Unit 3 - Emerging Technologies

UNIT OUTCOMES

On completion of this unit you should be able to;

• Discuss big data analytics
• Understand internet of things and internet of everything
• Understand blockchain technology
• Examine the main potential applications of blockchain
• Understand the use of robots
• Understand what are virtual robots
• Explain what Robo-Advisors are
 BIG DATA ANALYTICS
• Big Data Analytics can be defined as the application of a broad scope of data from within and around a
business. It is usually very difficult to use this data set and it might not be enough to use conventional
computing applications. Such a gap has consequently driven the growth of many businesses invested in
capitalizing on Big Data Analytics.
• There are three aspects of Big Data Analytics. These are known as the 3 Vs
• Volume: fairly relative large amount of data. The term "relative" refers to a company: a small
company could classify a fairly small data volume as Big Data Analytics. The vast amount of data
that is continuously flowing and rapidly growing inside and out of each organization is what is
referred to as Big Data Analytics.
• Velocity: In order to make prompt decisions, particularly in the functional context, organizations
should be equipped to obtain, process, evaluate and document large amounts of information as
rapidly as possible.
• Variety: The bulk of organizational data is unstructured (estimated at an average of 85%).
 INTERNET OF THINGS AND INTERNET OF (EVERYTHING)THINGS
• Internet of Things (IoT) is one of the most important innovations in technology. It is sometimes called
Internet of Everything (IoE) by Cisco. IoT is a connection between uniquely recognizable embedded
computing devices within the current internet infrastructure (Pereira and Romero, 2017). IoT enables the
use of the internet to connect not just individuals, but also artefacts of any sort.

• For example, cell phones, laptops or printers can be linked to the home network using a Wi-Fi router. For
data transfer, gadgets need to be identified by network and internet protocols: IPV4 and IPV6 are used to
address computers where IP stands for Internet protocol (Li, Hou and Wu, 2017). A breakthrough in
technology would be the ability to link systems, devices and sensors.

• The interconnectedness of these portable systems (including smart objects) allows automation in almost
all fields. In insurance, IoT can relate to a broad range of machines, including health-monitoring
instruments, biosensor transmitters on domestic animals, automobiles that have internal sensors, or
field-operated machines that aid in the monitoring system of a large number of machines and
circumstances
 BLOCKCHAIN TECHNOLOGY
• Blockchain was created together with Bitcoin, a virtual currency. Blockchain is basically a server for
documenting transactions in a safe manner. Blockchain is a shared database, capable of creating a public
record of all transactions, not necessarily stored at a single physical location, but instead scattered over
a network of intertwined computing.

• Blockchain is a distributed solution, for example, all group members in the P2P network have a duplicate
of the full set of data. As a result, there is no official jurisdiction. Each network user may use
cryptography and digital signatures to try and influence the log without triggering security problems.

Different Forms of Blockchain

Distributed ledgers may either be:

• Public: that is any person wishing to do so can have exposure to the Ledger and request transactions for
participation. This is the blockchain technology used by Bitcoin. Most perceive this to be the genuinely
democratized type of the ledger and the optimal system.

• Private: just a limited number of participants will display and submit transactions. While several
participants may be present in the sector, only certain entities or organizations would have access to the
ledger and to the production of the blockchain. This approach is similar to financial transactions or
conventional banking due to the centralized nature of the process. A few entities or brokers are able to
validate these transactions, but everyone can engage in asset trading
 BLOCKCHAIN CATEGORIES
• Permission less: which entails that anyone can add on to the blockchain. As described before, once
checked, the transaction is added to the block chain. With the permission less ledger, anybody may
decide to participate in this verification network and receive possible incentives for their participation.

• Permissioned blockchains gain momentum between financial and virtual ledger based start-ups. For
the transaction to be complete, a financial institution needs to test non-cash transfers between
people. It is reasonable that organizations want the same level of control on digital currency
verification and documentation to reduce risks
 APPLICATIONS OF BLOCKCHAIN
• Blockchain can be used as an open data for interrelationships between an organisations and third
parties: networks of agencies, vendors externally, and clients. Dispersed ledgers, like blockchain, have
many opportunities for cross-industry usages. These include dispersed ledgers with verification,
transaction recording and access limitations.

• Blockchain may impact fund management, bond and debt management, trading and the handling of
claims. It may offer strong assistance to trade finance in the financial environment.

• Blockchain could help with a distributed ledger solution in the development of smart contracts (a
computerised program or transaction mechanism designed to automatically execute, monitor or
record events and acts that are legally significant in compliance with the contractual terms or
agreement). It may help with customer identity, reference information and assets management in a
contract or order
 ROBOTS
• A robot is a technology or technological process that can execute operations previously performed by
humans. Robots are increasingly finding ways to provide financial services as well.

• Fintech has disrupted the financial services sector with contemporary services and products and has
disrupted the traditional organisational paradigm through technological innovations. Virtual robotics is
one of the major innovations in this area.

• Robo-advisors are defined as specific group of advisers who offer online services with "limited person
interference". While robot consultants might back up wealth administration services, they have so far
been used primarily in portfolio administration.