In FinTech, there is a strong buzz around the potential for artificial intelligence (AI) is blockchain technology transform Wall Street. The integration of roboadvisors, chatbots, programmatic asset allocation and trading and other IA innovations are leading to greater efficiency and greater profits for the world's largest financial services companies. Blockchain technology is also putting pressure on old models, disrupting traditional corporate and consumer finance with faster transaction speeds, reduced transaction costs and safer and more verifiable books and records.
While most people have a vague understanding of artificial intelligence, at least at the level of science fiction, there is a great deal of confusion about blockchain technology. Blockchain is much bigger than Bitcoin. A blockchain is a list of ever-growing records, called "blocks", that are linked and protected using cryptography. By design, blockchains are resistant to data changes. A blockchain can act as an open and publicly distributed ledger that records transactions between multiple parties in an efficient and verifiable and permanent manner. Realized by the public blockchain or by distributed register technology, the smart contracts allow the execution of transactions between anonymous parties, without the intervention of an intermediary or any geographical limitation, in a way that is traceable, transparent and irreversible.
While the use of "smart contracts" was previously limited to those with advanced programming skills and the world of cryptocurrency, it could change.
According to a recent article in the Quartz magazine, "[w]hen combined with natural language processing (NLP) – the ability of a computer to recognize and process human language data – blockchain is particularly powerful. With NLP, information can be written and interpreted without a human being. The combination of blockchain and NLP has widespread implications for the future of legal agreements. Smart self-writing contracts will trade in money, property, shares – anything of value, really – seamless, secure and cheaper. "
Right now, there's a rush to integrate AI technology with blockchain technology, since the combination has incredible potential, especially in the financial services space where the size, scale, speed and security of transactions complex are fundamental.
Smart contracts can match and verify counterparts and conduct complex transactions in a much more effective way than ever before. It can also open the door to companies in emerging economies where currency risk, government regulation, asset security and legal uncertainty have slowed or blocked innovation and access to capital.
MATRIX AI Network, a distributed, open source, open source global, public, intelligent block-based computing platform and an operating system that combines artificial intelligence (AI) and blockchain is working to make smart contracts accessible to anyone – especially 99.9% of potentials global users who do not have a programming or engineering background. "With MATRIX, it is no longer necessary programming experience for the design of intelligent contracts.The exclusive code generation technique allows automatic conversion of an abstract description of an intelligent contract into an executable program", explains Dr. Steve Deng, Chief AI Scientist for MATRIX AI Network, "the system only requires users to enter the main elements (eg, output and transaction conditions) of a contract with a scripting language, so a code generator based on a deep neural network can automatically convert the script into an equivalent program, "says Dr. Deng.
This is just one example of a variety of new approaches to solving the challenge of expanding the adoption of blockchain technology and artificial intelligence in the financial services space. SIX Securities Services, a unit of the group that operates the Swiss stock exchange, is working on a blockchain project with Nasdaq and the Australian stock exchange ASX Ltd to help replace its system of registration, regulation and compensation, with an alternative blockchain. Vakt, a consortium of oil companies including BP, Royal Dutch Shell and others, is launching a blockchain-based platform for oil trading and reducing commercial and regulatory inefficiencies, improving transparency and reducing the risk of fraud. A new Fannie Mae The survey of mortgage lenders found that 40% of mortgage banks use artificial intelligence to automate the process of applying for mortgages, detect fraud and assess the probability of default of the borrower. Charles Schwab uses artificial intelligence to automate asset allocation and portfolio rebalancing.
"Artificial intelligence and blockchain are the two words of which we speak very recently, but in reality these two concepts are fundamentally and intrinsically connected," says Dr. Deng, "Together they give us the possibility to adapting to changes In addition, reliable data is the lifeblood of artificial intelligence, while the blockchain is designed to maintain reliable data. "In the financial services sector, where trust, security, transaction speed, scalability and multi-currency interoperability are powerful competitive advantages, continue to see more innovation in the FinTech space and more banks, broker-dealers, consultancies and insurance companies that adapt and adopt these technologies.