AI promises to be a transformative mechanism for Drey Finance with regard to Drey Fund operation, investment selection, actuarial model calculations, etc. It will in time touch all operational aspects. All issues, tasks, Actuary Client flows that touch or involve AI integration will fall under this epic.
Initiative / goal
Artificial Intelligence (AI) will be be incorporated into Drey Finance's operations in several ways to enhance efficiency, accuracy, and user experience:
Risk Assessment and Fraud Detection: AI will be used to analyze patterns and detect anomalies in user behavior or transaction data, which can help identify fraudulent activities or security threats. Machine learning algorithms will be trained to recognize patterns indicative of fraud, thereby enhancing the security of the platform.
Predictive Analytics: AI will be used to analyze historical data and predict future trends. This can be particularly useful in forecasting market trends, which will help Drey Finance make informed decisions about their investment strategies.
Customer Service: AI will be used to power chatbots for customer service. These chatbots can handle common queries from users, providing instant responses. This will improve the user experience by providing faster and more efficient customer service.
Personalized Services: AI will be used to analyze user behavior and preferences to provide personalized services. For example, it can recommend investment options based on a user's risk tolerance and financial goals.
Operational Efficiency: AI will automate routine tasks, such as data entry and report generation, which can significantly improve operational efficiency.
Regulatory Compliance: AI will be used to ensure compliance with regulatory requirements. For example, it will monitor transactions to ensure they comply with anti-money laundering (AML) and know your customer (KYC) regulations.
Hypothesis
Designing the Drey Network to incorporate both the benefits of full decentralization of Drey Actuaries and the capabilities of artificial intelligence (AI) requires a careful balance between human oversight and automated processes. Our proposed architecture is described below:
Blockchain Infrastructure and Smart Contracts: The foundation of the Drey Network is a blockchain infrastructure, which provides the benefits of decentralization, transparency, and security. Smart contracts will be used to automate the operations of the fund administration, including the allocation and adjustment of Dreybits. These smart contracts would be publicly auditable, ensuring transparency and trust in the system.
Decentralized Actuaries: The Drey Actuaries would be a decentralized network of individuals or entities that oversee the operations of the fund administration. They would be responsible for verifying the accuracy of the smart contracts and the fairness of the Dreybits allocations. The actuaries also play a role in governance, voting on changes to the system and resolving any issues.
Integration of AI: AI will be integrated into the system to automate and optimize certain processes. For example, AI could be used to predict mortality rates, which would inform the initial allocation of Dreybits. AI could also be used to dynamically adjust Dreybits allocations as participants pass away, ensuring fairness and optimizing payouts for the remaining participants. The AI system would operate within the parameters set by the smart contracts, ensuring that it cannot make changes that violate the rules of the fund administration bylaws.
Hybrid Decentralized AI: To preserve the benefits of decentralization while incorporating AI, a hybrid decentralized AI model will be used. In this model, the AI system would be decentralized across the network, with each actuary running a node of the AI system, with many different LLMs ("large language models") employed on the back end. This will ensure that no single entity controls the AI system, preserving the decentralization of the network. Each nodes AI system will be trained and updated collectively by the actuaries, ensuring that it continues to improve over time.
Privacy and Security: Privacy and security are key considerations in the design of the Drey Network. The blockchain infrastructure and smart contracts will provide a high level of security, while the use of zero-knowledge proofs will protect the privacy of participants. The AI system will be designed with privacy in mind, ensuring that it does not have access to sensitive personal data. Regular audits and security reviews will ensure the ongoing security and privacy of the system.
This architecture enables the Drey Network to incorporate the benefits of full decentralization and the capabilities of AI, providing a secure, transparent, and efficient Drey fund administration system.
Acceptance criteria and must have scope
This is an on-going effort to incorporate AI into the platform on a case by case basis. Careful planning and consideration is required to create on-going integration plan into different LLMs and selection of the use case.
Description
AI promises to be a transformative mechanism for Drey Finance with regard to Drey Fund operation, investment selection, actuarial model calculations, etc. It will in time touch all operational aspects. All issues, tasks, Actuary Client flows that touch or involve AI integration will fall under this epic.
Initiative / goal
Artificial Intelligence (AI) will be be incorporated into Drey Finance's operations in several ways to enhance efficiency, accuracy, and user experience:
Hypothesis
Designing the Drey Network to incorporate both the benefits of full decentralization of Drey Actuaries and the capabilities of artificial intelligence (AI) requires a careful balance between human oversight and automated processes. Our proposed architecture is described below:
Blockchain Infrastructure and Smart Contracts: The foundation of the Drey Network is a blockchain infrastructure, which provides the benefits of decentralization, transparency, and security. Smart contracts will be used to automate the operations of the fund administration, including the allocation and adjustment of Dreybits. These smart contracts would be publicly auditable, ensuring transparency and trust in the system.
Decentralized Actuaries: The Drey Actuaries would be a decentralized network of individuals or entities that oversee the operations of the fund administration. They would be responsible for verifying the accuracy of the smart contracts and the fairness of the Dreybits allocations. The actuaries also play a role in governance, voting on changes to the system and resolving any issues.
Integration of AI: AI will be integrated into the system to automate and optimize certain processes. For example, AI could be used to predict mortality rates, which would inform the initial allocation of Dreybits. AI could also be used to dynamically adjust Dreybits allocations as participants pass away, ensuring fairness and optimizing payouts for the remaining participants. The AI system would operate within the parameters set by the smart contracts, ensuring that it cannot make changes that violate the rules of the fund administration bylaws.
Hybrid Decentralized AI: To preserve the benefits of decentralization while incorporating AI, a hybrid decentralized AI model will be used. In this model, the AI system would be decentralized across the network, with each actuary running a node of the AI system, with many different LLMs ("large language models") employed on the back end. This will ensure that no single entity controls the AI system, preserving the decentralization of the network. Each nodes AI system will be trained and updated collectively by the actuaries, ensuring that it continues to improve over time.
Privacy and Security: Privacy and security are key considerations in the design of the Drey Network. The blockchain infrastructure and smart contracts will provide a high level of security, while the use of zero-knowledge proofs will protect the privacy of participants. The AI system will be designed with privacy in mind, ensuring that it does not have access to sensitive personal data. Regular audits and security reviews will ensure the ongoing security and privacy of the system.
This architecture enables the Drey Network to incorporate the benefits of full decentralization and the capabilities of AI, providing a secure, transparent, and efficient Drey fund administration system.
Acceptance criteria and must have scope
This is an on-going effort to incorporate AI into the platform on a case by case basis. Careful planning and consideration is required to create on-going integration plan into different LLMs and selection of the use case.
Stakeholders
Actuary Clients
Timeline
TBD