Difference between Smart Apps and Smart Contracts

  • Admin
    Keymaster
    # 8 months ago

    Question from Ivan, Ivan on Tech interview

    Q Ivan: You’re also saying that you have intelligent applications, instead of smart contracts. What are the differences between those concepts?

    A Billal: The smart contract is a deterministic program, that means when I develop my smart contract it will capture all the conditions and workflows. With intelligent applications I will just define the framework of my algorithm and the decision is not fixed. I will receive information from the network, analyze it and after that make a decision according to this information. We will introduce stochasticity, in our randomness, in the program. It’s kind of flexibility, because we are using algorithms.

    Bruno: The difficulty of deploying applications right now, is an architecture that is based on smart contracts. With the smart contract you need to plan everything, so that can bring difficulties with complex operations. Complex operations that needs flexibility, like an insurance contract that may have not planned all the different possibilities, or a transportation contract that could have difficulties on the road(strike, engine problems or weather). The algorithm has the ability to source information around it and define what is the right behavior to take. That is the beginning of how the machine learning starts to create an artificial intelligent decision and a proposal for what the bot decides to be doing. This is technically impossible in the traditional blockchain, that has answers on the questions that has been asked.

  • Admin
    Keymaster
    # 8 months ago

    Question from Ivan, Ivan on Tech interview

    Q Ivan: Will the quality of those decisions be better with time, because that is one of the feature of machine learning. The more data they receive, how better they get.

    A Billal: Yes, it will be a lot better over time. The application will gain more data over time, and my historical data will have more reach, also my algorithm will be more precise. I will also use the experience of the other bots, such as data. Like I said, it’s such a virtuous circle.

    Q Ivan: With smart contracts you can define conditions to give exact orders what to do. You don’t have the flexibility with smart contracts when something unexpected happens, because it’s all set in stone. With artificial intelligence you have that flexibility, but how can we trust that the AI doesn’t do something completetly irrational.

    A Billal: We are using trading algorithms. All the banks around the world are using trading algorithms. The idea is that I will deblock an algorithm, which buys/sells stocks on the market without the control of any human. What we at neurochain do, is that we define the framework/limits of these algorithms. The possibilities of making mistakes would increase with the algorithm running for a longer time. When the bot would meet those limit, it will stop working. The bot would ask the human for advice to continue, so in this case it would ask for the human decision.

    Bruno: When you’re talking about artificial intelligence there is always a human factor that comes in play. At some point you need to define what the limits of the questions are and the algorithm always at some point will reach the limits. You will have to basically start to define what will be the behavior after that. We at neurochain strongly believe that this behavior need to be defined with values that we believe in. That’s why our messages and how we are creating our different business applications are always done in a certain way, where artificial intelligence is always based at the end of the different values that we own and caring. There’s a big competition in the world, but not to define what would be the blockchain that will be the most used. In regard to neurochain, more specifically about the one that will be employing artificial intelligence concepts on which basically human values it will really reside. We believe it’s a huge fight and something that should require a lot of attention by our politicians, political leaders, economic leaders etc. That’s why we’re very involved politically here with the governments and other european governments, because they see that this is not just a technology play. This is also a moral play and goes way beyond simply technology.

    Q Ivan: Will these machine learning models, mathematical models train together, so all the bots are updated together with new data and experience, or will they independently evolve with their own experience?

    A Billal: There will be a specific development for each bot. If your bot is somehow involved in an application, it will have more algorithms than the other bots. The core of the bot will always be the same for every bot and the intelligent part of the bot will depend on their actions.

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