The Sage Observer

Algorithms

          I want to address a subject today, about which I know absolutely nothing–nada–well, maybe a little bit, but certainly almost nothing. I would, also, bet my bottom dollar that neither do almost all of you who are reading this. In fact, I would go so far as to suggest that almost all of you have never heard the word algorithm (If you are not a mathematician or an engineer or such).

The New Oxford American Dictionary defines an algorithm as “a process or set of rules to be followed in calculation or other problem-solving operations, especially by a computer”. My view of an algorithm is essentially the same (how can I argue), but I express it slightly different. I view an algorithm as a “mathematical sensor”, a mathematical brain, if you will, used by a computer to “think” for us.

Algorithms are used in a variety of ways, computerized stock trading being one example. They are used in the creation and sale of credit default swaps, for another, the result of which you saw in the collapse of the financial markets in 2008, resulting in the current recession (As a side note, you might want to keep your eyes on that subject as I believe credit default swaps, CDS’s, and credit default obligations, CDO’s, forms of derivatives, are and will continue to be a threat to our economy for the foreseeable future–you can bet your boots the speculators, i.e. gamblers, won’t agree with me on that, though).

On the show, “60 Minutes”, Sunday, an infomercial was aired, telling us about the technology of facial recognition which enables anyone to be identified by a scanner scanning the features of one’s face and comparing it to a national database compiled from people’s pictures collected from a variety of sources such as arrest records, Facebook, LinkedIn, etc.

A couple years ago, my wife and I were traveling up North when we checked into a motel in Franklin, Pennsylvania and our credit card was rejected. We paid our bill with a different credit card and went about our business; but when we subsequently called our credit card company asking as to why they rejected our transaction, they told us we had made a purchase at a Walmart in Hebron, Ohio much earlier in the day, casting doubt on the authenticity of our transaction in Pennsylvania later that evening–a security application based on an algorithm.

In a somewhat similar instance, month’s later, another credit card purchase of ours was rejected. Upon examination, in this instance, we discovered we had unwittingly left our alternate card in a local retail store here in Florida. Later, the same day, someone in Indiana tried to charge a rather large purchase against the card. The security algorithm rejected their transaction and negated our cards until we could make the necessary changes.

So much for algorithms–they are destined to be with us forever. What do you think? In combination with Facial Recognition, NSA, Credit Security, etc., etc., do you think that, just maybe, someday, somewhere, somebody will be knocking on our door because we are a Republican, a Democrat, etc., etc...?

Ronald Miller

mtss86@bellsouth.net