The World of Apps (1), Lecture 5 of FinTech

Slides I used at FinTech - Financial Innovation and the Internet, Graduate School of Business and Finance, Waseda University, on October 25, 2019.

Transcript

1. Manifesto of Futurism. Lecture 5 : The World of Apps (1) FinTech — Financial Innovation and the Internet 2019 Fall Kenji Saito Professor, Graduate School of Business and Finance, Waseda University ks91@aoni.waseda.jp Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.1/31
2. The lecture slides can be found at : https://speakerdeck.com/ks91 Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.2/31
3. Schedule (provisional) Lecture 1 9/27 Overview of FinTech (1) • Lecture 2 10/4 Overview of FinTech (2) • Lecture 3 10/11 Internet Technology and Governance (1) • Lecture 4 10/18 Internet Technology and Governance (2) • Lecture 5 10/25 The World of Apps (1) • Lecture 6 11/8 The World of Apps (2) Lecture 7 11/15 Blockchain (1) Lecture 8 11/22 Blockchain (2) Lecture 9 11/29 Other Ledger Technology and Applications (1) Lecture 10 12/6 Other Ledger Technology and Applications (2) Lecture 11 12/13 Cyber-Physical Society and Future of Finance (1) Lecture 12 12/20 Cyber-Physical Society and Future of Finance (2) Lecture 13 1/10 FinTech Ideathon (1) Lecture 14 1/17 FinTech Ideathon (2) Lecture 15 1/24 Presentations and Conclusions Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.3/31
4. 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 2019 Fall — 2019-10-25 – p.4/31
5. Today’s Topic 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 2019 Fall — 2019-10-25 – p.5/31
6. Assignment Review Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.6/31
7. Exercise 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 23, 2019 at 17:59 JST From Course N@vi Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.7/31
8. Trends and Countermeasures Trends . . . of your reports Countermeasures . . . how to improve the class 14 out of 16 students submitted (better later than never) Applications : limit spending / information about the customers’ spending habits / transportation fare / create a simple set of rules about using public surface space / Point Bonus System / Open Platform and Ecosystem / Risk Assesment System / Health and Fitness App / Currency Exchange / personal credit system / individual part-time companies / Amazon / thoroughly get rid of cash / find the lost cash / optimize customers’ financial budget / group users’ bank accounts information within only one app Very interesting! Some of you thought about IoT (Internet of Things) applications involving payment That’s even more interesting! Some of you did not think about an application, but its foundation Which is not necessarily bad, but if you could come up with a concrete service, even better Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.8/31
9. H.Y’s Answer If bus and railway company could mingle their fare calculation and settlement API and banks and xxPay API and install QR code reading machines for collecting fares, people will not be suffering from losing the stored money when they lose the IC transportation card ⇒ That would make the system simpler and universal Would be more interesting if the payment is combined with route search apps Usually, we set our destination, search, and select a route If the route contains transportation requiring reservation, such as shinkansen or flight, the app can make reservations and payments for you Perhaps lodging as well You only show one QR code as a proof of everything regarding the travel (in place of tickets) Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.9/31
10. Z’s Answer Consider the case of a traffic cone . . . to these cones one could add small digital devices complete with battery, transmitter, microprocessor, and GPS antenna A neighborhood or ward could create a simple set of rules about using public surface space for activities ranging from parking, driving, market fairs, recreation, and so forth The role of the API comes in when these cones automatically handle payment of usage fees, no additional work required ⇒ Interesting IoT application! Have you also considered automatic movement of the cones? If you are in doubt, see a demonstration from an exhibit by children in our camp (Academy Camp) at Maker Faire Tokyo 2019 Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.10/31
11. J.M’s Answer An app that encourages people to eat healthier and lead a fitter lifestyle When buying food at a supermarket, healthier foods such as vegetables and fruits incur points Points would be accumulated based on number of steps walked per day, or workouts completed A visit to the doctor for a health check could also accumulate points, depending on the result of the health check Accumulated points could then be used to purchase rewards or get discounts (such as in gym membership fees or fitness equipment) ⇒ Government should fund this! This is like gamification of lifestyles Maybe fun to play the game if it is designed with care (there is no clear distinction from slavery) Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.11/31
12. T’s Answer We can develop an application of individual part-time companies It is an online company held by a certain individual or a few individuals, with a low entry barrier Everyone can open a company and it may not last long Staffs of this kind of company will only need to comlete the work assigned to them to get paid, without going to a real working place ⇒ This reminds me of “TwedEX” by Microsoft Research “Parcels find their way to you via the crowd”, New Scientist, 2013 Could also apply to any “sharing” situations such as ride share, if you look at the transportation event, for example, as a project Potentially changes the way people cooperate/collaborate Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.12/31
13. S’s Answer Able to find the lost cash or coins in own house or some other private zones People usually forget where they put their coins or even cash in home or some other place ⇒ This implies automatic exchanges of physical representations of money with their digital equivalents (since we are talking about payment APIs) In Hong Kong, coin carts do that, but you have to bring coins (not automatic) Perhaps robots like Roomba can do that The robot or network of robots issues digital coins with proofs of existance of physically-represented money in custody, and returns the money to banks nearby Thereby getting rid of cash from the society Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.13/31
14. 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 2019 Fall — 2019-10-25 – p.14/31
15. Railway Model and TCP/IP (reprise) Level of flow is controlled by cooperation between TCP stacks at the both ends Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.15/31
16. 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 2019 Fall — 2019-10-25 – p.16/31
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    OFFEFE 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 2019 Fall — 2019-10-25 – p.18/31
19. 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 2019 Fall — 2019-10-25 – p.19/31
20. 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 2019 Fall — 2019-10-25 – p.20/31
21. World Wide Web #SPXTFS
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22. 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 2019 Fall — 2019-10-25 – p.22/31
23. 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 2019 Fall — 2019-10-25 – p.23/31
24. 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 2019 Fall — 2019-10-25 – p.24/31
25. 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 2019 Fall — 2019-10-25 – p.25/31
26. 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 2019 Fall — 2019-10-25 – p.26/31
27. 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 2019 Fall — 2019-10-25 – p.27/31
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29. 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 2019 Fall — 2019-10-25 – p.29/31
30. 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 2019 Fall — 2019-10-25 – p.30/31
31. See You Next Time! Lecture 5 : The World of Apps (1) — FinTech — Financial Innovation and the Internet 2019 Fall — 2019-10-25 – p.31/31