Combination Of AI & Blockchain - The Revolution Of Financial Industry (Part 2)

This part will cover the last three factors when combining Blockchain and Artificial Intelligence in the financial industry. 

    4. A Unique and Financial Trust system

In 2017, after the dramatic drop in Bitcoin's price value and the failure of so many ICO projects, lots of investors started losing trust in cryptocurrencies, which are backed by blockchain. Recently, there is a new blockchain-based solution named DYCO (Dynamic Coin Offerings) – a crowdfunding model designed to offer a guarantee of refunds and protection upon any investment made on any blockchain project, according to Entrepreneur.com. This model can help potential investors scrutinize project whitepapers and choose ICOs with the highest profit potential. Moreover, it helps eliminate any chances of losing your whole invested fund.

Blockchain is inherently perfect for storing highly confidential information because of its immutability features that can’t be altered.  And the application of Artificial intelligence, on the other hand, will help financial companies to boost their income, efficiency, provide detailed insight about data and manage risk as well. Therefore, by combining the unique features of both AI and blockchain, it’s logical to say that there will be a much promising trust system in the financial industry.

    5. Analyzing and Understanding AI Decisions

One of the factors that limit the mass adoption of artificial intelligence is its complexity in interpretation - AI can evaluate many variables unaided. That's the reason why many people won't implement it if they can’t clearly explain computers' decisions, especially when it comes to financial transactions that require thorough investigation.

However, there is existing proof that humans could tamper with the recorded data set for analysis, which is one of the main reasons people are still in doubt when it comes to processing financial transactions.

The combination of blockchain and AI help people disentangle the complexity by making computers to be more transparent. Blockchain is an underlying technology that is known for transparency and immutability. Blockchain can store every decision made by AI and still make them available for analysis, so people can be sure that any financial record or information from entry to examination/audit is tamper-proof.

    6. The challenges when applying Blockchain and AI

Blockchain is known as a decentralized technology capable of bringing solutions to centralized systems, e.g., banking. However, some people see it as a threat to the original will of decentralization when it's being merged with artificial intelligence/ machine learning. This is one of the possible challenges that developers are tirelessly working on solving.

Besides, AI requires access to a pool of data, and incorrect data can ruin both machine learning blockchain technology's integrity and effectiveness. While there are ways to resist erroneous data, it’s still an ongoing obstacle to solve.

Source: DZone

About us: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,500 engineers.

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Combination Of AI & Blockchain - The Revolution Of Financial Industry (Part 1)

The revolution in ICT has affected finance industry at an increasing rate for decades. The financial firms are trying to cope with these changes by adopting new kinds of technology to deal with the increasing demand and the huge increase in the competition worldwide in the financial sector.

While so many industries are beginning to embrace the amazing options these technologies – Artificial Intelligence and Blockchain technology offer – helping them to create more value,  boosting sales, and so on,  it’s interesting to know that the combination of both will positively revolutionize the future of the fintech industry.

The convergence of Artificial Intelligence and Blockchain brings a better future for the Financial Industry.

With the superb benefits of Blockchain and AI, this combination will yield bewildering results and take an entirely new level across all industries especially with the financial sector. Here are amazing features and underlying capacities that come to play as below:

1. A Secured Payment Network

One of the underlying benefits of blockchain technology is its unique ability to operate as a borderless payment network. Blockchain facilitates a frictionless payment with low prices and at a faster pace compared to the traditional methods. 

Unfortunately, there are still some existing security concerns affecting its widespread adoption. Theft is increasing and getting more sophisticated daily since it requires a set of public and private keys to run a blockchain business.

By leveraging the power of AI and ML, any improper activities on your blockchain account can be identified, thereby alerting the account owner about some human involvement. Moreover, AI can analyze the behavior and biometrics to help eliminate any security susceptibility in payment networks.

2. Controlled Automation for Financial Activities

There is no doubt that finance is moving towards automation. On the other hand, there are pending issues that could pose threats to the finance sector if ‘calculated restrictions’ aren’t placed on automated processes. Meanwhile, to run a smooth automation financial system, it must occur synchronically with built-in checks and balances. In this case, smart contracts facilitate automatic processes, while AI and ML can look for irregularities simultaneously. Therefore, merging blockchain-powered smart contracts with AI can help verify the smart contracts and predict its vulnerability that can be exploited by theft. The resulting infrastructure would facilitate a completely secure, transparent, and efficient financial transaction.

3. An Efficient Financial Service

About 57% of businesses said that cost-saving is the primary benefit of participating in a consortia blockchain network, according to the 2019 Deloitte’s Global Blockchain Survey. The main reason why financial companies implementing both AI and Blockchain solutions is to improve their service speed and service quality. The result of this combination will help businesses minimize costs, maximize profits while still providing excellent value to customers.

Source: DZone

About us: TMA Solutions was established in 1997 to provide quality software outsourcing services to leading companies worldwide. We are one of the largest software outsourcing companies in Vietnam with 2,500 engineers.

Visit us at https://www.tmasolutions.com/

Read More