Tag Archives: wireless

#433907 How the Spatial Web Will Fix What’s ...

Converging exponential technologies will transform media, advertising and the retail world. The world we see, through our digitally-enhanced eyes, will multiply and explode with intelligence, personalization, and brilliance.

This is the age of Web 3.0.

Last week, I discussed the what and how of Web 3.0 (also known as the Spatial Web), walking through its architecture and the converging technologies that enable it.

To recap, while Web 1.0 consisted of static documents and read-only data, Web 2.0 introduced multimedia content, interactive web applications, and participatory social media, all of these mediated by two-dimensional screens—a flat web of sensorily confined information.

During the next two to five years, the convergence of 5G, AI, a trillion sensors, and VR/AR will enable us to both map our physical world into virtual space and superimpose a digital layer onto our physical environments.

Web 3.0 is about to transform everything—from the way we learn and educate, to the way we trade (smart) assets, to our interactions with real and virtual versions of each other.

And while users grow rightly concerned about data privacy and misuse, the Spatial Web’s use of blockchain in its data and governance layer will secure and validate our online identities, protecting everything from your virtual assets to personal files.

In this second installment of the Web 3.0 series, I’ll be discussing the Spatial Web’s vast implications for a handful of industries:

News & Media Coverage
Smart Advertising
Personalized Retail

Let’s dive in.

Transforming Network News with Web 3.0
News media is big business. In 2016, global news media (including print) generated 168 billion USD in circulation and advertising revenue.

The news we listen to impacts our mindset. Listen to dystopian news on violence, disaster, and evil, and you’ll more likely be searching for a cave to hide in, rather than technology for the launch of your next business.

Today, different news media present starkly different realities of everything from foreign conflict to domestic policy. And outcomes are consequential. What reporters and news corporations decide to show or omit of a given news story plays a tremendous role in shaping the beliefs and resulting values of entire populations and constituencies.

But what if we could have an objective benchmark for today’s news, whereby crowdsourced and sensor-collected evidence allows you to tour the site of journalistic coverage, determining for yourself the most salient aspects of a story?

Enter mesh networks, AI, public ledgers, and virtual reality.

While traditional networks rely on a limited set of wired access points (or wireless hotspots), a wireless mesh network can connect entire cities via hundreds of dispersed nodes that communicate with each other and share a network connection non-hierarchically.

In short, this means that individual mobile users can together establish a local mesh network using nothing but the computing power in their own devices.

Take this a step further, and a local population of strangers could collectively broadcast countless 360-degree feeds across a local mesh network.

Imagine a scenario in which protests break out across the country, each cluster of activists broadcasting an aggregate of 360-degree videos, all fed through photogrammetry AIs that build out a live hologram of the march in real time. Want to see and hear what the NYC-based crowds are advocating for? Throw on some VR goggles and explore the event with full access. Or cue into the southern Texan border to assess for yourself the handling of immigrant entry and border conflicts.

Take a front seat in the Capitol during tomorrow’s Senate hearing, assessing each Senator’s reactions, questions and arguments without a Fox News or CNN filter. Or if you’re short on time, switch on the holographic press conference and host 3D avatars of live-broadcasting politicians in your living room.

We often think of modern media as taking away consumer agency, feeding tailored and often partisan ideology to a complacent audience. But as wireless mesh networks and agnostic sensor data allow for immersive VR-accessible news sites, the average viewer will necessarily become an active participant in her own education of current events.

And with each of us interpreting the news according to our own values, I envision a much less polarized world. A world in which civic engagement, moderately reasoned dialogue, and shared assumptions will allow us to empathize and make compromises.

The future promises an era in which news is verified and balanced; wherein public ledgers, AI, and new web interfaces bring you into the action and respect your intelligence—not manipulate your ignorance.

Web 3.0 Reinventing Advertising
Bringing about the rise of ‘user-owned data’ and self-established permissions, Web 3.0 is poised to completely disrupt digital advertising—a global industry worth over 192 billion USD.

Currently, targeted advertising leverages tomes of personal data and online consumer behavior to subtly engage you with products you might not want, or sell you on falsely advertised services promising inaccurate results.

With a new Web 3.0 data and governance layer, however, distributed ledger technologies will require advertisers to engage in more direct interaction with consumers, validating claims and upping transparency.

And with a data layer that allows users to own and authorize third-party use of their data, blockchain also holds extraordinary promise to slash not only data breaches and identity theft, but covert advertiser bombardment without your authorization.

Accessing crowdsourced reviews and AI-driven fact-checking, users will be able to validate advertising claims more efficiently and accurately than ever before, potentially rating and filtering out advertisers in the process. And in such a streamlined system of verified claims, sellers will face increased pressure to compete more on product and rely less on marketing.

But perhaps most exciting is the convergence of artificial intelligence and augmented reality.

As Spatial Web networks begin to associate digital information with physical objects and locations, products will begin to “sell themselves.” Each with built-in smart properties, products will become hyper-personalized, communicating information directly to users through Web 3.0 interfaces.

Imagine stepping into a department store in pursuit of a new web-connected fridge. As soon as you enter, your AR goggles register your location and immediately grant you access to a populated register of store products.

As you move closer to a kitchen set that catches your eye, a virtual salesperson—whether by holographic video or avatar—pops into your field of view next to the fridge you’ve been examining and begins introducing you to its various functions and features. You quickly decide you’d rather disable the avatar and get textual input instead, and preferences are reset to list appliance properties visually.

After a virtual tour of several other fridges, you decide on the one you want and seamlessly execute a smart contract, carried out by your smart wallet and the fridge. The transaction takes place in seconds, and the fridge’s blockchain-recorded ownership record has been updated.

Better yet, you head over to a friend’s home for dinner after moving into the neighborhood. While catching up in the kitchen, your eyes fixate on the cabinets, which quickly populate your AR glasses with a price-point and selection of colors.

But what if you’d rather not get auto-populated product info in the first place? No problem!

Now empowered with self-sovereign identities, users might be able to turn off advertising preferences entirely, turning on smart recommendations only when they want to buy a given product or need new supplies.

And with user-centric data, consumers might even sell such information to advertisers directly. Now, instead of Facebook or Google profiting off your data, you might earn a passive income by giving advertisers permission to personalize and market their services. Buy more, and your personal data marketplace grows in value. Buy less, and a lower-valued advertising profile causes an ebb in advertiser input.

With user-controlled data, advertisers now work on your terms, putting increased pressure on product iteration and personalizing products for each user.

This brings us to the transformative future of retail.

Personalized Retail–Power of the Spatial Web
In a future of smart and hyper-personalized products, I might walk through a virtual game space or a digitally reconstructed Target, browsing specific categories of clothing I’ve predetermined prior to entry.

As I pick out my selection, my AI assistant hones its algorithm reflecting new fashion preferences, and personal shoppers—also visiting the store in VR—help me pair different pieces as I go.

Once my personal shopper has finished constructing various outfits, I then sit back and watch a fashion show of countless Peter avatars with style and color variations of my selection, each customizable.

After I’ve made my selection, I might choose to purchase physical versions of three outfits and virtual versions of two others for my digital avatar. Payments are made automatically as I leave the store, including a smart wallet transaction made with the personal shopper at a per-outfit rate (for only the pieces I buy).

Already, several big players have broken into the VR market. Just this year, Walmart has announced its foray into the VR space, shipping 17,000 Oculus Go VR headsets to Walmart locations across the US.

And just this past January, Walmart filed two VR shopping-related patents. In a new bid to disrupt a rapidly changing retail market, Walmart now describes a system in which users couple their VR headset with haptic gloves for an immersive in-store experience, whether at 3am in your living room or during a lunch break at the office.

But Walmart is not alone. Big e-commerce players from Amazon to Alibaba are leaping onto the scene with new software buildout to ride the impending headset revolution.

Beyond virtual reality, players like IKEA have even begun using mobile-based augmented reality to map digitally replicated furniture in your physical living room, true to dimension. And this is just the beginning….

As AR headset hardware undergoes breakneck advancements in the next two to five years, we might soon be able to project watches onto our wrists, swapping out colors, styles, brand, and price points.

Or let’s say I need a new coffee table in my office. Pulling up multiple models in AR, I can position each option using advanced hand-tracking technology and customize height and width according to my needs. Once the smart payment is triggered, the manufacturer prints my newly-customized piece, droning it to my doorstep. As soon as I need to assemble the pieces, overlaid digital prompts walk me through each step, and any user confusions are communicated to a company database.

Perhaps one of the ripest industries for Spatial Web disruption, retail presents one of the greatest opportunities for profit across virtual apparel, digital malls, AI fashion startups and beyond.

In our next series iteration, I’ll be looking at the tremendous opportunities created by Web 3.0 for the Future of Work and Entertainment.

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Posted in Human Robots

#433892 The Spatial Web Will Map Our 3D ...

The boundaries between digital and physical space are disappearing at a breakneck pace. What was once static and boring is becoming dynamic and magical.

For all of human history, looking at the world through our eyes was the same experience for everyone. Beyond the bounds of an over-active imagination, what you see is the same as what I see.

But all of this is about to change. Over the next two to five years, the world around us is about to light up with layer upon layer of rich, fun, meaningful, engaging, and dynamic data. Data you can see and interact with.

This magical future ahead is called the Spatial Web and will transform every aspect of our lives, from retail and advertising, to work and education, to entertainment and social interaction.

Massive change is underway as a result of a series of converging technologies, from 5G global networks and ubiquitous artificial intelligence, to 30+ billion connected devices (known as the IoT), each of which will generate scores of real-world data every second, everywhere.

The current AI explosion will make everything smart, autonomous, and self-programming. Blockchain and cloud-enabled services will support a secure data layer, putting data back in the hands of users and allowing us to build complex rule-based infrastructure in tomorrow’s virtual worlds.

And with the rise of online-merge-offline (OMO) environments, two-dimensional screens will no longer serve as our exclusive portal to the web. Instead, virtual and augmented reality eyewear will allow us to interface with a digitally-mapped world, richly layered with visual data.

Welcome to the Spatial Web. Over the next few months, I’ll be doing a deep dive into the Spatial Web (a.k.a. Web 3.0), covering what it is, how it works, and its vast implications across industries, from real estate and healthcare to entertainment and the future of work. In this blog, I’ll discuss the what, how, and why of Web 3.0—humanity’s first major foray into our virtual-physical hybrid selves (BTW, this year at Abundance360, we’ll be doing a deep dive into the Spatial Web with the leaders of HTC, Magic Leap, and High-Fidelity).

Let’s dive in.

What is the Spatial Web?
While we humans exist in three dimensions, our web today is flat.

The web was designed for shared information, absorbed through a flat screen. But as proliferating sensors, ubiquitous AI, and interconnected networks blur the lines between our physical and online worlds, we need a spatial web to help us digitally map a three-dimensional world.

To put Web 3.0 in context, let’s take a trip down memory lane. In the late 1980s, the newly-birthed world wide web consisted of static web pages and one-way information—a monumental system of publishing and linking information unlike any unified data system before it. To connect, we had to dial up through unstable modems and struggle through insufferably slow connection speeds.

But emerging from this revolutionary (albeit non-interactive) infodump, Web 2.0 has connected the planet more in one decade than empires did in millennia.

Granting democratized participation through newly interactive sites and applications, today’s web era has turbocharged information-sharing and created ripple effects of scientific discovery, economic growth, and technological progress on an unprecedented scale.

We’ve seen the explosion of social networking sites, wikis, and online collaboration platforms. Consumers have become creators; physically isolated users have been handed a global microphone; and entrepreneurs can now access billions of potential customers.

But if Web 2.0 took the world by storm, the Spatial Web emerging today will leave it in the dust.

While there’s no clear consensus about its definition, the Spatial Web refers to a computing environment that exists in three-dimensional space—a twinning of real and virtual realities—enabled via billions of connected devices and accessed through the interfaces of virtual and augmented reality.

In this way, the Spatial Web will enable us to both build a twin of our physical reality in the virtual realm and bring the digital into our real environments.

It’s the next era of web-like technologies:

Spatial computing technologies, like augmented and virtual reality;
Physical computing technologies, like IoT and robotic sensors;
And decentralized computing: both blockchain—which enables greater security and data authentication—and edge computing, which pushes computing power to where it’s most needed, speeding everything up.

Geared with natural language search, data mining, machine learning, and AI recommendation agents, the Spatial Web is a growing expanse of services and information, navigable with the use of ever-more-sophisticated AI assistants and revolutionary new interfaces.

Where Web 1.0 consisted of static documents and read-only data, Web 2.0 introduced multimedia content, interactive web applications, and social media on two-dimensional screens. But converging technologies are quickly transcending the laptop, and will even disrupt the smartphone in the next decade.

With the rise of wearables, smart glasses, AR / VR interfaces, and the IoT, the Spatial Web will integrate seamlessly into our physical environment, overlaying every conversation, every road, every object, conference room, and classroom with intuitively-presented data and AI-aided interaction.

Think: the Oasis in Ready Player One, where anyone can create digital personas, build and invest in smart assets, do business, complete effortless peer-to-peer transactions, and collect real estate in a virtual world.

Or imagine a virtual replica or “digital twin” of your office, each conference room authenticated on the blockchain, requiring a cryptographic key for entry.

As I’ve discussed with my good friend and “VR guru” Philip Rosedale, I’m absolutely clear that in the not-too-distant future, every physical element of every building in the world is going to be fully digitized, existing as a virtual incarnation or even as N number of these. “Meet me at the top of the Empire State Building?” “Sure, which one?”

This digitization of life means that suddenly every piece of information can become spatial, every environment can be smarter by virtue of AI, and every data point about me and my assets—both virtual and physical—can be reliably stored, secured, enhanced, and monetized.

In essence, the Spatial Web lets us interface with digitally-enhanced versions of our physical environment and build out entirely fictional virtual worlds—capable of running simulations, supporting entire economies, and even birthing new political systems.

But while I’ll get into the weeds of different use cases next week, let’s first concretize.

How Does It Work?
Let’s start with the stack. In the PC days, we had a database accompanied by a program that could ingest that data and present it to us as digestible information on a screen.

Then, in the early days of the web, data migrated to servers. Information was fed through a website, with which you would interface via a browser—whether Mosaic or Mozilla.

And then came the cloud.

Resident at either the edge of the cloud or on your phone, today’s rapidly proliferating apps now allow us to interact with previously read-only data, interfacing through a smartphone. But as Siri and Alexa have brought us verbal interfaces, AI-geared phone cameras can now determine your identity, and sensors are beginning to read our gestures.

And now we’re not only looking at our screens but through them, as the convergence of AI and AR begins to digitally populate our physical worlds.

While Pokémon Go sent millions of mobile game-players on virtual treasure hunts, IKEA is just one of the many companies letting you map virtual furniture within your physical home—simulating everything from cabinets to entire kitchens. No longer the one-sided recipients, we’re beginning to see through sensors, creatively inserting digital content in our everyday environments.

Let’s take a look at how the latest incarnation might work. In this new Web 3.0 stack, my personal AI would act as an intermediary, accessing public or privately-authorized data through the blockchain on my behalf, and then feed it through an interface layer composed of everything from my VR headset, to numerous wearables, to my smart environment (IoT-connected devices or even in-home robots).

But as we attempt to build a smart world with smart infrastructure, smart supply chains and smart everything else, we need a set of basic standards with addresses for people, places, and things. Just like our web today relies on the Internet Protocol (TCP/IP) and other infrastructure, by which your computer is addressed and data packets are transferred, we need infrastructure for the Spatial Web.

And a select group of players is already stepping in to fill this void. Proposing new structural designs for Web 3.0, some are attempting to evolve today’s web model from text-based web pages in 2D to three-dimensional AR and VR web experiences located in both digitally-mapped physical worlds and newly-created virtual ones.

With a spatial programming language analogous to HTML, imagine building a linkable address for any physical or virtual space, granting it a format that then makes it interchangeable and interoperable with all other spaces.

But it doesn’t stop there.

As soon as we populate a virtual room with content, we then need to encode who sees it, who can buy it, who can move it…

And the Spatial Web’s eventual governing system (for posting content on a centralized grid) would allow us to address everything from the room you’re sitting in, to the chair on the other side of the table, to the building across the street.

Just as we have a DNS for the web and the purchasing of web domains, once we give addresses to spaces (akin to granting URLs), we then have the ability to identify and visit addressable locations, physical objects, individuals, or pieces of digital content in cyberspace.

And these not only apply to virtual worlds, but to the real world itself. As new mapping technologies emerge, we can now map rooms, objects, and large-scale environments into virtual space with increasing accuracy.

We might then dictate who gets to move your coffee mug in a virtual conference room, or when a team gets to use the room itself. Rules and permissions would be set in the grid, decentralized governance systems, or in the application layer.

Taken one step further, imagine then monetizing smart spaces and smart assets. If you have booked the virtual conference room, perhaps you’ll let me pay you 0.25 BTC to let me use it instead?

But given the Spatial Web’s enormous technological complexity, what’s allowing it to emerge now?

Why Is It Happening Now?
While countless entrepreneurs have already started harnessing blockchain technologies to build decentralized apps (or dApps), two major developments are allowing today’s birth of Web 3.0:

High-resolution wireless VR/AR headsets are finally catapulting virtual and augmented reality out of a prolonged winter.

The International Data Corporation (IDC) predicts the VR and AR headset market will reach 65.9 million units by 2022. Already in the next 18 months, 2 billion devices will be enabled with AR. And tech giants across the board have long begun investing heavy sums.

In early 2019, HTC is releasing the VIVE Focus, a wireless self-contained VR headset. At the same time, Facebook is charging ahead with its Project Santa Cruz—the Oculus division’s next-generation standalone, wireless VR headset. And Magic Leap has finally rolled out its long-awaited Magic Leap One mixed reality headset.

Mass deployment of 5G will drive 10 to 100-gigabit connection speeds in the next 6 years, matching hardware progress with the needed speed to create virtual worlds.

We’ve already seen tremendous leaps in display technology. But as connectivity speeds converge with accelerating GPUs, we’ll start to experience seamless VR and AR interfaces with ever-expanding virtual worlds.

And with such democratizing speeds, every user will be able to develop in VR.

But accompanying these two catalysts is also an important shift towards the decentralized web and a demand for user-controlled data.

Converging technologies, from immutable ledgers and blockchain to machine learning, are now enabling the more direct, decentralized use of web applications and creation of user content. With no central point of control, middlemen are removed from the equation and anyone can create an address, independently interacting with the network.

Enabled by a permission-less blockchain, any user—regardless of birthplace, gender, ethnicity, wealth, or citizenship—would thus be able to establish digital assets and transfer them seamlessly, granting us a more democratized Internet.

And with data stored on distributed nodes, this also means no single point of failure. One could have multiple backups, accessible only with digital authorization, leaving users immune to any single server failure.

Implications Abound–What’s Next…
With a newly-built stack and an interface built from numerous converging technologies, the Spatial Web will transform every facet of our everyday lives—from the way we organize and access our data, to our social and business interactions, to the way we train employees and educate our children.

We’re about to start spending more time in the virtual world than ever before. Beyond entertainment or gameplay, our livelihoods, work, and even personal decisions are already becoming mediated by a web electrified with AI and newly-emerging interfaces.

In our next blog on the Spatial Web, I’ll do a deep dive into the myriad industry implications of Web 3.0, offering tangible use cases across sectors.

Join Me
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Posted in Human Robots

#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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#433282 The 4 Waves of AI: Who Will Own the ...

Recently, I picked up Kai-Fu Lee’s newest book, AI Superpowers.

Kai-Fu Lee is one of the most plugged-in AI investors on the planet, managing over $2 billion between six funds and over 300 portfolio companies in the US and China.

Drawing from his pioneering work in AI, executive leadership at Microsoft, Apple, and Google (where he served as founding president of Google China), and his founding of VC fund Sinovation Ventures, Lee shares invaluable insights about:

The four factors driving today’s AI ecosystems;
China’s extraordinary inroads in AI implementation;
Where autonomous systems are headed;
How we’ll need to adapt.

With a foothold in both Beijing and Silicon Valley, Lee looks at the power balance between Chinese and US tech behemoths—each turbocharging new applications of deep learning and sweeping up global markets in the process.

In this post, I’ll be discussing Lee’s “Four Waves of AI,” an excellent framework for discussing where AI is today and where it’s going. I’ll also be featuring some of the hottest Chinese tech companies leading the charge, worth watching right now.

I’m super excited that this Tuesday, I’ve scored the opportunity to sit down with Kai-Fu Lee to discuss his book in detail via a webinar.

With Sino-US competition heating up, who will own the future of technology?

Let’s dive in.

The First Wave: Internet AI
In this first stage of AI deployment, we’re dealing primarily with recommendation engines—algorithmic systems that learn from masses of user data to curate online content personalized to each one of us.

Think Amazon’s spot-on product recommendations, or that “Up Next” YouTube video you just have to watch before getting back to work, or Facebook ads that seem to know what you’ll buy before you do.

Powered by the data flowing through our networks, internet AI leverages the fact that users automatically label data as we browse. Clicking versus not clicking; lingering on a web page longer than we did on another; hovering over a Facebook video to see what happens at the end.

These cascades of labeled data build a detailed picture of our personalities, habits, demands, and desires: the perfect recipe for more tailored content to keep us on a given platform.

Currently, Lee estimates that Chinese and American companies stand head-to-head when it comes to deployment of internet AI. But given China’s data advantage, he predicts that Chinese tech giants will have a slight lead (60-40) over their US counterparts in the next five years.

While you’ve most definitely heard of Alibaba and Baidu, you’ve probably never stumbled upon Toutiao.

Starting out as a copycat of America’s wildly popular Buzzfeed, Toutiao reached a valuation of $20 billion by 2017, dwarfing Buzzfeed’s valuation by more than a factor of 10. But with almost 120 million daily active users, Toutiao doesn’t just stop at creating viral content.

Equipped with natural-language processing and computer vision, Toutiao’s AI engines survey a vast network of different sites and contributors, rewriting headlines to optimize for user engagement, and processing each user’s online behavior—clicks, comments, engagement time—to curate individualized news feeds for millions of consumers.

And as users grow more engaged with Toutiao’s content, the company’s algorithms get better and better at recommending content, optimizing headlines, and delivering a truly personalized feed.

It’s this kind of positive feedback loop that fuels today’s AI giants surfing the wave of internet AI.

The Second Wave: Business AI
While internet AI takes advantage of the fact that netizens are constantly labeling data via clicks and other engagement metrics, business AI jumps on the data that traditional companies have already labeled in the past.

Think banks issuing loans and recording repayment rates; hospitals archiving diagnoses, imaging data, and subsequent health outcomes; or courts noting conviction history, recidivism, and flight.

While we humans make predictions based on obvious root causes (strong features), AI algorithms can process thousands of weakly correlated variables (weak features) that may have much more to do with a given outcome than the usual suspects.

By scouting out hidden correlations that escape our linear cause-and-effect logic, business AI leverages labeled data to train algorithms that outperform even the most veteran of experts.

Apply these data-trained AI engines to banking, insurance, and legal sentencing, and you get minimized default rates, optimized premiums, and plummeting recidivism rates.

While Lee confidently places America in the lead (90-10) for business AI, China’s substantial lag in structured industry data could actually work in its favor going forward.

In industries where Chinese startups can leapfrog over legacy systems, China has a major advantage.

Take Chinese app Smart Finance, for instance.

While Americans embraced credit and debit cards in the 1970s, China was still in the throes of its Cultural Revolution, largely missing the bus on this technology.

Fast forward to 2017, and China’s mobile payment spending outnumbered that of Americans’ by a ratio of 50 to 1. Without the competition of deeply entrenched credit cards, mobile payments were an obvious upgrade to China’s cash-heavy economy, embraced by 70 percent of China’s 753 million smartphone users by the end of 2017.

But by leapfrogging over credit cards and into mobile payments, China largely left behind the notion of credit.

And here’s where Smart Finance comes in.

An AI-powered app for microfinance, Smart Finance depends almost exclusively on its algorithms to make millions of microloans. For each potential borrower, the app simply requests access to a portion of the user’s phone data.

On the basis of variables as subtle as your typing speed and battery percentage, Smart Finance can predict with astounding accuracy your likelihood of repaying a $300 loan.

Such deployments of business AI and internet AI are already revolutionizing our industries and individual lifestyles. But still on the horizon lie two even more monumental waves— perception AI and autonomous AI.

The Third Wave: Perception AI
In this wave, AI gets an upgrade with eyes, ears, and myriad other senses, merging the digital world with our physical environments.

As sensors and smart devices proliferate through our homes and cities, we are on the verge of entering a trillion-sensor economy.

Companies like China’s Xiaomi are putting out millions of IoT-connected devices, and teams of researchers have already begun prototyping smart dust—solar cell- and sensor-geared particulates that can store and communicate troves of data anywhere, anytime.

As Kai-Fu explains, perception AI “will bring the convenience and abundance of the online world into our offline reality.” Sensor-enabled hardware devices will turn everything from hospitals to cars to schools into online-merge-offline (OMO) environments.

Imagine walking into a grocery store, scanning your face to pull up your most common purchases, and then picking up a virtual assistant (VA) shopping cart. Having pre-loaded your data, the cart adjusts your usual grocery list with voice input, reminds you to get your spouse’s favorite wine for an upcoming anniversary, and guides you through a personalized store route.

While we haven’t yet leveraged the full potential of perception AI, China and the US are already making incredible strides. Given China’s hardware advantage, Lee predicts China currently has a 60-40 edge over its American tech counterparts.

Now the go-to city for startups building robots, drones, wearable technology, and IoT infrastructure, Shenzhen has turned into a powerhouse for intelligent hardware, as I discussed last week. Turbocharging output of sensors and electronic parts via thousands of factories, Shenzhen’s skilled engineers can prototype and iterate new products at unprecedented scale and speed.

With the added fuel of Chinese government support and a relaxed Chinese attitude toward data privacy, China’s lead may even reach 80-20 in the next five years.

Jumping on this wave are companies like Xiaomi, which aims to turn bathrooms, kitchens, and living rooms into smart OMO environments. Having invested in 220 companies and incubated 29 startups that produce its products, Xiaomi surpassed 85 million intelligent home devices by the end of 2017, making it the world’s largest network of these connected products.

One KFC restaurant in China has even teamed up with Alipay (Alibaba’s mobile payments platform) to pioneer a ‘pay-with-your-face’ feature. Forget cash, cards, and cell phones, and let OMO do the work.

The Fourth Wave: Autonomous AI
But the most monumental—and unpredictable—wave is the fourth and final: autonomous AI.

Integrating all previous waves, autonomous AI gives machines the ability to sense and respond to the world around them, enabling AI to move and act productively.

While today’s machines can outperform us on repetitive tasks in structured and even unstructured environments (think Boston Dynamics’ humanoid Atlas or oncoming autonomous vehicles), machines with the power to see, hear, touch and optimize data will be a whole new ballgame.

Think: swarms of drones that can selectively spray and harvest entire farms with computer vision and remarkable dexterity, heat-resistant drones that can put out forest fires 100X more efficiently, or Level 5 autonomous vehicles that navigate smart roads and traffic systems all on their own.

While autonomous AI will first involve robots that create direct economic value—automating tasks on a one-to-one replacement basis—these intelligent machines will ultimately revamp entire industries from the ground up.

Kai-Fu Lee currently puts America in a commanding lead of 90-10 in autonomous AI, especially when it comes to self-driving vehicles. But Chinese government efforts are quickly ramping up the competition.

Already in China’s Zhejiang province, highway regulators and government officials have plans to build China’s first intelligent superhighway, outfitted with sensors, road-embedded solar panels and wireless communication between cars, roads and drivers.

Aimed at increasing transit efficiency by up to 30 percent while minimizing fatalities, the project may one day allow autonomous electric vehicles to continuously charge as they drive.

A similar government-fueled project involves Beijing’s new neighbor Xiong’an. Projected to take in over $580 billion in infrastructure spending over the next 20 years, Xiong’an New Area could one day become the world’s first city built around autonomous vehicles.

Baidu is already working with Xiong’an’s local government to build out this AI city with an environmental focus. Possibilities include sensor-geared cement, computer vision-enabled traffic lights, intersections with facial recognition, and parking lots-turned parks.

Lastly, Lee predicts China will almost certainly lead the charge in autonomous drones. Already, Shenzhen is home to premier drone maker DJI—a company I’ll be visiting with 24 top executives later this month as part of my annual China Platinum Trip.

Named “the best company I have ever encountered” by Chris Anderson, DJI owns an estimated 50 percent of the North American drone market, supercharged by Shenzhen’s extraordinary maker movement.

While the long-term Sino-US competitive balance in fourth wave AI remains to be seen, one thing is certain: in a matter of decades, we will witness the rise of AI-embedded cityscapes and autonomous machines that can interact with the real world and help solve today’s most pressing grand challenges.

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Webinar with Dr. Kai-Fu Lee: Dr. Kai-Fu Lee — one of the world’s most respected experts on AI — and I will discuss his latest book AI Superpowers: China, Silicon Valley, and the New World Order. Artificial Intelligence is reshaping the world as we know it. With U.S.-Sino competition heating up, who will own the future of technology? Register here for the free webinar on September 4th, 2018 from 11:00am–12:30pm PST.

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Posted in Human Robots

#431995 The 10 Grand Challenges Facing Robotics ...

Robotics research has been making great strides in recent years, but there are still many hurdles to the machines becoming a ubiquitous presence in our lives. The journal Science Robotics has now identified 10 grand challenges the field will have to grapple with to make that a reality.

Editors conducted an online survey on unsolved challenges in robotics and assembled an expert panel of roboticists to shortlist the 30 most important topics, which were then grouped into 10 grand challenges that could have major impact in the next 5 to 10 years. Here’s what they came up with.

1. New Materials and Fabrication Schemes
Roboticists are beginning to move beyond motors, gears, and sensors by experimenting with things like artificial muscles, soft robotics, and new fabrication methods that combine multiple functions in one material. But most of these advances have been “one-off” demonstrations, which are not easy to combine.

Multi-functional materials merging things like sensing, movement, energy harvesting, or energy storage could allow more efficient robot designs. But combining these various properties in a single machine will require new approaches that blend micro-scale and large-scale fabrication techniques. Another promising direction is materials that can change over time to adapt or heal, but this requires much more research.

2. Bioinspired and Bio-Hybrid Robots
Nature has already solved many of the problems roboticists are trying to tackle, so many are turning to biology for inspiration or even incorporating living systems into their robots. But there are still major bottlenecks in reproducing the mechanical performance of muscle and the ability of biological systems to power themselves.

There has been great progress in artificial muscles, but their robustness, efficiency, and energy and power density need to be improved. Embedding living cells into robots can overcome challenges of powering small robots, as well as exploit biological features like self-healing and embedded sensing, though how to integrate these components is still a major challenge. And while a growing “robo-zoo” is helping tease out nature’s secrets, more work needs to be done on how animals transition between capabilities like flying and swimming to build multimodal platforms.

3. Power and Energy
Energy storage is a major bottleneck for mobile robotics. Rising demand from drones, electric vehicles, and renewable energy is driving progress in battery technology, but the fundamental challenges have remained largely unchanged for years.

That means that in parallel to battery development, there need to be efforts to minimize robots’ power utilization and give them access to new sources of energy. Enabling them to harvest energy from their environment and transmitting power to them wirelessly are two promising approaches worthy of investigation.

4. Robot Swarms
Swarms of simple robots that assemble into different configurations to tackle various tasks can be a cheaper, more flexible alternative to large, task-specific robots. Smaller, cheaper, more powerful hardware that lets simple robots sense their environment and communicate is combining with AI that can model the kind of behavior seen in nature’s flocks.

But there needs to be more work on the most efficient forms of control at different scales—small swarms can be controlled centrally, but larger ones need to be more decentralized. They also need to be made robust and adaptable to the changing conditions of the real world and resilient to deliberate or accidental damage. There also needs to be more work on swarms of non-homogeneous robots with complementary capabilities.

5. Navigation and Exploration
A key use case for robots is exploring places where humans cannot go, such as the deep sea, space, or disaster zones. That means they need to become adept at exploring and navigating unmapped, often highly disordered and hostile environments.

The major challenges include creating systems that can adapt, learn, and recover from navigation failures and are able to make and recognize new discoveries. This will require high levels of autonomy that allow the robots to monitor and reconfigure themselves while being able to build a picture of the world from multiple data sources of varying reliability and accuracy.

6. AI for Robotics
Deep learning has revolutionized machines’ ability to recognize patterns, but that needs to be combined with model-based reasoning to create adaptable robots that can learn on the fly.

Key to this will be creating AI that’s aware of its own limitations and can learn how to learn new things. It will also be important to create systems that are able to learn quickly from limited data rather than the millions of examples used in deep learning. Further advances in our understanding of human intelligence will be essential to solving these problems.

7. Brain-Computer Interfaces
BCIs will enable seamless control of advanced robotic prosthetics but could also prove a faster, more natural way to communicate instructions to robots or simply help them understand human mental states.

Most current approaches to measuring brain activity are expensive and cumbersome, though, so work on compact, low-power, and wireless devices will be important. They also tend to involve extended training, calibration, and adaptation due to the imprecise nature of reading brain activity. And it remains to be seen if they will outperform simpler techniques like eye tracking or reading muscle signals.

8. Social Interaction
If robots are to enter human environments, they will need to learn to deal with humans. But this will be difficult, as we have very few concrete models of human behavior and we are prone to underestimate the complexity of what comes naturally to us.

Social robots will need to be able to perceive minute social cues like facial expression or intonation, understand the cultural and social context they are operating in, and model the mental states of people they interact with to tailor their dealings with them, both in the short term and as they develop long-standing relationships with them.

9. Medical Robotics
Medicine is one of the areas where robots could have significant impact in the near future. Devices that augment a surgeon’s capabilities are already in regular use, but the challenge will be to increase the autonomy of these systems in such a high-stakes environment.

Autonomous robot assistants will need to be able to recognize human anatomy in a variety of contexts and be able to use situational awareness and spoken commands to understand what’s required of them. In surgery, autonomous robots could perform the routine steps of a procedure, giving way to the surgeon for more complicated patient-specific bits.

Micro-robots that operate inside the human body also hold promise, but there are still many roadblocks to their adoption, including effective delivery systems, tracking and control methods, and crucially, finding therapies where they improve on current approaches.

10. Robot Ethics and Security
As the preceding challenges are overcome and robots are increasingly integrated into our lives, this progress will create new ethical conundrums. Most importantly, we may become over-reliant on robots.

That could lead to humans losing certain skills and capabilities, making us unable to take the reins in the case of failures. We may end up delegating tasks that should, for ethical reasons, have some human supervision, and allow people to pass the buck to autonomous systems in the case of failure. It could also reduce self-determination, as human behaviors change to accommodate the routines and restrictions required for robots and AI to work effectively.

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