Pro Yearly is on sale from $80 to $50! »

FinTech - Lecture 5 : The World of Apps (1)

FinTech - Lecture 5 : The World of Apps (1)

These slides were used in the lecture 5 of FinTech - Financial Innovation and the Internet 2020 Fall at the Graduate School of Business and Finance, Waseda University, on October 23, 2020.

847a328633b1df6b11cc2f72430025e6?s=128

Kenji Saito
PRO

October 23, 2020
Tweet

Transcript

  1. QIPUPCZ0MJWFS) FinTech — Financial Innovation and the Internet 2020 Fall

    Lecture 5 : The World of Apps (1) Kenji Saito Professor, Graduate School of Business and Finance, Waseda University Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.1/33
  2. This class is recorded Camera ON is recommended, but not

    required You do need to speak often (we are going to have a lot of dialogue) We will use breakout rooms a lot, but those won’t be recorded unless you do it yourselves (need to be allowed) Keep your Zoom client updated! We might use latest features The recordings could be used for research on online learning Transcribed for use and anonymized Will let you know when the necessity arises Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.2/33
  3. The lecture slides can be found at : https://speakerdeck.com/ks91 Recording

    and chat text will be posted at Moodle and Discord Trial automatic transcription of the lecturer’s part will be posted at Discord Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.3/33
  4. Schedule (provisional) Lecture 1 9/25 Overview of FinTech (1) •

    Lecture 2 10/2 Overview of FinTech (2) • Lecture 3 10/9 Internet Technology and Governance (1) • Lecture 4 10/16 Internet Technology and Governance (2) • Lecture 5 10/23 The World of Apps (1) • Lecture 6 10/30 The World of Apps (2) Lecture 7 11/13 Blockchain (1) Lecture 8 11/20 Blockchain (2) Lecture 9 11/27 Other Ledger Technology and Applications (1) Lecture 10 12/4 Other Ledger Technology and Applications (2) Lecture 11 12/11 Cyber-Physical Society and Future of Finance (1) Lecture 12 12/18 Cyber-Physical Society and Future of Finance (2) Lecture 13 1/8 FinTech Ideathon (1) Lecture 14 1/15 FinTech Ideathon (2) Lecture 15 1/22 Presentations and Conclusions Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.4/33
  5. Last Week, We Did . . . Internet Technology –

    continued Internet Governance Discussion “Commons” in Finance Assignment Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.5/33
  6. Today’s Topics Assignment Review The World of the Web Birth

    and evolution of World Wide Web Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.6/33
  7. Assignment Review Lecture 5 : The World of Apps (1)

    — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.7/33
  8. Assignment 2. “Bank/Payment API” Given that banks and xxPay will

    publish APIs (Application Programming Interface), think of a new and unusual example application, and describe it briefly Deadline and how to submit October 20, 2020 at 17:59 JST From Moodle (mandatory) Optionally, you can also post to #assignments channel at Discord So that your classmates can read your report, refer to it, and comment on it Just plain text, please Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.8/33
  9. Trends and Measures Trends . . . of your reports

    Measures . . . how to improve the class 15 out of 16 students submitted (pretty good, and always better later than never) Applications : P2P currency exchange based on bank API / sharing investing strategies / tax / insurance / membership card / blocking accidental payments / virtual payment team (to protect privacy) / CBDC (DCEP) / mobile payment / shopping record for recommending financial products / vaccination priority / robo-advisers / chip embedded in human body / social forum / health improvement Very interesting! Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.9/33
  10. F’s Idea registering store memberships and the like to an

    account somehow so that a digital payment automatically includes membership discounts would also be convenient, although I question whether this is secure enough in our current system This could possibly remove the need for membership cards while maintaining the functionality ⇒ Going toward super app, sort of Including loyalty/rewards Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.10/33
  11. K’s Idea With microgesture recognition, online stores can implement faster

    way of shopping by recognizing approving gestures and automatically posting orders Also, a shop can recognize if a person is intoxicated from facial expressions and trigger an action to temporarily block a person’s bank account For mobile users an app can analyze typical behavior patterns, such as learn frequent routes and corresponding actions (example - on the way to a coffee shop app guesses the next action and recommends placing an order for a particular drink and get approval from a gesture) If a xxPay shares their API, things could get wilder, since some of the security measures could be relaxed (as in electronic purse) and allow sharing accounts among arbitrary users ⇒ Like hand signals used by buyers at the tuna auction in Tokyo fish market, but simplified (gestures have been used for reasons, and therefore this idea may be useful) Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.11/33
  12. C’s Idea Under the current situation of COVID-19, XXpay or

    one Bank will release an API to match credit information data with users’ health data to determine the first batch of candidates for vaccination Anyone who has the better credit record and meets the vaccination requirements will have the right to apply for the first batch of vaccination Somehow, it’s one way to determine the vaccination order fairly ⇒ Is it really fair? This may be one of the pinnacles of meritocracy’s reach Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.12/33
  13. L’s Idea Insert an IC chip into the human body,

    with this IC chips, people can take public transportations, buy milk in a convenient store or buy everything without a wallet or a smartphone It seems really convenient to go out without bring things with me ⇒ Maybe this should be combined with K’s idea for activation Otherwise some tricky problems (if payments are activated from outside) Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.13/33
  14. W’s Idea This application collects users’ feet miles in their

    daily life and encourage them to walk and exercise User will be awarded if he or she reaches certain amount of exercise, by lowering the service or transaction fee between banks and xxPay, or something like increasing the possibility to getting a loan ⇒ I think governments should fund this project ;) Or health insurance companies should Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.14/33
  15. The World of the Web Applications of the Internet Birth,

    technology and evolution of World Wide Web Consequences and problems of World Wide Web Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.15/33
  16. Railway Model and TCP/IP (reprise) Level of flow of data

    is controlled by cooperation between TCP stacks at the both ends Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.16/33
  17. IP over Everything/Everything over IP (reprise) What kind of bottom

    layers were/are there? Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.17/33
  18. Applications and Port Numbers 3BJMT 5P[BJ-JOF 8BTFEB4U &YJU 8BTFEB6OJW 8BTFEB

    3BJMT .JUB-JOF .JUB4U ̖&YJU ,FJP6OJW .JUB 3BJMT ɹ0UFNBDIJ4U .JUB-JOFc5P[BJ-JOF "QQMJDBUJPO 8BTFEB6OJWFSTJUZ JTMJTUFOJOHPO BTQFDJpDQPSU  *1 BEESFTT 1PSUOVNCFS * * 5 5 Like many web servers used to be listening mainly on port 80 (when HTTP was OK) Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.18/33
  19. Client-Server Model 5IF*OUFSOFU (JWFNFTPNFUIJOH )FSFZPVBSF $MJFOU $MJFOU 4FSWFS 4FSWFS4PGUXBSF "QQMJDBUJPOMJTUFOJOH

    GPSSFRVFTUTGSPN DMJFOUTPOBTQFDJpD QPSU $MJFOU4PGUXBSF "QQMJDBUJPOUIBU DPNNVOJDBUFTXJUI TFSWFSTPGUXBSF TFOEJOHSFRVFTUT XIFOOFFEFE One of the basic models of communication on the Internet Two types of computers Servers: computers providing services Clients: computers to be serviced Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.19/33
  20. Before Web What the Internet was used for (everything is

    still out there) Window system (X window) Mail (SMTP/POP) Netnews (NNTP) There were already “flaming” File transfer (FTP) Below came around the same time as Web Chat (IRC) Information retrieval (gopher) Now little used Now actually sounds more like an iconic mascot of the Go project Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.20/33
  21. To Web Changes in the way information is shared File

    storage and sharing services Save file on server (upload) Users access the server to download files (Files at the time were often scientific papers and program code) ⇓ WWW : World Wide Web Embed “Relation” links in the file → Hypertext (by Ted Nelson, 1963, 1974) The way files around the world link to one another is referred to as “Cobweb (web)”, and is named “World-Wide Web” Birth of a digital information infrastructure in which various data are organically linked Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.21/33
  22. World Wide Web #SPXTFS #SPXTFS XXXBNB[PODPKQ MJOLT MJOLT MJOLT CSPXTF

    CSPXTF CSPXTF CSPXTF CSPXTF CSPXTF XXXHPPHMFDPKQ XXXZBIPPDPKQ A browser fetches a page, and if a user clicks on (or touches) a link, fetches another page Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.22/33
  23. Birth, Technology and Evolution of World Wide Web The Great

    Meeting of Hypertext and the Internet Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.23/33
  24. History of World Wide Web In 1989 Draft proposal by

    Tim Berners-Lee at CERN Adopts the concept of hypertext In 1990 WWW server and browser implemented on NeXT, HTML 1.0 Draft In 1991 Released WWW system (server, browser, library), started to be used by universities and laboratories In 1993 Mark Andreessen et al. developed the Mosaic browser, which made WWW widely spread In 1994 Tim Berners-Lee founded the W3C (World Wide Web Consortium) In 1995 Published HTML 2.0 In 2014 HTML5 Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.24/33
  25. Element Technologies of the World Wide Web HTTP/HTTPS HyperText Transfer

    Protocol (Secure) Protocol used for transferring HTML files HTML Hyper Text Markup Language Markup language for describing web pages Designed and recommended by the W3C URI Uniform Resource Identifier Identifier of an information resource on the Internet (not necessarily on WWW) URL (Uniform Resource Locator) is one way to implement URI Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.25/33
  26. Format of URL (Uniform Resource Locator) In case of https

    scheme Scheme https://www . google . com Host name : Port # 443/search Path ? Search string q = refrigerator Port number, path, and search string are optional For https scheme, the port number defaults to 443 Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.26/33
  27. HTTPS Demo $ openssl s_client -connect www.waseda.jp:443 Then GET /

    Install openssl in your environment and try it out You may want to try www.google.com:443 and GET /search?q=refrigerator instead Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.27/33
  28. Characteristics of HTTP/HTTPS You can get 1 resource (file) per

    request Each request is independent (state-less) It was enough to achieve its original purpose Original purpose → easy access to documents such as scientific papers But then there appeared a lot of applications for which this is inadequate . . . Want to treat a series of requests as a session Shopping, logging into membership site, etc. Art of maintaining states for that purpose Unique URL generation including a representation of the state HTTP cookies (like shared magic numbers) Access tokens Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.28/33
  29. Generalized Access Token 8FC4FSWFS SFRVFTU SFRVFTU SFTQPOTF SFTQPOTF TFBSDI SFHJTUFS

    HFOFSBUFTUPLFO EBUBQSPUFDUFECZBDDFTTSJHIU %BUBCBTF #SPXTFS 5JNF JOEFQFOEFOUDPOOFDUJPO JOEFQFOEFOUDPOOFDUJPO IFBEFS SFTPVSDF IFBEFS IFBEFS SFTPVSDF 9Z;X 9Z;X 9Z;X EBUBQSPUFDUFE CZBDDFTTSJHIU Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.29/33
  30. Consequences and problems of World Wide Web Changes in how

    people use the Internet Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.30/33
  31. What World Wide Web Brought Information distribution Information now contains

    links and information is organically linked across distributed servers Information providers create information (data) with links in mind Information users follow links to obtain new information (data) Finding information (data) Need some way to find a server that stores information (data) Large numbers of servers and distributed volumes of information (data) Search engine is important How information (data) is collected Distributed across the Internet, servers with popular information (data) are being accessed intensively as the number of users increases Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.31/33
  32. Discussion How does WWW change behaviors of people, for better

    or for worse? Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.32/33
  33. See You Next Week! Lecture 5 : The World of

    Apps (1) — FinTech — Financial Innovation and the Internet 2020 Fall — 2020-10-23 – p.33/33