In an interview with BingX’s Chief Product Officer, Vivien Lin, it is understood how blockchain and artificial intelligence (AI) are revolutionizing online trading, explaining how their union is creating more practical, efficient, and secure trading processes.
AI’s role in cryptocurrency trading primarily rests on its data analytical capabilities. Traders can utilize AI technology to gather, analyze and process information related to the price, macro and micro economies, and overall market trends, aiding in accurate decision-making. From a security aspect, AI can help detect suspicious activities on the platform, helping to combat fraud and money laundering.
Especially within the cryptocurrency trade, where transactions can take place at various centralized and decentralized exchanges, tracking the data and detecting fraudulent activities manually can be challenging. AI tools can thus play an essential role in efficiently tracking and analyzing these transactions, reducing human error and enhancing the process’s overall security.
Moreover, AI can add value by supporting traders to refine their strategies. Often, when considering market indicators or factors, it’s hard for traders to decode which factors are reliable and prevalent. Here, AI’s predictive capabilities come into focus as it can screen out the unnecessary elements and provide a clear, concise analysis, reducing the complexities for the traders.
AI can also effectively aid in data management, particularly regarding blockchain technology. Blockchain technology involves many decentralized processes that rely heavily on data. AI comes into play by tracking, predicting, and summarizing this data, making important decisions much more straightforward and efficient, from deciding which nodes to allocate tasks to managing and optimizing the sharding process in modular blockchains.
Considering the future, Vivien Lin suggests a ‘trustless AI service,’ enhanced by blockchain to foster transparency, verifiability, and trust in AI decision-making. Furthermore, cross-chain analysis using AI might be looked upon, helping manage and analyze data across different blockchain platforms easily. Thus, as both AI and blockchain technologies continue to develop, they promise to bring about a more secure, efficient, and user-friendly trading environment.
