Mon, May 27, 2024 at 17:55

• 

  Kang-hoon

  • Hello Annie.

  • Today, I have some intriguing news about the European Blockchain Observatory and Forum's recent report on blockchain and AI integration.

  • 
• Annie

  • Oh, that sounds interesting!😊 What did the report focus on?

  
• 

  Kang-hoon

  • The report, released on May 24, emphasizes the need for the European Union to prepare for the integration of blockchain technology and artificial intelligence.

  • It highlights the secure data storage and management capabilities of blockchain, especially in sensitive fields like healthcare and finance.

• Annie

  • That's quite forward-thinking.

  • How does blockchain enhance data security?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • Blockchain's distributed nature ensures that data is stored across multiple nodes, making it highly secure and resistant to tampering.

  • This is particularly beneficial for decentralized AI networks, which the report suggests could end the current centralized model dominated by large corporations and governments.

• Annie

  • Decentralized AI networks?

  • That sounds revolutionary.

  • What other trends did the report discuss?

  
• 

  Kang-hoon

  • The report also explored emerging trends in web3, such as decentralized finance (DeFi) and smart contract enhancements.

  • DeFi provides financial services without traditional intermediaries like banks, and the report stresses the need for regulatory frameworks to ensure consumer protection and financial stability.

• Annie

  • Regulation is definitely important, especially with the recent security breaches.

  • Can you tell me more about those?

  
• 

  Kang-hoon

  • Certainly.

  • On May 14, the DeFi lending platform Sonne Finance suffered a major security breach, resulting in a loss of approximately $20 million.

  • 

  • Similarly, in 2023, Hundred Finance faced a comparable issue where a hacker exploited a vulnerability to drain the lending pools.

• Annie

  • Wow, those are significant losses.😮 What are experts saying about these incidents?

  
• 

  Kang-hoon

  • Experts and regulatory bodies are increasingly concerned about the unrestrained integration of AI in finance.

  • For instance, renowned philosopher Yuval Noah Harari spoke at the BIS Innovation Summit on May 7, warning about the potential for AI to spiral out of control and recommending effective regulation to mitigate misuse.

• Annie

  • Harari always has insightful perspectives.

  • What about the US?

  • Are they taking any steps?

  
• 

  Kang-hoon

  • Yes, indeed.

  • In January 2024, the US SEC, along with other regulatory bodies, issued a joint alert warning investors about the rise in investment frauds involving AI and other emerging technologies.

  • SEC Chair Gary Gensler also expressed concerns about AI's impact on financial systems, highlighting issues like AI washing and algorithm bias.

• Annie

  • It's good to see global authorities taking action.

  • Do you think this report from the EU will have a positive impact?

  
• 

  Kang-hoon

  • Absolutely.

  • The European Commission's proactive approach to blockchain and AI integration is strategic.

  • By addressing security concerns and promoting innovation, it can foster a more secure and collaborative environment for these technologies.

• Annie

  • So, overall, would you say this news is a positive development for the market?

  
• 

  Kang-hoon

  • Yes, I would.

  • The EU's initiative to integrate blockchain and AI, coupled with their focus on security and regulation, is a positive development.

  • It not only addresses current vulnerabilities but also paves the way for future innovations, making it a favorable move for the market.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.