The fact is that the advent of blockchain technology has led to a groundbreaking transformation across various industries, particularly the financial sector, through its unparalleled level of transparency and capacity for scalability.
I have always thought that AI and blockchain are two rapidly-evolving technologies that may complement each other.
That’s why I think it’s logical that the convergence of AI and blockchain technology presents a compelling opportunity to enhance the DeFi sector beyond its current capabilities. As for now, I’m always looking forward to using Flynt Finance because of its great income.
For example, the director of Coinbase exchange, Conor Grogan, tested the latest version of the popular AI tool, GPT-4, to find the flaw in an Ethereum smart contract.
Some DeFi protocols are already leveraging a measure of AI technology to automate certain tasks and improve service delivery to their clients. From what I’ve found out these include platforms such as DeFiLabs, Chainalysis, and Fetch.ai.
It would’ve been great to see how AI can help in DeFi credit scoring by using machine learning models to analyze data on a borrower’s financial history, credit score, and other factors that could impact their creditworthiness.
5 thoughts on “Do you think that AI has the potential to create a better DeFi space?”
I remember reading a tweet from Ocean Protocol on the possibility of compiling your trading history as data to help AI predict a better trading strategy for your trades.
Ocean.py library is specially curated to help publish, exchange and consume data very easily.
There is plenty of potential, as long it is used for the right purposes. We cannot ignore the fact that there is still room for improvement, but in the same time, the adversarial attacks are also adapting to the newest developments. In my opinion, credit scoring for example is a solid use case, but without leveraging a tech that removes [bias](https://oasisprotocol.org/blog/web3-responsible-ai-by-oasis) and can stand against any kind of attacks meant to alter the results, people will not express their interest, nor will they trust such a system.
There’s a project called Lucy, that merges Cryptos, wallets, etc. You basically send tokens from wallet to wallet using simple commands. That’s one good use of AI I’ve seen. DAFI protocol also got its fair share of the AI/Cryptos/Trading market. Its hybrid exchange full launch with AI functionality is one thing I have high hopes for.
AI has the potential to significantly boost the DeFi sector in a variety of ways. The prediction and security of the DeFi platform can be improved. With their data-sharing infrastructure, projects like OCEAN are already bringing this to fruition in the DeFi market. AI’s power might also be used to establish standardized DeFi platforms through collaboration with the telecoms sector, and Weaver Labs is helping to make that happen through Cell-Stack Agents, among other things.
AI has a ton of potential, but there’s a problem. When you create an AI, you should set limitations for it so that it cannot cause harm. When you let the AI model run wild in a field of data, you lose the ability to understand how it learned specific things, making it hard to diagnose a problem or an incorrect conclusion reached. It somehow got to the conclusion, but you can never trace it’s learning flow or the data it was fed to specifically reach that point.