What is DeFAI

Introduction

All cryptocurrency enthusiast can be little be confused about all different acronyms like DeFAI. What is all about DeFAI?

In this article you can read about DeFAI, examples, use cases, ecosystem. Furthermore, challenges and future and finally, conclusion.

All of this just for you in article and easy to read form.

Please read, share and comment as like always.

Let’s get job done.

What is DeFAI?

Let’s first explain what DeFAI really is. DeFAI is brings together DeFi and AI. What’s really matter is that all AI integrations into blockchain technology are called DeFAI. First phase of bull market were trending with DEFAI projects and maybe it’s one of the reasons why writing about it.

Let’s take a look for those examples.

DeFAI Examples

Griffain

A project to automate solutions for DeFi operations.

Take a look Griffain project website.

Orbit

This project combines AI technology and blockchain cross-chaining.

Explore Orbit project.

Neur

Open-source platform for the Solana ecosystem.

More about this project.

Aspis

DEFAI platform design in AIDA framework.

Take a look on Aspis project website.

Almanak

AI-powered DeFi analytics and prediction platform.

Dig into project here.

DeFAI Use Cases

Okay, time to write what are the use cases for DEFAI projects.
It is obvious that I will not present all possible scenarios. Instead, I will focus on these examples from the article.
Griffain automates solutions for DeFi operations. The project allows for a simpler and more efficient way to manage and create DeFi projects. By the way, such a solution was needed, because many operations in DeFi are quite complicated and easy to make mistakes. This use case is needed and even necessary. I am all for it.

But that’s not all. I will move on to the next case. In my other articles, I have already written about cross-chain technology. So why not have a project of this type based on AI? Exactly.

If AI makes this type of solution easier to implement, then once again. A great example of using AI in blockchain.

There is much more to it, from various platforms to analytical tools for DeFi. Or maybe you thought about yield farming and didn’t know how to do it until now. Once again, AI comes to the rescue in one of the projects. Mozaic finance specializes in this type of solution.

DeFAI Ecosystem

I mentioned ecosystems in the previous paragraph. This ecosystem is growing, but there are still very few projects representing it.

I will only mention that this is one of the latest trends. Therefore, it is not surprising. Some of the best examples of ecosystems are actually: Griffain, Orbit, Neur, Aspis and Almanak.

Challenges for DeFAI

It probably won’t come as a big surprise that the challenges of this type of project are the same as the entire cryptocurrency sector.

DEFAI challenges?

The first challenge is regulation. Decentralization and AI technology require a lot of openness to development. All kinds of regulations have a negative impact on the progress of AI and the technology itself. As a result, many technology companies have problems with operating freely.

The second problem is data privacy. The increasingly stringent law on data sharing has a negative impact on this sector. Without data and education, AI will not develop. So the problem is obvious.

The last challenge I would like to mention here is technological complexity. Blockchain itself requires a very large amount of knowledge, and if you add AI to it, the level of complexity increases even more.

Only highly qualified staff can solve this problem, and there is a shortage of specialists in this area. Besides, in many areas of engineering work. Just as an aside.

Future of DeFAI

There is no doubt that AI’s involvement in blockchain will continue to grow. DEFAI projects have only just given rise to a new trend, and this trend is truly promising.

It is obvious that after this boom ends, this trend will weaken and we will forget about such projects for some time. In the meantime, AI is developing dynamically and constantly.

By understanding this, it is easy to conclude that as AI progresses, the number of DEFAI and similar projects will increase.

So what is their future? It is difficult to answer unequivocally, but I would be convinced that we will hear about this type of projects more and more often. Especially during the next booms on the cryptocurrency market.

Conclusion

In this article, I will describe what DEFAI is and present several examples of the use of this technology. The trend for this type of projects was very strong in this bull market.

Besides, AI itself has entered the world of blockchain and beyond with a strong step. DEFAI is not a short and quickly passing trend. Quite the opposite.

In my opinion, DEFAI will become stronger and stronger, because it simply brings solutions that are needed on the cryptocurrency market. I mean here the automation of quite complicated DeFi operations in blockchain technology. And all the possible implications of this technology.