Is a Secure Future for Blockchain and Crypto ObtAInable?

June 2024

The intersection of blockchain technology and AI has been subject of interest for years as developers see the value that automation can bring to a space that’s too massive for people to oversee or manage on the scale required. AI will be integral to the future development and functioning of blockchain ecosystems with the technology being used to facilitate machine learning, detect threats, enable sophisticated Smart Contracts and generally improve the efficiency of solutions amongst other benefits.

Another area that AI can be used in a positive manner is seen when processes are able to be moved from manual solutions to automated solutions, as will be necessary for projects taking place on the worldwide blockchain scale. When humans are involved with the processing of information there is a real issue of privacy, particularly when the data in question is personal info that human operatives could read, judge and even copy or distribute. When machines take over that function, many of these privacy issues become irrelevant; as long as the solutions are properly coded and implemented, machines will carry out their function without the ability to judge or exceed the parameters of their work.

Of course, the AI has to be implemented correctly for this to be the case but there are methods to ensure that AI solutions are sound and secure, much as there are for blockchain solutions. One potential risk that arises from the growth of AI that has been garnering greater attention recently, and one that is perhaps harder to deal with, is the issue of AI-generated content and deepfakes in particular.

Deepfakes are digitally-altered media that are often used maliciously in order to spread misinformation or commit fraud. One example that arose earlier this year was an elaborate scam which prompted an employee of a multinational company in Hong Kong to transfer around US$25 million in total to local bank accounts when fraudulent actors used deepfake videos to pose as the company’s CFO and other employees via a multi-video team call with the employee in question. Similarly, with the rapid improvement of AI-generated content, the creation of convincing fraudulent documents is a rising threat that needs to be countered.

In order to prevent bad actors from evading authentication or impersonating others to commit fraud, Blockpass uses a number of the techniques that are constantly evolving.

To start with, Blockpass enables ongoing monitoring of users, with profiles having to be kept up-to-date with a company’s requirements and clarification or more recent documentation can be requested; this ensures that a profile of a user can be established and any inconsistencies that arise can be flagged up for review.

Another method to thwart AI fraud is the use of Proof of Liveness technology; whilst deepfakes can be sophisticated, requiring live videos makes fraudulent AI use much more difficult to pass off and sustain sustain, and instantly ensures less developed techniques are unable to fool the system.

One of the biggest methods that Blockpass utilizes to secure its network of verified identities and ensure that the risk of fraud is minimized, if not eliminated entirely, is the use of reputation building. As individuals use their verified Blockpass profile, they build their reputation, ensuring that as time progresses there is a back-catalog of trusted interactions built up to support their identity. This provides a stronger level of assurance that the user is a legitimate person, taking part in interactions with other verified users and services that will be able to weed out fraudulent profiles in time. This also ensures that bad actors can’t simply create a deepfaked profile and have it instantly influencing the ecosystem: established user profiles hold a greater weight and legitimacy.

As technology, attitudes and threats progress, Blockpass continuously evolves to provide suitable protections and responses, whether it’s from businesses, regulators or malicious actors. Blockpass’ developers and legal minds are always looking at ways to improve security, usability and functionality in order to provide the best service possible to companies and their customers.

Whilst AI may be essential to the future of blockchain, Blockpass will make sure users are safe from the risks it can also bring in less scrupulous hands.

About Blockpass

Ditch tedious onboarding and say hello to seamless compliance with Blockpass, the ultimate turnkey solution for KYC, KYB, and AML. Experience the market's most efficient and cost-effective compliance suite, built by seasoned compliance veterans and crypto-natives. Automate compliance processes, eradicate fraud, and onboard globally with confidence. Verify businesses worldwide, launch bank-grade verification for your organization, and instantly activate compliant KYC/AML for DeFi, exchanges, token launchpads, NFT mintings and beyond. Through Blockpass’ decentralized network of a million pre-verified crypto-enthusiasts and a thousand pre-verified businesses, you can expand your reach effortlessly. Leverage Advanced KYC BotTM for intelligent remediation, On-Chain KYC® for data-free anonymity, and Unhosted Wallet KYCTM to meet Crypto Travel Rule regulations. Join Animoca Brands, Cardano, Polygon, Chainlink, Delta Exchange, National Geographic, TinyTap, Seedify, ChainGPT, Iskra and many more in partnering with Blockpass for compliance you can trust, growth you can accelerate and an experience you can enjoy. Join the cutting edge of secure, streamlined onboardings.

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- By Matthew Warner