Table Of ContentF
intech
F
undamentals
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F
intech
F
undamentals
Big Data • Cloud Computing
• Digital Economy
Len Mei, Ph.D.
MERCURY LEARNING AND INFORMATION
Dulles, Virginia
Boston, Massachusetts
New Delhi
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L. Mei. Fintech Fundamentals.
ISBN: 978-1-68392-838-6
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C
ontents
Preface ix
Chapter 1: Introduction to the Digital Economy 1
1.1 Digital Economy 1
1.2 Infrastructure for the Digital Economy 7
1.3 Data Center Evolution 11
References 13
Chapter 2: Cloud and Edge Computing 15
2.1 Cloud Computing 17
2.2 Edge Computing 19
2.3 High-Performance Computers 21
2.4 Quantum Computers and Quantum Communication 24
References 26
Chapter 3: 5G Telecommunication 29
3.1 5G Communication Technologies 29
3.2 Software-Defined Network (SDN) 32
3.3 Private 5G 34
3.4 Beyond 5G 35
References 36
vi • Contents
Chapter 4: Blockchain and Other Digital Economy
Infrastructures 37
4.1 IoT Devices and Sensors 37
4.2 Semiconductors 40
4.3 Evolution of Computers Driven by AI 44
4.4 Blockchain 47
References 49
Chapter 5: Big Data and Artificial Intelligence 51
5.1 What is Artificial Intelligence? 51
5.2 How is Artificial Intelligence Created? 53
5.3 Machine Learning 55
5.4 Big Data 57
5.5 AI Applications 58
5.6 The AI Market 62
5.7 Government’s Role in AI 63
5.8 European Approach to AI 64
5.9 Fusion of AI with Biotechnology 65
5.10 AI and Blockchain 67
References 68
Chapter 6: What’s New in the Digital Economy? 71
6.1 Use of Blockchain to Secure IoT Data 71
6.2 Blockchain and Credit Card 74
6.3 Cross-border Retail Business 75
6.4 Counterparty Platform Dapps 77
6.5 AML & KYC 79
6.6 O2O Business 80
6.7 Third-Party Payment 82
6.8 Mobile Wallet and Payment Transfer 90
6.9 European Security Settlement Platform 91
6.10 Credit Rating System 93
References 99
Contents • vii
Chapter 7: Financial Services Industries 103
7.1 Fintech 103
7.2 Blockchain and Fintech 106
7.3 Technology-Driven Fintech 108
7.4 Global Fintech Landscape 113
7.5 Major Global Fintech Companies 127
7.6 TechFin 131
7.7 Blockchain Technology for Banks 133
7.8 Crowdsale and Crowd Prediction 135
7.9 Building MDL for Financial Services 137
7.10 Digital Currency 139
References 141
Chapter 8: Trading and Lending 145
8.1 Security Trading 145
8.2 Commodity Trading 147
8.3 Energy Trading 148
8.4 Alternative Trading System 150
8.5 Peer-to-Peer Lending 152
8.6 Online Lending 155
8.7 Microlending and SME Lending 156
References 158
Chapter 9: Renewed Industries 161
9.1 Wealth Management 161
9.2 Insurance 166
9.3 Supply Chain Management 169
9.4 Healthcare 171
9.5 Food Industry 173
9.6 Defense Industry 174
9.7 Cybersecurity 176
9.8 Autonomous Vehicles 178
References 180
viii • Contents
Chapter 10: Industrie 4.0 183
10.1 The Fourth Industrial Revolution 184
10.2 Equipment Automation 185
10.3 Factory Automation 186
10.4 Data Automation 187
10.5 From Product Design to Market 189
References 189
Chapter 11: Smart City 191
11.1 What is a Smart City? 191
11.2 Smart City Projects in the World 194
11.3 Smart City Project – Transportation 196
11.4 Smart City Project – Utility Management 197
11.5 Smart City Project – Crime Prevention 198
11.6 Smart City Project – Healthcare and Disease
Prevention 199
References 200
Chapter 12: Governance, Legal Applications, and Regulation 201
12.1 Governance and Voting 201
12.2 Regulatory Applications and Issues 204
12.3 Overcoming Privacy Issues in Data Collection 206
12.4 Land Title Registration and Real Estate 207
12.5 Law and Justice 209
12.6 Protection of Intellectual Property 211
References 212
Chapter 13: Conclusion 215
13.1 Near-Future Positive Impact 215
13.2 Future Job Market 217
13.3 Wealth Redistribution 218
13.4 Technology-Empowered Extremism 221
13.5 Longer-term Impact 222
References 223
Index 225
P
reface
The world is propelling into the era of a digital economy. The signs are
everywhere: the digital economy is growing at much faster pace than the
overall economy. In the U.S. alone, the digital economy is growing at a rate
of 10% a year, while the overall economy is at just two percent annually.
The digital economy is based on data. Data is the crude oil of the digital
economy. The volume of data generated is growing exponentially. The dig-
ital economy is built upon the foundation of technologies developed in the
last six decades – the technology of ICT (Information and Communication
Technology). The advance of ICT allows the industry to move into 5G com-
munication, cloud and edge computing, Big Data and artificial intelligence,
blockchain technology, Industry 4.0, financial technology (Fintech), digital
currency, and many others. These new technologies are altering the land-
scape of the financial, business, and trade systems today.
Fintech promises to revolutionize the financial industry just as Indus-
try 4.0 revolutionized manufacturing. These new technologies can add tril-
lions of dollars to the global economy. The implications are staggering. On
November 9, 2015, the U.S. Department of Commerce unveiled a Digital
Economy Agenda to help businesses and consumers realize the potential of
the digital economy.1 Since that time, similar measures have been adopted
in many other countries.2
These are some aspects of the digital economy. In this book, we will
exam the underlying digital technologies required to build the digital econ-
omy. We will also discuss basic concepts and elements of the technologies
that make a digital economy possible and how they work. We will look at
1 https://www.commerce.gov/index.php/tags/digital-economy
2 https://hbr.org/2017/07/60-countries-digital-competitiveness-indexed
