
It’s like trying to fit new Lego pieces in a specific order into a room full of Lego constructions. Each new piece has the potential to wander off track and click onto something it’s not supposed to touch.
Getting every moving component to work in sync—as you might have guessed—is a giant headache.
The RNA way
With “ribocomputing,” Green and colleagues set off to tackle a main problem in synthetic biology: predictability.
Named after the “R (ribo)” in “RNA,” the method grew out of an idea that first struck Green back in 2012.
“The synthetic biological circuits to date have relied heavily on protein-based regulators that are difficult to scale up,” Green wrote at the time. We only have a limited handful of “designable parts” that work well, and these circuits require significant resources to encode and operate, he explains.
RNA, in comparison, is a lot more predictable. Like its more famous sibling DNA, RNA is composed of units that come in four different flavors: A, G, C, and U. Although RNA is only single-stranded, rather than the double helix for which DNA is known for, it can bind short DNA-like sequences in a very predictable manner: Gs always match up with Cs and As always with Us.
Because of this predictability, it’s possible to design RNA components that bind together perfectly. In other words, it reduces the chance that added RNA bits might go rogue in an unsuspecting cell.
Normally, once RNA is produced it immediately rushes to the ribosome—the cell’s protein-building factory. Think of it as a constantly “on” system.
However, Green and his team found a clever mechanism to slow them down. Dubbed the “toehold switch,” it works like this: the artificial RNA component is first incorporated into a chain of A, G, C, and U folded into a paperclip-like structure.
This blocks the RNA from accessing the ribosome. Because one RNA strand generally maps to one protein, the switch prevents that protein from ever getting made.
In this way, the switch is set to “off” by default—a “NOT” gate, in Boolean logic.
To activate the switch, the cell needs another component: a “trigger RNA,” which binds to the RNA toehold switch. This flips it on: the RNA grabs onto the ribosome, and bam—proteins.
BioLogic gates
String a few RNA switches together, with the activity of each one relying on the one before, and it forms an “AND” gate. Alternatively, if the activity of each switch is independent, that’s an “OR” gate.
“Basically, the toehold switches performed so well that we wanted to find a way to best exploit them for cellular applications,” says Green. They’re “kind of the equivalent of your first transistors,” he adds.
Once the team optimized the designs for different logic gates, they carefully condensed the switches into “gate RNA” molecules. These gate RNAs contain both codes for proteins and the logic operations needed to kickstart the process—a molecular logic circuit, so to speak.
If you’ve ever played around with an Arduino-controlled electrical circuit, you probably know the easiest way to test its function is with a light bulb.
That’s what the team did here, though with a biological bulb: green fluorescent protein, a light-sensing protein not normally present in bacteria that—when turned on—makes the microbugs glow neon green.
In a series of experiments, Green and his team genetically inserted gate RNAs into bacteria. Then, depending on the type of logical function, they added different combinations of trigger RNAs—the inputs.
When the input RNA matched up with its corresponding gate RNA, it flipped on the switch, causing the cell to light up.

Their most complex circuit contained five AND gates, five OR gates, and two NOTs—a 12-input ribocomputer that functioned exactly as designed.
That’s quite the achievement. “Everything is interacting with everything else and there are a million ways those interactions could flip the switch on accident,” says RNA researcher Dr. Julies Lucks at Northwestern University.
The specificity is thanks to RNA, the authors explain. Because RNAs bind to others so predictably, we can now design massive libraries of gate and trigger units to mix-and-match into all types of nano-biocomputers.
RNA BioNanobots
Although the technology doesn’t have any immediate applications, the team has high hopes.
For the first time, it’s now possible to massively scale up the process of programming new circuits into living cells. We’ve expanded the library of available biocomponents that can be used to reprogram life’s basic code, the authors say.
What’s more, when freeze-dried onto a piece of tissue paper, RNA keeps very well. We could potentially print RNA toehold switches onto paper that respond to viruses or to tumor cells, the authors say, essentially transforming the technology into highly accurate diagnostic platforms.
But Green’s hopes are even wilder for his RNA-based circuits.
“Because we’re using RNA, a universal molecule of life, we know these interactions can also work in other cells, so our method provides a general strategy that could be ported to other organisms,” he says.
Ultimately, the hope is to program neural network-like capabilities into the body’s other cells.
Imagine cells endowed with circuits capable of performing the kinds of computation the brain does, the authors say.
Perhaps one day, synthetic biology will transform our own cells into fully programmable entities, turning us all into biological cyborgs from the inside. How wild would that be?
Image Credit: Wyss Institute at Harvard University Continue reading

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