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Blockchain Can Disrupt Higher Education Today, Global Labor Market Tomorrow

Blockchain Can Disrupt Higher Education Today, Global Labor Market Tomorrow

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Blockchain can play its part in the education sector — record-keeping in 2–3 years and then adoption by the labor market?

In the post-pandemic world, individuals will need to seize ownership and control of their educational credentials — documents like degrees and transcripts — from schools, universities and governments. That notion received key support last week from the American Council on Education in a study funded by the United States Department of Education focusing on the use of blockchain in higher education.

“Blockchain, in particular, holds promise to create more efficient, durable connections between education and work,” wrote Ted Mitchell, the president of ACE, in the foreword to the study published on June 8, adding: “In the wake of the COVID-19 crisis, learners will be more mobile, moving in and out of formal education as their job, health, and family situations change.”

A key theme of the report is personal data agency — i.e., how “distributed ledger technologies [DLT] can ‘democratize’ data and empower individuals with agency over their personal information.” The report noted:

“Currently, when individuals need to prove their education and work history, they rely on institutions and past employers to verify education and workforce records. However, the institutions or employers may not be available, the records could have been lost or destroyed, or in the case of higher education, individuals may be required to pay fees. The inability to access or control their records can inhibit opportunities and keep them in the dark about what information is actually in their records.”

Education credentials have been typically stored on centralized systems. The problem with this, explained the report, is that data can be changed, deleted and shared without consent or knowledge of the individuals who created that data. By comparison, blockchain technologies “are inherently more transparent, persistent, immutable, and secured by encryption,” noted the report. 

Will digital academic credentials be commonplace in 2–3 years?

Kim Hamilton Duffy, an architect for the Digital Credentials Consortium, told Cointelegraph that the COVID-19 pandemic has accelerated the demand for digital credentials, adding: “Because of that and existing educational blockchain-related pilots, I expect these credentials will be commonplace over the next 2–3 years.”

A promising end-to-end pilot program demonstrating learner-controlled digital diplomas and degrees on a blockchain will run later in 2020, and a second will demonstrate digital transcripts, she said. Current pilots involve both permissioned blockchains — with credentials stored directly on the chain — as well as public blockchains with credentials stored off-chain that make use of blockchain-anchored identity registries.

One interesting detail: The decentralized identifiers/verifiable credentials architecture used in some of the most recent projects was designed with no privileged roles, Christopher Allen, the principal architect of Blockchain Commons — an open infrastructure corporation — told Cointelegraph, which means that anyone can be an issuer, adding: 

“This makes it possible for there to be P2P [peer-to-peer] competency credentials, from fellow students, teachers, co-workers, clients, contractors, employers — not just educational institutions.”

For example, Allen could personally make a verifiable claim that “Kim has a mastery level of competence in leading international level technical standards processes,” which is something that no educational institution would be willing to claim, but given Allen’s history and reputation as a co-author of the successful SSL/TLS specification, that attestation would arguably convey important information to Kim’s future employers, clients and collaborators. “These types of claims, I believe, will be an important part of the future of educational credentials,” Allen, who’s also a former co-chair of W3C Credentials CG, told Cointelegraph. 

Is the system broken?

Meanwhile, the current system is untenable in the view of many. Fraudulent diplomas abound, Hans Pongratz, the chief information officer at the Technical University of Munich, told Cointelegraph: “There are diploma mills and online shops around [...] — you can even select the right paper thickness and seals.” Roman Beck, a professor at IT University of Copenhagen, told Cointelegraph that the diploma system is “failure-prone and subject to all kinds of fraud,” clarifying further: 

“Securely mapping certificates with humans claiming to be the holder is not always easy as well, as birth certificates or identity cards are missing. Documents are not only photoshopped but also hard to verify as there are many institutions issuing certificates, diplomas and other work-related documentation. And finally, paper-based documents can get lost, which makes it impossible for the holder to prove that she or he actually has a certain education or qualification.”

Recently, through the standardization of verifiable credentials and in-progress pilots involving the T3 innovation network (U.S.-led), European Digital Credentialing Initiative (E.U.-led) and OpenCerts (Singapore), “we are reaching better E2E demonstrations of fitness,” Duffy added. 

But there are still obstacles to overcome, some technical. “What if you lose the private key that allows you to prove control [over the credentials]?” asked Duffy. In the worst case, it can be re-requested, “but then you are still bound to the issuer.”

Cross-border interoperability and cross-chain cooperation in conveying digital credentials between different national DLT systems is also an issue, added Beck, and the OECD Blockchain Policy Expert Group is working on policy recommendations in this area. 

Still, technology is not the main bottleneck, he emphasized: “It is the socio-technical integration of rules-based, autonomously operating DLT systems in complex social environments.” Alex Grech, a managing partner of Strategyworks, agreed that the more daunting challenges may be non-technological in nature, telling Cointelegraph: 

“Even within the European Blockchain Services Infrastructure project, the Commission may develop or fund the most sophisticated blockchain infrastructure available to EC member states and provide for free. But it will not maximize its potential until a raft of policymakers and education institutions decide to ‘buy into’ the solution since they are likely to be locked into existing technologies and procedures.”

There is already some history to learn from. “Small states like Malta and the Bahamas have been using Blockcerts to notarise education credentials since 2017,” said Grech. According to the ACE report, there are three major themes where DLT can be applied to advance social equity: “personal data agency, lifelong learning, and the power of connected ecosystems.” 

As an example of the need for “connected ecosystems,” Duffy referenced the aforementioned Blockcerts, an open standard for creating, issuing, viewing and verifying blockchain-based certificates, which she co-created several years back with J. Philipp Schmidt of the MIT Media Lab. However, the issue stands that the hiring managers and others will have to learn to trust the system, according to Duffy:

“With Blockcerts, we considered it a success that the learner can control their credential. But even though the recipient has a copy of the credential, will a relying party trust it? Do they understand the verification process? The E2E trust in the process was underemphasized.”

Can blockchain change the labor market?

The traditional education sector may just be the beginning. One can imagine all kinds of credentials — beyond academic degrees that could have a lasting impact on the labor market. “We need to go much further than ‘flat’ credentials like diplomas,” Duffy told Cointelegraph, adding: “What if you attended college but didn’t finish your degree? Today, you don’t have anything to show for it.”

Traditional education is just a small part of what a person learns and can do, she continued. “You are constantly learning but have little evidence to back that up.” There are efforts afoot today to “represent competencies” even before a conventional course of study is completed.

For example, Talent Cloud, led by Valerie Thomas, is an initiative developing new models for recruiting and mobilizing talent in Canada’s Public Service sector. It works with employers to shift flat job descriptions, like a banal “rock-star full stack developer” to something much more useful like “competency-based descriptions that can be more precisely matched up with skills/competencies,” said Duffy. 

This sort of work is a prerequisite to a more significant shift in the global labor market. As Duffy believes: “This is the really exciting part — it can help employers discover talent in their existing workforce and empower learners from non-traditional backgrounds.” on the matter, Beck told Cointelegraph: 

“Many believe that blockchain-based systems could liberate citizens, giving control back to the owner of the personal data. The EBS is not only aiming for securely conveying diplomas and other credentials of students across borders but also to support them later in starting a business, managing taxes or health records.”

Current events are spurring change. “The problem is especially evident with the increasing number of migrants that either have lost their credentials or for whom it is impossible to tell if their documents are valid,” added Beck. Therefore, moving, working and studying abroad have guided the development of a single digital market like the European one, where credentials can be universally recognized and accepted across the region.

The aim of the recent EBSI initiative, which has 30 signatory countries, is to allow studying and working in different countries while giving back to citizens control over their credentials, said Beck. This will make migration easier and increase workforce mobility. Grech told Cointelegraph:

“I think the entire nature of labor will change irreversibly because of COVID-19 and the ensuing collapse of the global economy. There has been more change in the past three months within education institutions and the labor market than in the past five years — and not all of it is negative.” 

Blockchain has been described as a hammer in search of a nail. If so, academic credentialing appears to be as obvious a nail as one can find. The current international trade in fake academic degrees, after all, is “staggering,” as the BBC reported, and with a global labor market increasingly mobile, the world could badly use a decentralized, borderless, tamper-free ledger of verifiable credentials — both for education and the broader labor market.

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Chronic stress and inflammation linked to societal and environmental impacts in new study

From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors…

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From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors can cause chronic inflammation in our bodies. Chronic inflammation is linked to serious conditions such as cardiovascular disease and cancer – and may also affect our thinking and behavior.   

Credit: Image: Vodovotz et al/Frontiers

From anxiety about the state of the world to ongoing waves of Covid-19, the stresses we face can seem relentless and even overwhelming. Worse, these stressors can cause chronic inflammation in our bodies. Chronic inflammation is linked to serious conditions such as cardiovascular disease and cancer – and may also affect our thinking and behavior.   

A new hypothesis published in Frontiers in Science suggests the negative impacts may extend far further.   

“We propose that stress, inflammation, and consequently impaired cognition in individuals can scale up to communities and populations,” explained lead author Prof Yoram Vodovotz of the University of Pittsburgh, USA.

“This could affect the decision-making and behavior of entire societies, impair our cognitive ability to address complex issues like climate change, social unrest, and infectious disease – and ultimately lead to a self-sustaining cycle of societal dysfunction and environmental degradation,” he added.

Bodily inflammation ‘mapped’ in the brain  

One central premise to the hypothesis is an association between chronic inflammation and cognitive dysfunction.  

“The cause of this well-known phenomenon is not currently known,” said Vodovotz. “We propose a mechanism, which we call the ‘central inflammation map’.”    

The authors’ novel idea is that the brain creates its own copy of bodily inflammation. Normally, this inflammation map allows the brain to manage the inflammatory response and promote healing.   

When inflammation is high or chronic, however, the response goes awry and can damage healthy tissues and organs. The authors suggest the inflammation map could similarly harm the brain and impair cognition, emotion, and behavior.   

Accelerated spread of stress and inflammation online   

A second premise is the spread of chronic inflammation from individuals to populations.  

“While inflammation is not contagious per se, it could still spread via the transmission of stress among people,” explained Vodovotz.   

The authors further suggest that stress is being transmitted faster than ever before, through social media and other digital communications.  

“People are constantly bombarded with high levels of distressing information, be it the news, negative online comments, or a feeling of inadequacy when viewing social media feeds,” said Vodovotz. “We hypothesize that this new dimension of human experience, from which it is difficult to escape, is driving stress, chronic inflammation, and cognitive impairment across global societies.”   

Inflammation as a driver of social and planetary disruption  

These ideas shift our view of inflammation as a biological process restricted to an individual. Instead, the authors see it as a multiscale process linking molecular, cellular, and physiological interactions in each of us to altered decision-making and behavior in populations – and ultimately to large-scale societal and environmental impacts.  

“Stress-impaired judgment could explain the chaotic and counter-intuitive responses of large parts of the global population to stressful events such as climate change and the Covid-19 pandemic,” explained Vodovotz.  

“An inability to address these and other stressors may propagate a self-fulfilling sense of pervasive danger, causing further stress, inflammation, and impaired cognition in a runaway, positive feedback loop,” he added.  

The fact that current levels of global stress have not led to widespread societal disorder could indicate an equally strong stabilizing effect from “controllers” such as trust in laws, science, and multinational organizations like the United Nations.   

“However, societal norms and institutions are increasingly being questioned, at times rightly so as relics of a foregone era,” said Prof Paul Verschure of Radboud University, the Netherlands, and a co-author of the article. “The challenge today is how we can ward off a new adversarial era of instability due to global stress caused by a multi-scale combination of geopolitical fragmentation, conflicts, and ecological collapse amplified by existential angst, cognitive overload, and runaway disinformation.”    

Reducing social media exposure as part of the solution  

The authors developed a mathematical model to test their ideas and explore ways to reduce stress and build resilience.  

“Preliminary results highlight the need for interventions at multiple levels and scales,” commented co-author Prof Julia Arciero of Indiana University, USA.  

“While anti-inflammatory drugs are sometimes used to treat medical conditions associated with inflammation, we do not believe these are the whole answer for individuals,” said Dr David Katz, co-author and a specialist in preventive and lifestyle medicine based in the US. “Lifestyle changes such as healthy nutrition, exercise, and reducing exposure to stressful online content could also be important.”  

“The dawning new era of precision and personalized therapeutics could also offer enormous potential,” he added.  

At the societal level, the authors suggest creating calm public spaces and providing education on the norms and institutions that keep our societies stable and functioning.  

“While our ‘inflammation map’ hypothesis and corresponding mathematical model are a start, a coordinated and interdisciplinary research effort is needed to define interventions that would improve the lives of individuals and the resilience of communities to stress. We hope our article stimulates scientists around the world to take up this challenge,” Vodovotz concluded.  

The article is part of the Frontiers in Science multimedia article hub ‘A multiscale map of inflammatory stress’. The hub features a video, an explainer, a version of the article written for kids, and an editorial, viewpoints, and policy outlook from other eminent experts: Prof David Almeida (Penn State University, USA), Prof Pietro Ghezzi (University of Urbino Carlo Bo, Italy), and Dr Ioannis P Androulakis (Rutgers, The State University of New Jersey, USA). 


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Acadia’s Nuplazid fails PhIII study due to higher-than-expected placebo effect

After years of trying to expand the market territory for Nuplazid, Acadia Pharmaceuticals might have hit a dead end, with a Phase III fail in schizophrenia…

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After years of trying to expand the market territory for Nuplazid, Acadia Pharmaceuticals might have hit a dead end, with a Phase III fail in schizophrenia due to the placebo arm performing better than expected.

Steve Davis

“We will continue to analyze these data with our scientific advisors, but we do not intend to conduct any further clinical trials with pimavanserin,” CEO Steve Davis said in a Monday press release. Acadia’s stock $ACAD dropped by 17.41% before the market opened Tuesday.

Pimavanserin, a serotonin inverse agonist and also a 5-HT2A receptor antagonist, is already in the market with the brand name Nuplazid for Parkinson’s disease psychosis. Efforts to expand into other indications such as Alzheimer’s-related psychosis and major depression have been unsuccessful, and previous trials in schizophrenia have yielded mixed data at best. Its February presentation does not list other pimavanserin studies in progress.

The Phase III ADVANCE-2 trial investigated 34 mg pimavanserin versus placebo in 454 patients who have negative symptoms of schizophrenia. The study used the negative symptom assessment-16 (NSA-16) total score as a primary endpoint and followed participants up to week 26. Study participants have control of positive symptoms due to antipsychotic therapies.

The company said that the change from baseline in this measure for the treatment arm was similar between the Phase II ADVANCE-1 study and ADVANCE-2 at -11.6 and -11.8, respectively. However, the placebo was higher in ADVANCE-2 at -11.1, when this was -8.5 in ADVANCE-1. The p-value in ADVANCE-2 was 0.4825.

In July last year, another Phase III schizophrenia trial — by Sumitomo and Otsuka — also reported negative results due to what the company noted as Covid-19 induced placebo effect.

According to Mizuho Securities analysts, ADVANCE-2 data were disappointing considering the company applied what it learned from ADVANCE-1, such as recruiting patients outside the US to alleviate a high placebo effect. The Phase III recruited participants in Argentina and Europe.

Analysts at Cowen added that the placebo effect has been a “notorious headwind” in US-based trials, which appears to “now extend” to ex-US studies. But they also noted ADVANCE-1 reported a “modest effect” from the drug anyway.

Nonetheless, pimavanserin’s safety profile in the late-stage study “was consistent with previous clinical trials,” with the drug having an adverse event rate of 30.4% versus 40.3% with placebo, the company said. Back in 2018, even with the FDA approval for Parkinson’s psychosis, there was an intense spotlight on Nuplazid’s safety profile.

Acadia previously aimed to get Nuplazid approved for Alzheimer’s-related psychosis but had many hurdles. The drug faced an adcomm in June 2022 that voted 9-3 noting that the drug is unlikely to be effective in this setting, culminating in a CRL a few months later.

As for the company’s next R&D milestones, Mizuho analysts said it won’t be anytime soon: There is the Phase III study for ACP-101 in Prader-Willi syndrome with data expected late next year and a Phase II trial for ACP-204 in Alzheimer’s disease psychosis with results anticipated in 2026.

Acadia collected $549.2 million in full-year 2023 revenues for Nuplazid, with $143.9 million in the fourth quarter.

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Digital Currency And Gold As Speculative Warnings

Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution…

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Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution of the market into a “casino” following the pandemic, where retail traders have increased their speculative appetites.

“Such is unsurprising, given that retail investors often fall victim to the psychological behavior of the “fear of missing out.” The chart below shows the “dumb money index” versus the S&P 500. Once again, retail investors are very long equities relative to the institutional players ascribed to being the “smart money.””

“The difference between “smart” and “dumb money” investors shows that, more often than not, the “dumb money” invests near market tops and sells near market bottoms.”

Net Smart Dumb Money vs Market

That enthusiasm has increased sharply since last November as stocks surged in hopes that the Federal Reserve would cut interest rates. As noted by Sentiment Trader:

“Over the past 18 weeks, the straight-up rally has moved us to an interesting juncture in the Sentiment Cycle. For the past few weeks, the S&P 500 has demonstrated a high positive correlation to the ‘Enthusiasm’ part of the cycle and a highly negative correlation to the ‘Panic’ phase.”

Investor Enthusiasm

That frenzy to chase the markets, driven by the psychological bias of the “fear of missing out,” has permeated the entirety of the market. As noted in This Is Nuts:”

“Since then, the entire market has surged higher following last week’s earnings report from Nvidia (NVDA). The reason I say “this is nuts” is the assumption that all companies were going to grow earnings and revenue at Nvidia’s rate. There is little doubt about Nvidia’s earnings and revenue growth rates. However, to maintain that growth pace indefinitely, particularly at 32x price-to-sales, means others like AMD and Intel must lose market share.”

Nvidia Price To Sales

Of course, it is not just a speculative frenzy in the markets for stocks, specifically anything related to “artificial intelligence,” but that exuberance has spilled over into gold and cryptocurrencies.

Birds Of A Feather

There are a couple of ways to measure exuberance in the assets. While sentiment measures examine the broad market, technical indicators can reflect exuberance on individual asset levels. However, before we get to our charts, we need a brief explanation of statistics, specifically, standard deviation.

As I discussed in “Revisiting Bob Farrell’s 10 Investing Rules”:

“Like a rubber band that has been stretched too far – it must be relaxed in order to be stretched again. This is exactly the same for stock prices that are anchored to their moving averages. Trends that get overextended in one direction, or another, always return to their long-term average. Even during a strong uptrend or strong downtrend, prices often move back (revert) to a long-term moving average.”

The idea of “stretching the rubber band” can be measured in several ways, but I will limit our discussion this week to Standard Deviation and measuring deviation with “Bollinger Bands.”

“Standard Deviation” is defined as:

“A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of the variance.”

In plain English, this means that the further away from the average that an event occurs, the more unlikely it becomes. As shown below, out of 1000 occurrences, only three will fall outside the area of 3 standard deviations. 95.4% of the time, events will occur within two standard deviations.

Standard Deviation Chart

A second measure of “exuberance” is “relative strength.”

“In technical analysis, the relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can read from 0 to 100.

Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.” – Investopedia

With those two measures, let’s look at Nvidia (NVDA), the poster child of speculative momentum trading in the markets. Nvidia trades more than 3 standard deviations above its moving average, and its RSI is 81. The last time this occurred was in July of 2023 when Nvidia consolidated and corrected prices through November.

NVDA chart vs Bollinger Bands

Interestingly, gold also trades well into 3 standard deviation territory with an RSI reading of 75. Given that gold is supposed to be a “safe haven” or “risk off” asset, it is instead getting swept up in the current market exuberance.

Gold vs Bollinger Bands

The same is seen with digital currencies. Given the recent approval of spot, Bitcoin exchange-traded funds (ETFs), the panic bid to buy Bitcoin has pushed the price well into 3 standard deviation territory with an RSI of 73.

Bitcoin vs Bollinger Bands

In other words, the stock market frenzy to “buy anything that is going up” has spread from just a handful of stocks related to artificial intelligence to gold and digital currencies.

It’s All Relative

We can see the correlation between stock market exuberance and gold and digital currency, which has risen since 2015 but accelerated following the post-pandemic, stimulus-fueled market frenzy. Since the market, gold and cryptocurrencies, or Bitcoin for our purposes, have disparate prices, we have rebased the performance to 100 in 2015.

Gold was supposed to be an inflation hedge. Yet, in 2022, gold prices fell as the market declined and inflation surged to 9%. However, as inflation has fallen and the stock market surged, so has gold. Notably, since 2015, gold and the market have moved in a more correlated pattern, which has reduced the hedging effect of gold in portfolios. In other words, during the subsequent market decline, gold will likely track stocks lower, failing to provide its “wealth preservation” status for investors.

SP500 vs Gold

The same goes for cryptocurrencies. Bitcoin is substantially more volatile than gold and tends to ebb and flow with the overall market. As sentiment surges in the S&P 500, Bitcoin and other cryptocurrencies follow suit as speculative appetites increase. Unfortunately, for individuals once again piling into Bitcoin to chase rising prices, if, or when, the market corrects, the decline in cryptocurrencies will likely substantially outpace the decline in market-based equities. This is particularly the case as Wall Street can now short the spot-Bitcoin ETFs, creating additional selling pressure on Bitcoin.

SP500 vs Bitcoin

Just for added measure, here is Bitcoin versus gold.

Gold vs Bitcoin

Not A Recommendation

There are many narratives surrounding the markets, digital currency, and gold. However, in today’s market, more than in previous years, all assets are getting swept up into the investor-feeding frenzy.

Sure, this time could be different. I am only making an observation and not an investment recommendation.

However, from a portfolio management perspective, it will likely pay to remain attentive to the correlated risk between asset classes. If some event causes a reversal in bullish exuberance, cash and bonds may be the only place to hide.

The post Digital Currency And Gold As Speculative Warnings appeared first on RIA.

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