The $1 Trillion Power Couple Reshaping Finance

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The DeFi (decentralized finance) market has staged an impressive comeback over the past 12 months – with the TVL (total value locked) across all protocols doubling to $93 billion.

Meanwhile, excitement surrounding the capabilities of generative AI continues to build.

A Bloomberg report suggests this industry could be worth $1.3 trillion by 2032 and “fundamentally change the way the technology sector operates.”

DeFi and AI (artificial intelligence) are set to go from strength to strength in their respective fields over the coming decade.

But there’s been little discussion about the seismic impact these technologies can have if applied together – delivering exponential growth and revolutionizing finance on a global scale.

In the seven years since DeFi protocols came into existence, a blossoming ecosystem of financial applications and services have been built on top of blockchain networks, offering a modern, real-time parallel to the outdated and slow infrastructure relied upon by traditional institutions.

Smart contracts now offer self-executing agreements that eliminate the need for intermediaries and open up access to lending, borrowing, trading and saving – all with much more competitive interest rates.

When you peel away the complicated jargon and talk of liquidity pools and yield farming, the opportunities that DeFi presents are nothing short of mind-blowing.

In a world where access to banking services is governed by strict eligibility criteria that billions of people are unable to meet, these protocols can secure financial inclusion for unbanked and underbanked populations around the world.

Now, anyone can manage their money through a smartphone.

Funds can be sent and received instantly and cheaply without depending on gatekeepers who charge punishing fees, while those shut out of receiving a credit score can now build a reputation on the blockchain.

By bringing DeFi and AI together, a multi-trillion-dollar power couple begins to form with truly transformative use cases.

But what does this look like in practice – and what are the opportunities and challenges on the horizon as we redefine the future?

DeFi done right

AI’s ability to digest vast datasets in the blink of an eye, make intelligent predictions and connect the dots between trends is going to supercharge the world of DeFi.

We’re barely scratching the surface when it comes to the potential applications.

Algorithms powered…