Open Initiative Lykke -Research Initiatives->REAL-TIME ECONOMIC INFORMATION SYSTEM

The COVID-19 crisis proved the delicate and intertwined financial system we have. Aid by globalization the crisis rapidly spread to different economies testing their foundations and models. The consequences of the virus were disseminated to different sectors, the first sector to be affected was the Health sector where they had to rapidly cope with the high demand. Later came the travel industry, and manufacturing industry, and without notice, the whole economy was on hold and the world was under a global quarantine.

Markov Chain algorithm and the Universal Balance Sheet algorithm The model generates a business forecast which will allow us to assist and prevent companies that might give in to the fatal consequences when a new crisis emerges. Our solution to the problem is how these two algorithms are very accurate and can work together in symbiosis.

Markov Chain Developed by Andrey Markov who was a Russian mathematician known for his work on stochastic processes, Markov chains, and Markov processes. The algorithm is used in a variety of areas such as communication, exchange rates, population dynamics, cruise control systems, and more. The model is simple, the next state is dependent on the previous state. In other words, the Markov Chain describes a sequence of possible events in which the probability of the next event is based on the previous one. Besides being easily scalable and highly accurate, it is very useful in predicting situations such as the forecast of a business