S&P Global — 3 October 2024
Daily Update: October 3, 2024
AI and Crypto Combined Offer New Hope for the Decentralized Internet
By Nathan Hunt
Start every business day with our analyses of the most pressing developments affecting markets today, alongside a curated selection of our latest and most important insights on the global economy
The early days of the internet were an optimistic time. The idea of democratized communication platforms, online publication and e-commerce seemingly promised a world free of centralized control. However, the technological and physical challenges of building out the internet tended to reward a few large players.
The concept of a cryptography-driven decentralized internet has revived those early hopes for what the internet could be. While crypto offers security, decentralization and immutability, it struggles to handle the huge quantities of data that exist online today. AI built on large language models offers a path forward in which the complementary advantages of crypto and AI meet to create something fundamentally new. A group of researchers at S&P Global recently analyzed the range of possible outcomes for the future of a crypto- and AI-driven internet in “Crypto and AI: Shaping the Future of the Internet.”
The team looked at three scenarios for how crypto and AI could affect the future internet. The first scenario features incremental advancements in AI and crypto that offer some of the promise of a decentralized internet but only modest efficiency gains. In the second scenario, an AI arms race among large technology companies exacerbates the problems of centralization, creating reduced transparency and accountability. The third scenario is a truly decentralized internet powered by crypto and AI.
In these scenarios, the researchers anticipated changes to a range of use cases, including cybersecurity, financial markets, computational resources, internet of things and networking smart devices, and supply chains. In each case, the key change was the ability of crypto to process data through information bridges called oracles. Oracles can share information with external systems, allowing the AI to process and analyze large datasets. Other key developments include decentralized physical infrastructure networks, which can facilitate peer-to-peer resources exchanges, including storage and processing power, and incentivize use by rewarding participants with crypto tokens.
Skeptics have heard this story before. It is the nature of the technology hype cycle that disillusionment must follow inflated expectations. The research team believes that crypto and AI applications will emerge and impact a variety of sectors and use cases. The question is one of different scenarios leading to different outcomes.
Today is Thursday, October 3, 2024, and here is today’s essential intelligence.
Listen: Audubon CEO On Why Bird Loss Indicates A Planet In Crisis
One theme that emerged in Climate Week NYC 2024 is the link between nature loss and climate change. In this episode of the ESG Insider podcast, National Audubon Society CEO Dr. Elizabeth Gray explains how nature can provide solutions to climate change.
—Listen and subscribe to the podcast from S&P Global Sustainable1
The New ‘New Normal’: Trends In U.S. Higher Education Post-Pandemic Versus Post-Recession
The U.S. higher education sector is struggling with student demographic pressures and affordability considerations on one hand and rising expenses on the other, though ample financial resources and brand recognition buoy the top institutions. In a trend reversal, inflation outpaced tuition increases in the past five years, while instruction expenses lagged even further behind as universities cut costs.
—Read the article from S&P Global Ratings
Credit Cycle Indicator Q4 2024: Credit Recovery Prospects Are Mixed Across Markets
S&P Global Ratings' Credit Cycle Indicator (CCI), a forward-looking measure of credit conditions, is signaling a potential credit recovery ahead in 2025. However, an increasingly complicated macroeconomic landscape means the recovery could play out differently across markets and sectors.
—Read the article from S&P Global Ratings
Oil Storage And Energy Infrastructure At Red Sea Ports In Yemen Hit By Attacks
Oil storage and energy infrastructure at the Red Sea ports of Hodeidah and Ras Isa in Yemen were attacked and set ablaze Sept. 29 by the Israeli military. "Through the infrastructure and ports that were attacked, the Houthi regime transports Iranian weapons to the region, and supplies for military purposes, and thus oil," the Israeli military said in a statement following the attacks.
—Read the article from S&P Global Commodity Insights
India's Latest Oil, Gas Auctions Signal Growing Private Appetite, Foreign Interest Still Elusive
India's latest round of oil and gas block auction has witnessed significant interest from state-run and private players, with Vedanta Ltd. bidding on all 28 available blocks, highlighting the growing enthusiasm among private players to expand their domestic upstream footprint. But interest from overseas players continued to remain absent, with analysts saying that despite policies getting increasingly investor-friendly, foreign players are a bit cautious in committing to India's upstream sector as new discoveries remain elusive.
—Read the article from S&P Global Commodity Insights
AI In Pharmaceuticals Promises Innovation, Speed And Savings
Generative AI will transform pharmaceutical research and development by strengthening innovation, offering cost efficiencies, and speeding the traditionally ponderous research-to-market cycle. Large pharmaceuticals companies' significant investments in AI could establish enduring competitive advantages over smaller rivals.
—Read the article from S&P Global Ratings
Webinar: Examining the Impact on Key US Business Sectors through 2024 and Beyond (Oct. 22, 2024)
The upcoming US elections are significant for a variety of industries, as the outcome has the potential to bring about significant changes in policies and regulations. Of particular concern are key areas such as energy, technology and finance, which are highly sensitive to shifts in administration. The election outcome may change the market, investment climate and consumer confidence. It is important for businesses to understand and prepare for the possible opportunities and challenges that lie ahead. Join S&P Global analysts as they discuss the potential opportunities and challenges of the US elections to key business sectors.
—Register for the webinar from S&P Global Market Intelligence