7、Markov Chains: The Double-Edged Sword in Modern Computing and Finance

Markov Chains: The Double-Edged Sword in Modern Computing and Finance

1. The Genesis and Evolution of Markov Chains

The Markov chain, introduced by Russian mathematician Andrey Markov in 1913, is one of the most influential concepts of the twentieth century. It serves as a statistical tool for predicting the future based on the present. Markov was a complex figure - a black - bearded atheist, chess master, and political activist, nicknamed “Andrey the Furious.” His work, though achieving some eminence during his lifetime, had its real impact almost a century later, becoming fundamental to the Google - era world system.

Before Markov, probability theory, like physics theory, largely ignored temporal factors. Markov chains address the temporal dependenci