AI in DeFi: the connection, opportunities and challenges

Artificial intelligence (AI) and decentralised finance (DeFi) are two cutting-edge technologies attracting more and more attention. More often than not, both disruptive technologies are dealt with individually and separately, and they are sometimes viewed by some as opposites. However, experts have predicted that, at the intersection of both industries, exceptional opportunities could be unlocked. DeFi, leveraging blockchain technology-powered smart contracts, eliminates intermediaries and gives autonomy over financial assets to individuals. Furthermore, the decentralised nature of blockchain offers a transparent financial ecosystem with secure and immutable transactions. On the other hand, artificial intelligence is a simulation of human intelligence using specific techniques, such as machine learning, automated decision-making, neural networks and the internet of things. The technology makes decisions based on model parameters and learning from existing data and the fusion of AI and…