We live in massively complex systems. AI helps us see through much of the noise. In the world of algorithmic trading though, chaos is a lot more intense. Can AI make sense of the chaos and reach the algorithmic trading singularity?
The transition from the traditional auctions to computerized transactions began as early as 1970s. Stock exchanges started transforming to electronic markets as computers that executed trades faster and faster appeared. Computers enabled trading algorithms to access and act on information more quickly than human traders.
A boost to the adoption of algorithmic trading in the financial markets came in 2001 when IBM researchers demonstrated that algorithmic strategies could consistently out-perform human traders in financial markets. …
The first UN summit on the Sustainable Development Goals (SDGs) kicks off today in New York. The event also marks a cumulative rise in the SDG funding gap of $10 trillion on its 4th anniversary. The funding gap makes the SDGs almost impossible to achieve by 2030. No sustainability issue can be more serious than that. Is there a solution?
The world may not be unanimous on anything. But when it comes to our own sustainability all voices are in unison.
On September 25, 2015, the 193-Member United Nations General Assembly formally adopted the 2030 Agenda for Sustainable Development. A set of 17 bold new Sustainable Development Goals (SDGs) were drafted to be achieved by 2030. …
Widely touted as “the Blockchain Island,” Malta took the lead in regulating cryptocurrency. But in the enthusiasm, they seem to miss the basic premise of tokenomics. By totally abolishing tradable “utility tokens” they transformed all exchange-listed tokens into regulated security tokens, thereby excluding all Maltese crypto startups from being exchange-worthy, as exchanges list only the proven utility tokens. There are lessons to be learned from the Malta blunder.
Recently global media reported Indian regulators’ intent to ban all cryptocurrencies. We recently published a report debunking the myths surrounding cryptocurrencies, particularly in the Indian regulatory context. Blockchain an integral part of cryptocurrency is a trillion dollar opportunity that the world cannot afford to miss. Taking the lead in this mega opportunity apparently is Malta. According to a tweet by the Maltese Minister for financial services, on 4th, July 2019, Maltese Parliament enacted 3 bills to regulate DLT / cryptocurrency / blockchain claiming to become the first world jurisdiction to provide legal certainty to the crypto space. …
No matter how much decentralization is inherent in blockchain, human intervention will always work to centralize the power by one or the other means. Consensus algorithm is at the heart of such a power play.
A consensus algorithm is a process in computer science used to achieve agreement on a single data value among distributed processes or systems. Consensus algorithms are designed to achieve reliability in a network involving multiple unreliable nodes. Solving that issue — known as the consensus problem — is important in distributed computing and multi-agent systems.
Fault-tolerant technology is a capability of a computer system, electronic system or network to deliver uninterrupted service, despite one or more of its components failing. …
KYCed Crypto Makes Anonymity, Money Laundering, Tax Evasion Impossible, Why Then Ban & Lose On The Trillion Dollar Blockchain Revolution? Debunking the myth.
All regulatory negativism across the world regarding crypto assets is essentially based on three biggest myths:
Actually this is the single biggest myth. Even the so called high profiled blockchain / crypto gurus, experts, consultants are laid up with the notion that all crypto transactions are inherently anonymous. On the contrary, except a few especially designed coins, all of the 2,000+ cryptos out there are inherently transparent.
Blockchain ledgers are totally public and transparent to a level that each transaction is universally visible and identified via the transacting parties’ encrypted public keys. In case of bitcoin, transactions are anonymous only because the bitcoin public keys do not identify the account owner by name. Each and every bitcoin transaction since generation of the genesis block is publicly available for anyone to review. The only problem is that those transactions are identified only by the account owners’ encrypted public keys and not by their publicly identifiable IDs, giving the transaction public anonymity. Once the owner of the public key completes KYC (Know Your Customer) , their public key can be linked to their ID making each transaction visible to the regulators. Factually, KYC is the first step in any financial relationship that a user establishes with any of the known legacy systems. Obviously it will be the first step in creating a cryptocurrency wallet in any regulated cryptocurrency system. Even by today’s state-of-the-art, when biometric authentication is already becoming so pervasive that by the time a government regulates cryptocurrencies, almost all of us would already be KYCed by default. …
Blockchain is a technical term that threatens the homogeneity of dictionaries because of lack of a standard definition. We draft a technical definition of Blockchain.
In over a decade of its existence the term Blockchain lacks a standard definition. A definition is “a statement expressing the essential nature of something.” But why is a definition so important? Because definitions enable us to have a common understanding of a word or subject. They allow us all to be on the same page when discussing or reading about an issue.
When a term is scientific and technical, and it isn’t properly defined, it constitutes a ‘threat’ to the homogeneity of the macrostructure and of the microstructure of general dictionaries. …
Algorithmic obsolescence is on the horizon, threatening the advanced nations with poverty. We have to decide how we are going to deal with it, before it’s too late. Universal Basic Income (UBI) is one way. But, is it the only way?
Giving away free money to alleviate poverty is not a new concept. Activists in every generation have campaigned for the cause in one or the other way. In his 1967 book — Where Do We Go From Here: Chaos or Community? — Martin Luther King Jr wrote:
Sharonomics is a portmanteau blend of “share” & “economics” that introduces a new branch of knowledge. It’s a radical new take on economics.
To share is human, to expect nothing in return is divine. If we think sharing is a uniquely human trait, not to be found in the animal world, we haven’t known enough of the animal spirit. Sharonomics is as much an essence of the animal kingdom as it is ingrained in humanity.
The famous economist John Maynard Keynes used the term “Animal spirits” in his 1936 book The General Theory of Employment, Interest and Money to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior, and which can be measured in terms of, for example, consumer confidence. It has since been argued that trust is also included in or produced by “animal spirits”. …
MONEY is a claim on the Central Bank or a commercial bank! Will this change? Why? How and when? — Efi Pylarinou, Daily Fintech
The reason that money has been a claim on the central bank is simply because, the state-of-the-art so far just didn’t provide means to do it any other way. That may not be the case anymore.
Since posting 6 back-to-back articles on “Ideal Money” in the beginning of this year, nothing really came to our notice that provoked another blog on money until Efi Pylarinou’s recent post triggered the motivation.
The author essentially asks whether the centralized censored monetary system will in the future change to decentralized censorship resistant system? …
As much as J P Morgan’s JPM Coin creates the hype around cryptocurrency and stablecoins, it neither addresses nor solves the burgeoning problems that mainstream stablecoins are facing — long time price parity and convertibility.
On valentine’s day J P Morgan announced that they created a JPM coin, which will be pegged to the US Dollar. The move comes less than two years after JPM CEO Jamie Dimon called bitcoin a “fraud.” The announcement spread a frenzy across the crypto industry. Some calling it awesome for blockchain adaption, others warning against the hype. While Yahoo Finance predicted it will turn up the heat in the blockchain arms race among the largest U.S. banks, a Forbes author claimed that it’s not even a cryptocurrency. …