$26 Billion Crypto Collapse Last Week!

BlockchainNews reported that the comments of Daria Generalova  (Managing Partner at ICOBox) that “I believe there are several reasons for the latest market collapse. First, there was a massive cryptocurrency selloff, which was partly related to the news of the hardfork of Bitcoin Cash.” The November 21, 201 report entitled “A Review of this weeks Market Collapse, this was one of the Most Dramatic Daily Selloffs in The Entire Year” included these comments:

It’s been a rocky week in crypto land. This week the crypto market took a deep nosedive, losing $26 billion – a staggering amount by any metric.

This was one of the most dramatic daily selloffs in the entire 2018. Bitcoin, which remained exceptionally stable in August-November, suffered a drop of more than 11% over a 12-hour period.

This unexpected fall in the BTC rate created a domino effect for other major cryptocurrencies.

The market is yet to bounce back.

Stay tuned!

Blockchain may be the solution for global finance

BlockchainNews reported that “‘Big Four’ accounting firm KPMG highlights a dire need for the global financial system to make radical changes, including through the adoption of digital currency in place of antiquated interbank payment and settlement structures.”  The November 20, 2018 report entitled “Big Banks Finally See That Finance Is Due a Revamp, but Is It Too Late” included contributions from Bank of England, Bank of Canada, HSBC, among other that “shows is a shift in sentiment towards creating a new way to transfer value across borders” and that:

This indicates little more than very early beginnings; banks are only just starting to edge into this space and while aptly recognizing the need to adapt may be the first step, already well-funded ventures have come up with plans for an alternative.

Challenger banks are nothing new, and customers now have a range of options which allow them to control funds exclusively on mobile and online.

The success of these FinTech startups has made consumer feeling clear: make our personal money easier to access and charge us fewer fees.

Not much of a surprise….what do you think?

What’s wrong with this news? Japan’s Cybersecurity Minister has never used a computer!

The New York Times reported “Japanese lawmakers were aghast on Wednesday when Yoshitaka Sakurada, 68, the minister who heads the government’s cybersecurity office, said during questioning in Parliament that he had no need for the devices, and appeared confused when asked basic technology questions.” The November 15, 2018 Report entitled “Minister in Charge of Japan’s Cybersecurity Says He Has Never Used a Computer” included these details:

Asked by a lawmaker if nuclear power plants allowed the use of USB drives, a common technology widely considered to be a security risk, Mr. Sakurada did not seem to understand what they were.

The Japanese prime minister, Shinzo Abe, gave Mr. Sakurada oversight of cybersecurity and the Olympics and Paralympics last month in a cabinet shake-up.

About all I can is WOW! What do you think?

Can AI really be worth $15.4 TRILLION?

McKinsey reported that total potential “annual value of AI and analytics across industries to be be worth $9.5 to $15.4 trillion” in its report entitled “The executive’s AI playbook” which includes 3 different perspectives:

Value & Assess – Size the opportunity and determine data needs

Execute – Learn best practices to realize value

Beware – Know the warning signed of AI program failure

The 3rd perspective to Beware includes 10 “warning signs of AI program failure” which are part of the May 2018 report “Ten red flags signaling your analytics program will fail” which includes #10 that “No one is hyperfocused on identifying potential ethical, social, and regulatory implications of analytics initiatives”:

It is important to be able to anticipate how digital use cases will acquire and consume data and to understand whether there are any compromises to the regulatory requirements or any ethical issues.

One large industrial manufacturer ran afoul of regulators when it developed an algorithm to predict absenteeism. The company meant well; it sought to understand the correlation between job conditions and absenteeism so it could rethink the work processes that were apt to lead to injuries or illnesses. Unfortunately, the algorithms were able to cluster employees based on their ethnicity, region, and gender, even though such data fields were switched off, and it flagged correlations between race and absenteeism.

Luckily, the company was able to pinpoint and preempt the problem before it affected employee relations and led to a significant regulatory fine. The takeaway: working with data, particularly personnel data, introduces a host of risks from algorithmic bias. Significant supervision, risk management, and mitigation efforts are required to apply the appropriate human judgment to the analytics realm.

First response: As part of a well-run broader risk-management program, the CDO should take the lead, working with the CHRO and the company’s business-ethics experts and legal counsel to set up resiliency testing services that can quickly expose and interpret the secondary effects of the company’s analytics programs. Translators will also be crucial to this effort.

Here are all Ten Red Flags:

  1. The executive team doesn’t have a clear vision for its advanced-analytics programs
  2. No one has determined the value that the initial use cases can deliver in the first year
  3. There’s no analytics strategy beyond a few use cases
  4. Analytics roles—present and future—are poorly defined
  5. The organization lacks analytics translators
  6. Analytics capabilities are isolated from the business, resulting in an ineffective analytics organization structure
  7. Costly data-cleansing efforts are started en masse
  8. Analytics platforms aren’t built to purpose
  9. Nobody knows the quantitative impact that analytics is providing
  10. No one is hyperfocused on identifying potential ethical, social, and regulatory implications of analytics initiatives

Time will tell about the real value of AI!

Great ADR Program in Palo Alto Sponsored by the SVAMC!

I am honored to be a member of the Silicon Valley Arbitration and Mediation Center Tech-List who was one of the program sponsors, …and it was a great privilege to serve on a Panel about Arbitrating Technology and Patent disputes with Bryan Sinclair from Cisco, Adam Rattray from WIPO, and David Allgeyer at Allgeyer Law & ADR LLC.  The half day program on November 7, 2018 was entitled “Advanced Issues in Tech and Patent ADR: Mediating and Arbitrating Disputes” and co-sponsored by SVAMC, WIPO, Farella Braun & Martel LLP, Wilson Sonsini Goodrich & Rosati.  It was also great to see old friends and meet new friends!