Chaos Theory #5

Hey there, welcome to Chaos Theory – where science meets tech, and both shape the traditional and decentralized markets of tomorrow. Together, we'll unravel the origins, discover new technologies made possible by science, and try to predict their impact on the future. If you're curious, visionary, and wonder how new technologies and science impact financial markets, you're in the right place!

In This Edition:

• Opening Insights

• Breakthrough of the Week: Decoding Ancient Times

• Seeing Beyond With Computer Vision

• Tracing Reality Through Computer Vision

• Eyes On the Price: The Computer Vision Market

• Short Story: Veil of Vision

• Closing Thoughts

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Opening Insights

Open AI might produce its chips in-house, similar to Google and Amazon

Ariane Space’s Vega launcher successfully deployed a dozen smallsats

Nigeria’s Central Bank expressed that the local central Bank digital currency eNaira is not a threat to financial stability

Mercedes-Maybach partners with Space Perspective to offer customers a luxurious ride to 100,000 feet above Earth

Adobe adds three new generative AI models (among which Firefly Image 2) providing text-to-image features in Illustrator, Express and Photoshop

Generative AI might get a “cold shower” in 2024 according to analysts

Breakthrough of The Week: Decoding Ancient Times

The Breakthrough

A team led by Professor Brent Seales used a machine learning-driven process known as "virtual unwrapping," to successfully extract and read the word "PURPLE" from the Herculaneum scrolls rendered unreadable by the eruption of Mt. Vesuvius in 79 CE. This was achieved through a global competition named Vesuvius Challenge, which pushed forward the decoding efforts.

Why it matters

Uncovering this text is like opening a window into the ancient world, providing a unique look at a time when world religions were emerging, and the Roman Empire was at its peak. The amazing scrolls are from the only surviving library from ancient times and decoding could lead to the greatest discovery from the ancient world.

The Science Bit

An AI program (developed over two decades no less) read the scrolls without physically opening them using a technique called “virtual unwrapping”. Basically this AI extracts letters and symbols from X-ray images of the unrolled scrolls. Also, the Vesuvius Challenge released software and 3D X-ray images to global researchers, encouraging the development of machine learning methods to decode the scrolls.

Societal & Financial Impacts

The discovery showcases the potential of AI and collaborative global competitions in advancing historical and archaeological research. The Vesuvius Challenge facilitated this progress with a prize pool of $1 million, of which $700,000 is still up for grabs for decoding more texts from the scrolls. Being able to successfully read into ancient times while being paid is pretty amazing, so if you’re an expert in the field feel free to compete!

Seeing Beyond With Computer Vision

What is Computer Vision?

If you're navigating the world in a self-driving car or exploring images through GPT-4V (I’m not yet part of the chosen ones that can access it sadly), you're already immersed in the marvels of computer vision (CV). Imagine teaching a computer to interpret and understand the content of digital images. And not only that, but also have it analyze and make decisions based on the visual data it receives. The main technologies behind this amazing feat are Convolutional Neural Network (CNN), and deep learning. Imagine CNNs as meticulous artists like Bob Ross, painting a clear picture of each image by identifying intricate patterns, edges, and textures. Deep learning on the other hand is the guiding force that continuously trains machines with vast datasets, refining their ability to recognize and categorize visual nuances.

Why should I care?

Because it’s everywhere ! And that’s not even a joke. Unlocking your phone with facial recognition or tagging your friends in social photos – it's subtly integrated into our daily lives. Even in governance and surveillance, its presence is felt, showcasing its powerful reach and versatility. A great (and scary) example of fiction becoming reality is Black Mirror episode “Nosedive” foreshadowing the reality of China’s social-credit system based on computer-vision. CV can however be used to deeply enhance our daily lives thanks to how the technology understands and adapts to the visual world as we do. We’re stepping into a future where technology is everyday more intelligent, responsive and with more human features.

A Linked Technology – Augmented Reality (AR)

What happens when you merge computer vision and augmented reality ? They create immersive experiences that enhance our interaction with the world. If you ever tried Pokemon GO, or use Instagram filters, then you used computer vision and augmented reality. It’s not just games; AR and computer vision are being used in education, tourism, and even remote work to create engaging and collaborative environments. We’re at the beginning of the journey, and the horizons are vast.

In Simple Terms

Computer vision enables computers to see, understand, and react to visual data, making our interactions with technology more integrated into our daily lives. Merge it with AR, and our reality gets an interesting upgrade. 

Tracing Reality Through Computer Vision

History of Computer Vision

Computer Vision Applications

Blockchain and Computer Vision

If you pair blockchain and computer vision you’ll get a powerful duo. CV can be used to collect and interpret real world data while blockchain verifies and validates it, enabling a wide range of new applications and creating new opportunities. You could for instance create a system to track movements of goods and verify these movements for solving the fraud plague in the luxury industry.

Current State and Challenges

Computer vision is undeniably a technology poised to impact us significantly in the near future. It's being harnessed by numerous organizations to replace drivers in cars, planes, trains— you name it, and has become so integrated into our daily lives that it might seem like this technology is without hurdles. However, there are numerous obstacles impeding its development, including:

• Data Privacy: Who wants to live in a real-life Truman Show where every move is monitored? Trusting tech giants to ensure privacy might be a bit naive.

• Bias and Fairness: Feed a CV system a diet of biased data, and it’ll view the world through a skewed lens.

•  Real-time Processing: The high computational demands of CV systems are a significant challenge.

• Adoption in Traditional Industries: The old guard in traditional industries may still be reluctant to embrace change.

TL;DR (Too long; didn’t read)

Computer vision boosts sectors like manufacturing, healthcare, and automotive by aiding in quality control, medical imaging, and navigation. It’s pivotal in retail, surveillance, and agriculture too. When paired with blockchain, CV can offer verified real-world data, useful in tracking goods. Challenges like data privacy, bias, and adoption in traditional industries exist, but blockchain might help in addressing privacy concerns.

Eyes On The Price: The Computer Vision Market

Global Market Forecast & Trends

The global market size was $14.10 billion in 2022. With a dazzling compound annual growth rate (CAGR) of 19.6% projected from 2023 to 2030, it's no wonder everyone's got their eyes glued to the stage. Advancements in image sensors, advanced cameras, machine and deep learning techniques gather a vast audience to the computer vision show - sectors like education, healthcare, robotics, consumer electronics, retail, manufacturing, agriculture, alongside security and surveillance are all vying for a front-row seat. The manufacturing industry is set to register a significant growth because robotics and automation, which are heavily used in this sector, need more intelligent systems to monitor industrial processes. The largest markets are the North American and Asia Pacific regions; but other regions like Europe and Latin America are expected to grow rapidly.

Market segmentation

When we slice and dice the market by applications, the versatility of  CV shines bright, finding its stage across a spectrum of industries as mentioned earlier. Now if we segment by technology, integrating machine learning, augmented and virtual reality and other AI technologies are notable in the CV market, enhancing the accuracy and capabilities of CV systems.

Market Leaders

The key players in the market - Intel Corporation (INTC), Microsoft (MSFT), Google (GOOG), Nvidia (NVDA), IBM (IBM) - are in a relentless tug of war for the throne of the computer vision empire. Nvidia and Intel are particularly noteworthy, with Nvidia being recognized as a top player in the market​​. Two months ago the company flexed an impressive 101% increase in revenue compared to last year, obliterating everyone’s prediction. With the high-stakes game of computational power at play, Nvidia is riding the wave. However, an increasing number of their clients, like OpenAI, are gearing up to craft their own chips in-house, threatening to alter the course of the narrative.

Impacts of Computer Vision on Markets

The impacts on traditional and slow-moving markets will become increasingly more significant, as CV helps automating mundane tasks previously performed by humans. The upside is pretty clear—things get done faster, more efficiently, and the cost savings aren’t too shabby either. But as machines take the wheel, where does that leave the human workforce? The issue of rising unemployment is definitely a problem to solve.

The integration of CV into decentralized markets could foster a wave of technological innovations. The combined use of both technologies could pave the way for solutions in sectors where enhanced visual analysis and autonomous decision making are crucial. I’ve theorized earlier that blockchain will play a great role in securing data used by CV systems, so let’s see how this unfolds!

Conclusion

The CV market is on a steep climb, and for the big players who've got their eyes on the prize, the potential rewards are nothing short of magnetic. The flexibility of CV is a game-changer; it’s redefining the rules in traditional markets and venturing into fresh territories in decentralized landscapes. Yet, like any trailblazer, CV comes with its share of obstacles. On the technical side, there's the hard task of securely storing and managing a tremendous amount of data. And on the social front, while automation is streamlining our world, it’s also sparking conversations on job displacement and privacy. It's a complex landscape, but there’s a silver lining. The camaraderie between CV and emerging tech like blockchain could be the key to tackling some of these challenges head-on.

Short Story: Veil of Vision

Closing Thoughts

As we venture into an era of Artificial Intelligence, a ripple of innovations in allied fields like computer vision is set to touch virtually every industry. From decoding ancient times to interpreting modern-day data for solutions like autonomous driving, the progression of CV holds the promise of a future where machines perceive and interact with the visual world just like us. Yet, with great power comes great responsibility. While the pursuit of leading the computer vision frontier is exhilarating, it's crucial to navigate thoughtfully considering the societal and ethical implications.

As always, this is not financial advice and you should do your own research. Stay curious, stay informed, and navigate the chaos with clarity! - Arthur