Xi Chen from NYU Stern gave a talk at MBZUAI on digital privacy in personalized pricing using differential privacy. The talk also covered research in Web3 and decentralized finance, including delta hedging liquidity positions on Uniswap V3. Chen highlighted open problems in decentralized finance during the presentation. Why it matters: The talk suggests MBZUAI's interest in exploring the intersection of AI, privacy, and blockchain technologies, reflecting growing trends in data protection and decentralized systems.
This paper introduces DaringFed, a novel dynamic Bayesian persuasion pricing mechanism for online federated learning (OFL) that addresses the challenge of two-sided incomplete information (TII) regarding resources. It formulates the interaction between the server and clients as a dynamic signaling and pricing allocation problem within a Bayesian persuasion game, demonstrating the existence of a unique Bayesian persuasion Nash equilibrium. Evaluations on real and synthetic datasets demonstrate that DaringFed optimizes accuracy and convergence speed and improves the server's utility.
This article discusses the need for a decentralized approach to AI, especially in contexts where data and knowledge are distributed. It highlights five key technical challenges: privacy, verifiability, incentives, orchestration, and crowdUX. The author, Ramesh Raskar from MIT Media Lab, advocates for integrating privacy tech, distributed verifiable AI, data markets, orchestration, and crowd experience into the Web3 framework. Why it matters: Decentralized AI could unlock new possibilities for collaboration and problem-solving in the region, particularly in sectors like healthcare and logistics where data is often siloed.
Conor McMenamin from Universitat Pompeu Fabra presented a seminar on State Machine Replication (SMR) without honest participants. The talk covered the limitations of current SMR protocols and introduced the ByRa model, a framework for player characterization free of honest participants. He then described FAIRSICAL, a sandbox SMR protocol, and discussed how the ideas could be extended to real-world protocols, with a focus on blockchains and cryptocurrencies. Why it matters: This research on SMR protocols and their incentive compatibility could lead to more robust and secure blockchain technologies in the region.
This paper presents a reinforcement learning framework for optimizing energy pricing in peer-to-peer (P2P) energy systems. The framework aims to maximize the profit of all components in a microgrid, including consumers, prosumers, the service provider, and a community battery. Experimental results on the Pymgrid dataset demonstrate the approach's effectiveness in price optimization, considering the interests of different components and the impact of community battery capacity.
KAUST's Stochastic Numerics Research Group is developing methods for pricing European options. Their approach, detailed in an upcoming Journal of Computational Finance article, focuses on systematically tuning parameters to achieve accuracy while minimizing computational effort. The goal is to enable automated computation of fair prices for options contracts, similar to how insurance companies determine premiums. Why it matters: This research advances computational finance in the region, potentially improving risk management and investment strategies.
Researchers at ETH Zurich have formalized models of the EMV payment protocol using the Tamarin model checker. They discovered flaws allowing attackers to bypass PIN requirements for high-value purchases on EMV cards like Mastercard and Visa. The team also collaborated with an EMV consortium member to verify the improved EMV Kernel C-8 protocol. Why it matters: This research highlights the importance of formal methods in identifying critical vulnerabilities in widely used payment systems, potentially impacting financial security for consumers in the GCC region and worldwide.
This article previews a talk by Dr. Wei Cai of CUHK-Shenzhen on the history, development, and future trends of the Web3 metaverse. The talk will cover industrial Web3 metaverse cases, recent research outcomes, and the metaverse research spectrum. Dr. Cai's research interests include blockchain, Web 3.0, digital games, and computational art. Why it matters: As metaverse technologies continue to evolve, understanding the Web3 perspective and research directions is important for regional AI and technology development.