Publication: Bridging the Trust Gap: Blockchain’s Potential to Restore Trust in Artificial Intelligence in Support of New Business Models
Loading...
Date
2019-10
ISSN
Published
2019-10
Author(s)
Editor(s)
Abstract
Rapid increases in computing power and data generation have turned artificial intelligence, blockchain, and the Internet of Things into potent technologies that are rapidly gaining use in many areas of society and commerce, with significant potential benefits for economic growth and development. These innovative technologies face multiple obstacles to implementation and, particularly in the case of AI, a general wariness of their potential implications for human society. Fortunately, an integrated implementation of the three technologies may be a solution that can restore human trust in AI and blockchain applications, resulting in new business models that deliver data security and privacy, efficiency, and inclusion along with their many other benefits.
Link to Data Set
Citation
“Niforos, Marina. 2019. Bridging the Trust Gap: Blockchain’s Potential to Restore Trust in Artificial Intelligence in Support of New Business Models. EMCompass;Note 74. © International Finance Corporation. http://hdl.handle.net/10986/33386 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Banking on FinTech in Emerging Markets(International Finance Corporation, Washington, DC, 2022-01)Despite near-universal access to financial services in advanced economies, financial exclusion is stubbornly persistent in many emerging markets, leaving huge swaths of low-income populations unbanked or underbanked. FinTech companies, which apply innovative technologies to deliver such services in new ways, have begun to tap into the enormous unmet demand that this represents. These companies are starting to thrive in emerging markets, though regulatory issues, particularly weak consumer protection measures, remain to be resolved in many countries. If these can be overcome, and more progress toward universal access to digital infrastructure can be made, FinTechs will continue to scale and spread.Publication Financing Deep Tech(World Bank, Washington, DC, 2021-10)Deep tech companies - those built on advances in biotechnology, robotics, electronics, artificial intelligence, and other advanced technologies—aim to solve complex social and environmental challenges. Today the majority of deep tech companies are being launched in developed countries, yet the solutions they can provide are applicable globally. Many of these solutions are especially critical to emerging markets, as the intractable challenges of climate, health, and connectivity, among other issues, disproportionately affect these nations. Addressing these challenges is a strategic priority for development finance institutions and governments worldwide, so financing deep tech companies and boosting deep tech ecosystems in order to deliver new solutions globally is a pressing matter. Doing so, however, requires substantial capital and carries a higher degree of risk than ordinary venture investments. This note examines the process of financing a deep tech company, including the benefits and drawbacks of currently available types of financing, and suggests examples of promising but not yet widespread alternatives.Publication Sustainability-Linked Finance(International Finance Corporation, Washington, DC, 2022-01)Sustainability-linked finance is designed to incentivize the borrower’s achievement of environmental, social, or governance targets through pricing incentives. Launched in 2017, it has now become the fastest-growing sustainable finance instrument, with over $809 billion issued to date in sustainability-linked loans and bonds. Yet these instruments are still nascent in emerging markets, which represent only 5 percent of total issuance to date. This note shares examples of recent sustainability-linked financing, including several involving IFC in various roles, to highlight how investors can utilize these new instruments in emerging markets and mitigate greenwashing risksPublication Enabling Private Investment in 5G Connectivity in Emerging Markets(International Finance Corporation, Washington, DC, 2021-04)This note proposes a high-level framework to assess challenges and policy options to enabling private sector-led investment in 5G connectivity in emerging markets. 5G is the latest mobile network technology and it has the potential to provide high-speed Internet connectivity and enable digital transformation across multiple sectors of an economy. The proposed framework leverages industry data to articulate the digital divide and benchmark the enabling environment for 5G connectivity in emerging markets. The note concludes with recommendations on policy options and business strategies, drawing from early experiences in advanced markets and major opportunities and challenges in emerging markets.Publication Enabling A Competitive Mobile Sector in Emerging Markets Through the Development of Tower Companies(International Finance Corporation, Washington, D.C., 2021-06)Sharing mobile network infrastructure through specialized companies called towercos is a business model with the potential to accelerate access to quality mobile connectivity for individuals and businesses in emerging markets. A significant number of developing countries have yet to adopt this model, however, and many others continue to struggle with competition issues within their tower markets. This note provides the rationale and policy options for a light regulatory regime that can enable the entry and sustainable development of a dynamic market for towercos in emerging markets. The note also discusses the evolution of the towerco model into small cells and distributed antenna systems, both of which help enable high-speed mobile connectivity technologies like 4G and 5G.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Blockchain in Development, Part I(International Finance Corporation, Washington, DC, 2017-07)Blockchain is an exciting new technology that may prove to be a radical innovation - similar to technologies such as the steam engine and the Internet that triggered previous industrial revolutions - with the power to disrupt existing economic and business models. It has the potential to deliver productivity gains to multiple industries, from the financial sector to energy markets, supply chains, intellectual property management, virtual firms, the public sector, and beyond. Its ability to provide disintermediation, improve transparency, and increase auditability can significantly reduce transaction costs, introduce efficiency into existing value chains, challenge revenue models, and open new markets. And blockchain may prove particularly valuable in emerging market economies. Yet the technology is in its early stages of development and serious challenges and risks, both technical and regulatory, will need to be addressed before it achieves widespread adoption. Questions remain about blockchain’s scalability, interoperability, security, transition costs, data privacy, and governance. And business leaders and policy makers will need to think long and hard about when and under what conditions a blockchain initiative may be warranted.Publication Blockchain in Development, Part II(International Finance Corporation, Washington, DC, 2017-07)Blockchain is an innovative new technology with the power to disrupt existing economic and business models, as discussed in EMCompass note 40. Blockchain also has enormous potential for emerging markets. These nations appear poised for a more rapid adoption of blockchain, though a framework is needed to assess how the technology can be deployed and which applications and use cases are likely to be seen in the near future. While the potential of blockchain is great, the technology is still at an early stage of development and will need to overcome potential setbacks - technical, regulatory, and organizational - before it becomes mainstream. In such a context of uncertainty, companies in emerging markets can neither afford to wait until the outcome is evident nor expose their existing business models to overly risky wholescale blockchain initiatives. Instead, they will need to adopt an experimental approach that allows them to develop options and thereby learn in the process, inform their strategies, and improve their value propositions.Publication Block Chain(International Finance Corporation, Washington, D.C., 2017-11)The six chapters that follow provide an overview of the technology (chapter one) and its unfolding applications in emerging markets (chapter two). Chapter three examines whether blockchain can be used to mitigate de-risking by financial institutions. Chapters four and five look more closely at the financial services sector, including an overview of how blockchain affects plays into the wider spectrum of financial technology (fintech) innovations and the resulting provision of financial services (chapter four), and an analysis of blockchain’s contribution to reaching the unbanked and underbanked in various emerging markets, including in Latin America, Asia and countries in Sub-Saharan Africa (chapter five). Finally, Chapter six looks ‘beyond fintech’ and explores how developments in applied blockchain technology can impact agribusiness, drug safety and more generally provide enforcement tools to promote the reach of sustainable and inclusive business. These chapters are merely the beginning of an exploration. Sound use cases for blockchain beyond cryptocurrencies are yet to be validated. As money pours into the latest novel technology, it is important to distinguish hype from reality, and to avoid assuming validation due to investments made under the ‘fear of missing out,’ a popular Silicon Valley investment decision heuristic. The enduring value of blockchain’s accelerated investment cycle may be that it has fostered intense experimentation and focused attention on the fundamental nature of ledgers, transactions, counterparty connectivity, and the role of trust.Publication Blockchain in Financial Services in Emerging Markets, Part II(International Finance Corporation, Washington, DC, 2017-08)Blockchain, or distributed ledger technology, is now disrupting the financial services industry as part of a larger wave of external innovations by digital financial technologies. Emerging markets, due to their higher banking risks, lower bank penetration, and greater presence of digital financing, are an ideal backdrop for the adoption of blockchain-based financial solutions, and benefits could include a technological leap forward and a boost to financial inclusion and growth. This note focuses on selected regions in emerging markets where distributed ledger technology is already affecting the provision of financial services, including Africa, Latin America, and Asia.Publication Beyond Fintech(International Finance Corporation, Washington, DC, 2017-09)One of the most noticeable and important developments of the advance of free trade over the last half century has been the emergence of global value chains. These production and supply networks cross multiple borders and connect advanced and emerging economies. They are vehicles that can deliver on many of the promises of globalization. Yet operating them is complex and costly. Global trade since the great recession has slowed, in part because of a lack of transparency and interoperability within these networks. Blockchain, a technology with unique abilities to record, track, monitor, and exchange assets without need of an intermediary, may be the solution to many of the logistical and cost issues that plague the growth and operation of global value chains, especially in the case of food, agribusiness, and pharmaceuticals. It also has potential to address issues of inclusion.
Users also downloaded
Showing related downloaded files
Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.