Block Chain

Concept
• Special type of database management system has more
features than a regular database differences between a
traditional database and a blockchain in the following list:
• Blockchains decentralize control without damaging trust in
the existing data. - This is not possible in other database
systems.
• Companies involved in a transaction cannot share their entire
database.
• But in blockchain networks, each company has its copy of the
ledger, and the system automatically maintains consistency
between the two ledgers.
• Although in most database systems you can edit or delete
data, in blockchain you can only insert data.
Concept
• A blockchain is a distributed database or ledger
shared among a computer network's nodes.
• They are best known for their crucial role in cryptocurrency systems
for maintaining a secure and decentralized record of transactions,
• but they are not limited to cryptocurrency uses. Blockchains can be
used to make data in any industry immutable—the term used to
describe the inability to be altered.
• Because there is no way to change a block,
• the only trust needed is at the point where a user or program
enters data.
• This aspect reduces the need for trusted third parties, which are
usually auditors or other humans that add costs and make
mistakes.
Concept
• Since Bitcoin's introduction in 2009, blockchain uses have exploded
via the creation of various cryptocurrencies, decentralized finance
(DeFi) applications, non-fungible tokens (NFTs), and smart contracts.
Concept
• Blockchain is a type of shared database that differs from a typical
database in the way it stores information;
• blockchains store data in blocks linked together via cryptography.
• Different types of information can be stored on a blockchain,
• but the most common use for transactions has been as a ledger.
• In Bitcoin’s case,
• blockchain is decentralized so that no single person or group has control—
instead, all users collectively retain control.
• Decentralized blockchains are immutable,
• which means that the data entered is irreversible.
• For Bitcoin, transactions are permanently recorded and viewable to anyone.
•.
 How Does a Blockchain Work?
• You might be familiar with spreadsheets or databases.
• A blockchain is somewhat similar because it is a database where
information is entered and stored.
• But the key difference between a traditional database or spreadsheet and a
blockchain is how the data is structured and accessed.
• A blockchain consists of programs called scripts that conduct the
tasks you usually would in a database:
• Entering and accessing information and saving and storing it somewhere.
• A blockchain is distributed, which means
• multiple copies are saved on many machines, and they must
all match for it to be valid.
How Does a Blockchain Work?
• The blockchain collects transaction information and enters it into a
block, like a cell in a spreadsheet containing information.
•\
• Once it is full, the information is run through an encryption
algorithm, which creates a hexadecimal number called the hash.

• The hash is then entered into the

• following block header and encrypted with the other information in the
block.
• This creates a series of blocks that are chained together.
How Does a Blockchain Work?
• A blockchain allows the data in a database to be spread out among
several network nodes—computers or devices running software for the
blockchain—at various locations.
• This maintains the fidelity of the data.
• For example, if someone tries to alter a record at one instance of the
database, the other nodes would prevent it from happening.
• This way, no single node within the network can alter information held
within it.
How Does a Blockchain Work?
• Because of this distribution—and the encrypted proof that work
was done—the information and history (like the transactions in
cryptocurrency) are irreversible.
• Such a record could be a list of transactions (such as with a
cryptocurrency),
• but it also is possible for a blockchain to hold a variety of other
information like
• legal contracts, state identifications, or a company’s
inventory.
How is blockchain different from the cloud?
• The term cloud refers to computing services that can be accessed
online.
• You can access Software as a Service (SaaS),
• Product as a Service (PaaS), and
• Infrastructure as a Service (IaaS) from the cloud.
• Cloud providers manage their hardware and infrastructure and give
you access to these computing resources over the internet.
• They provide many more resources than just database management.
• If you want to join a public blockchain network, you need to provide
your hardware resources to store your ledger copy.
• You could use a server from the cloud for this purpose too. Some
cloud providers also offer complete Blockchain as a Service (BaaS)
from the cloud.
What is Blockchain as a Service?

• Blockchain as a Service (BaaS) is a managed blockchain service that a

third party provides in the cloud.
• You can develop blockchain applications and digital services while the
cloud provider supplies the infrastructure and blockchain building
tools.
• All you have to do is customize existing blockchain technology, which
makes blockchain adoption faster and more efficient.
Block Chain
• Types
• Sectors
• Industries affected
Artificial Intelligence
• " It is the science and engineering of making intelligent machines,
especially intelligent computer programs.
• It is related to the similar task of using computers to understand
human intelligence,
• but AI does not have to confine itself to methods that are biologically
observable.“
• John McCarthy 2004
• Alan Turing’s - "Can machines think?" 1950 - "Turing Test", where a human
interrogator would try to distinguish between a computer and human text
response.
 Artificial Intelligence
• Artificial intelligence leverages computers, data and sometimes machines to
mimic the problem-solving and decision-making capabilities of the human
mind
• machine learning and deep learning, which use AI algorithms trained on
data to make predictions or classifications, and get smarter over time.
• The way in which deep learning and machine learning differ is in how each
algorithm learns.
• automation of repetitive tasks, improved decision making and a better
customer experience.
Artificial Intelligence
• Deep Learning –
• Generative AI refers to deep-learning models that can take raw data
— say, all of Wikipedia or the collected works of Rembrandt — and
“learn” to generate statistically probable outputs when prompted.
• At a high level, generative models encode a simplified
representation of their training data and
• draw from it to create a new work that’s similar, but not identical, to
the original data
• GPT-3, BERT, or DALL-E 2,
 Artificial intelligence applications
• Speech recognition - automatic speech recognition (ASR), speech-to-text,
natural language processing (NLP) – Siri
• Customer service: Online virtual agents - (FAQs) around topics - messaging bots
on e-commerce sites
• Computer vision: This AI technology enables computers and systems to derive
meaningful information from digital images, videos and other visual inputs, and
based on those inputs, it can take action. - photo tagging in social media,
radiology imaging in healthcare, self-driving cars within the automotive industry
• Recommendation engines: Using past consumption behavior data, AI
algorithms can help to discover data trends that can be used to develop more
effective cross-selling strategies - relevant add-on recommendations to
customers during the checkout process for online retailers.
Combined values of blockchain and AI
• Authenticity
• Augmentation
• Automation
• Healthcare – Patient Data
• Life Sciences – Medicine management – medicine supply chain
management
• Financial Services – multiparty transactions – trust – automation of
evaluation processes
• https://www.ibm.com/topics/blockchain-ai
Combined values of blockchain and AI
• Authenticity – Authentic Data - Trust
• Augmentation – of capabilities - Actionable insights
• Automation – supply chain operations – repetitive tasks – standard
operations
• AI models embedded in smart contracts executed on a blockchain can
recommend expired products to recall,
• execute transactions — such as re-orders, payments, or stock purchases
based on set thresholds and events — resolve disputes, and select the most
sustainable shipping method.

• https://www.ibm.com/topics/blockchain-ai
Case Studies - Combined values of blockchain and
AI
• IPwe – Platform – IPwe has created the Global Patent Registry (GPR), the world’s
first blockchain-powered patent platform to
• manage intellectual property, increasing visibility and flexibility for both buyers and sellers.
• Better information and more transparency to the system
• Patent ownership conventionally is tracked through heaps of complex paperwork
for millions of patents, resulting in a great deal of money lost on these assets. –
Patent Portfolio Analysis – Patent Mappings
• Most companies who sell something want you to know they sold it, but with IP,
they played by a different set of rules: confidentiality and hidden transactions.”
• Understanding the value of asset owned
• AI - Analyse the patent information – better performances in capital market
• BlockChain – tokenize and make it available for capital market- digital trust

• https://www.ibm.com/topics/blockchain-ai
Case Studies - Combined values of blockchain and
AI
• IPwe – Platform –
• IPwe has created the Global Patent Registry (GPR), the world’s first blockchain-
powered patent platform to manage intellectual property, increasing visibility
and flexibility for both buyers and sellers.
• Better information and more transparency to the system

• Potential of technology and patent uses via capital market

• Realize better return on asset
• Increase in transactions, volumes
• Investment in problem solving
Case Studies - Combined values of blockchain and
AI
• Heifer International and IBM aiding coffee and cocoa growers
• Identify the Role of AI – What is the information analysis for? Is there
any?
• Identify role of Block Chain – Is there a digital trust?

• https://www.ibm.com/topics/blockchain-ai
 AI, BlockChain and E-Contracts
• https://www.accenture.com/in-en/case-studies/about/blockchain-contracts-harn
essing-new-technology
• Contract Management Services
• Accenture Blockchain for Contracts provides a new way to draft and sign
contracts with
• low friction, high efficiency and encrypted data.
• Accenture Blockchain for Contracts takes existing paper contracts and puts them
on a shared blockchain database
• that every designated party can use to securely view contracts,
• revise and accept changes, all captured on the blockchain ledger
• The result is
• definitive contracts, stored electronically in one location accessible by only the parties
with access, and with clearly recorded versions and activity.
AI, BlockChain and E-Contracts
• https://www.accenture.com/in-en/case-studies/about/blockchain-contracts
-harnessing-new-technology

• Contract Management Services

• It is offered as a software-as-a-service (SaaS)-like service and
• supports a wide range of business-to-business contract management needs.
• Value for organizations by having a
• single repository for contracts that indisputably houses latest, agreed-upon
versions.
Regulatory Framework
• AI –
• The issues
AI and Autonomous Vehicle
• What is the concept?
• What are the elements / components of the technology?
• Are there any broad factors or levels of implementation of technology?
• What role does AI has?
• State at least two case studies on Autonomous Vehicles using AI
• Identify and enlist the regulatory issues

• https://www.techtarget.com/searchenterpriseai/definition/driverless-car
Criminal Liability on AI
• Indonesia
• the harmful act by AI doctors shall be charged by the provision of
Indonesian criminal law.
• Specifically, doctor or other related parties which controlled and
assisted the AI are most proper party
• may subjected to the legal responsibility in the use of AI doctor.
 Criminal Liability on AI – Russia and China
• According to existed criminal law of Russia and criminal law of the People’s Republic of
China AI crimes can be divided into three types:
• Crimes, which can be regulated with existed criminal laws;
• Crimes, which are regulated inadequately with existed criminal laws;
• Crimes, which cannot be regulated with existed criminal laws.
• Solution of the problem of criminal liability for AI crimes should
• depend on capacity of the AI agent to influence on ability of a human to understand public danger
of committing action and to guide his activity or omission.
• If a machine integrates with an individual,
• but it doesn’t influence on his ability to recognize or to make decisions. In this case an individual is
liable to be prosecuted.
• If a machine influences partially on human ability to recognize or to make decisions.
• In this case engineers, designers and units of combination should be prosecuted according to
principle of relatively strict liability.
• In case, when AI machine integrates with an individual and controls his abiity to recognize
or to make decisions,
 Criminal Liability on AI – Russia and China
• Journal of Siberian Federal University. Humanities & Social Sciences; 2022 15
(8)
Gabriel Hallevy's Models of
Criminal Liability of Artificial Intelligence Entities
• The perpetration-via-another liability model,
• AI as innocent agent – merely a tool – lack of mens rea – liability on
producer- but with a presumption of complete dependence of human
orders
• Not suitable – as AI has evolved with decision making capability – and
not an innocent agent - Al entity decides to commit an offence based
on its own accumulated experience or knowledge
Gabriel Hallevy's Models of Criminal
Liability
• The Natural-Probable-Consequence Liability Model’
• assumes deep involvement of the programmers or users in the AI’s
Daily activities,
• but without any intention of committing any offence via the entity
• Auto-pilot intervention by human may be interpreted as a threat to
the task / mission – AI can commit an offensive act to eliminate the
‘threat’ – Seat Ejection – Air Supply Cut-off Pilot Killed
• Human Killed – programmer didn’t have the intention – result of AI
action – based on programming – (upto what extent?)
Gabriel Hallevy's Models of Criminal Liability

• The Natural-Probable-Consequence Liability Model’ -

• Programmers or users are not required to know about any forthcoming
commission of an offence as result of their activity,
• but are required to know that such an offence is a natural, probable
consequence of their actions..
• human activity is merely linked to the
• malfunction of the Al entity in the manner that
• the programmer or the user should have considered the possible consequence of
a crime being committed in certain circumstances by the Al entity.
• AI - Merely an accomplice? But seems workable
 Gabriel Hallevy Models of Criminal Liability
• The Direct Liability Model
• The new technology developments prove that Al entities are able to interpret large
amounts of data from its sensors,
• Able to differentiate between right and wrong, and even to analyse what is permitted or
forbidden.
• Hence, as long as an Al entity is capable of the above, it should be culpable for its crimes

• Can the criminal liability of an Al replace the criminal liability of the

programmers or the users, ?
• if criminal liability is imposed on the programmers and/or users by any other legal path.
• Whether criminal liability should be imposed on the Al entity in addition to the criminal
liability of the human programmer or
• user as criminal liability is not to be divided, but are combined?
Critique
• complex processes of how Al entities are built with technological
developments

• are collaborative and polymorphic – in the sense of programming nitty

gritty
• the criminal liability of each of the hardware manufacturers – certain
hardware manufacturers have history to compromise on safety features

• Hallevy's models cannot be applied in their current form,

• there is need for the review of the existing criminal law framework for the
models to be applicable.
Critique & Conclusion
• Presuming that Al entities have
• self-awareness,
• Self-consciousness, and
• Free will,
• their criminal responsibility is present, and
• since the Al entities can embody social and ethical cores, directly or indirectly. –
being human creations, either
• there are sufficient dogmatic, juridical and technological apparatus to
enable Al entities
• qualify as active legal actors in criminal justice.
Citation
• K. Ogunnoiki & Ikenga K. E. Oraegbunam, A Critique of Gabriel
Hallevy's Models of
• Criminal Liability of Artificial Intelligence Entities, 4 IJOCLLEP 1 (2022).