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AI needs a killer app to prove it’s not a bubble — Goldman Sachs, MIT

Analysts were split over whether today’s AI investments would pay off in the next decade.

Analysts from Goldman Sachs and MIT recently took a deep dive into the generative artificial intelligence (AI) market to determine its short- and long-term viability for investors. 

The question looming over their research was whether the current AI market represents an expanding bubble waiting to burst, or the “pickaxes and shovels” stage of the next frontier for technology and industry.

Unfortunately, according to the report, the answer isn’t so simple. The marketplace differences that occur when a bubble is about to burst — as seen when the dot-com bubble burst — and a killer application is about to turbocharge a technology — as seen when Satoshi Nakamoto et al. invented cryptocurrency — can be too subtle to see until it’s too late.

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DARPA release highlights difficulty in developing quantum finance solutions

Quantum computing for finance is proving to be one of the harder problems for scientists in the field.

Researchers from a number of prestigious laboratories throughout the United States, including MIT’s Lincoln laboratory, NASA, and the Los Alamos National Laboratory, recently collaborated with a government program to identify and benchmark key areas for quantum computing researchers to focus on. 

The U.S. government’s military think tank, the Defense Advanced Research Projects Agency (DARPA) led the research. Its purported purpose was to provide an overview of current and future quantum computing capabilities in areas such as chemistry and material science. But, in the field most related to future finance and fintech applications, the team wasn’t able to determine if quantum computing could provide a clear advantage.

Scientists believe quantum computing will one day demonstrate a clear advantage (called “quantum advantage” or “quantum supremacy”) over classical, binary computers in a variety of different computations.

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Gone in 12 Seconds: Two MIT-Educated Brothers Arrested for Alleged Lightning-Fast $25,000,000 Crypto Exploit

Gone in 12 Seconds: Two MIT-Educated Brothers Arrested for Alleged Lightning-Fast ,000,000 Crypto Exploit

Two US brothers who attended the Massachusetts Institute of Technology (MIT) have been arrested for allegedly partaking in a high-speed multimillion-dollar crypto heist. According to a new press release by the U.S. Department of Justice (DOJ), the brothers – Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York – have been attained […]

The post Gone in 12 Seconds: Two MIT-Educated Brothers Arrested for Alleged Lightning-Fast $25,000,000 Crypto Exploit appeared first on The Daily Hodl.

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MIT, German central bank will research CBDC privacy in new project

The Deutsche Bundesbank is the fourth central monetary authority to conduct research in conjunction with MIT’s Digital Currency Initiative.

The Deutsche Bundesbank is the latest monetary authority to team up with the Massachusetts Institute of Technology (MIT) Digital Currency Initiative (DCI) to study central bank digital currency (CBDC). President of the German central bank Joachim Nagel spoke at the launch of the project about challenges ahead for the digital euro.

Nagel told MIT students that the joint research will focus on designing security and privacy measures in a CBDC. The problem is that private digital payment solutions often use third-party services that gain access to consumers’ payment data, which they can use for commercial purposes. In contrast:

Nagel went on the say the current payments system does not work well. “German bank cards, for example, don’t always work in other euro area countries, even if they contain a payment scheme operated by an international company,” he said.

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Harvard scientists claim breakthrough, ‘advent of early error-corrected quantum computation’

The team’s results, once reviewed, could represent a significant milestone in quantum computing research.

When industry insiders talk about a future where quantum computers are capable of solving problems that classical, binary computers can’t, they’re referring to something called “quantum advantage.”

In order to achieve this advantage, quantum computers need to be stable enough to scale in size and capability. By-and-large, quantum computing experts believe the largest impediment to scalability in quantum computing systems is noise.

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Gary Gensler’s Bitcoin ETF position is ‘inconsistent’… says Gary Gensler

During a panel at the 2019 MIT Bitcoin Expo, Gensler called out the securities regulator for its ‘inconsistent’ approach to spot Bitcoin ETF approvals.

Gary Gensler once criticized the United States securities regulator for its “inconsistent” approach to spot Bitcoin (BTC) products, according to a resurfaced video of Gensler from 2019.

The video clip, which has recently made the rounds again on social media, shows the pre-SEC Gensler discussing blockchain regulation at the 2019 MIT Bitcoin Expo in a fireside chat with Securities and Exchange Commission (SEC) commissioner Hester Peirce.

“Bitcoin futures, and I think Ethereum futures and so forth, will exist and Bitcoin ETFs have not and that feels a little inconsistent to me [...]It feels a little inconsistent,” Gensler said.

“Even though the laws aren’t exactly the same, they’re quite similar,” he added.

Meanwhile, on X (Twitter), the crypto community couldn’t help but highlight the contrast with Gensler’s views toward spot Bitcoin ETFs today.

​​​​”​​Gary Gensler says Gary Gensler is wrong,” market analyst Zack Voell posted. “We missed out on chill and normal Gensler,” another X user remarked.

To date, the SEC has only approved Bitcoin and Ethereum futures ETFs.

Related: Ripple CEO criticizes former SEC Chair Jay Clayton’s comments

From as far back as 2017 the SEC has rejected spot Bitcoin ETF applications, a tradition carried on under Gensler who has denied, delayed or pushed back recent spot Bitcoin ETF applications claiming the funds don’t have protections for market manipulation.

Gensler’s SEC was sued by asset manager Grayscale for rejecting its bid to convert its existing Bitcoin trust into a spot ETF.

A court ruled the SEC was “arbitrary and capricious” to reject the application. The SEC did not appeal the decision.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

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MIT Digital Currency Initiative introduces at-scale, programmable CBDC platform

PARSEC (Parallelized Architecture for Scalably Executing Smart Contracts) runs on the ERC-20 standard, so it could have other applications too.

The Massachusetts Institute of Technology (MIT) Digital Currency Initiative (DCI) has introduced the experimental Parallelized Architecture for Scalably Executing Smart Contracts (PARSEC) platform. The platform is open-source and developed with central bank digital currency (CBDC) in mind. 

The developers highlighted the platform’s speed. It performed 118,000 ERC-20 transactions per second on 128 hosts – exceeding public permissionless blockchains, they said. The platform was thus capable of handling cross-border contracting, and could be used to innovate supply chains and compliance checks as well.

PARSEC logo. Source: MIT DCI

PARSEC supports ERC-20 tokens, so an automated market maker launched on the platform could transact with such assets as bonds, tokenized securities and repurchase agreements in addition to CBDC. Because it supports virtual machines, it would simplify interactions between central and commercial banks.

The platform required “significant” amounts of continuing research, the developers said. They pointed to security, key management, and data migration tooling as areas that required refinement. Privacy was also left as an open question.

Related: Standard Chartered, PwC make case for programmable CBDC in China Greater Bay Area

Privacy of CBDCs is a particularly painful point for the crypto community, which is largely opposed to any form of CBDC. Programmability is no less controversial. The PARSEC summary stated:

“We focused on smart contracts because they provide the highest degree of expressivity and functionality to users.”

That functionality is exactly what many in the crypto community objects to. Crypto researcher Nikhil Raghuveera stated in Cointelegraph in April:

“Programmability allows for asset backing and decentralization that is not possible under current CBDC designs. Developers should be taking advantage of the programmable opportunities that stable[coin] assets offer rather than trying to compete with CBDCs.”

Programmability allows restrictions to be placed on the uses of a digital currency, which can be useful in a decentralized finance environment, but it could enable governmental overreach in a CBDC by preventing certain purchases or imposing conditions such as negative interest, opponents argue.

PARSEC is the result of research conducted in 2022. It is another product of Project Hamilton, a joint undertaking by the DCI and the Federal Reserve Bank of Boston. Project Hamilton was declared completed in late 2022, shortly after a group of Republicans in the United States House of Representatives wrote to the head of the Boston Fed expressing their reservations about the project.

The Fed has stated repeatedly that it would not introduce a CBDC without a Congressional mandate, but CBDC research by the Fed is continuing.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: Are CBDCs kryptonite for crypto?

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Universities use blockchain-based storage to protect and democratize data

Decentralized solutions can make academic research more secure and more accessible.

Academic institutions house some of the world’s most important data generated from years of research. Yet centralized data storage models are becoming a concern for many universities looking to keep critical information safe and accessible. 

Danny O’Brien, a senior fellow at the Filecoin Foundation and Filecoin Foundation for the Decentralized Web (FFDW) — an independent organization that facilitates governance of the Filecoin network and funds development projects — told Cointelegraph that data stored by academic institutions is at risk of vanishing due to centralized storage models. To put this in perspective, a recent Filecoin Foundation survey found that 71% of Americans have lost information and records due to challenges like deleted hyperlinks or locked online accounts.

Decentralized storage helps secure and distribute data

To combat this, O’Brien explained that a handful of educational institutions have begun using decentralized data storage models to preserve data sets. “A growing number of higher education institutions, including the Massachusetts Institute of Technology (MIT), Harvard University, the University of California, Berkeley, Stanford University, the University of South Carolina, and others, are all using Filecoin to store, preserve and archive their most important data on the blockchain,” he said.

For example, O’Brien pointed out that MIT is currently working on a three-year project with the FFDW to explore how decentralized technology can support its Open Learning programs. MIT’s Open Learning programs include “OpenCourseWare,” which is designed to provide free online materials from over 2,500 MIT courses. This will allow anyone worldwide to access MIT courses on the internet.

Recent: Will BlackRock’s ETF slingshot Bitcoin’s price skyward?

O’Brien explained that through the support of the FFDW, MIT’s Open Learning programs will use decentralized storage to house cataloging, while preserving its OpenCourseWare materials. He added that MIT would soon host public seminars about the challenges and opportunities of the decentralized web. “Education’s ongoing embrace of decentralized Web3 data storage offers, via cryptographic proof, a guarantee that data remains available and unchanged over time, preserving their critical data for as long as they want,” he said.

The University of Utah also uses decentralized storage to protect and democratize access to large data sets. Valerio Pascucci, professor of computer science at the university, told Cointelegraph that the institution’s Center for Extreme Data Management Analysis and Visualization recently adopted a solution from Seal Storage — a decentralized cloud storage platform powered by Filecoin — to complement its current centralized infrastructure.

Pascucci explained that the model provided by Seal Storage allows the National Science Data Fabric (NSDF) — a pilot program working with institutions to democratize data — to further its goal of creating new mechanisms for easy access to scientific information.

“Traditionally, Minority Serving Institutions (MSIs), small colleges and other disadvantaged organizations cannot be part of scientific investigation endeavors because they cannot access the data necessary to do the work,” he mentioned. The NSDF’s use of decentralized storage will change that.

According to Pascucci, the NSDF-Seal Storage partnership has already demonstrated the possibility of distributing massive data collections to different communities without needing to deploy special servers or other complex processing capabilities that may be impractical for many institutions.

“For example, NASA stores on its largest supercomputer, ‘Pleiades,’ an open climate data set that is over 3 petabytes in size. Yet anyone who wants to use the data would need to have a special account on Pleiades and require the training needed to process the data,” he explained, “NSDF has adopted an ‘OpenVisus’ approach that has reorganized NASA’s data so that its distribution through decentralized storage allows for interactive processing and exploration virtually without any local resources.”

Pascucci added that this might be the first time a data set of this size has been made available for interactive exploration directly from the cloud. Moreover, he believes that the decentralized approach has enhanced security.

Decentralized storage is beneficial, but challenges remain

Although several universities have begun leveraging decentralized storage models, challenges that may hamper adoption remain.

For example, Pascucci pointed out that to distribute NASA’s open climate data set, NSDF’s OpenVisus data format had to be extended from traditional file systems to meet the storage model provided by Seal Storage. Jacques Swanepoel, chief technology officer at Seal Storage, told Cointelegraph that mapping and tagging data on the blockchain is a very complicated undertaking.

“Identifying which block on the blockchain contains specific information is key to fully utilizing the benefits of decentralized storage technology. In order to overcome these challenges, providers need to properly track where customer data is on the blockchain with creative software strategies.” 

Yet it remains notable that academic institutions are using decentralized storage models. “Often considered slow-moving, academia has proven to be an early adopter of blockchain-based technologies, including decentralized storage, and continues to be a leader in adopting and deploying these tools,” O’Brien said. 

Magazine: Bitcoin 2023 in Miami comes to grips with ‘shitcoins on Bitcoin’

This may very well be the case, as Pascucci shared that The University of Utah and NSDF are working on implementing additional use cases with different universities.

“While the NASA use case is very high profile both for size and application to the important field of global climate change, we are already working on other use cases, including the experimental facility of the Cornell High Energy Synchrotron Source. This is where thousands of scientists go every year to collect data and share it with collaborators across the nation,” he said.

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SEC’s Gensler says BTC, ETH ‘not securities’ in a newly surfaced video

The 2018-era Gensler appeared much more lenient towards certain cryptocurrencies, including Ether.

A newly surfaced video featuring Gary Gensler from 2018 has made the rounds on social media, showing the now-chair of the United States securities regulator agastating that multiple cryptocurrencies are “not securities.”

On June 12 multiple Twitter accounts shared the video which is understood to come from a 2018 event hosted by Bloomberg for institutional investors.

“Over 70% of the crypto market is Bitcoin, Ether, Litecoin, Bitcoin Cash. Why did I name those four? They’re not securities,” Gensler says in the video.

At the time, Gensler was a professor at the Massachusetts Institute of Technology (MIT) and the video predates his appointment to chair of the Securities and Exchange Commission (SEC) by approximately two years.

It appears to contrast with Gensler’s more recent actions at the SEC, which has seen the regulator initiate a flurry of enforcement action on the crypto space in the past few months.

In his capacity as SEC chair, he has suggested that all cryptocurrencies — besides Bitcoin (BTC) — are securities. In total, the SEC has labeled at least 68 cryptocurrencies as securities in various lawsuits, though none of the four cryptocurrencies mentioned in the 2018 video have made it on this list.

The comments in the video are however another contrast from Genslers more recent views on Ether (ETH). The SEC chair was pressed for his answer on if ETH was security before a U.S. House Committee in April, but he refused to answer.

Related: Gary Gensler: Crypto market is like 1920s stock market, full of 'fraudsters'

Other videos of Gensler taken around his time at MIT have also surfaced this year showing him making similar comments about crypto.

In a 2019 video that circulated in April, Gensler called Algorand (ALGO) “great technology.” The same week the video circulated, the SEC sued crypto exchange Bittrex and claimed ALGO was a security in its complaint with many in the crypto space calling the SEC chair a hypocrite.

In another video dated 2018 that circulated in April, Gensler was teaching a class at MIT and claimed three-quarters of the market was “non-securities.”

“It's just a commodity, cash, crypto,” Gensler went on to say.

While Gensler’s comments came at a time before he chaired the SEC, many in the crypto space have claimed his actions are hypocritical. One U.S. lawmaker introduced a bill with the intention of firing Gensler claiming he’s abusing his power.

Hall of Flame: Crypto Wendy on trashing the SEC, sexism, and how underdogs can win

‘BITSANITY’ — Records broken with $70B in volume for Bitcoin stocks, ETFs

SEC-retly Failing: How the SEC Is Letting Crypto Down

SEC-retly Failing: How the SEC Is Letting Crypto DownWhen Gary Gensler (ex-Goldman Sachs investment banker) was announced as the new head of the Securities and Exchange Commission (SEC) in February 2021, the crypto industry saw a glimpse of hope. After all, the man in charge of regulating the industry was a “crypto native,” having taught a course on the subject at MIT. However, […]

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