MACHINE LEARNING & BLOCKCHAIN. Columbia Finance Bootcamp Project 3

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BACKGROUND

Blockchain is a digital-ledger that is tamper-proof and auditable. The ledger is used as a common source of truth between parties who must transact, but often do not (or cannot) trust each other. Without shared, immutable data, each party is forced to hold proprietary information, creating a fragmented environment that results in redundancy and the need for manual reconciliation across multiple intermediaries. Based on studies conducted at the IBM/Columbia Blockchain Accelerator, a successful blockchain network will, therefore, be the “Switzerland” of an industry. Each network member must see a common problem related to a mission-critical function that the ledger can solve in a neutral manner. The common problems are usually related to process optimization, cost reduction, risk reduction, convenience/usability, and accessibility. In other words, the focus must be on designing a minimum viable ecosystem (MVE) that delivers shared value for an industry and for all members of the network. This doesn’t mean the network operator will not be compensated. According to IBM, $4 trillion in market value will be created by ledger technologies over the next 10 years, with the lion’s share of profits accruing to network operators - like us!