ITEC FPX 5030 Assessment 1 Emerging Technologies

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Capella University

ITEC-FPX 5030 Emerging Technologies

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Date

ITEC FPX 5030 Assessment 1 Emerging Technologies

Executive Summary

Blockchain technology and artificial intelligence (AI) are emerging technologies that can help businesses improve data security, automate processes, and make more informed decisions. Blockchain provides a distributed method of recording and verifying transactions, while AI analyzes information, identifies patterns, and supports tasks that traditionally require human intelligence. When applied appropriately, these technologies can improve business efficiency, customer experiences, and strategic planning. However, their effectiveness depends on the organization’s needs, available resources, privacy requirements, and technology infrastructure.

Forged in Ashes, a local axe-throwing facility, can benefit from evaluating these technologies as part of its business development strategy. The company plans to use Square, formerly known as Square Up, to manage customer transactions, reservations, and marketing activities. Although the business is not yet fully operational, assessing blockchain and AI provides an opportunity to identify future improvements in customer service, operational efficiency, and data management.

This assessment examines blockchain technology, cryptocurrency, and artificial intelligence, including their potential benefits, limitations, and business applications. It also considers how Forged in Ashes could use its existing business platform to support secure transactions, improve customer engagement, and prepare for future technological developments.

Emerging Technologies: Blockchain and Artificial Intelligence

Introduction to Emerging Technologies

Blockchain and artificial intelligence are two important technological developments influencing modern business operations. Although they serve different purposes, they can complement one another when organizations need reliable data, automated analysis, and more efficient decision-making (BBVA, 2019).

Blockchain is a distributed digital ledger that records transactions across a network of computers. Depending on the blockchain’s design, participants can verify transactions, and cryptographic techniques help protect the integrity of recorded information. Artificial intelligence, in contrast, uses computational methods to analyze data, recognize patterns, generate predictions, and support decision-making. Blockchain can provide a verifiable record of information, while AI can use appropriate data to identify trends and generate useful insights.

A SWOT analysis, which examines strengths, weaknesses, opportunities, and threats, can help businesses evaluate how these technologies align with their strategic objectives. For Forged in Ashes, this assessment should consider the company’s current stage of development, customer expectations, operational requirements, budget, and ability to maintain secure digital systems.

Because the facility is preparing to establish its operations, adopting every emerging technology at once may not be practical. A more effective strategy is to identify specific business problems, evaluate available solutions, and implement technologies that offer measurable value.

Cryptocurrency and Its Role in Business

What Is Cryptocurrency?

Cryptocurrency is a form of digital asset that uses cryptographic techniques to secure transactions and, in many cases, blockchain technology to record ownership and transfers. Unlike traditional government-issued currencies, many cryptocurrencies operate through decentralized networks rather than a central bank. However, their governance, transaction mechanisms, and degree of decentralization vary by asset (Reiff, 2020a).

Cryptocurrencies can be used for digital payments, investment, and transfers between participants. Their potential business applications include accepting payments from customers, facilitating international transactions, and interacting with blockchain-based services. Nevertheless, price volatility, transaction fees, regulatory requirements, cybersecurity risks, and customer adoption can limit their practical usefulness.

Bitcoin

Bitcoin (BTC) was introduced in 2009 under the pseudonym Satoshi Nakamoto. It operates through a decentralized network that validates transactions and maintains a shared transaction history without relying on a conventional central bank.

Bitcoin is primarily recognized as a digital asset and a potential medium of exchange. Its decentralized structure distinguishes it from traditional payment systems, although transaction processing, network fees, price fluctuations, and regulatory considerations may affect its suitability for individual businesses.

For Forged in Ashes, accepting Bitcoin could eventually provide another payment option for customers who prefer cryptocurrency. However, the company would need to evaluate transaction costs, payment conversion options, accounting procedures, and applicable legal obligations before introducing such a service.

Ethereum

Ethereum is a blockchain platform that supports decentralized applications and smart contracts. Smart contracts are programs stored and executed according to predefined conditions on a blockchain. They can automate certain transactions and processes without requiring every step to be handled manually.

Although Ethereum also has a native cryptocurrency, Ether (ETH), its broader purpose extends beyond digital payments. The platform supports applications involving decentralized finance, digital assets, and automated agreements (Reiff, 2020b).

For a business such as Forged in Ashes, smart contracts could theoretically support automated booking conditions, deposits, or promotional arrangements. However, these applications would require careful design, technical expertise, and an assessment of whether blockchain provides advantages over conventional reservation and payment software.

Bitcoin Cash

Bitcoin Cash (BCH) emerged in 2017 following a disagreement within the Bitcoin community about how the network should scale. It adopted a larger block-size limit than Bitcoin’s original limit, with the aim of accommodating more transaction data per block.

Bitcoin Cash and Bitcoin share a historical connection, but they operate as separate cryptocurrencies with different network rules and market characteristics. A larger block-size limit does not guarantee faster confirmation in every situation because processing time also depends on network activity, fees, and other technical factors (Reiff, 2020c).

Businesses considering Bitcoin Cash should compare its transaction costs, customer demand, payment-provider support, and operational risks with those of alternative payment methods.

Litecoin

Litecoin (LTC) is another cryptocurrency influenced by Bitcoin’s design. It uses the Scrypt proof-of-work algorithm rather than Bitcoin’s SHA-256 algorithm and has a different block-generation schedule and maximum supply.

Litecoin was designed to support relatively quick transaction processing, making it another option for businesses exploring cryptocurrency payments. However, transaction speed, confirmation requirements, market liquidity, and price volatility should all be considered before adopting it (Fernando, 2020).

Historical rankings of cryptocurrencies by market capitalization change frequently. Therefore, rankings reported in 2020 should not be treated as current market information.

Comparing Major Cryptocurrencies

Bitcoin, Ethereum, Bitcoin Cash, and Litecoin serve different purposes within the digital asset ecosystem. Bitcoin is commonly associated with decentralized digital money, Ethereum supports smart contracts and decentralized applications, Bitcoin Cash focuses on an alternative approach to transaction scaling, and Litecoin offers a separate payment-oriented cryptocurrency network.

Selecting a cryptocurrency depends on the business’s payment requirements, customers’ preferences, transaction costs, accounting needs, and risk tolerance. Forged in Ashes does not currently plan to accept cryptocurrency, so implementing a conventional payment system is the more appropriate starting point. Cryptocurrency acceptance can be reconsidered if customer demand and a clear business case emerge.

Blockchain Technology and Business Applications

Understanding Blockchain Technology

Blockchain is a type of distributed ledger that records transactions in linked blocks of data. Cryptographic methods help protect the relationship between records, while network rules determine how transactions are validated and added to the ledger. Depending on the implementation, blockchain records can be difficult to alter without detection.

Blockchain is not automatically immune to hacking or fraud. Vulnerabilities may exist in applications, digital wallets, access controls, smart contracts, and the devices used to interact with the network. Businesses must therefore combine blockchain technology with appropriate cybersecurity measures and governance policies.

Benefits of Blockchain for Businesses

Blockchain can offer several advantages when its design matches a genuine business need. Shared transaction records may improve transparency among authorized participants, while cryptographic verification can help identify unauthorized changes. Distributed recordkeeping can also reduce the need for some intermediaries and improve traceability across complex business processes.

Potential applications include supply-chain tracking, business payments, digital identity systems, healthcare information exchange, intellectual property management, and advertising verification (Rampton, 2020).

However, blockchain also presents challenges. Implementation can require specialized technical knowledge, and public blockchain transactions may expose information that organizations would prefer to keep private. Some networks have scalability or energy-consumption concerns, while correcting inaccurate data entered into a blockchain can be difficult. Organizations must assess these limitations before deciding whether a blockchain solution is appropriate.

Blockchain and Customer Data Management at Forged in Ashes

Forged in Ashes plans to use Square to support day-to-day business activities, including customer transactions, reservations, and marketing communications. A conventional payment and booking platform can help the business organize customer interactions without the complexity of maintaining its own blockchain infrastructure.

The company should distinguish between using a digital platform and using blockchain technology. Square provides payment-processing and business-management capabilities, but using Square does not automatically mean that Forged in Ashes is using blockchain.

Instead, the business can focus on established operational requirements, such as secure payment processing, accurate reservation records, controlled access to customer information, and appropriate marketing consent. Customer data should be collected only when necessary and managed in accordance with applicable privacy and data-protection requirements.

If the business expands in the future, blockchain could be evaluated for a specific purpose, such as verifying selected business transactions or coordinating records with independent partners. Any proposed implementation should demonstrate clear advantages over conventional databases and payment systems.

Artificial Intelligence in Business Operations

What Is Artificial Intelligence?

Artificial intelligence refers to computer systems designed to perform tasks that typically involve capabilities associated with human intelligence, such as learning, reasoning, pattern recognition, language processing, and problem-solving (Frankenfield, 2020).

AI systems vary considerably in their capabilities. Some perform narrowly defined tasks, such as classifying customer inquiries or predicting demand, while others generate text, images, and recommendations based on patterns learned from data.

AI can help businesses process information more quickly and identify trends that may be difficult to detect manually. Nevertheless, its results depend on data quality, system design, and appropriate human oversight. AI can produce inaccurate predictions or recommendations, so businesses should evaluate its output before using it for important decisions.

Types of Artificial Intelligence

AI is sometimes classified according to the capabilities researchers aim to develop.

Reactive AI refers to systems that respond to current inputs without using stored experiences in the way that learning systems do. Such systems can perform defined tasks but have limited adaptability.

Limited-memory AI describes systems that use historical data or recent observations to support decisions and predictions. Many practical AI applications, including recommendation systems and certain predictive models, use information from past data.

Theory-of-mind AI is a proposed category involving the ability to model other people’s beliefs, intentions, emotions, and mental states. Developing AI with reliable, human-like social understanding remains an ongoing research challenge.

Self-aware AI refers to a hypothetical system with awareness of its own internal states or existence. There is no established evidence that current AI systems possess this kind of consciousness.

These categories are conceptual rather than a definitive classification of all modern AI systems. Businesses should evaluate AI tools based on their actual capabilities, limitations, and intended uses rather than assuming that every system belongs neatly to one category (Joshi, 2019).

Applications of AI Across Business Functions

AI can support a wide range of business activities, including marketing, sales, research and development, information technology, human resources, customer service, facilities management, manufacturing, accounting, finance, and customer experience (Marr, 2020).

In marketing, AI can analyze customer behavior, group audiences by shared characteristics, help develop promotional content, and recommend products or services. In customer service, AI-powered tools can answer routine questions, organize inquiries, and direct customers to the appropriate staff members. In finance, analytical systems can help identify unusual transactions, forecast expenses, and organize financial information.

AI can also support demand forecasting and operational planning. For example, a business might use historical reservation data to estimate which days are likely to be busiest. Such forecasts can inform staffing and scheduling decisions, although they should be reviewed against actual booking patterns and other relevant information.

Potential AI Applications at Forged in Ashes

For Forged in Ashes, AI could eventually improve marketing, customer communication, and facility planning. Because axe-throwing venues depend on reservations, group bookings, and customer experiences, understanding booking trends could help management allocate staff and schedule available lanes more effectively.

Potential applications include analyzing aggregated booking patterns, drafting promotional messages, categorizing customer feedback, and answering common questions about opening hours, reservations, or venue policies. Any automated response system should provide accurate information and direct complex or safety-related questions to a staff member.

AI-assisted marketing could help the business develop promotional messages for birthdays, corporate events, group activities, and repeat customers. However, customer segmentation and targeted communication should respect privacy requirements and marketing preferences.

The company should begin with practical tools that integrate with its existing systems. Before implementing AI, management should verify whether Square or other selected providers already offer relevant reporting, automation, or customer-management features. Using existing capabilities may be more affordable and easier to maintain than building a separate AI solution.

Integrating Blockchain and Artificial Intelligence

How Blockchain and AI Can Work Together

Blockchain and AI address different business challenges. Blockchain can support the recording and verification of transactions, while AI can analyze suitable data to produce forecasts, classifications, or recommendations. Their integration may be useful when multiple parties need to verify data and analytical processes require reliable records (BBVA, 2019).

For example, a supply-chain organization might use blockchain to maintain a shared record of product movements and AI to forecast demand or identify unusual patterns. A business consortium could also use verified transaction records to support audits while applying AI to summarize trends.

However, combining the technologies does not automatically improve performance. Blockchain cannot guarantee that information entered into the system is accurate, and AI cannot guarantee that its analysis is correct. Integration may also introduce additional costs, technical complexity, and privacy concerns.

Opportunities and Limitations for Forged in Ashes

For Forged in Ashes, the most immediate opportunity lies in using digital business tools to manage reservations, payments, and customer communications. AI-based reporting and marketing support may become useful as the company collects sufficient operational data.

Blockchain integration is less likely to be necessary during the initial stages because a conventional business platform can already handle many routine payment and reservation requirements. Introducing blockchain without a defined problem could increase costs without producing meaningful benefits.

A practical implementation strategy should therefore prioritize technologies according to their expected value:

1. Establish a reliable digital system for reservations, payments, and customer records.

2. Use available reporting features to understand booking patterns, customer demand, and business performance.

3. Evaluate AI tools that address specific operational challenges and maintain human oversight.

4. Consider blockchain only if a future requirement involves shared verification, transaction traceability, or coordination among independent parties that existing systems cannot adequately support.

This staged approach allows Forged in Ashes to develop its digital capabilities while keeping implementation costs and operational risks manageable.

Summary

Blockchain and artificial intelligence offer different but potentially complementary benefits for modern businesses. Blockchain supports distributed transaction records and verification, while AI helps analyze information, identify patterns, automate routine tasks, and improve decision-making. Both technologies have practical applications, but their suitability depends on business objectives, data quality, security requirements, and implementation costs.

For Forged in Ashes, the priority should be to establish reliable business operations through Square, including payment processing, reservations, and customer communication. AI tools may later help the company understand booking trends, improve marketing, and streamline customer service. Blockchain could be considered if a specific business requirement justifies its additional complexity.

A thoughtful technology strategy should focus on solving real operational problems rather than adopting emerging technologies simply because they are popular. By evaluating costs, maintaining appropriate data safeguards, and measuring results, Forged in Ashes can make informed decisions that support growth and a positive customer experience.

Frequently Asked Questions

What is the difference between blockchain and artificial intelligence?

Blockchain is a technology for recording and verifying information across a distributed network, while artificial intelligence uses computational methods to analyze data, recognize patterns, and support decisions. Blockchain focuses on records and verification; AI focuses on analysis and task performance.

How can blockchain help small businesses?

Blockchain may help small businesses verify transactions, improve traceability, and coordinate records with independent partners. However, conventional databases and payment platforms may be more practical when a business does not need shared verification or a distributed ledger.

Can Forged in Ashes use blockchain through Square?

Using Square does not automatically mean a business is using blockchain. Square provides payment and business-management services, but Forged in Ashes would need to identify a specific blockchain-enabled service or integration before claiming to use blockchain technology.

How can AI improve axe-throwing business operations?

AI may help analyze booking trends, forecast demand, support marketing, organize customer feedback, and answer routine customer questions. These applications can improve planning and customer communication when their results are monitored for accuracy.

Is cryptocurrency necessary for Forged in Ashes?

No. Cryptocurrency is not necessary for operating the facility. Conventional payment methods can support customer transactions without requiring the business to manage cryptocurrency volatility, specialized accounting, or additional regulatory considerations.

What are the main risks of implementing AI and blockchain?

Key risks include implementation costs, cybersecurity vulnerabilities, privacy concerns, inaccurate AI outputs, poor data quality, integration challenges, and uncertain business value. Organizations should assess these risks and establish appropriate controls before deploying either technology.

Should a small business implement blockchain and AI at the same time?

Not necessarily. A small business should first identify its most important operational needs and evaluate affordable solutions. It may be more practical to adopt AI-enabled reporting or automation before considering blockchain, especially when conventional business software already meets the organization’s requirements.

References

BBVA. (2019, May 6). Blockchain and AI: A perfect match? OpenMind. https://www.bbvaopenmind.com/en/technology/artificialintelligence/blockchain-and-ai-a-perfect-match/

Fernando, J. (2020, June 21). Bitcoin vs. Litecoin: What’s the difference? Investopedia. https://www.investopedia.com/articles/investing/042015/bitcoin-vslitecoin-whats-difference.asp

Frankenfield, J. (2020, March 13). Artificial intelligence (AI). Investopedia. https://www.investopedia.com/terms/a/artificial-intelligence-ai.asp

Joshi, N. (2019, June 19). 7 types of artificial intelligence. Forbes. https://www.forbes.com/sites/cognitiveworld/2019/06/19/7-types-of-artificial-intelligence/

Marr, B. (2020, March 30). 10 business functions that are ready to use artificial intelligence. Forbes. https://www.forbes.com/sites/bernardmarr/2020/03/30/10-business-functions-that-are-ready-to-use-artificial-intelligence/

ITEC FPX 5030 Assessment 1 Emerging Technologies

Rampton, J. (2020). 5 applications for blockchain in your business. The Economist Group. https://execed.economist.com/blog/industry-trends/5-applicationsblockchain-your-business

Reiff, N. (2020a, January 8). The 10 most important cryptocurrencies other than Bitcoin. Investopedia. https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/

Reiff, N. (2020b, June 16). Bitcoin vs. Ethereum: What’s the difference? Investopedia. https://www.investopedia.com/articles/investing/031416/bitcoin-vsethereum-driven-different-purposes.asp

Reiff, N. (2020c, June 16). Bitcoin vs. Bitcoin Cash: What is the difference? Investopedia. https://www.investopedia.com/tech/bitcoin-vs-bitcoin-cash-whats-difference/