ITEC FPX 5030 Assessment 1 Emerging Technologies ITEC-FPX5030 Emerging Technologies

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Executive Summary

Blockchain is a distributed ledger that maintains a continuously growing list of every transaction across multiple networks distributed across tens of thousands of computers. This decentralized nature makes it highly secure and nearly impossible to hack, which is transforming the way banking is conducted [CITATION Ram20 \l 1033]. Blockchain technology is becoming an integral part of our daily lives, and its applications in business are proving extremely useful. Artificial intelligence (AI), on the other hand, refers to the simulation of human intelligence in machines programmed to think and act like humans. AI exhibits traits such as learning and problem-solving, which are typically associated with human cognition [CITATION Fra20 \l 1033].

Emerging Technologies

Introduction

Blockchain and artificial intelligence (AI) are two of the most influential technology trends today. Although these technologies have distinct origins and applications, there has been growing interest in their potential combination [CITATION BBV19 \l 1033]. Blockchain is a decentralized ledger that stores encrypted data, while AI can be seen as the “brain” that uses this data to make decisions. A SWOT analysis (strengths, weaknesses, opportunities, and threats) is a useful framework for businesses to evaluate their competitive position and strategic planning. This analysis assesses both internal and external factors as well as the current and future potential of the business. In our case, Forged in Ashes, a local axe-throwing facility, we use the Square Up platform for all business operations. Although the business is not yet fully operational, this document provides an overview of how these technologies could be implemented.

Cryptocurrency

Cryptocurrency, in its simplest form, is virtual or digital money that exists as tokens or “coins.” While some cryptocurrencies have extended into physical applications like credit cards, most remain entirely intangible [CITATION Rei00 \l 1033]. Four well-known cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). Bitcoin, created in 2009 under the pseudonym Satoshi Nakamoto, is a decentralized digital currency that differs from government-issued currencies [CITATION Rei201 \l 1033].

Ethereum is a blockchain platform designed to facilitate and monetize decentralized applications and smart contracts. Although it was not intended to compete with Bitcoin, its popularity has placed it in direct competition with other cryptocurrencies from a trading perspective [CITATION Rei201 \l 1033]. Bitcoin Cash, on the other hand, emerged to address Bitcoin’s limitations in transaction processing speed. Bitcoin Cash allows faster processing by increasing the block size to 8 MB, compared to Bitcoin’s 1 MB [CITATION Rei202 \l 1033].

Litecoin (LTC) is another notable cryptocurrency, often viewed as Bitcoin’s smaller sibling. It is currently the seventh-largest cryptocurrency by market cap as of May 2020 [CITATION Fer20 \l 1033]. Litecoin distinguishes itself from Bitcoin by offering faster transaction speeds and the ability to generate more coins. Additionally, Litecoin uses the Scrypt algorithm, while Bitcoin uses SHA-256.

Though these cryptocurrencies all offer a form of decentralized currency, each has its unique advantages and challenges. Choosing one over the others largely depends on personal preferences and needs. However, at Forged in Ashes, we do not plan to use cryptocurrency in our business.

Blockchain Technology

Blockchain technology enables secure information storage, providing businesses with a platform to protect sensitive data. Its key benefits include enhanced transparency, security, and cryptographic immutability, which make data processes more efficient and secure. Blockchain has applications across various industries, including medical data sharing, royalty tracking in the music industry, business payments, and advertising insights.

For our business, Square Up will allow customers to store their information securely within our system. We will also use the platform to send marketing emails and enable customers to reserve spots. Moreover, Square Up will support our advertising efforts on social media while ensuring the privacy of customer data.

Artificial Intelligence

As discussed earlier, artificial intelligence (AI) involves the simulation of human intelligence in machines. AI is classified into several categories: reactive AI, limited memory AI, theory of mind AI, and self-aware AI. Reactive AI represents the earliest form of AI, with basic functionality that mimics human responses to stimuli without memory capabilities [CITATION Jos09 \l 1033]. Limited memory AI, however, can learn from past data. Mor