The Application Layer
Where Technology Meets Practicality – from Sector Shifts to Software Scripts.
The Application Layer is a bi-monthly series that takes you into the heart of technological progress, where the real magic isn't in the raw power of GPUs or complex infrastructure, but in the realm where ideas come to life: The Application Layer.
In the first edition of each month, we explore high-level concepts, industry trends, and groundbreaking ideas—perfect for everyone, regardless of your technical background. This is where we unpack how AI is influencing various sectors and what it may mean for the future.
The second edition each month is where we roll up our sleeves. Designed for those with a technical interest, it focuses on building and implementing the concepts discussed in the first edition. It's an in-depth look at the application of these ideas, ideal for tech enthusiasts keen on understanding the 'how' behind the 'what.' Ideally, one further builds on top of these implementations and creates value out of it.
Clarifying the Buzzword
In an attempt to prevent ambiguity along the way, I’d like to share the definition that Marc Andreessen, general partner of legendary Venture Capital firm a16z, holds about AI:
“A short description of what AI is: The application of mathematics and software code to teach computers how to understand, synthesize, and generate knowledge in ways similar to how people do it. AI is a computer program like any other – it runs, takes input, processes, and generates output. AI’s output is useful across a wide range of fields, ranging from coding to medicine to law to the creative arts. It is owned by people and controlled by people, like any other technology.
A shorter description of what AI isn’t: Killer software and robots that will spring to life and decide to murder the human race or otherwise ruin everything, like you see in the movies.
An even shorter description of what AI could be: A way to make everything we care about better.”
In my opinion, until proven wrong (which I don’t hope), by and large, this definition is valid.
Rethinking Our Priorities
Think of how common software is in our lives now. That’s where AI is heading to. It’s going to be everywhere, helping us do all kinds of things. This is what's happening in the Application Layer. It's being used by businesses to reinvent how they work. For example, educators are leveraging AI to offer high-quality learning solutions to virtually everyone at nearly zero marginal costs, doctors are enhancing patient treatment quality with the support of AI assistants, and software engineers are building companies at a fraction of the costs of the incumbents by leveraging Copilot and ChatGPT (and soon automated unit testing using Meta's TestGen-LLM!).
All these different uses of AI are just as important as making it smarter. They're about finding new ways to improve things we do every day. This is how this technology will become a normal part of life, not just something tech bro’s talk about.
The Application Layer Pivot
Venture capitalist Chamath Palihapitiya made a point on The All In Podcast E167 (16:30 onwards) that's really about where the big opportunities are with AI. He mentioned how, back in the day, Cisco was a big deal because of the internet boom. But then, the real winners became the ones who used the internet to build new things—like all the apps and services we use today (Cisco was still doing great back then btw). He sees the same thing happening with AI. It's not just about the companies making the chips, like NVIDIA, but more about what people do with AI. One could thus argue that the true potential resides in the Application Layer—the myriad ways we can apply these tools to solve real-world problems.
The Application Layer isn't just about leveraging AI; it's about augmenting human potential. It's where entrepreneurs will find their next venture, where educators will discover new teaching tools, and where artists will birth new forms of expression. We are witnessing an increase in individual productivity that we have rarely seen historically. It's the playground for practical innovation, the bedrock of businesses that haven't been dreamed of yet, and the frontier for an inclusive technology revolution.
A Collective Journey
Life's fast, and technology's even faster. One day, we're all about green energy, and the next, we're figuring out how AI fits into our lives. It's a lot, and I'm here to help us both keep track.
In this newsletter, I’m aiming to break down the big stuff. We'll look at where business is going and what that means for us. Plus, I'll share how I'm using code to turn ideas into something real.
I'm keeping an eye on the big picture and the small details. I’m not just following the latest trends; I’m getting my hands dirty understanding them. And I'm not just using new tech; I’m learning it inside and out to see how it can help us.
But I'm not doing this alone. While I'm the one putting this together, it's about all of us. I want to start conversations, share what I learn, and hear from you too. I’m reaching out to pros, hobbyists, and anyone who’s curious to join in.
Every two weeks, I'll share what I've found. We’ll start with the broad view of what’s new in tech and business, and then get into the practical side of how it all works.
Let’s go on this tech adventure together.
A Personal Note
I’m an Amsterdam based Data Scientist that is gradually moving towards Software Development. After leaving Microsoft last year, I started my own company: Melchior Analytics. At MA, we're developing software solutions tailored for the financial sector, with our most notable clients being Booking.com and Maven11. On top of this, I’m co-developing an IOS application, which we aim to launch in H1, that let individuals keep track of their expenses in the easiest and most complete way. In my downtime, I enjoy the strategic game of chess and the endurance challenge of running marathons. Feel free to reach out if you want to chat about the newsletter or just have something fascinating to talk about.
