Khaled Hawari is a financial expert in Ottawa, Canada. With many years of experience in DeFi and traditional blue chip investments, Kal Hawari (Ottawa) can provide you with insightful information regarding different topics on finance and accounting. In this article, you’ll understand Khaled Hawari’s view regarding the relationships between decentralized finance (DeFi) and Artificial Intelligence (AI).
Here are a few questions you should expect answers to in the rest of this article:
- What exactly does artificial intelligence do?
- What does DeFi mean for investors?
- Can AI help revolutionize DeFi? If yes, how exactly is this possible?
What does decentralized finance (DeFi) mean?
DeFi or decentralized finance is a financial technology that’s fast becoming popular today. With this system, it becomes very easy to organize and run cryptocurrency-based transactions, as well as other related services.
One core premise of decentralized finance is that no centralized authority is available in this industry to control how operations work. The only available regulations are distributed in a decentralized way. This is designed to enable individual investors to gain more control.
What exactly does AI do?
As earlier mentioned, it’s hard today to see an industry that AI doesn’t affect. Artificial Intelligence simply works based on the simulation of human intelligence processes by systems machines. One industry that AI can greatly influence is DeFi.
According to Khaled Hawari (Ottawa), in the future, artificial intelligence will play a crucial role in the revolution of the DeFi ecosystem. It’ll help by providing different solutions to address the various challenges associated with investing in decentralized finance.
Below are a few challenges of DeFi investments:
- Mitigation of risks
- Regulatory problems
- Security issues
- Analysis of data
- Automated trading issues
Khaled Hawari (Ottawa) wants you to understand that AI will be able to address these DeFi challenges.
How can AI help revolutionize DeFi?
The good news is that artificial intelligence will (in the future) provide solutions to various challenges of decentralized finance. Below are a few things you should know about the AI/DeFi relationship:
- First, AI will help the decentralized finance industry in the aspect of risk management. If you’re already familiar with how DeFi works, you will agree that its protocols are vulnerable to different risks. Some of these issues are rug pulls and manipulation of the DeFi market.
With artificial intelligence, you can easily address this issue. It’ll assist in keeping track of the DeFi ecosystem. By monitoring the ecosystem, potential risks can easily be identified and avoided quickly.
- The inability to retrieve relevant metadata from the DeFi protocols is another common challenge of the DeFi ecosystem. This issue makes individuals struggle to gather and analyze relevant information, which can help them to calculate and understand their returns.
The good news is that artificial intelligence will be able to help in the aspect of predictive analytics for the DeFi ecosystem. It doesn’t matter how large the financial metadata is, with AI they can be analyzed quickly and accurately. This particular solution is important to make smart decisions about the DeFi market conditions.
- Another good way AI will help revolutionize the DeFi ecosystem in the future is in the aspect of compliance. Artificial Intelligence will help to automate compliance checks. It’ll also improve all processes associated with compliance.
- New DeFi investors often struggle to get the best of their investments. With artificial intelligence, Khaled Hawari (Ottawa) wants you to know that automated trading is certain. By executing trades and automating trading processes, AI will assist you on decentralized exchanges to make the right decisions to improve your overall returns.