Decentralized finance has become one of the fastest-growing sectors within the cryptocurrency ecosystem over the past year. At the time of writing, the total value locked in DeFi has exploded to over $100 billion. Despite impressive figures, decentralized finance is still in the beginning stages of development, which begs the question: What’s next for this disruptive financial technology?
The next frontier will likely uncover new possibilities through artificial intelligence (AI) and machine learning joining with decentralized finance to create DeFi intelligence.
DeFi intelligence in the wild
Today, several companies are spearheading the integration of AI and machine learning with blockchain, focusing on automation and working towards a vision that makes intelligent capabilities a core feature. The interoperability is essential to creating fully functional intelligent DeFi solutions. They have developed a network of autonomous economic agents that aim to provide the Web 3.0 ecosystem with efficient, reliable and future-proof infrastructure and tools to build a smart decentralized digital economy.
This spring, Shopify Capital announced plans to use machine learning and AI to offer eligible merchants funding based on their previous sales history and store performance. Similarly, decentralized AI marketplace SingularityNET has developed a new DeFi project called SingularityDAO which plans to manage dynamic token sets, carry out predictive market-making, and execute hedging strategies based on predictive modeling.
DeFi intelligence has the potential to revolutionize DeFi protocols, adding an additional layer of data that will bring new levels of efficiency to the market and enable intelligent and decentralized asset management vehicles.
DeFi intelligence and financial freedom
The need for an accessible and transparent financial system has become more and more apparent as DeFi works to replace outdated systems,…