AI-Driven Decentralized Financial Networks: Emerging Challenges, Technological Advancements, and Future Research Directions
DOI:
https://doi.org/10.63282/3050-9416.IJAIBDCMS-V5I2P101Keywords:
AI-driven DeFi, blockchain technology, smart contracts, decentralized finance, predictive analytics, machine learning, scalability solutions, regulatory compliance, quantum computing, federated learningAbstract
Decentralized financial networks, often referred to as DeFi, have emerged as a transformative force in the financial industry, leveraging blockchain technology and artificial intelligence (AI) to create more inclusive, transparent, and efficient financial systems. These networks are designed to operate without centralized intermediaries, thereby reducing costs and increasing accessibility. However, the integration of AI in DeFi introduces a new set of challenges and opportunities. This paper explores the emerging challenges, technological advancements, and future research directions in AI-driven decentralized financial networks. We begin by providing an overview of DeFi and AI, followed by a detailed analysis of the key challenges, including security, scalability, and regulatory compliance. We then discuss recent technological advancements, such as AIdriven risk management, smart contract optimization, and decentralized identity systems. Finally, we outline potential future research directions, including the development of more robust AI models, the integration of AI with other emerging technologies, and the exploration of novel applications in DeFi
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