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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.
Visit us at TMA Solutions | Leading Vietnam Software Outsourcing company
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.
Visit us at TMA Solutions | Leading Vietnam Software Outsourcing company
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