How AI powered DeFi could change the world
Updated: Apr 19
Decentralised Finance (DeFi) is a blockchain-based form of finance. Governance and control is decentralised. It utilises blockchains and smart contracts instead of centralised financial intermediaries such as brokerages, exchanges, or banks in order to provide financial services.
AI in finance isn't something new. Mathematical financial models and trading algorithms have been around for decades in this market. So far AI has only been deployed superficially and for the benefit of the centralised financial institutions.
According to a 2018 whitepaper by EAM Research Consortium, AI-managed portfolios outperformed the S&P 500, big time.
Isn't it about time we bring AI into the DeFi and crypto space?
I have been following Ben Goertzel's Artificial General Intelligence (AGI) work for the last decade. I'm also an AGI token holder.
Ben Goertzel is behind the OpenCog AGI system and its successor Hyperon. Another one of his projects is SingularityNET, which is a decentralised AI network that lets anyone create, share and monetise AI services. SingularityNET is currently in the process of migrating from Ethereum to Cardano. The benefits are obvious. Ethereum has reached its limits and Cardano is very soon going to be the most advanced crypto network in the world.
At the end of 2020 SingularityNET posted a blog post announcing SingularityDAO.
"In short, SingularityDAO democratizes AI for advanced financial prediction, risk management, arbitrage, and automated market-making — via incorporating all this AI in a tokenomic framework with a focus on lower-liquidity altcoins and their aggregates. In this way, it will fulfil its mission of using decentralized AI and DeFi to create new mechanisms that can radically accelerate the growth of the decentralized tech economy."
This is being developed on Cardano now! No longer will AI be solely deployed for the benefit of the financial institutions.
AI can manage your DeFi and crypto assets for you! Tracking all alt-coins, implementing complex strategies to maximise yield farming and automatically adapting to the rapidly changing conditions in DeFi. Machine Learning Oracles that collect and verify external sources to feed decentralised AI networks.
These examples are a good start. DeFi is dismantling the existing financial system, piece by piece, and optimising it to create a system based on rules, efficiency and automation. It replaces distrust in financial institutions with trust in blockchain. It's the most disruptive technology trend in fintech!
Combining AI and DeFi will provide us with protocols with built-in intelligence. AGI agents will communicate with each other. The intelligence will become more and more intelligent and accelerate. And it will run on Cardano.
The democratisation of finance will lead to a more evenly distributed future. It will also benefit society as a whole. History has shown us that healthy financial markets play a big role in advancing technology and society.
DeFi powered by AGI is going to be a major contributor for innovation, society, and the world economy. Cardano will be at the heart it!
XOR N₳ND will continue to run the Cardano network. Please consider staking with a single pool operator like XORN. In addition to supporting XOR N₳ND, you will also help keep the Cardano network decentralised and healthy, creating a better future based on rules rather than rulers.