Real-Time AI-Powered Fraud Detection in Cryptocurrency Transactions

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If there is something that has been bothering me most especially in our present society, it is the massive rise of fraud that is happening in our space which I believe must not continue. Let me digress a little bit, thanks be to technology Advancements and the innovation of the Blockchain space that has been able to lead to massive rise of the crypto world also. The crypto world have been able to transform several sectors all around the world whether we like it or not. Ranging from the aspect of healthcare, academics and the finances we all know of.

Talking about the aspect of finance, even though the Blockchain space have been trying it's best to transform the financial world and which we have been seeing the evident result. A lot of crypto tokens have already to be using for the gateway of payments and much more developments also. But there is also a challenge somewhere which I believe we need to look into. And that is the massive rise of fraudulent activities rising up in the aspect of financial sector. A lot of hackers are making use of several ways to carry out their fraudulent activities which I believe the challenges needs to be addressed.

In a bid to address the challenges I talked about earlier, there have been a solution that has been able to pop up for it and that is the necessity for something called the real time fraud detection most especially in the cryptocurrency aspect. Let me start by establishing that crypto world making use of the Decentralised world have been able to offer security, privacy and many more that will help to eliminate human error.

Recently now, hackers are making use of several forms to carry out their fraudulent activities most especially in the crypto space. There is the form of Ponzi scheme, there is the aspect of ICOs that is scams, we even have rug pull which is also popular in the aspect of shitcoins. The downside of the fraudulent activities is the fact that it leads to financial loss not only for people but even for big companies. The earlier we understand this, the more it makes the crypto space a safer place to be.

The manner at which there have been real time fraud detection also, it will not have been possible without the use of artificial intelligence. Artificial intelligence is really playing a major role in powering fraud detection in real time and there are several ways artificial intelligence role plays out. The first is through the Behavioral analytics which helps to monitor a lot of activities that is going around in the crypto platforms. Trading activities like trading, depositing and withdrawal and many more.

Not only that, artificial intelligence plays a major role in helping to detect anomaly most especially in the activities that is been carried out on platforms. Artificial intelligence helps to detect if there is any suspicious activities that is going on either in a user wallet, the transaction activities and many more. This helps to prevent any potential fraudulent activities that might want to happen also.

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Then lastly, artificial intelligence also plays a role in helping to make sure there is good stability of network that is been going on the Blockchain. Like I said, there are several forms in which hackers carried out their fraudulent activities and in fact sometimes hackers can hack through the network to carry out their fraudulent activities but with artificial intelligence, it helps to detect any suspicious network at the early stage.

There are a whole lot of advantages that Artificial intelligence offers moody especially in the cryptocurrency fraud detection which I want to briefly talk about. The first is in the aspect of speed and Scalability. With artificial intelligence, it has been able to increase the speed at which transactions are been carried out and not only that, with Scalability issues been solved, artificial intelligence make it possible for huge amounts of transactions in volume to be processed at once.

If there is one major strength that artificial intelligence is known for, it is for its accuracy and precision. And when it comes to crypto fraud detection, it also helps to make sure there is accuracy not only in detecting any fraudulent activities that might be happening in the system but also it makes sure there is no false result happening thereby making sure every transaction carried out is legit. Lastly, artificial intelligence has the power to easily adapt much more than others and this is actually needed.

Of course there will always be challenges coming when it comes to AI but I am so sure that even with the challenges, even though I was not able to discuss about the challenges that also comes with the use of artificial intelligence for cryptocurrency fraud detection, it is just a matter of time before those challenges are been solved. In ten years to come, I am so sure that artificial intelligence will play a major role in crypto space even beyond the trading activities.