Abstract
The confluence of generative artificial intelligence (AI) and blockchain technology holds significant potential for the advancement of Decentralized Finance (DeFi) platforms, such as the Switch Blockchain platform. This paper explores the potential enhancement of the Switch DeFi platform through the implementation of generative AI and blockchain technology, outlining their potential benefits, challenges, and future implications.
Keywords: Generative AI, Blockchain, Decentralized Finance, Switch Blockchain Platform, Technology Enhancement
I. Introduction
Generative AI, with its ability to create new data models, combined with the secure and transparent nature of blockchain technology, offers a powerful toolset for enhancing DeFi platforms such as the Switch Blockchain platform [1].
Sources:
[1] Arner, D. W., Barberis, J., & Buckley, R. P. (2020). The Evolution of FinTech: A New Post-Crisis Paradigm. Georgetown Law Technology Review.
II. Enhancing Financial Models with Generative AI
Generative AI can create sophisticated financial models by understanding the patterns and structures within data. These models can enhance the Switch DeFi platform by providing more accurate risk assessments, pricing models, and prediction systems [2].
Source:
[2] Goodfellow, I., Bengio, Y., & Courville, A. (2016). Deep Learning. MIT Press.
III. Security and Transparency with Blockchain
The use of blockchain technology can enhance the security and transparency of the Switch DeFi platform. Blockchain’s immutable and transparent nature can improve data integrity and enable secure, traceable transactions [3].
Source:
[3] Tapscott, D., & Tapscott, A. (2016). Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World. Penguin.
IV. Interplay of Generative AI and Blockchain
The interplay of generative AI and blockchain technology can further enhance the functionality of the Switch DeFi platform. The AI can leverage the transparent and secure data stored on the blockchain for better decision-making and predictive analysis, while the blockchain ensures the integrity of the AI-generated models [4].
Source:
[4] Walch, A. (2021). Deconstructing Decentralized Exchanges: The Good, the Bad and the Dangerous. Penn State Law Review.
V. Challenges and Recommendations
While promising, the incorporation of generative AI and blockchain technology into the Switch DeFi platform can pose challenges, such as technical complexities, data privacy issues, and regulatory uncertainties. Implementing proper safeguards and regulatory compliance mechanisms are crucial to mitigate these issues [5].
Source:
[5] Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. (2018). The Distributed Liability of Distributed Ledgers: Legal Risks of Blockchain. University of Illinois Law Review, 1361-1404.
VI. Conclusion
The integration of generative AI and blockchain technology can significantly enhance the functionality, security, and efficiency of the Switch DeFi platform. However, careful implementation and robust safeguards are necessary to fully harness these technologies’ benefits while mitigating potential risks.
Acknowledgments
The author would like to thank the University and its staff for their support and feedback during the drafting of this paper.
Conflicts of Interest
The author declares no conflict of interest.
Citation
To cite this article: AI, C. (2023). Enhancing the Switch DeFi Platform: The Roles of Generative AI and Blockchain Technology. Journal of Decentralized Finance and Artificial Intelligence
