EUBOF Advises EU On Blockchain And AI Integration

EUBOF Advises EU On Blockchain And AI Integration

The European Blockchain Observatory and Forum (EUBOF), an initiative of the European Commission, launched a document on Might possibly per chance also 24 calling on the European Union (EU) to ready itself for the integration of blockchain technology and artificial intelligence (AI). Essentially the most in fashion lumber from the EU blockchain is considered as a proactive formula to stable customers’ data.

The EU blockchain document, ready by the Directorate-Traditional for Communications Networks, Screech, and Skills, discussed the possible integration of blockchain technology with AI. It emphasizes blockchain’s stable data storage and management capabilities, particularly in mute fields fancy healthcare and finance.

EU Blockchain Checklist Highlights DeFi as Rising Trends

The document centered on the concept of decentralized AI networks, which might per chance well well live the contemporary centralized model dominated by huge companies and governments. By leveraging blockchain’s dispensed nature, these networks might per chance well well reduction collaboration and innovation among a broader fluctuate of contributors.

The EU blockchain document also explored emerging trends in web3, corresponding to decentralized finance (DeFi) and tidy contract enhancements.

DeFi affords monetary companies without broken-down intermediaries fancy banks and is considered as a sector where regulatory frameworks wish to be established to ensure particular person safety and monetary balance.

The document also discussed tidy contracts, that are self-executing agreements kept on a blockchain. The document emphasized the want for advancements in tidy contract functionalities to fully exploit their skill in varied applications.

The European Commission’s proactive formula to blockchain and AI integration is considered as strategic, especially in gentle of contemporary security incidents in the cryptocurrency place.

Recall that DeFi lending platform Sonne Finance suffered a well-known security breach on Might possibly per chance also 14, ensuing in a loss of roughly $20 million.

Submit-mortem on the exploit of Sonne Finance markets on Optimismhttps://t.co/gBXDsl8ucA

— Sonne Finance (@SonneFinance) Might possibly per chance also 15, 2024

In a identical vein, Hundred Finance encountered an analogous dispute in 2023. With the Hundred Finance exploit, the hacker exploited a vulnerability by manipulating the swap payment, inflating the cost of collateral, and which ability reality draining the lending pools with finest a minimal amount of tokens.

Thinker Cautions the Unrestrained Integration of AI in Finance

Experts and regulatory bodies indulge in expressed rising concerns in regards to the possible implications of unrestrained integration of AI technology in finance.

Critical truth seeker Yuval Noah Harari spoke at the Monetary institution for Worldwide Settlements (BIS) Innovation Summit on Might possibly per chance also 7, cautioning in opposition to the unrestrained deployment of AI in the monetary sector. He warned of the grim skill for AI to spiral out of reduction a watch on, ensuing in excessive consequences, and urged effective legislation to mitigate misuse and harmful occasions.

In January 2024, the US Securities and Alternate Commission (SEC) Place of job of Investor Education and Advocacy, along with the North American Securities Administrators Association and the Monetary Industry Regulatory Authority, issued a joint alert warning traders in regards to the upward thrust in investment frauds involving AI and barely lots of emerging technologies.

Earlier in January, SEC Chair Gary Gensler expressed concerns in regards to the possible AI influence on monetary programs as he warned in opposition to AI washing, algorithm bias, and more.

Experts mediate that varied world authorities will proceed their efforts to mitigate AI risks. This involves making certain that companies accurately signify their AI capabilities and the feature of AI in their businesses.

Source : cryptonews.com