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Enhanced Financial Services with Modern-tech: Can AI-Blockchain be the Solution?
AI and blockchain technology have emerged, above all other innovations, as technological trends that evolve the landscape of financial services. Artificial intelligence and blockchain are quickly developing technologies that will play a role in nearly every industry in the future; the financial industry is no exception. Fintech is at the core of every country’s economy, and it is crucial to understand how artificial intelligence affects the industry and also the risks associated with it. As these technologies are increasingly used in the financial space, it is essential to evaluate and analyze how and where they can be used to drive development and enhance customer experience.
AI is the theory and practice of building intelligence machines. Meanwhile, blockchain is an electronic information filing system stored in an encrypted and distributed ledger format. These two domains, however, overlap. Significant innovations are made possible in both areas by the proposed merger of these technologies. While the financial world is keen to find ways to use the growing capabilities of AI, they also want to know how blockchain can change several aspects of the finance industry, as many companies still have to realize their true potential.
The confluence of blockchain and the processing of natural languages (NLP) has widespread consequences for the future of legal agreements. Smart self-writing contracts will make money, property, and share a transparent and safe transaction. Right now, there is a race to integrate AI with blockchain technology, as the combination has incredible potential, particularly in the area of financial services, where the size, scale, speed, and security of complex transactions are extremely critical. MATRIX AI Network, a global open-source, public, smart blockchain-based, distributed computing platform and operating system mixing AI and blockchain, works to make smart contracts accessible to everyone, particularly 99.9 percent of potential global users who don't have a background in programming or engineering. Vakt, a subsidiary of oil companies including BP and Royal Dutch Shell, is releasing a blockchain-based oil trading platform to decrease inefficiencies in trade and settlement, enhance transparency, and reduce the risk of fraud.
commerce. The inclusion of this technology is increasing across multiple industries.
Following are some of the ways the tech is leveraging the business industry:
Transparency: The technology makes the transaction history more transparent. As its a type of distributed ledger, all network participants share the same documentation. The shared version can be updated when everyone agrees on it. The alteration of all subsequent records and the collusion of the entire network is required to change a single transaction record. It makes data on a blockchain more accurate, consistent and transparent than paper-based processes.
AI and blockchain are the two buzzwords about which the world has spoken a lot recently, but these two concepts are essentially inherently linked. These together give the adaptability to modifications. In addition, reliable data is the lifeblood of AI, while the blockchain is designed to keep reliable data. FinTech solutions will continue to develop solutions quickly—banks need to take their strategy into account in this modern world. In addition, blockchain continues to develop into new and greater roles in the area of financial services with smart contracts.
See Also: Top FINTECH Consulting Companies