on the crypto
A subsidiary of the US banking group Capital One has stated that its newly patented artificial intelligence (AI) system would save cryptocurrency traders from potential criminal problems.
"Traders often have to overcome obstacles beyond their human capabilities"
Capital One Services, which deals with credit cards and auto loans, said it had a system that uses AI technology to "analyze [the] credibility of information related to cryptocurrencies". Traders often have to overcome obstacles beyond their human capabilities, he said.
On the market it is possible invest 24/24 and requires users to know the intricacies and nuances of different protocols and to pay attention to events such as airdrops, forks or hacks that arrive in streaming from multiple sources, including Twitter, media articles, and crypto news sites, whose content cannot always be easily verified.
How it works
Approved by the United States Patent and Trademark Office last week (patent No. 10.679.229), Capital One's AI verification system can be divided into three crucial components. First, the system has a specific AI program that searches for information by type, such as tweets.
After finding a potentially noteworthy event, it takes it back to a "credibility analysis engine", which cross-references and determines whether the event is credible based on historical examples and, if so, how the market responded in previous cases.
Then it collects all the information, processes it and uses it to make quick trading decisions. Capital One said that the artificial intelligence engine could become even more subtle and sophisticated in interpreting information.
In addition, several corrections will have to be made before a possible launch of the new service (in general, the filing of a patent does not necessarily indicate the intention to launch a product).
A solution to the complexity of the crypto market
Like the entire American banking sector, the Capital One group also prevented account holders from buying cryptocurrencies using their credit cards in early 2018. The bank explained its decision by saying it wants to protect customers from high levels of fraud, loss and volatility inherent in the cryptocurrency sector.
This same sentiment is reflected in the patent filing: “As in many nascent markets, many cryptocurrency investors rushed to the market without the proper knowledge and experience of cryptocurrency trading.
In fact, many of the cryptocurrency investors were trapped by rapid market movements and quickly lost money. " After all, Capital One knows firsthand the traps and pitfalls of cryptocurrencies.
Last year, a former Amazon employee violated the bank's internal systems and exposed the personal and financial data of over 100 million customers by using the company's servers to secretly mine cryptocurrencies.
